Latest news with #Verlinvest
Time of India
3 days ago
- Business
- Time of India
Investors hungry for stakes in India's food and beverages sector
India's food and beverage (F&B) sector is cooking up serious interest from investors, with deals and discussions heating up across the board, from quick service restaurants (QSRs) to packaged food brands, as reported by TOI. Despite a broader slowdown in consumption, brands like Theobroma, Haldiram's, and Wow! Momo is drawing sustained attention. As per a TOI report, sources say investors are not only looking at established names but are also evaluating fast-growing players like Nik Baker's and regional QSR chains, including a North-based pizza brand that has caught the eye of potential backers. Explore courses from Top Institutes in Select a Course Category Artificial Intelligence Cybersecurity Data Science Technology Management Project Management others Others healthcare Public Policy Product Management Design Thinking Degree Finance Leadership MBA Data Analytics CXO Digital Marketing Data Science Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details Packaged food, particularly in the ready-to-eat and ready-to-cook segments, is also in play, with nearly a dozen deals reportedly in the pipeline. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like National University Knee Pain Treatments Might Surprise You Knee Pain Treatment | Search Ads Undo Fireside Ventures is building out a strong food-focused pipeline, said partner Dipanjan Basu. Verlinvest, the Belgian investment firm that has backed Blue Tokai Coffee Roasters, Lahori Zeera, and Epigamia, plans to double down on Indian F&B with both follow-on funding and new deals. Its India investments this year are expected to top $100 million. 'For global investors looking to invest in India, consumer and healthcare must be on the shopping list! There is interest in performing companies, and the next couple of years should augur well for consumption given the tax breaks and factors such as the reduction in import duty for edible oil, etc.,' said Arjun Anand, managing director and head of Asia at Verlinvest. Live Events The year has already seen major moves. Temasek, IHC, and Alpha Wave Global acquired minority stakes in Haldiram Snacks Food, valuing the company at $10 billion. Devyani International , which operates KFC in India, picked up a majority stake in Biryani By Kilo's parent Sky Gate Hospitality. Private equity firm ChrysCapital acquired a controlling stake in Theobroma Foods. The Belgian Waffle Co. has also been scouting for investment. While it initially sought a majority deal, sources now suggest the transaction could close as a minority stake sale. 'India's food space is a large industry with an attractive growth profile based on the shift from unorganised to organised. With an increase in disposable income and convenience-led multiple food options via food aggregators, Indians are eating out and ordering food more than before. This has given opportunity to many homegrown brands to scale. As private equity investors, our endeavour is to discover market leaders that are growing at 1.5-2 times the industry growth rate,' said Rajiv Batra, director and lead for consumer sector investments at ChrysCapital. Within QSRs, the focus is on brands with pan-India aspirations. Packaged food, meanwhile, continues to attract investor interest in regional names as well. The economics in QSRs tend to be more attractive than casual dining, said EY's Mayank Rastogi. 'In QSR, unit economics and TAM (total addressable market) are generally more attractive than the casual dining space, where returns on investments have been tepid. Investors made good returns in the QSR space,' he said. While IPOs have served as the preferred exit route for food service brands, mergers and acquisitions dominate the packaged food segment. 'FMCG players are hungry for acquisitions,' Rastogi added. The growth of clean-label and health-focused products has widened the investor pool in packaged food. 'Food brands earlier found it hard to scale the business but now quick commerce has enabled easy distribution,' Basu noted. According to Siddharth Bafna, partner at Lodha & Co, more capital-raising rounds are expected this year. 'We also anticipate an increase in M&A activity as larger companies pursue inorganic growth to expand their category presence and consolidation among small to mid-sized companies seeking to become IPO ready,' he said. Large players like ITC and Reliance have already made their presence felt through recent acquisitions. The message is clear: India's food sector is too big, and growing too fast, to ignore. With inputs from TOI
Time of India
30-06-2025
- Business
- Time of India
Wakefit seeks 468 crore in IPO, major backers plan partial exit
