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Mint
2 days ago
- Business
- Mint
With one eye on IPO, Ratnadeep Retail engages DAM Capital for $100 million fundraise
Next Story Priyamvada C The company aims to tap the public markets over the next 12-24 months so this is more like a pre-IPO round, a source told Mint, adding that a deal has been in the works for over a year now. The company is exposed to heightened competition from larger national players such as Spencer's and Reliance Fresh, among others. Image: Pixabay Gift this article Mumbai: Ratnadeep Retail Pvt Ltd has engaged DAM Capital to facilitate a more than $100-million fundraise as the Hyderabad-based grocery chain looks to expand operations and eventually list on the public markets, at least four people familiar with the matter said. Mumbai: Ratnadeep Retail Pvt Ltd has engaged DAM Capital to facilitate a more than $100-million fundraise as the Hyderabad-based grocery chain looks to expand operations and eventually list on the public markets, at least four people familiar with the matter said. 'Ratnadeep plans to raise about ₹ 500-600 crore ($60-75 million) in fresh capital and the promoters will also look to monetise some of their stake in the round," said one of the people cited above. 'The company also has ambitions to tap the public markets over the next 12-24 months and this is more like a pre-IPO round that they are discussing," a second person said, adding that a deal has been in the works for over a year now. 'The capital will be used to increase store count, double down in existing areas and expand to new geographies," the third person said, adding that the company has approached several funds. If the funding materialises, it will mark the company's first external round. DAM Capital declined to comment while Ratnadeep was yet to respond to Mint's emails at the time of publishing. Established regional player Ratnadeep has established a regional presence in the organised retail segment, operating about 170 stores under the brands Ratnadeep and NationalMart in Telangana (primarily Hyderabad), Karnataka, and Andhra Pradesh. The company recently added two new store formats to its existing supermarket model – Ratnadeep Select and Ratnadeep Express. Select aims to become an experiential destination' offering a collection of products from around the world, while Express is a neighbourhood supermarket that sells daily essentials. As a premium retailer, the company caters mainly to the upper middle class with the Ratnadeep brand, while NationalMart targets value-focused customers with groceries, apparel and general merchandise. Historically, the company has funded new stores through a mix of debt and internal accruals. Cost pressures and competition However, its operating margins and profitability have been hit by higher employee costs, head office and warehouse expenses, and other fixed costs (such as rent) as newer stores have opened, according to a Crisil report published in September 2023. 'The impact of new stores being added on achieving break-even along with their geographical diversification on the operating profitability of Ratnadeep will remain a key monitorable," the credit rating agency said. The company is also exposed to heightened competition from larger national players such as Spencer's and Reliance Fresh, among others. Many of these major companies have set up stores with catchment areas overlapping those of their competitors, resulting in modest operating profit margins. The retail segment also faces a significant threat from quick commerce and inflationary expenses, which have led to softer sales, higher costs and narrower margins. The company was founded in 1987 as a proprietorship firm by Sandeep Agarwal, Manish Bhartiya and Mitesh Bhartiya. In 2001 it was reconstituted as a private limited company with the current name. In FY23 it brought in ₹ 1,385.6 crore of revenue and ₹ 15.2 crore in profit, up from ₹ 1,192.3 crore of revenue and ₹ 12.9 crore of profit in FY22, according to data from market intelligence provider Tracxn. Topics You May Be Interested In Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Mint
18-07-2025
- Business
- Mint
Meat delivery startup FreshToHome eyes up to $50 million to expand Middle East business
Priyamvada C Online fish and meat startup FreshToHome is raising fresh capital to strengthen its Middle East play, two years after Amazon-backed round. Revenues surged 15x in FY24 even as losses halved. Shahnawaz Kadavil, CEO and Co-Founder, FreshToHome. (Illustration by Priya Kuriyan) Gift this article MUMBAI :FreshToHome, a Bengaluru-based online retailer of fresh fish and meat, is in advanced talks to raise $40–50 million in primary capital as it expands aggressively in the Middle East, according to two people with direct knowledge of the matter. FreshToHome, a Bengaluru-based online retailer of fresh fish and meat, is in advanced talks to raise $40–50 million in primary capital as it expands aggressively in the Middle East, according to two people with direct knowledge of the matter. 'The company has already raised a third of the capital from a Middle East-based family office and is in talks to raise the remaining amount over the next couple of weeks," said one of the people cited above. The person added that some of the existing investors may also put capital in this round. The company is also exploring partnerships with multiple entities in the region. 