Diageo has exited from its investment in alcohol home delivery startup HipBar. Diageo invested Rs 27 crore via domestic entity USL in exchange for the stake in the Chennai-based company in 2018.
The UK-based liquor company crore sold its 26 percent stake in HipBar to the startup’s promoter Prasanna Natarajan for Rs 52 lakh, Times of India reported.
The move comes at a time when more and more states are joining the alcohol home delivery bandwagon.
Stating the reason behind the decision, Diageo spokesperson said that, while home delivery had opened up in several states since 2020, it would take some years to mature as a model."
"In addition, the alcobev model is likely to develop quite differently in India to regular e-commerce due to the nature of regulation of this industry," the spokesperson added.
Speaking to TOI, HipBar co-founder Natarajan said that the firm faced some pushback from some pockets of the trade and the state excise department of Karnataka and this matter is still sub-judice.
"HipBar, being an early and solo mover, had to face many regulatory hurdles and challenges to open up home delivery, which it eventually did with states of West Bengal and Odisha. Post COVID-19, the market dynamics have changed and the more established players are also entering this niche space," he added.
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