AltG Eyes Acquisition of 24Seven Convenience Retail Chain

Business Wire IndiaAltG, a leading financial R&D-focused investor specializing in distressed, turnaround and special situation assets, has indicated that it would be willing to make a potential acquisition offer to Godfrey Phillips India to acquire its grocery and convenience retail chain, 24Seven. AltG, known for identifying undervalued assets and driving accelerated and high-returns turnarounds, sees significant opportunity in the 24Seven brand.

As per their website, AltG sees potential in 24Seven and describes it as a good business with an impaired balance sheet. They plan to initiate financial restructuring to revitalize and expand the chain’s operations. Currently, 24Seven operates around 90 full-format outlets and 40 kiosks, primarily in Delhi-NCR, Chandigarh, and Hyderabad.

The news comes at a moment of weakness for 24Seven, whose stores shut down this month due to a shortage of cash. Earlier, Godfrey Phillips India had announced plans to exit the 24Seven retail business in an exchange filing on July 31, 2024. The retail division generated Rs. 403 crore in revenue for FY24, representing 7.6% of the company’s total revenue, but carried a negative net worth as of March 31, 2024. The sale process was initially delayed due to a legal injunction filed by Samir Modi, executive director of Godfrey Phillips.

Email queries sent to the 24Seven and AltG remained unanswered.

AltG had earlier recommended that Godfrey Phillips spin off 24Seven in an open letter to the board, recognizing the brand’s untapped potential. This acquisition is expected to leverage 24Seven’s established metropolitan footprint and drive significant growth within India’s expanding convenience retail market.

Founded by Wall Street alumni from Wharton and INSEAD, Poornima Vardhan and Taponeel Mukherjee, AltG utilizes a proprietary financial R&D system to identify distressed and undervalued assets that offer attractive entry point valuations and profit-focused turnaround opportunities in global growth markets. As a first mover in the $300 billion distressed, turnaround and special situation asset investment space, AltG capitalizes on high-return opportunities by leveraging the classic “buy low, sell high” strategy with uncorrelated returns.

According to recent reports, New Delhi-based grocery convenience startup, The New Shop, was also in discussions with Godfrey Phillips India to acquire 24Seven. The company intended to rebrand all 24Seven stores across the country under The New Shop name.