Delhivery’s Rapid Commerce Biz To Generate About INR 100 Cr Revenue In FY25 - Related to firstcry, 300, suggests, strategy, delhivery’s

Delhivery’s Rapid Commerce Biz To Generate About INR 100 Cr Revenue In FY25

, the rapid commerce segment has gone live with two core end-consumers, with an additional 15 expected to be onboarded within the current quarter.

Delhivery CEO Sahil Barua stated that the firm’s rapid commerce business offers two-hour deliveries and is currently operational in three cities – Bengaluru, Hyderabad, and Chennai.

Logistics major Delhivery expects its rapid commerce business to generate INR 80 Cr to INR 100 Cr revenue in the financial year ending March 2025 (FY25).

Amid the rising popularity of quick commerce in the country, logistics major Delhivery expects its rapid commerce business to generate INR 80 Cr to INR 100 Cr revenue in the financial year ending March 2025 (FY25).

In the company’s Q3 call, Delhivery CEO Sahil Barua stated that the firm’s rapid commerce business offers two-hour deliveries and is currently operational in three cities – Bengaluru, Hyderabad, and Chennai.

, the rapid commerce segment has gone live with two core end-consumers, with an additional 15 expected to be onboarded within the current quarter.

“The initial performance of dark stores has been promising, with some locations already handling close to 500 orders per day within just 45 days of launch,” unveiled Barua. , the breakeven point for these stores is approximately 700-800 orders per day, and several stores are nearing that threshold.

This comes months after Barua unveiled that Delhivery was planning to launch multi-tenant dark stores for “rapid in city delivery” for ecommerce companies.

In Friday’s (February 7) call, the CEO noted that rapid commerce is positioned as an add-on product targeting the top eight cities, catering to specific SKUs and customer needs.

Additionally, the revenue from this segment is expected to align with the margin structure of the broader ‘express’ business. While its contribution to overall ecommerce remains relatively small, the organization views this as a crucial capability to serve D2C brands more effectively.

Notably, on the financial front, the EBITDA margin of express service remained muted in Q2 and Q3.

, this was due to fixed investments, including in a new facility in Bengaluru, as well as higher fleet costs in metro cities during peak demand periods.

“These factors contributed to a revenue impact of INR 12-15 Cr. However, the enterprise remains confident of achieving stable EBITDA margins in the 18-20% range moving forward,” noted Barua.

The Delhivery cofounder mentioned that there are “too many players in the express parcel business, and this industry has to consolidate”.

“I believe this industry is facing a reckoning. The reality is that we had a similar discussion last year about how long these losses can be sustained. Now, incremental capital flow into the industry is becoming severely constrained,” he expressed.

He believes that to sustain themselves as going concerns, companies will need to reassess their business models. “… I expect the structure to shift in favour of Delhivery. For instance, if we were at X percent of the overall profit pool in Q2, that figure increased in Q3. Structurally, we see no reason why it wouldn’t continue to rise.”.

Earlier today, Delhivery reported a 114% increase in its consolidated net profit to INR [website] Cr in Q3 FY25 from INR [website] Cr in the year-ago quarter. Operating revenue rose more than 8% to INR 2,[website] Cr from INR 2,[website] Cr in Q3 FY24.

The business’s EBITDA declined marginally to INR 102 Cr during the quarter under review from INR 109 Cr in Q3 FY24.

Meanwhile, logistics major DTDC also showcased its entry into the rapid commerce sector with its “DTDC Express” arm.

Shares of Delhivery ended today’s trading session [website] lower at INR [website] on the BSE.

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FirstCry Shut 38 Stores In Q3, To Invest INR 300 Cr In Subsidiary

The funding will comprise INR [website] Cr from the proceeds of its initial public offering (IPO) and about INR 45 Cr from internal accruals.

The investment will be made through subscription to equity shares of DARP in one or more tranches in the ongoing financial year.

Kids-focussed omnichannel retailer FirstCry will infuse about INR 300 Cr in its wholly owned subsidiary, Digital Age Retail Private Limited (DARP), which is engaged in retail trade of baby, kids and maternity products.

The investment will be made through subscription to equity shares of DARP in one or more tranches in the ongoing financial year, as part of the enterprise’s strategic expansion plans, FirstCry’s parent Brainbees expressed in an exchange filing.

“Approved the proposal to invest an amount of INR 2,99,59,91,[website], by way of subscription to equity shares of Digital Age Retail Private Limited (DARP), wholly owned subsidiary of the enterprise, in one or more tranches,” the enterprise stated in an exchange filing.

The funding will comprise INR [website] Cr from the proceeds of its initial public offering (IPO) and about INR 45 Cr from internal accruals.

The enterprise noted that the funds will be used to set up new modern stores and towards lease payments for existing identified modern stores and towards repayment of existing loans of INR 45 Cr of Brainbees.

