Dear friends and well-wishers of Kampani Capital,
Its that time of the year in India when the festive bells start ringing, the long weekends start rolling in, the shopping lines increase and credit card spends start breaking some records. Yes – it’s the end of August and the Great Indian Festive Season is well and truly upon us, irrespective of which part of the country you stay in or which community you belong to.
Interestingly, the Great Indian consumer continues to evolve and this year too there has been a subtle but clear preference amongst Gen Z / Millennials to move towards Q Commerce as compared to traditional E Commerce channels, who have been ruling the roost for the last 5-7 years if not more. More and more SKUs are being kept by these Q commerce firms of categories likes make up, toys, handbags and perfumes – who would have ever thought that we get this stuff delivered to our houses in less than 10 minutes! Our analysis of the current economic upswing in India also emphasizes a lot on the change in customer habits over the last 3-5 years especially post covid. The Indoor consumption theme (which we spoke about in an earlier newsletter too) continues to hold good and the recent IPOs of some e commerce/related companies confirm our understanding. Another favourite sector of ours ie the QSR/Food/Hospitality space should also see some blockbuster quarters if not years.I happened to recently read unconfirmed reports that a global investor behemoth from the Lion City may also look to take a bite of this sector.
As Sowmya and I continue to spend more time with Indian family offices, we are seeing a very interesting diversification play emerging for the next generations. Gen Next of a lot of these families is looking to allocate investments to newer sectors like Deep Tech/EV/Consumer/Media/AI which are completely unrelated to their current family businesses. This portends well for some of our clients in these sectors -both on the funds side as well as founders. Before I end we must thank some of our clients/partners based in Chennai and Bangalore who met us earlier this month and we look forward to seeing some of you in Mumbai in the first few weeks of September – all with the blessings of our favourite elephant god who visits us around this time..
Amar Kampani
CEO and Founder,
Kampani Capital (a division of Anak Consulting LLP)
26th August 2024
