India’s Consumer Retail Sector Sees Growth
In the third quarter of 2024, India’s consumer retail sector experienced significant growth with 123 deals valued at USD 3.1 billion. This growth was driven by the rapid expansion of quick commerce and direct-to-consumer brands, according to a report by Grant Thornton.
Mergers and Acquisitions
The sector led overall deal activity, accounting for 20% of total volumes, marking the highest activity level in two years. Mergers and acquisitions (M&A) saw 31 deals worth USD 629 million, a 36% increase from the previous quarter. Domestic M&A dominated with 90% of the volume and 97% of the value.
Key Deals
The top M&A deal was Zomato Media Pvt Ltd’s acquisition of Paytm – Wasteland Entertainment Pvt Ltd and Orbgen Technologies Pvt Ltd for USD 247 million.
Private Equity and IPOs
Private Equity (PE) activities marked the second-highest quarterly deal volumes in two years, with small-ticket deals dominating. The quarter also saw seven IPOs, with Brainbess Solutions raising USD 505 million, the largest since Q2 2022.
Naveen Malpani, Partner at Grant Thornton Bharat, noted the sector’s potential for innovation and scalability, especially with the upcoming festive season expected to boost sales.
Doubts Revealed
Consumer Retail Sector -: This is the part of the economy that deals with selling goods and services directly to people like you and me. It includes shops, online stores, and other businesses that sell things we use every day.
Zomato -: Zomato is a popular company in India that helps people order food online from restaurants. They also provide information about restaurants, like menus and reviews.
Acquisition -: An acquisition is when one company buys another company. This can help the buying company grow bigger and offer more services or products.
Paytm -: Paytm is a well-known digital payment platform in India. It allows people to pay for things using their phones instead of cash.
Wasteland Entertainment -: Wasteland Entertainment is a company that creates and provides entertainment content, like movies or shows. It was part of the acquisition deal by Zomato.
Orbgen Technologies -: Orbgen Technologies is a company that provides technology solutions, possibly related to entertainment or other services. It was also part of the acquisition by Zomato.
Private Equity -: Private equity involves investing money into companies that are not listed on the stock market. These investments are usually made by wealthy individuals or firms to help companies grow.
Festive Season -: In India, the festive season includes important celebrations like Diwali and Dussehra. During this time, people often buy more goods and services, which can boost the economy.