New Shop, a convenience retail company, aims to expand to 380 outlets by the end of FY24. The company is waiting for regulatory approvals for the acquisition of 24Seven.
The company is acquiring Godfrey Phillips’ retail division, called 24Seven, in an asset transfer deal where the company will acquire the assets and rebrand them to New Shop, Aastha Almast, Co-founder of New Shop, told businessline.
The acquisition aligns with New Shop’s plan to dominate India’s convenience retail market. “Our vision is to empower 10,000 entrepreneurs by 2030 and hopefully each one of them should have at least five stores,” Almast stated.
The company aims to establish 15,000 stores by 2030, achieving a 30 per cent market share in a segment projected to reach $50–70 billion.
“Our vision is to empower 10,000 entrepreneurs by 2030 and hopefully each one of them should have at least five stores. We want to have at least a 30 per cent market dominance with about 15,000 stores by 2030,” said Almast.
Currently, New Shop operates over 200 stores across 35 cities. It aims to expand to 380 outlets in Fy24, including the 100-odd 24Seven stores.
“With our acquisition, we also expand our footprint in Hyderabad with close to 25–30 stores. That will be our entry point into Telangana,” noted Almast.
New Shop’s franchise-first model underpins its growth. Entrepreneurs can set up stores for ₹25 lakhs, with construction costs capped at ₹15 lakhs. Stores are designed for rapid deployment, taking just 15 days to construct. Franchisees break even operationally within 45–60 days and typically recover their investment within 18 months.
“We want our franchise owners to treat this as a business, not just an investment opportunity,” said Almast.
The company focuses on high-margin categories such as fresh food and beverages, packaged foods, and tobacco. New Shop does not sell fruits, vegetables, or large grocery packs.
In terms of revenue and margin contribution, food and beverages (F&B) leads with a 30 per cent sales contribution and a gross margin of 60 per cent.
New Shop is set to deepen its presence in South India and expand its footprint at key transit hubs, including petrol pumps, railway stations, and airports. Plans include the addition of EV charging stations and vending kiosks at select locations.
The company aims to leverage 24Seven’s partnership with Indian Oil Corporation and its own collaboration with Hindustan Mittal Energy Limited (HMEL) to drive these initiatives.
The company differentiates itself from the quick commerce platforms. “Quick commerce works beautifully in dense urban areas, but we thrive on location diversity, operating in neighbourhoods, highways, gas stations, airports, and more,” said Almast.
Founded in 2019 by Aastha Almast, Charak Almast and Mani Dev Gyawali, New Shop has secured $7.2 million in funding from backers including Anthill Ventures, Riseoo, and Good Game Ventures. The company’s latest valuation stands at $32.2 million, as reported by Tracxn.