Mumbai: United Spirits, the arm of Diageo India, has picked up a 26 per cent stake in Hip Bar Pvt Ltd, a payment technology start-up that caters to the alcohol industry and its consumers through a mobile wallet and delivery app.
With the HipBar app, age-verified consumers can browse a range of alcoholic beverages, select a brand of their choice and make payments using the mobile wallet to have the product delivered at their doorsteps (where permitted) or pick it up from a retail store at their convenience.
Founded in 2015, HipBar operates in Bangalore and Chennai. In a regulatory filing with stock exchanges, United Spirits said the stake will be acquired for Rs 27 crore.
A statement from Diageo India said with this investment, the company will support HipBar's digital ambition and help expand its footprint across more markets.
HipBar is expected to unlock the industry's need to provide better experiences, promote responsible consumption and digitally connect with brands, retail stores and consumers through a common platform.
The statement added that HipBar has developed a stringent age verification process and strong compliance procedures to ensure that the company's delivery service fosters a safe drinking environment in the country.
"E-commerce is making an impact on just about every industry imaginable and the beverage alcohol industry is set to be the next sector to be disrupted by the continued shift to digital. This investment allows us to discover ideas that anticipate shifts in consumer behaviour and enables us to remain at the forefront of trends. HipBar will continue to run as an independent enterprise driven by its founding team," Anand Kripalu, CEO and managing director of Diageo India, said.
While the announcement was made after market hours, shares of United Spirits closed weaker by 1.07 per cent, or Rs 7.30, at Rs 672.70 on the BSE.
Diageo India, the subsidiary of Diageo Plc, manufactures, sells and distributes brands such as Johnnie Walker, Black Dog, Antiquity, Signature, Royal Challenge and McDowell's No.1, Smirnoff, Captain Morgan and Four Seasons.
