Fashion Kaa Hai jalwaa!

“Fashion kaa hai Jalwaa”  - Start-ups in Fashion Industry 

 

Recently I have seen the movie called ‘The Devil Wears Prada’ (You can watch). Which is based on Fashion industry.

Which brings me to check on fashion (Cosmetics and personal care) industry.

Interesting facts about Cosmetics & Other personal care Industry:

• Cosmetics & other personal care is estimated annual retail sale is growing in the range of 15-20% annually.
• India’s cosmetics market will exceed $20 billion by 2025
• According to a study, apparently, women spend about $15,000 in their lifetime on cosmetics.
• Around 50 percent of India’s skincare market was predominantly made up of fairness products.
• Every year there are close to 900 million lipsticks sold worldwide.
• The patent for nail polish dates back to 1919. It was light pink
• The first deodorant appeared on the market way back in 1889.

Top Beauty and Cosmetic Start-ups in India

NYKAA : It has 17 offline stores in India and has 850+ brands and 35000+ products. provides cosmetic, fragrance, skin and hair care products.

PURPLLE : It has own App for booking an appointment for Spa and Salon and also provides the best cosmetic beauty products. they are best in Mascara, Lipstick, Eye Kajal, Blush, Liner, etc.

MYGLAMM : provides doorstep services to their customers. Myglamm has 1800+ beauty professional team. They have Hair, Beauty, Nails, and Spa services.

ZYLOON : is Salon chain owner. They have a mission to open 75,000 salons in 5 years in India. Customer will also get free hair tips and consultant on their every salon branch.

GETLOOK : Their goal is to make salon home service easy, reliable and cheaper as like online shopping. It starts to give services to busy successful women’s.

STAYGLAD : is an online platform where the customer can book beauty service appointment from their home.

 

 Now Nykaa India’s first women led profitable unicorn start up is going in for its IPO raising Rs. 4,000 crores in this month.

 Cosmetic and personal care products are growing and the concept of organic cosmetics is also one of which is gaining popularity.

Curious about the Viability of Vi (Vodafone idea Limited)

Future of Vi

After the news of KM Birla’s letter to Gov’t offering to hand over its 27 % stake in Vodafone Idea (Vi) to the government or a domestic entity.

its share price slips 26% in 2 days hitting a fresh 52-week low and lost over ₹ 2,700 crore in market cap.

Some facts about Vi :

Vi has debt more than trebled in the last four years to Rs 1.6 trillion as of the end of March 2021

Net Sales = Rs 9,607.6 changed by -18.27% and Net Profit Rs -7,022.8 changed by 39.68% compared to PY 2020.

Recently SC dismisses Vi claims of reconsideration of AGR computation, company owes of Rs 50,400 crore and has already paid Rs 7,854.37 crore.

“Remaining AGR dues are more than double the existing (and post-crash) market cap of ₹ 21,264 crore”.

Vodafone Idea's market share shrunk marginally to 24.58% month-on-month.

Vi has been granted permission from DOT, Ministry of Communications. The DoT has approved FDI worth Rs 18,000 crore in the company and cabinet approval is awaited.

But Vodafone already holds about 45 per cent stake in the company and if another Rs 15,000 crore, likely to come via FDI, is added, it will increase the limit significantly and that may be a problem as per FDI norms.

Possible way out for Vi :

-        Combination/Merger of Vi and BSNL might be seen as a life saver for both and it will be a win-win for both companies and Vi has efficient tech and BSNL has a gov’t support on its side through this the competitiveness might go up in the industry.

-        Another way out may be seen as Vi must bring other Indian domestic companies like Adani as Adaani seems more interested in countering Ambaani.

Recently we have seen that the both are actively entering in each other’s businesses, Vi can capitalize this opportunity.

Why Microsoft investing in OYO?

How this could be a Win-Win deal for both OYO and Microsoft.

 

Microsoft is in talks to invest in online hotel chain OYO at a $9 billion valuation prior to IPO of an undisclosed amount and with this the Microsoft later can get more ownership in future in OYO by further investments.

This investment turns the OYO into a Decacorn (a super unicorn).

Oyo is the largest hotel chain in India and sixth largest globally. It is present in over 415 Indian cities with 18,000 properties in India.

It has over 1 million rooms globally and over 23,000 exclusive hotels across 800 cities.

Recently OYO became the first Indian start-up to be independently assessed by the world’s leading credit rating agencies— Moody’s and Fitch.

Through this OYO Hotels & Homes secured $660 million in debt financing from global institutional investors at 850 basis points to service its existing loans. Its offer was oversubscribed almost 1.7 times (Which is a Positive sign), along with a total commitment of around $1 billion from leading institutional investors.

It is the first Indian firm to raise capital via term loan B (TLB) route. TLB refers to a portion of senior secured syndicated credit facility from international institutional investors.

Significance of Microsoft’s investment to OYO:

•  This shows that OYO’s 'normalcy will return'. This will be seen as a big boost to OYO.
•  OYO currently suffers an image and business loss. A Microsoft investment will be a very valuable support.
•  OYO might also utilise Microsoft's cloud services from now.
•  The platform which the OYO is building and scaling from now will have a strong tech and cloud service support by collaboration with Microsoft.

 How this investment be seen from Microsoft point of view:

•  This will be a big moment for Microsoft in India as this will be the first big investment in a reputed brand by it.
•  Microsoft is a dominant player in the large enterprise and the traditional SMB business, but has a negligible space in the start-ups ecosystem
•  Comparing to IBM, Google and Amazon Web Services (AWS), Microsoft is perceived to be a laggard in the Indian start-up space.
•  Microsoft is likely to make decent returns in addition to gaining a strategic customer in the Indian start-up space before its IPO.

Ultimately OYO will get its business and image back on track and Microsoft will make inroads into the Indian start-up ecosystem by this big ticket to OYO.