Notably, as of December 2024, the firm had about 1,136 modern stores (including firm operated and franchise stores), out of which 508 stores are firm-operated stores.

Also, for the first time, the business shuttered 38 business operated stores in Q3 FY25.

“This is the first time we have undertaken such a cleanup, as we had never closed even a single store before,” expressed Supam Maheshwari, cofounder and CEO of FirstCry.

The organization checked the foot traffic and wallet share within a given catchment area for the stores. “After analysing the data, we found that these 38 stores did not meet the desired performance levels. This decision was not specific to any one city or location but rather a strategic move to optimise our store network, ensuring more effective efficiency in terms of location, size, and overall performance,” Maheshwari expressed.

Responding to a question, Maheshwari denied that the rising popularity of quick commerce was behind the store shutdowns. He mentioned that the footfall could have been affected by various factors, including ongoing construction projects, which in some cases last two to three years, particularly in metro areas.

Further, he explained that while the business uses online data to identify optimal pin codes for opening new stores, the physical layout of a pin code in India can be quite broad, covering diverse areas within a city or town.

“In some cases, finding the right catchment area within that pin code becomes a challenge, as does securing an optimally sized store,” he quipped.

Overall, FirstCry’s consolidated net loss narrowed [website] to INR [website] Cr in Q3 FY25 from INR [website] Cr in the same quarter last year, driven by strong top line growth.

Revenue from operations surged [website] to INR 2,[website] Cr from INR 1,[website] Cr in Q3 FY24, while consolidated adjusted EBITDA rose 30% year-on-year to INR 293 Cr during the quarter.

However, the corporation’s international business seems to be facing headwinds. During the first nine months of FY25, the total orders of its international business registered only a small growth to [website] Mn from [website] Mn in the year-ago period.

In a statement, FirstCry mentioned that Q3 saw an increase in promotional activities “by two horizontal ecommerce players who are new entrants in the region (UAE and KSA) ”.

However, Firstcry consciously stayed away from following this trend and continues to focus on achieving sustainable growth by improving margins.

“This is the same story we have seen play out in India, where we have had multiple horizontal players entering the market, including two recent entrants. However, these are not just focussed on the baby and kids’ segment. It is challenging for a horizontal player to succeed in the mother, baby, and kids category, as it requires building multiple moats to sustain a vertical play,” Maheshwari explained.

Acknowledging the increase in the competitive intensity, the CEO expressed that the enterprise will continue to refine its strategy.

“We cannot make decisions based solely on one or two quarters of performance. This is exactly how we navigated the market in India, and we are confident in replicating that success across the region over a longer horizon,” he added.

Ahead of the Q3 results on Saturday (February 8), shares of FirstCry ended Friday’s trading session [website] lower at INR [website] on the BSE.

EBITDA declined marginally to INR 102 Cr during the quarter under review from INR 109 Cr in Q3 FY24.

Revenue from services rose over 8% to INR 2,[website].

OpenAI’s Super Bowl commercial suggests new marketing strategy

OpenAI is planning a fascinating marketing push by introducing its first TV commercial during the 59th Super Bowl this coming Sunday, February 9th, .

In addition to the game itself, the many surrounding traditions, and the halftime entertainment, Super Bowl Sunday is an auspicious night for advertising. Some of the most notable brands pay millions of dollars for up to 30 seconds of airtime during the popular football event. Reports indicate that advertisers have shelled out up to $8 million for spits during this year’s Super Bowl, where the San Francisco 49ers will play the Kansas City Chiefs. This is up from $7 million the year prior.

Details about OpenAI’s Super Bowl ad, or how much the organization paid for the TV spot remain unknown. However, its introduction to a more forward-facing advertising space comes at an interesting time. The artificial intelligence organization became notable in the tech space in late 2022 with the popularization of its ChatGPT chatbot. Since then, OpenAI has had a limited branding strategy, relying largely on social media, word of mouth, and news reports to evangelize its tools and services.

With more AI options being developed almost daily, and competition growing, the brand has onboarded its first chief marketing officer, Kate Rouch, the WSJ noted.

The business is also in talks to raise up to $40 billion at a valuation of $340 billion– with investor SoftBank leading the funding round.

While it seems OpenAI is keeping its ad under wraps until Super Bowl Sunday, many other tech brands have already teased their commercials online. Google’s commercial is called “Dream Job,” featuring a father prepping for a job interview using Gemini Live AI assistant. Microsoft is also airing its first Super Bowl commercial in four years, to advertise its Copilot AI assistant.

AI companies have developed other interesting strategies to market themselves during football’s big night. The brand Perplexity will also be on location in New Orleans where the Super Bowl is being hosted, advertising its brand on a custom-wrapped Tesla Cybertruck. The brand has chosen this option in hopes of garnering social media buzz, AdAdge noted.

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EBITDA declined marginally to INR 102 Cr during the quarter under review from INR 109 Cr in Q3 FY24.

Revenue from services rose over 8% to INR 2,[website].