Bengaluru: Sleep and home solutions brand Wakefit Innovations has filed draft papers with market regulator Sebi to raise Rs 468 crore through a public offering. The Bengaluru-based company's initial public offering (IPO) will consist of a fresh issue of shares worth Rs 468 crore and an offer for sale (OFS) of up to 5.8 crore equity shares by existing shareholders, according to its draft red herring prospectus (DRHP) dated June 26. Promoters Ankit Garg and Chaitanya Ramalingegowda will offload a portion of their holdings in the OFS, along with several institutional backers including Peak XV Partners, Verlinvest, Investcorp, and Paramark KB Fund. Peak XV plans to sell up to 2.5 crore shares, while Verlinvest and Investcorp funds will offload a combined 61 lakh shares. Other participating investors in the OFS include SAI Global, Redwood Trust, and Nitika Goel, chief marketing officer at Zinnov. The company may consider a pre-IPO placement of up to Rs 93.6 crore. If undertaken, the size of the fresh issue will be reduced accordingly. According to the DRHP, Wakefit intends to use the net proceeds from the fresh issue to fund capital expenditure, marketing and brand-building activities, and general corporate purposes. You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru Founded in 2016, Wakefit began as a direct-to-consumer mattress company and has since expanded into a broader home solutions brand, offering furniture and home decor through its online and offline distribution network. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Tiny Hearing Aid Is Now Available To Test for Free AudioNova Undo It operates five manufacturing facilities across Karnataka, Haryana, and Tamil Nadu. For the nine-month period ended December 2024, Wakefit reported operating revenue of Rs 971 crore and a loss of Rs 8.8 crore. In FY24, the company posted Rs 986 crore in revenue and a net loss of Rs 15 crore, compared to a loss of Rs 145 crore in the 2022-23 financial year.
Mint
29-06-2025
- Business
- Mint
After Wakefit, Verlinvest lines up Purplle and Veeba for IPOs
One down, at least two more to go. After Verlinvest SA's portfolio company Wakefit Innovations Ltd filed for an IPO last week, the Belgium-based investment firm is queuing up beauty products platform Purplle and condiments maker Veeba for the public markets. At least two more consumer startups from the investment firm's India portfolio could go public over the next two years, said Arjun Anand, executive director at Verlinvest. Wakefit, which sells mattresses, beds, sofas, and home furnishings, filed for a ₹468.2 crore initial public offering last week. Verlinvest is now preparing some of its mature investments, including Purplle and Veeba, for a public market debut, Anand told Mint, adding that both these companies have crossed ₹1,000 crore in annual revenue. Veeba and Purplle have not yet filed their financials for 2024-25. While Wakefit is in an advanced stage of going public, Veeba and Purplle are likely to consider a listing over the next two years, Anand added. 'That's how the flywheel works," said Anand. 'Four to five mature companies will exit, three to four new ones will enter, and we will double down on the rest, just like we did with Blue Tokai." Verlinvest invested a second tranche of $9 million in Blue Tokai Coffee Roasters this month, after putting in $20-21 million last year in the cafe and coffee brand. Mint reported in January that the firm was planning to participate in a fresh investment round in pet care brand Heads Up For Tails. Verlinvest's other investments in India include yoghurt brand Epigamia and fertility services chain Ferty9. It previously also backed edtech platform Byju's. As part of its plan to add 2-3 brands to its India portfolio every year, Verlinvest is actively scouting segments such as healthcare services, food and beverage, beauty, and experiential lifestyle for fresh investments, according to Anand. Purplle, founded in 2012, has raised more than $500 million. In October, the beauty products retailer announced closing its Series F funding round at ₹1,500 crore (about $175,000), led by Abu Dhabi Investment Authority. In July last year, Purplle said it had raised ₹1,000 crore in a funding round led by an arm of ADIA at a valuation of $1.25 billion. Its other investors include Blume Ventures, billionaire Azim Premji's Premji Invest, and Sharrp Ventures. Veeba, also founded in 2012, sells sauces, dips, and other condiments. According to market research platform Tracxn, Veeba has raised $58.3 million from investors including Verlinvest, DSG Consumer Partners, and Saama Capital, and is currently valued at about ₹1,860 crore (about $217 million). Purplle declined to comment on its IPO plans. Veeba didn't immediately reply to Mint's email. Verlinvest's flywheel Founded in 1995 by the family promoters of Belgium's AB InBev, the world's largest beer company, Verlinvest invests in consumer companies across Asia, Australia, Europe, and North America. Unlike most private equity or venture capital funds, Verlinvest does not raise capital in cycles or return capital to limited partners, who are investors in PE and VC funds. Instead, it invests permanent capital from its founding shareholders and recycles gains from successful share sales into new investments. 