'The Middle East has become their primary focus now as it is one of their most important markets," the person said. FreshToHome did not respond to Mint's email seeking comment. Mint has also reached out to the company for details on the scale of its Middle East operations, including its geographic footprint, revenue contribution, and expansion plans. Backed by Amazon, Dubai players This fundraise attempt comes over two years after FreshToHome raised $104 million in February 2023, in a round led by Amazon Smbhav Venture Fund. Other backers include Iron Pillar, Investcorp, Investment Corporation of Dubai, Ascent Capital, E20 Investment Ltd, Mountshan Judi Ventures, and Dallah Albaraka. At the time, co-founder and CEO Shan Kadavil said the funds would be used to deepen the company's footprint across Gulf Cooperation Council (GCC) markets and increase its network of offline stores. While FreshToHome generates a bulk of its revenue from India—serving over 100 cities—its Middle East business has grown significantly over the past few years. It had entered the UAE market in 2019 and now has a presence across several locations in the region, including Abu Dhabi, Ajman, Al Ain, Fujairah, Dubai, Ras Al Khaimah, Sharjah, Umm Al Quwain, as well as in Saudi Arabia. To date, the startup has raised $286 million across eight funding rounds and is valued at $572 million, according to market intelligence platform Tracxn. Fish rules the plate In a 2023 interview with Mint, Kadavil had said that fish and seafood accounted for the largest share of FreshToHome's sales at 42%, followed by poultry at 38%, and meat. He also pointed to the untapped potential in organized online play within India's massive unorganized fresh food sector. 'The market size is $50 billion across fish and meat, of which 70% is fish, 20% poultry and the rest is mutton," he said. While India's wet market remains large and largely offline, Kadavil estimated the size of the organised and online market at only $750 million at the time. AI-led sourcing model Founded in 2015 by Shan Kadavil and Matthew Joseph, FreshToHome uses patent-pending AI-powered supply chain technology to source directly from farmers and fishermen. Its cold chain setup helps cut out middlemen and ensures delivery within 24–36 hours. The startup also enables electronic bidding for farmers and fishers through its app, giving them greater control over pricing and quality while reducing leakages in the supply chain. The pandemic helped FreshToHome scale rapidly as more Indian consumers adopted e-commerce for meat and fish. The company leveraged this demand with its brand promise of '100% Fresh and 0% Chemicals." Rivals such as Licious and ITC-backed Meatigo also saw a similar surge in demand as customers prioritised quality and safety. Also read: Licious wants to cross the road. But it risks getting cooked. FreshToHome also recently jumped on to the quick commerce bandwagon to sell its products in a timeframe of 15-20 mins across select areas in India. The company's standalone revenue from operations surged to ₹ 369.6 crore in FY24 from ₹ 24.9 crore a year earlier. Its losses also more than halved to ₹ 149.7 crore, Tracxn data showed. Topics You May Be Interested In
Mint
16-06-2025
- Business
- Mint
PAG-backed Manjushree Technopack may spend $150-180 mn to acquire 4-5 assets as packaging sector undergoes consolidation
Next Story Business News/ Companies / News/ PAG-backed Manjushree Technopack may spend $150-180 mn to acquire 4-5 assets as packaging sector undergoes consolidation Priyamvada C , Sneha Shah The sector, which is at the cusp of consolidation, has shown substantial growth potential, driven by demand across India's consumer, industrial, pharmaceutical, and export industries, making it an attractive proposition for PE firms and global companies. Last year, US-based fund Advent International sold its majority stake in MTL at a valuation of $1 billion to Asia Pacific-focused private equity firm PAG. Gift this article MUMBAI :PAG-backed Manjushree Technopack Ltd (MTL) is in talks to acquire 4-5 assets and may spend a combined amount of $150-180 million to bolster its offerings, three people familiar with the matter said, further underscoring the growing consolidation in the packaging sector. PAG-backed Manjushree Technopack Ltd (MTL) is in talks to acquire 4-5 assets and may spend a combined amount of $150-180 million to bolster its offerings, three people familiar with the matter said, further underscoring the growing consolidation in the packaging sector. "The company is looking to strengthen its presence in its existing areas and bolster its revenue growth. It has identified 4-5 candidates to acquire, and the discussions are ongoing. Two of them are in advanced stages and are expected to happen in the coming months," the people added. 