Diageo’s home delivery plans hit, exits HipBar at 98% loss

NEW DELHI: Diageo’s alcohol-delivery ambitions in India have hit a roadblock with the UK-based liquor company exiting from its investment in Chennai-based startup HipBar at around a 98% loss.

While the move comes at a time when several Indian states are putting in place norms to allow home delivery of alcohol, Diageo which invested Rs 27 crore in HipBar through its domestic entity USL for a 26% stake in 2018, is selling back the entire stake to the startup’s promoter Prasanna Natarajan for Rs 52 lakh.

Industry insiders attributed Diageo’s hasty retreat to regulatory hurdles and a strong pushback from local liquor retailers that are against online aggregators.