Tech3 | Is Zepto's meat brand Relish nearing a Rs 500 crore business yet; IT firms hold off salary hikes; and more?

Tech3 | Is Zepto's meat brand Relish nearing a Rs 500 crore business yet; IT firms hold off salary hikes; and more?

Breaking: Swiggy gets shareholders' nod to increase IPO size to Rs 5,000 crore

One quick thing: SEBI’s rules could impact 60% of F&O trades, says Zerodha's Nithin Kamath?

In today’s newsletter:?

  • Did Relish meat Zepto's expectations?
  • IT firms hold off salary hikes
  • Google ups AI game in India

Did Relish meat Zepto's expectations?

A year ago, Zepto launched Relish, its in-house meat brand, to challenge established players like Licious, Nandus, Venky’s and others.?

  • The brand's initial success seemed to validate Zepto's strategy

A reality check: While Zepto had previously projected Relish to reach a revenue of Rs 500 crore, internal documents accessed by us reveal a different reality.?

  • The brand has clocked monthly sales of only Rs 12-15 crore so far in FY25

  • This translates to an annualised revenue of Rs 144-180 crore, significantly lower than the earlier projections

The current ARR is close to the revenue run rate of Rs 150 crore it had achieved in March 2024. This means that Relish’s sales have more or less been steady in the last two quarters?

  • The August to November period is typically a slow period for all meat businesses, thanks to the various festivities in India

Ande ka funda: Zepto has not been accounting for revenue from egg sales, which amounts to around Rs 11 crore each month.?

The company is now moving to include eggs as part of the Relish business. Once that happens, the monthly numbers will increase.

"Without the negative impact the festive season has on meat sales, we are baselining an annualised run-rate of Rs 300+ crore run rate in our meat business. We committed to hitting a Rs 500 crore run-rate by the end of the year and we are quite confident of that milestone," CEO Aadit Palicha told us.?

More meat here

The startup ecosystem continues to evolve rapidly with Swiggy's IPO plans and Google's focus on AI in India. As we witness companies like these scale to new heights, it’s a reminder of the incredible opportunities startups present today.

回复
Siva Terli

Banker, Anti-Financial Crimes Testing and Assurance

5 个月

Funny, I didn't know Relish is an in-house brand of Zepto. I have been ordering these eggs for they are cheaper than any others that are available on any online delivery platform and they are better in size and hygienic. I wonder if the sales will remain at the same price point.

回复
Ritika Gupta

Associator Director Growth & Marketing at StayVista | Experienced Digital Marketer | Analytics | Product & Growth | GrowthX fellow

5 个月

It’s interesting how factors like seasonality and market positioning are impacting the numbers. The inclusion of eggs as part of the business could be a strategic move to drive momentum. Looking forward to seeing how they adapt and grow as the year progresses.

回复

要查看或添加评论,请登录

moneycontrol.com的更多文章

社区洞察

其他会员也浏览了