Avenue Supermarts, the parent company of DMart, has announced a significant investment of ₹174.99 crore in its subsidiary, Avenue E-Commerce Ltd. (AEL). The investment aims to boost the operations of DMart Ready, its online grocery platform.
The capital infusion was made through a preferential allotment, with Avenue Supermarts subscribing to 4.67 crore equity shares of AEL at a price of ₹37.41 per share. With this move, Avenue Supermarts has marginally increased its stake in AEL from 99.71% to 99.74%.
Why the Investment?
The fresh capital will be used to meet the operational, working capital, and capital expenditure needs of DMart Ready. This decision comes as the company seeks to strengthen its presence in the competitive e-commerce grocery segment.
Avenue Supermarts has shown confidence in the growth potential of its digital platform, which has been performing well in recent years. AEL reported a turnover of ₹2,899.20 crore in FY24, reflecting its expanding market presence.
About DMart Ready
Established in 2014, DMart Ready offers online grocery shopping, allowing customers to order through its website or mobile app. It provides convenient delivery options, catering to the increasing demand for online grocery services. The platform competes with major players like BigBasket, Blinkit, and JioMart.
Financial Performance of Avenue Supermarts
Avenue Supermarts has maintained steady growth. In Q3 FY25, the company reported a 4.8% year-on-year (YoY) increase in net profit at ₹723.72 crore, compared to ₹690.61 crore in the same quarter last year.
The company’s revenue from operations also saw a robust growth of 17.7% to ₹15,972.55 crore in Q3 FY25.
Despite a competitive retail environment, DMart continues to expand its physical store network. As of December 31, 2024, it operated 387 stores across 12 states in India, with a total retail business area of 16.1 million sq. ft.
Market Reaction
Following the investment announcement, Avenue Supermarts’ stock showed a positive response. On March 19, 2025, its shares rose 0.35% to settle at ₹3,845.55 on the BSE. On the NSE, the stock closed 0.75% higher at ₹3,874.15 per share.
Related Party Transaction
The investment was marked as a related party transaction since Manjri Chandak, a director and a member of Avenue Supermarts’ promoter group, also serves as a director in AEL. The company assured that the deal was executed at arm’s length and followed all regulatory norms.
DMart Ready’s Growth Strategy
The additional funds will enable DMart Ready to:
- Expand its logistics and warehouse network.
- Enhance its delivery infrastructure.
- Improve its technological capabilities.
- Offer better services to a growing customer base.
Neville Noronha, CEO and Managing Director of Avenue Supermarts, highlighted the platform’s growth trajectory. He stated that DMart Ready expanded by 21.5% in the first nine months of FY25, driven by a strong shift towards home delivery services.
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Conclusion
With the ₹175 crore investment, Avenue Supermarts is making a bold move to strengthen DMart Ready’s market position. As the e-commerce grocery space grows rapidly in India, this strategic decision is expected to drive further growth and contribute to the company’s overall performance.
Market analysts and investors will closely monitor the results of this investment, particularly its impact on DMart Ready’s revenue growth and operational efficiency in the coming quarters.
Disclaimer: This post is just for your information and shouldn’t be taken as investment. Before deciding what investments to make, investors should talk to financial experts.
