We are going to look at very interesting business updates which is very amazing to know for all of us. Mukesh Ambani Acquired TagZ food which was pitched on Shark Tank India And Zomato CEO Deepinder Goyal issued a warning on 500 employees of Swiggy became crorepati after its IPO.
Let’s collect information about these business incidents in this article one by one.
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Mukesh Ambani’s Reliance Company Acquires Shark Tank India-Featured TagZ Food For Rs 28 Crore
Recently, Mukesh Ambani’s Reliance Consumer Products acquired a Direct-to-Consumer (D2C) snacking brand company, TagZ Food, for around Rs 28 Crore (or approximately $3.3 million).
This acquisition raises many questions as it follows the report on challenges in TagZ Food. Was it a strategic Buy or a distress sale? Everything in this report, why founders sell this company and why Mukesh Ambani acquire this company?
Tagz is a direct-to-consumer (D2) Snacking brand company that was introduced in 2019 by its two founders Anish Basu Roy and Sagar Bhalotia. TagZ is an innovative brand that provides potato chips with 50% less fats because they use a new technology that uses high temperature and pressure to provide healthy snacks.
TagZ won the hearts of its consumers with a range of popped potato chips, exquisite gourmet dips, and delectable cookies. TagZ reaches its target customers through various modes through its own website, various online platforms, and offline retail stores.
Dexter Angels, Agility Ventures, Venture Catalysts, and Klub are companies where TagZ managed to raise investments of around $3.2 million. BRB, Too Yum, Lays, and Uncle Chips are brands that are direct competitors for TagZ. FY 2023 reported an INR 10.7 Cr of loss which shows a financial challenge in the company.
TagZ got an interesting fame after coming in a television show, Shark Tank India. Where he got funded by one of the biggest sharks Ashneer Grover. Recently it showed a boost, securing investment from Shikhar Dhawan former cricketer of India.
Reliance Consumer Product’s decision to acquire the TagZ Food brand is a Strategic step that fulfills the aim of strengthening its direct consumer collection base. Reliance’s strong customer base and quality operations will provide a new chance to sick TagZ Food.
Swiggy’s 500 Employees Became Crorepatis And Deepinder Goyal CEO Of Zomato Issued A Warning
Swiggy launched its initial public offering (IPO) to raise Rs 11,300 Crore and Swiggy did amazing in this IPO. They unlocked Rs 9000 Crore in an Employee Stock Option Plan (ESOP) which is creating a new class of “crorepatis” within Swiggy only. Almost 5000 current or former employees will make a huge amount of money with this opportunity, as reported by the Economics Times.
Zomato CEO Deepinder Goyal reacted to this and shared his experience with Zomato’s IPO, which had earlier made an observation at “The Economic Times Startup Awards: Sudden wealth can create challenges for individuals.
In 2021 Zomato IPO as employees earned crores of rupees and Zomato’s journey from then reveals some important lessons for Swiggy’s new millionaires. Goyal Observed that after Zomato’s listing, the company showed a underwent in its culture, reported Economic Times.
On another hand, it was a financial gain for employees and this was a period of satisfaction for many employees which slowed the organization’s speed. And many team members, now financially secure, lost their motive, inadvertently stalling in company initiatives, adds Economic Times report.
The inflow of wealth had a complex impact on the employees, while it empowered some of them, it also dulled the sense of urgency and innovation required for fast-moving tech companies like Zomato. He made some harsh decisions to reboot the organization, change some people or roles, reassign, to maintain and rekindle the drive or focus needed to keep Zomato moving forward at its full speed, Goyal added.
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