'Our structure gives us flexibility on timelines. We are not bound by fund life," Anand said. 'We can keep putting more capital into a company over time, and exit when the market is ready." Verlinvest's approach 'gives founders breathing room to build products and expand distribution networks genuinely, rather than chasing quick returns", said Roma Priya, founder of Burgeon Law, which counts both established and emerging businesses among its clients. 'That aligns well with India's consumer brand landscape, where long-term development often wins over fast scale." India's public market has recently seen a pipeline of consumer-facing companies joining the IPO queue, following in the footsteps FSN E-Commerce Ventures Ltd (Nykaa) and Honasa Consumer (Mamaearth), both beauty products retailers, and electric scooter maker Ather Energy. Eyewear retailer Lenskart, online meat seller Licious, electronics and wearables maker boAt, and stock-broking platform Groww are also planning to ride the resurgence in India's IPO market. 'India had the highest number of IPOs in the Asia-Pacific region recently, and over 90 companies have already filed to go public," said Priya. 'For global investors, this signals better exit opportunities driven by improved market sentiment, regulatory support, and a maturing base of Indian retail and institutional investors." Per Wakefit's IPO filing, Verlinvest plans to offload about 10.19 million shares purchased at ₹82.67 apiece, signalling a lucrative investment exit for the firm. Earlier this year, Verlinvest sold its remaining 12% stake in Sula Vineyards Ltd, which made its public market debut in December 2022, and trimmed its holding in Purplle from 17% to 10% through a secondary transaction involving the Abu Dhabi Investment Authority (ADIA). 'Sula returned over 4-5x on our investment, and Purplle also delivered extremely high returns," said Anand. 'Because the exits did well, we are in a strong position to reinvest and scale up."
Time of India
27-06-2025
- Business
- Time of India
Wakefit seeks Rs 468 crore in IPO, major backers plan partial exit
Bengaluru: Sleep and home solutions brand Wakefit Innovations has filed draft papers with market regulator Sebi to raise Rs 468 crore through a public offering. The Bengaluru-based company's initial public offering (IPO) will consist of a fresh issue of shares worth Rs 468 crore and an offer for sale (OFS) of up to 5.8 crore equity shares by existing shareholders, according to its draft red herring prospectus (DRHP) dated June 26. Promoters Ankit Garg and Chaitanya Ramalingegowda will offload a portion of their holdings in the OFS, along with several institutional backers including Peak XV Partners, Verlinvest, Investcorp, and Paramark KB Fund. Peak XV plans to sell up to 2.5 crore shares, while Verlinvest and Investcorp funds will offload a combined 61 lakh shares. Other participating investors in the OFS include SAI Global, Redwood Trust, and Nitika Goel, chief marketing officer at Zinnov. The company may consider a pre-IPO placement of up to Rs 93.6 crore. If undertaken, the size of the fresh issue will be reduced accordingly. According to the DRHP, Wakefit intends to use the net proceeds from the fresh issue to fund capital expenditure, marketing and brand-building activities, and general corporate purposes. You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru Founded in 2016, Wakefit began as a direct-to-consumer mattress company and has since expanded into a broader home solutions brand, offering furniture and home decor through its online and offline distribution network. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like One of the Most Successful Investors of All Time, Warren Buffett, Recommends: 5 Books for Turning... Blinkist: Warren Buffett's Reading List Click Here Undo It operates five manufacturing facilities across Karnataka, Haryana, and Tamil Nadu. For the nine-month period ended December 2024, Wakefit reported operating revenue of Rs 636 crore and a loss of Rs 18.4 crore. In the last financial year, the company posted Rs 813 crore in revenue and a net loss of Rs 7.3 crore, compared to a loss of Rs 49.6 crore in the 2022-23 financial year.
