FreshRSS

🔒
❌ About FreshRSS
There are new available articles, click to refresh the page.
Before yesterdayYour RSS feeds

Flipkart to acquire online travel firm Cleartrip

By Manish Singh

Flipkart said on Thursday it has agreed to acquire online travel firm Cleartrip as the Walmart-owned e-commerce firm looks to expand its offerings in the world’s second largest internet market.

The deal values Cleartrip, which raised about $75 million prior to the acquisition, at about $40 million, a person familiar with the matter told TechCrunch. Indian news outlet MoneyControl reported about the two companies exploring the deal last month.

Cleartrip is also a partner of Amazon in India, powering the ticketing engine for the American e-commerce group. Asked if Amazon was fine with Cleartrip exploring buyout deal with Flipkart, the company did not respond to a request for comment.

“The Flipkart Group is committed to transforming customer experiences through digital commerce. Cleartrip is synonymous with travel for many customers, and as we diversify and look at new areas of growth, this investment will help strengthen our wide range of offerings for customers. We welcome the Cleartrip team with their deep industry knowledge and technology capabilities to the Flipkart Group and look forward to providing deeper value and travel experiences for customers together,” said Kalyan Krishnamurthy, CEO of Flipkart Group, in a statement.

Tiger Global leads $100 million investment in Indian social commerce DealShare

By Manish Singh

Tiger Global has invested in DealShare, a startup in India that has built an e-commerce platform for middle and lower-income groups of consumers, just three months after the Indian firm concluded its previous $21 million Series C funding round.

The New York-headquartered firm has the $100 million Series D round in three-year-old social commerce startup DealShare, two people familiar with the matter told TechCrunch. Tiger Global declined to comment, and a founder of the Indian startup didn’t return an email over the weekend.

DealShare kickstarted its journey the day Walmart acquired Flipkart, the startup’s founder and chief executive Vineet Rao said at a virtual conference late last year. Rao said that even as Amazon and Flipkart had been able to create a market for themselves in the urban Indian cities, much of the nation was still underserved. There was an opportunity for someone to jump in, he said.

The startup began as an e-commerce platform on WhatsApp, where it offered hundreds of products to consumers. It didn’t take long before a major consumer spending pattern was visible, Rao said. People were only interested in buying items that were selling at discounted rates, said Rao.

Over time, that idea has become part of DealShare’s core offering. Today it incentivizes consumers — by offering them discounts and cashbacks — to share deals on products with their friends. The startup, which has since launched its own app and website, now operates in over two dozen cities in India.

Consumers wanted products that were relevant to them and they wanted to buy these items at a price that instilled the most value for their bucks, said Rao. “We focused on locally produced items instead of national brands. Even today, 80% to 90% of items we sell are locally produced,” he said.

How DealShare model works. (Image and data by Bain & Company)

Amazon and Flipkart have captured less than 3% of the retail market in India, leaving room for firms to explore other models. Social commerce is one of the bets we’re seeing being play out in India. The other bet gaining traction is digitizing neighborhood stores in the country — without so much of the social element — that dot tens of thousands of towns, cities and villages in India.

The investment comes as Tiger Global looks to close over two dozen deals in India this year, TechCrunch reported on Monday. Tiger Global, which recently closed a $6.7 billion fund, last week led investments in social network ShareChat, business messaging platform Gupshup, and investment app Groww, and participated in fintech app CRED’s round, helping all of these startups attain the much sought after unicorn status.

Meesho, the market leading social commerce in India, also turned a unicorn last week after SoftBank led a $300 million round in the Indian firm, valuing it at $2.1 billion.

DealShare counts WestBridge, Falcon Edge Capital’s Alpha Wave, Z3Partners, and Omidyar Network among its investors.

Tata Group reaches agreement to buy majority stake in BigBasket

By Manish Singh

Indian conglomerate Tata Group has reached an agreement to acquire a majority stake in grocery delivery startup BigBasket, a source familiar with the matter told TechCrunch.

The salt-to-software giant is buying over 60% stake in BigBasket, valuing the Indian startup between $1.8 billion to $2 billion, the source said, requesting anonymity as the deal is still private. BigBasket has raised more than $750 million prior to the deal with Tata.

