Modern Bazaar, one of India’s early premium supermarket chains, is exploring a strategic investment or potential majority stake sale as intensifying competition from quick-commerce platforms puts pressure on its store sales and profitability. The Delhi-based gourmet grocery retailer has approached Reliance Retail, DS Group-owned Le Marche and two other premium retail chains about a possible transaction, according to people familiar with the discussions.
The company is seeking a strategic partner rather than an outright exit, according to promoter and managing director Kunaal Kumar. While an executive said a formal announcement could come as early as August, potential investors have reportedly valued the business at around ₹100-150 crore, below which buyers may seek to close a deal. The discussions come as Modern Bazaar deals with falling offline sales, rising overheads and pressure from consumers increasingly shifting to rapid-delivery platforms for both gourmet products and everyday groceries.
Modern Bazaar Seeks Strategic Investor
Modern Bazaar has initiated discussions with several potential strategic partners, including Reliance Retail and Le Marche, as it looks to strengthen its financial and operating position.
The company is considering:
- A strategic equity partnership.
- A potential majority stake sale.
- Collaboration with larger retail chains.
- Additional capital to support expansion and operations.
Kunaal Kumar has emphasized that the business is not up for an outright sale, describing the discussions as an effort to bring in a strategic partner that can add value and accelerate growth.
Deal Snapshot
| Item | Details |
|---|---|
| Company | Modern Bazaar |
| Sector | Premium and gourmet grocery retail |
| Potential Investors | Reliance Retail, Le Marche and others |
| Possible Structure | Strategic investment or majority stake sale |
| Indicative Valuation | ₹100-150 crore |
| Current Stores | 18 |
| Core Market | Delhi-NCR, Noida and Chandigarh |
Quick Commerce Hits Store Sales
The potential fundraising comes as quick commerce changes how Indian consumers buy groceries.
Platforms offering deliveries within minutes have expanded beyond basic staples into premium food, imported products and gourmet categories. This has made it increasingly difficult for traditional supermarkets to rely solely on physical-store visits.
Modern Bazaar executives told ET that offline store sales have dropped significantly as consumers increasingly use quick-commerce platforms for gourmet foods as well as daily essentials. The company has also faced challenges related to store-level quality control and rising operating costs.
The shift is particularly important for premium grocery retailers because their business models depend heavily on high-footfall locations, extensive product ranges and regular customer visits.
Financial Pressure Builds
Modern Bazaar’s financial performance shows the pressure on the business.
In FY25, the company reported:
- Revenue of ₹247.24 crore, down 13.6% from FY24.
- Profit of ₹1.43 crore, compared with ₹2.62 crore in FY24.
- FY26 financial filings had not yet been updated at the time of the report.
The company has also shut a couple of loss-making stores in recent months.
Executives familiar with the business said monthly sales had fallen significantly over the preceding six months, while vendor and supplier liabilities had increased. Modern Bazaar’s management, however, said supplier settlement cycles were part of normal inventory and supply-chain operations.
18 Stores Across Key Markets
Modern Bazaar currently operates 18 large-format premium supermarkets across Delhi-NCR, Noida and Chandigarh.
Its stores offer a broad selection of premium and imported products, including:
- Imported confectionery.
- Cheese and condiments.
- Fresh bakery products.
- Frozen foods.
- Cold meats.
- Curated vegetables.
- Gourmet grocery products.
The chain was founded in 1971 and was among India’s early supermarket businesses focused on imported and premium food products.
However, the economics of large-format gourmet grocery stores can be challenging because retailers must maintain expensive locations, extensive inventories and a wide assortment of products.
Modern Bazaar Still Has Expansion Plans
Despite the current pressure, the company says it remains focused on expansion.
Kunaal Kumar has outlined a plan to:
- Increase sales by three times.
- Expand the store network to 116 stores by FY30.
- Launch a 15,000-square-foot distribution centre in Chhattarpur, Delhi.
- Use a strategic partnership to accelerate growth.
Bringing in a larger retail partner could therefore provide Modern Bazaar with additional capital, procurement advantages, supply-chain capabilities and access to technology that could help it compete more effectively with digital grocery platforms.
Gourmet Grocery Market Continues to Grow
The challenges facing Modern Bazaar do not necessarily mean India’s premium grocery opportunity is disappearing.
The gourmet foods market is projected to grow from approximately $5.4 billion in 2025 to $24.5 billion by 2034, according to an IMARC Group estimate cited by ET.
The issue is increasingly about how consumers access these products.
Traditional retailers compete on store experience and product discovery, while quick-commerce companies are competing on convenience, selection and speed. The latter model is increasingly capable of serving premium grocery needs without requiring consumers to travel to a specialty supermarket.
Larger Retailers See an Opportunity
The interest from companies such as Reliance Retail and Le Marche highlights the potential strategic value of Modern Bazaar’s store network, brand and premium customer base.
A larger retail company could potentially use Modern Bazaar to:
- Expand its premium grocery presence.
- Gain access to affluent urban consumers.
- Strengthen gourmet-food sourcing.
- Add strategically located stores.
- Combine physical retail with digital and quick-commerce distribution.
However, the reported gap between Modern Bazaar’s desired valuation and what potential buyers may be willing to pay could complicate negotiations.
Quick Commerce Is Reshaping Grocery Retail
Modern Bazaar’s situation illustrates a broader transformation taking place across India’s grocery industry.
Quick commerce has grown rapidly, with India’s quick-commerce market reaching an estimated $10-11 billion in GMV, according to Bain & Company’s 2026 report. The expansion has been supported by growing consumer adoption of online grocery and dense networks of local fulfilment centres.
Traditional retailers are therefore increasingly being forced to rethink their role. Physical stores can offer experience, immediate browsing and a broader shopping environment, but they also carry significantly higher real-estate and staffing costs than digitally optimized fulfilment networks.
Looking Ahead
Modern Bazaar’s search for a strategic investor highlights the growing financial pressure facing traditional premium grocery retailers as quick commerce changes consumer shopping habits. The company remains focused on expansion and says it wants a strategic partner rather than an outright sale, but declining FY25 revenue, lower profit and pressure on store sales show the scale of the challenge.
Looking ahead, a partnership with a larger retailer could give Modern Bazaar access to capital, procurement scale, logistics infrastructure and digital capabilities needed to compete in the changing grocery market. The outcome will also offer a broader signal for India’s premium retail sector: established supermarket chains may need to combine physical stores with faster digital fulfilment, stronger supply chains and differentiated product offerings if they are to remain competitive as quick commerce continues to expand.
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