Yahoo
23-06-2025
- Business
- Yahoo
Gen Z opportunity explained – industry experts on brand loyalty to authenticity and health
Just like the generations before them, Gen Z consumers offer specific opportunities for food and drinks brands but the cohort might not be so easy to conquer amid shifting conceptions and priorities. Arguably, Gen Z are much more aware of the environment and sustainability issues than their forebears and more concerned about the links between diet and health. And they are certainly more tech savvy than previous generations, especially around more youth-centric social media platforms such as TikTok. But one also has to bear in mind the Gen Z age group, typically regarded to be 16-25 years and remember what our own consumer habits were before we moved up the age ladder. And did we even care in an arguably care-free world? We asked industry experts from Verlinvest, Shore Capital, Manna Tree Partners and AlixPartners for their views on how producers can tap into the Gen Z age bracket. Is it all about locking in brand loyalty and/or a preference for emerging brands? Are price and convenience key factors? And how important are environmental considerations? Gen Z cares deeply about social and environmental issues but these interests are not the primary food purchase drivers. Brand, quality and value for money will always matter most. Meat consumption has shifted rather than declined as everyone expected in the short-lived plant-based revolution. People are eating less beef and more chicken. Fewer hamburgers and more fried chicken sandwiches. Enhanced nutrition products are exploding in popularity as it allows Gen Z consumers to get great tasting foods that are engineered to be healthier. In today's market of seemingly infinite substitutes, the narrowing cost advantages and competitive digital marketing narrative matters more and more. Convenience matters but not as much at the brand/business level. The median age of first-time home buyers in the US is up ten years, from 28 in 1990 to 38 in 2024. As young people are renting rather than buying (or living with parents), they have a lot more money to spend. Social media has created an increased desire for health consciousness, bringing self-care and fitness to the forefront. There is certainly increased scrutiny of ingredients lists but often based on trends and a desire to feel like a nutritional intellectual rather than scientifically proven concerns related to ingredients. The trick is in creating a lasting habit with the younger consumer, which is much harder for a brand to do than with the generations of the past Young people are far more interested in trying and trusting new brands. New brands are fun. The trick is in creating a lasting habit with the younger consumer, which we have seen is much harder for a brand to do than with the generations of the past. Brands can grow very quickly but if a lot of purchases are trial rather than recurring purchases, the brand is at risk of being a fad. Social and experiential is the next frontier for food brands. It exists in marketing through activations and collaborations. The brands that can bring people together around their product are going to capture the imaginations and loyalty of young people. Sharing isn't just a behaviour – it's a brand strategy for the future. They are undoubtedly the age group of the takeaway meal. Take that group out of the food and beverage channel and there would be a material slump in demand. At the same time, they're the age group that's got the highest level of abstinence from alcohol. I think you'll find they're very engaged on the workings of meal deals. They'll be able to tell you what Boots is doing versus Greggs, what Greggs is doing versus Tesco, and what Tesco is doing versus Pret. That's why there's a lot of digitisation in that arena. In terms of shopping channels, this is definitely the age group that's most into remote delivery, the likes of Uber Eats and Deliveroo. They are the digital age and that's probably going to be the key characteristic of how suppliers see the market When you look at the digital world, they are the digital age, and that's probably going to be the key characteristic of how suppliers see the market. And how does that kick into product formulation, assortment and marketing as opposed to anything around manufacturing. In terms of what they consume, I think there are a lot of moving parts – there are some very healthy young people and some unhealthy people when it comes to obesity. The convenience channel would also be much more important to them than the superstore. The vast majority of them don't have a car and you need a car to do a trolley shop at a superstore. They are definitely the shoppers of the future. You can absolutely see why brand owners are trying to reach people, and particularly young people, because they're the most digitally savvy. Equally, those young people are very switched on in talking to each other and sussing out what's a deal and what isn't a deal and in that respect brand owners have to tread very carefully. They are definitely trying to get into the heads of brand loyalty for the rest of people's lives. It's a much more immediately addressable and cheaper mechanism to reach people today than 25 years ago. If you created a brand 30-odd years ago, pre-internet, you'd have to go through all sorts of mechanisms to try and reach people and you'd have to have a reasonable stash of dosh to get a brand launched and to build it up. Gen Z, Gen Alpha, younger generations are going to first and foremost demand authenticity. If