The New Shop, a grocery convenience retail startup, is in advanced talks to acquire Godfrey Phillips India’s grocery and convenience retail chain 24Seven, said executives directly aware of the matter.
Founded in 2019 by entrepreneur siblings Aastha and Charak Almast along with associate Mani Dev Gyawali, the New Delhi-based startup currently operates 160 stores across 35 cities. It has an omni-channel presence, selling grocery staples, snacks and beverages, personal care, home care, pet foods, hygiene products and over-the-counter medicines. It works on a franchise-owned, franchise-operated model.
“Once the deal materialises, the plan is that all 24Seven stores will be renamed as The New Shop stores …As was the case with 24Seven which operated even during the nights, the acquired stores will also be operational 24 hours,” one of the executives said.
Keeping retail stores functional all-night is a state subject and requires local licences. Existing stores under The New Shop are also open all hours.
Cigarette maker Godfrey Phillips shuttered all 24Seven stores last week after running out of cash. The chain operated close to 90 full-format outlets and 40 kiosks, mainly in Delhi-NCR and Chandigarh, along with some stores in Hyderabad.
Godfrey Phillips said in an exchange filing on July 31 that it is proceeding with plans to exit the retail business under the 24Seven brand. Earlier, an injunction order was passed against selling the chain following an application filed by executive director Samir Modi.
Godfrey Phillips said in the filing that revenue from operations from the retail business stood at ₹403 crore in FY24, accounting for 7.6% of its total revenue from operations. The retail business division had a negative net worth as of March 31, 2024.
Email queries sent to the office of Samir Modi remained unanswered while Almast declined to comment.
Early backers of The New Shop included Huddle Ventures (which has now exited), Good Game Ventures and Anthill ventures.
Godfrey Phillips India also said in the exchange filing that it has received judicial clearance for closing the 24Seven retail business. The cigarette maker had first announced on April 12 its plan to exit the business, which was also approved by its board of directors.
“After due consideration of the stakeholders’ feedback, long term performance of the division since inception, prevailing market conditions of the retail sector and the long-term business strategy of the company, the board of directors of the Company at its meeting held on 12th April 2024 had decided to exit from carrying out business operations of its retail business division,” Godfrey Phillips said in the filing.
Godfrey Phillips India, backed by Modi Enterprises, sells cigarette brands Four Square, Cavanders and Red & White, in addition to distributing Marlboro cigarettes as per a licence agreement with Philip Morris. The 24Seven round-the-clock convenience chain was launched in 2005 for selling grocery, staples, snacks, beverages, personal care products, cosmetics and ready-to-eat food counters.