'These acquisitions are aimed at improving MTL's revenue growth and justify the billion-dollar valuation it sought when PAG invested in the company last year," one of the people cited above said. MTL did not respond to Mint's emails sent on Friday requesting comment. The packaging sector, which is at the cusp of consolidation, has shown substantial growth potential, driven by demand across India's consumer, industrial, pharmaceutical, and export industries. This makes it an attractive proposition for PE firms and strategics orglobal companies looking to buy assets in India. Also Read: MTR Foods owner Orkla files draft IPO papers, to sell 22.8 mn shares Last year, US-based fund Advent International sold its majority stake in MTL at a valuation of $1 billion to Asia Pacific-focused private equity firm PAG. Initially, Advent sought an exit on its six-year-old bet through an IPO, which was later called off when the private equity firm got the opportunity for a full exit at a better price in the private markets. PAG investments While proceeds from the offer-for-sale were expected to go to Advent, MTL detailed that the fresh issue will be used to repay/prepay outstanding borrowings, in full or in part, and pursue inorganic growth through acquisitions and other strategic initiatives, as per its DRHP filed in August last year. Meanwhile, PAG made its second investment in the packaging sector through a majority stake in Pravesha Industries Pvt. Ltd for $200 million in January. While Manjushree serves a diversified customer base spanning consumer end-markets such as home care, personal care, food and beverages, paints, nutraceuticals, agrochemicals, liquor and spirits, and dairy, Pravesha stands out as a specialised player, focusing solely on pharmaceutical packaging.'PAG's investment has enabled MTL to leverage Pravesha's network to foray into pharmaceutical packaging," one of the people cited above said. Broadly, several investment firms, like Carlyle Group and Bain Capital, have also created dedicated platforms to acquire and integrate mid-size companies. While Carlyle announced its diversified auto platform by combining Highway Industries and Roop Automotives, Bain is also in the process of creating a similar structure. Carlyle also has a platform in the generic pharmaceuticals segment in India through partnering with Viyash Life Sciences in 2021 and acquiring Symed Labs, a manufacturer of niche APIs to enable backward integration. Over the years, Manjushree has acquired companies such as Pearl Polymer, Classy Kontainers, and Hitesh Plastics Pvt., which have helped it increase its geographic presence across India and expand its product categories and customer base in newer industries. MTL, which already has expertise in select areas, plans to further bolster its presence through inorganic and organic growth plans. According to its DRHP, the company reported an operating revenue of ₹ 2,117 crore in FY24, compared to ₹ 2,096 crore a year earlier. Its profit more than doubled to ₹ 140 crore. Growing through acquisitions With other acquisitions such as Varahi in 2017 and facilities of National Plastics Industries Ltd (Napla) in fiscal 2020 in North India, its overall market reach and ability to service diverse clients improved substantially,Crisil said in a report in December. The acquisitions have also helped to improve product diversity (Napla acquisition has added dispensers and sprays to the portfolio), add new clients, and supply new products to existing clients, thereby improving wallet share, the credit rating agency said. 'These helped to expand into new client and product (such as caps and closures) segments. Addition of new plants in Vizag and Mysore will further support client additions, apart from enhancing product profile," Crisil said, adding that the acquisition of the plastic packaging business of Oricon is expected to further strengthen its business risk profile. Manjushree Technopack's presence in North India improved after the acquisition of Varahi, Napla, and PPL. It should continue to help MTL integrate manufacturing units with customers' supply chain systems, underlining the successful integration of its past transactions. Additionally, the newly commissioned Vizag plant, the upcoming Mysore plant, and recent acquisitions will bring the company's facilities closer to customers, Crisil said. India's packaging sector, valued at ₹ 6,399 billion in FY23, is expected to reach ₹ 8,620 billion over the next five years, driven by various factors such as rising disposable incomes, urbanisation, increased demand for processed and packaged goods, and a thriving e-commerce sector, according to a Technopak report last year. The report added that other government initiatives focused on organised retail and food safety are further propelling demand for high-quality, standardised packaging solutions. MTL, which competes with listed rivals such as Moldtek Packaging, TCPL Packaging, Uflex Ltd and EPL Ltd, is one of the largest players in the rigid plastics packaging business in India. It has a strong market share supported by established relationships with customers such as Reckitt Benckiser,Dabur India, Hindustan Coca Cola Beverages, PepsiCo India, and Mondelez India Foods. Also Read: Sheela Foam eyes further investment in Furlenco as furniture rental market grows While the packaging industry is highly fragmented, leading to intense competition that may continue to constrain scalability, pricing power, and profitability, Crisil said MTL may continue to benefit from its well-developed, in-house design facilities, capabilities of diverse manufacturing processes, and ability to pass on raw material price variations to clients. Topics You May Be Interested In Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