an old brand tries window-dressing itself by adding nutrients or features and benefits, that is not as likely to work as well as, 'how can we create an authentic solution, either a new brand or NPD? How can we create something new that authentically meets the needs of those consumers and speaks to them?' I do believe that health and wellness is going to be at the centre of what Gen Z and Gen Alpha want. Many of these large and mid-sized food companies, they're so dependent on legacy brands created in the 50s and 60s. They were the modern brands of previous generations and the reality is those legacy brands don't necessarily speak to younger consumers in the way they did to the older ones. If you're running a food company, you've got to start thinking about what are the seeds I'm planting to go and ultimately appeal to that next generation. Sometimes the mistake that can be made is how do we modernise the legacy brand and let it do the job of appealing to a new generation and sometimes that works but a lot of times it doesn't. I'm struck by how counterintuitive sometimes things are We talk about health and wellness, sustainability and the environment, and all those things in reality do play out in purchasing power and how money by that generation is being directed. I'm struck by how counterintuitive sometimes things are. Some Gen Z who grew up eating a bunch of processed food may continue to do that but I'm pretty surprised at the number of people in this generation who say I'm going to do it differently than the way I was brought up. This is a generation where many of them grew up during the pandemic in a time where the seeds of mistrust were being sown. A big part of this generation grew up believing they need to be more reliant on themselves, and less on institutions, which in our business means 'Big Food', and some of these brands aren't as healthy as they thought they were. There's a role for legacy brands to play and new emerging brands. Cheerios cereal, for example. General Mills has done an amazing job in keeping that brand relevant over a century now, everything from goodness of oats to heart health messaging. They've had really nice success with a Cheerios protein extension. You'd be pretty blown away by the willingness that Gen Z has to invest their dollars in healthier food. Health and wellness is very price resilient. It's more price resilient than you might think. We're also living in a time right now where private label or house brands are growing faster than they ever have been. In the US, it's always been a lot smaller than say in the UK but private label continues to grow share You're going to see more and more momentum buying healthier private labels driven by Gen Z and Millennials. But by the same token they're also going to be the ones buying things like pasture-raised eggs for $8 a dozen and Magic Spoon cereal for $8 a box. Like most generations, it is a bit of a catch-all. They're not by any means consistent or coherent in what they're doing or what they're after, or even what their income levels or choices are. What we do see is convenience is important. Ready-meal kits and things like that aimed at the older part of this generation who are perhaps living away from home for the first time. Clearly, with the issues of inflation, price is king. But I believe we're looking at probably one of the worst times to graduate university since perhaps 2007-2008. Many of those are struggling to find jobs and moving back with their parents where they're not necessarily making as many choices. Certainly in this generation, for the whole or parts of it, high-protein healthy eating is there and that's probably the impact of social media on what your body shape should look like and aspire to. There is an increasing awareness about ESG issues within that cohort There is a significant trend around moderation. I was talking to a brewer recently with a big German presence, and they were saying that German teens, or German Gen Z, are buying less alcohol than used to be bought before and significantly. I think we're seeing that broadly everywhere. There is an increasing awareness about ESG issues within that cohort, they've grown up through the whole conversation about climate change and all of that. Broadly, some are making decisions based on those trends. There is heavy marketing directed at Gen Z on social media but it's much more around emotional and functional benefits, saying influencers consume things or prepare things, than it is around greenwashing. There's a big risk with this generation that if you do try and greenwash something and say it's healthy or low GHG, whatever, they can be quite smart and find that out. And then there are people that expose that sort of thing on social media as well. If you think about HFSS regulations, a number of firms have reformulated to comply. Compliance allows you to market more and that's attracting consumers because you're able to market around the emotional benefits of the product. Potentially, entry through social media is a lot less than it used to be through TV ads, etc, to get that breakthrough with customers or customer awareness. But you do see a lot of smaller brands or start-ups getting a lot more cut through. The challenge with some of those is not so much getting customer awareness but it's getting continued purchase because the product needs to deliver. "Gen Z opportunity explained – industry experts on brand loyalty to authenticity and health" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. 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