The promoter, nevertheless, mentioned the enterprise isn’t up for an outright sale. “Fashionable Bazaar is in search of a strategic associate,” mentioned an govt.
Shops see huge drop in gross sales
“A proper announcement of the potential deal might occur as early as this month,” an govt conscious of the talks mentioned. “The chain is a valuation of near ₹100-150 crore, however potential consumers have mentioned they could have to shut the deal at a considerably decrease valuation.”
The transfer comes as Fashionable Bazaar struggles to match the fast progress of quick commerce and restrain its overhead prices.
“Gross sales at offline shops have dropped drastically, primarily due to client preferences switching quickly to fast commerce as a lot for connoisseur meals as for day by day necessities, and diminishing high quality management on the shops,” mentioned one other govt conscious of the talks.
A number of vendor payments of suppliers of recent bakery and frozen meals are additionally pending, executives mentioned.
ET’s emailed queries to Reliance Retail and DS Group remained unanswered till the publication of this report.
Fashionable Bazaar proprietor Kunaal Kumar, additionally managing director of the chain, confirmed talks for onboarding exterior traders however mentioned the chain isn’t on the market.
“We’re in lively discussions with choose strategic traders who can add worth and velocity to our progress plans,” Kumar, son of the chain’s late founder Vishwant Kumar, mentioned in an electronic mail. “A couple of retailers have approached us for potential collaborations,” he mentioned, including that “the chain is completely not up on the market.”
India’s gourmet foods market is projected to the touch annual gross sales of $24.5 billion by 2034, up from $5.4 billion in 2025, a report by IMARC Group mentioned. A tricky enterprise with steep overhead prices, premium connoisseur grocery comes with vital challenges to profitability, as high-footfall places and fixed innovation in product assortment are essential for achievement, analysts say.
Fashionable Bazaar at the moment has 18 large-format premium grocery store shops throughout Delhi-NCR, Noida and Chandigarh, at plum places together with DLF Cyber Hub. In latest months, the chain has shut down a few loss-making shops.
Arrange in 1971, the connoisseur chain was amongst India’s first supermarkets promoting imported meals merchandise from its retailer at Vasant Vihar, New Delhi, with a big number of premium imported confectionery, cheeses and condiments, recent bakery and frozen meals, in addition to chilly meats and curated greens.
Garima Kabra, a resident of Gurgaon, mentioned earlier she used to go to such shops for connoisseur meals however now fast commerce gives a large selection.
“Even on the times I visited such shops, I discovered a few of their cabinets empty,” Kabra mentioned.
Responding to ET’s question on pending vendor funds, Kumar mentioned, “Settlement cycles are a normal, ongoing a part of managing stock and provide chain operations in a fast-scaling retail enterprise. All accounts proceed to be processed as per our common enterprise cycles.”
In FY25, Fashionable Bazaar reported income of ₹247.24 crore, a 13.6% decline over FY24. Revenue was ₹1.43 crore, a decline from ₹2.62 crore within the earlier 12 months, regulatory filings sourced from enterprise intelligence platform Tofler India confirmed. The chain has not up to date filings for FY26 but.
“Up to now six months alone, month-to-month gross sales have dropped considerably, whereas liabilities of distributors and suppliers have shot up. Revival will itself be an extended haul and require vital funds,” mentioned an business govt conscious of the challenges confronted by the chain.
Kumar mentioned Fashionable Bazaar is rolling out growth plans “to extend gross sales by 3X and scale retailer depend to 116 by FY30,” including {that a} 15,000 sq. ft distribution centre in Chhattarpur, Delhi, will go stay subsequent month.
Entrants and traders throughout the connoisseur grocery class in latest months embrace FreshTerra, owned by Elixiir Meals and backed by an almost ₹82-crore seed funding led by 3one4 Capital. Ashni and Avni Biyani-owned Foodstories, too, raised ₹50 crore from Zerodha cofounder Nikhil Kamath this 12 months in June.
Others akin to RP-Sanjiv Goenka group-owned Nature’s Basket is not but worthwhile, whereas Future Group’s Foodhall shut down totally by 2023.
