DMart Parent, Avenue Supermarts Ltd., Fortifies E-Commerce Play with Significant Investment in DMart Ready

Avenue Supermarts Ltd., the parent company behind the ubiquitous DMart retail chain, has signalled a robust commitment to its online grocery platform, DMart Ready, through a substantial capital infusion of ₹174.99 crore. This strategic move, disclosed in a regulatory filing on Wednesday, 19th March 2025, underscores the company's intent to aggressively pursue growth in the competitive e-commerce landscape.

The investment was executed via a subscription of 46,778,000 equity shares in Avenue E-Commerce Ltd. (AEL), the entity operating DMart Ready, at an issue price of ₹37.41 per share. These newly issued shares, with a face value of ₹10 each, were allocated to Avenue Supermarts on a preferential basis. The capital injection is earmarked to bolster AEL's operational efficiency, address working capital requirements, and fund capital expenditure initiatives aimed at expanding and enhancing DMart Ready's infrastructure and service offerings.

Established in November 2014, AEL is engaged in the online and multi-channel grocery retail business under the DMart Ready brand. The subsidiary has demonstrated significant growth, reporting a turnover of ₹2,899.20 crore in the financial year 2024. This latest investment further solidifies Avenue Supermarts' control over AEL, marginally increasing its shareholding from 99.71% to 99.74%. This indicates the parent company's strong conviction in the future prospects of its digital arm.

The transaction has been identified as a related party transaction as Manjri Chandak, a Director and part of the Promoter Group of Avenue Supermarts, also holds a directorship in AEL. The company has clarified that this investment will not necessitate any governmental or regulatory approvals.

This development comes at a time when Avenue Supermarts has reported a 4.8% year-on-year increase in consolidated net profit to ₹723.72 crore for the third quarter of the financial year 2025, compared to ₹690.61 crore in the corresponding period of the previous year. The company also witnessed a 17.7% jump in revenue from operations to ₹15,972.55 crore in the same quarter. As of 31st December 2024, Avenue Supermarts operated 387 stores across various states in India, with a total Retail Business Area of 16.1 million sq. ft.

The significant investment in DMart Ready reflects Avenue Supermarts' recognition of the burgeoning online grocery market and its commitment to providing customers with a seamless and convenient shopping experience. This strategic allocation of funds is expected to fuel the growth trajectory of DMart Ready and strengthen its competitive standing within the dynamic e-commerce sector. Market analysts will be keenly observing the impact of this investment on DMart Ready's market share and its contribution to the overall performance of Avenue Supermarts in the coming fiscal years.

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