Gourmet grocery retailer Modern Bazaar is exploring a strategic equity partnership or a potential majority stake sale as it faces mounting pressure from quick-commerce platforms, declining store sales and rising operating costs.
The Delhi-NCR-based chain has approached Reliance Retail, DS Group-owned Le Marche and two other premium retail chains for potential investment or strategic collaboration, according to people familiar with the discussions.
While a formal announcement could come as early as this month, sources said Modern Bazaar is seeking a valuation of around ₹100-150 crore. Potential investors, however, are believed to be seeking a significantly lower valuation.
Modern Bazaar promoter and managing director Kunaal Kumar confirmed that the company is in discussions with external investors but rejected the possibility of an outright sale.
“We are in active discussions with select strategic investors who can add value and speed to our growth plans,” Kumar said, adding that the chain is “absolutely not up for sale.”
Store sales under pressure
The potential transaction comes as Modern Bazaar grapples with intensifying competition from quick-commerce platforms, which are increasingly offering gourmet products alongside everyday groceries.
Executives familiar with the business said sales at its physical stores have fallen sharply in recent months as consumers shift toward online, on-demand grocery delivery. The company is also facing higher overheads and, according to industry executives, pending payments to some suppliers of fresh bakery and frozen food products.
Modern Bazaar said supplier settlements are part of its regular inventory and supply-chain cycles and that its accounts continue to be processed normally.
The retailer has also closed a couple of loss-making stores in recent months.
Revenue and profit decline
Modern Bazaar operates 18 large-format premium supermarkets across Delhi-NCR, Noida and Chandigarh, including a store at DLF Cyber Hub.
According to regulatory filings sourced by Tofler India, the company reported revenue of ₹247.24 crore in FY25, down 13.6% from the previous year. Profit declined to ₹1.43 crore from ₹2.62 crore in FY24. The company has not yet updated its FY26 filings.
Founded in 1971, Modern Bazaar was among India’s early supermarket chains focused on imported and gourmet food products. Its stores offer premium confectionery, cheeses, condiments, fresh bakery products, frozen foods, cold meats and curated fresh produce.
Ambitious expansion plans
Despite the current challenges, Kumar said the company is targeting a significant expansion, with plans to increase sales threefold and grow its store network to 116 outlets by FY30.
Modern Bazaar is also preparing to commission a 15,000-square-foot distribution centre in Chhattarpur, Delhi, next month.
The wider premium grocery segment continues to attract investors despite its difficult economics. FreshTerra, owned by Elixiir Foods, recently secured nearly ₹82 crore in seed funding led by 3one4 Capital, while Foodstories, owned by Ashni and Avni Biyani, raised ₹50 crore from Zerodha co-founder Nikhil Kamath in June.
The developments underline the growing pressure on traditional premium grocery retailers to adapt as quick commerce reshapes consumer buying habits and raises the cost of maintaining large physical stores.