USL acquires 26% stake in payment tech startup Hip Bar for Rs 270 mn

With reduction in physical retail space, the company is tapping e-commerce route to drive sales

Bengaluru-headquartered alcoholic beverages company, United Spirits Ltd (USL) has acquired 26 per cent stake in payment technology start-up, Hip Bar Private Ltd, for Rs 270 million in its bid to drive sales through e-commerce route. 

Hip Bar Private Ltd, through its Hip Bar Mobile Wallet and Delivery App, allows consumers to select product from a range of alcoholic beverages, select a brand of their choice and make payment using the mobile wallet to have the product delivered at their doorstep or pick it up from a retail store at their convenience, the company said in a exchange filing.

The spirit firm also said that the payment startup follows very stringent age verification process before placing order for alcoholic beverages in its platform. 

"At Diageo India, we have been innovating and meeting consumer trends by offering new products and formats. This investment allows us to discover ideas that anticipate shifts in consumer behaviour and enables us to remain at the forefront of trends," said Anand Kripalu, CEO and Managing Director of Diageo India.

He also said that given the rising regulatory complexity, this route would open up new ways to reach consumers.

According to USL-the flagship liquor arm of Diageo India, Hip Bar would continue to run as an independent enterprise under the leadership of its founders. 

With imposition of umbrella ban on liquor sales in  a few states apart from rising scrutiny from judiciary, retail sales of liquor had taken a hit during the last fiscal.  Against this backdrop, Diageo India had earlier said that it would tap e-commerce route to drive sales in the future and the current acquisition is a step in that direction.