Hipbar sells 26% of their startup to United Spirits for a massive 27 cr
It rained luck on start-up firm Hipbar when a business deal with Diageo India went exceptionally well, leaving them with enough investment to pump into broadening the horizons of the company.
At a time when the sale of classic alcoholic beverages is witnessing some competition due to the emergence of new brands like Simba and Bira, this investment is being seen as a move to herd people back to their doorstep by anticipating the likely shifts in consumer behaviour and being able to stay ahead of the trends.
Going back to basics
Hipbar, a Chennai-based startup that began in 2015, is part of the beverage alcohol industry and has two main apps that allow consumers of alcohol to browse through a range of alcoholic beverages. After choosing the one they prefer, have it delivered to their doorstep.
As these two apps allow simple and effective digital payment, HipBar’s fortune recently took a turn for the better when Diageo India invested a whopping 27 crore into their firm, acquiring a 26% stake in the company by doing so.
Hipbar Delivery and HipBar Pay, the two apps working well for the start-up are a product of intense thought and planning. DCCPER, a prominent startup in Goa, that specialises in UX/UI design and product development, was involved in the early stages of design of these apps.
Understanding the working of Hipbar
HipBar, the brainchild of Prasanna Natarajan, boasts a drink delivery app which is coupled with a mobile wallet. He came up with the idea and began brainstorming it with his buddy Aprup Shet, who currently handles the Hipbar product. The idea is to promote responsible consumption of alcohol among people. The home delivery system offered by HipBar Delivery is currently active in Bangalore, however, where home delivery is not possible, customers can pick up the desired beverage from a retail shop nearby.
The new investor
Diageo plc, famed for being a global alcohol company that deals with some premium brands recently got their hands on a 54.8% share of United Spirits thereby broadening their reach to the Indian market. Diageo India has now established itself as a leading beverage company creating the most trusted and respected products for consumers.
Created with the intention of creating a common platform to connect retailers, brands and consumers, with the investment put in by Diageo, HipBar seems like it will be paving a bright future for itself while continuing to be an independent brand.
HipBar is also involved in the building of software and projects that help the beverage industry function in a compliant manner. With an e-governance module that is SaaS-based and a HipBar PoS that is already in place for retails stores that are licensed, they are certainly committed to the need for digital transformation and will go a long way.