Indian news network ET Now reported on Tuesday that the two firms were in advanced talks, signals of which began to emerge in local media two quarters ago. Two BigBasket co-founders and Tata Group did not respond to a request for comment.

Chinese internet giant Alibaba, which owns nearly 30% stake in BigBasket, and a handful of other investors are getting a near complete exit from the startup as part of the deal with Tata Group, the source said. New Delhi introduced restrictions last year that made it difficult for Chinese investors to write checks to Indian firms.

The move comes as Mumbai-headquartered Tata Group, which reported a revenue of $113 billion in 2019 and operates several popular brands such as Jaguar Land Rover and tea maker Tetley, looks to expand to more consumer businesses and works to develop a so-called super app in the world’s second-largest internet market.

Bangalore-headquartered BigBasket, which competes with SoftBank-backed Grofers and Reliance’s JioMart, operates in over two dozen cities in India and turned profitable months into the coronavirus pandemic as sales skyrocketed on the platform.

BigBasket and Grofers’s userbases skyrocketed by as much as 80% last year, analysts at Citi Bank estimated in recent note, adding that JioMart, run by India’s richest man Mukesh Ambani, had already started to pose serious competition.

In a recent note to clients, Bank of America analysts estimated that the online grocery delivery market could be worth $12 billion in India by 2023.

“Competition is high in the sector with large verticals like BigBasket/Grofers and horizontal like Amazon/Flipkart trying to convert the unorganized market to organized one. Till recently the No 1 player in the space was BigBasket, with it hitting $1 billion annualized GMV & selling over 300,000 orders every day. Reliance Industries also threw its hat with the company launching its JioMart app in May-20 across 200 cites,” they wrote.

The expansion of Reliance Industries, one of India’s largest industrial houses, in e-commerce last year may have prompted Tata Group to accelerate its digital efforts. Ambani raised more than $26 billion for his telecom and retail empires Jio Platforms and Reliance Retail last year from a roster of marquee investors including Facebook and Google.

Tata Group was working to expand to several consumer-facing digital services as early as 2016, but a boardroom coup put all those plans on the back burner, The Information reported in December.

India lifts restrictions on mapping and surveying to help local firms

By Manish Singh

India said on Monday local firms will no longer need license or other permission to collect, generate, store and share geospatial data of the country, bringing sweeping changes to its earlier stance that it admitted hindered innovation.

Until now, New Delhi required Indian firms to seek licenses and additional approvals to create and publish topographical data. India’s Prime Minister Narendra Modi said today’s “deregulation” step will help the country become more self-reliant and reach its $5 trillion GDP goal.

“The regulations that apply to geospatial data and maps henceforth stand radically liberalised. The Department of Science and Technology is announcing sweeping changes to India’s mapping policy, specifically for Indian companies. What is readily available globally does not need to be restricted in India and therefore geospatial data that used to be restricted will now be freely available in India,” New Delhi said in a statement.

In its guidelines, New Delhi said local firms will be permitted access to “ground truthing/verification” that includes access to Indian ground stations and augmentation services for real-time positioning. Indian firms will also be provided access to terrestrial mobile mapping survey, street view survey and surveying in Indian territorial waters.

New Delhi said in the guidelines that only Indian firms shall be permitted access to the aforementioned surveys. Google has previously made unsuccessful attempts to launch its Street View service in India. A Google spokesperson told TechCrunch that the company was reviewing the guidelines and had no immediate comment to offer.

“Foreign companies and foreign owned or controlled Indian companies can license from Indian Entities digital Maps/Geospatial Data of spatial accuracy/value finer than the threshold value only for the purpose of serving their customers in India. Access to such Maps/Geospatial Data shall only be made available through APIs that do not allow Maps/Geospatial Data to pass through Licensee Company or its servers. Re-use or resale of such map data by licensees shall be prohibited,” the guidelines added.

Devdatta Tengshe, who works in the GIS space, told TechCrunch that the government’s move today was significant for the local ecosystem including citizens as previous restrictions had created an uncertainty on what precisely was permitted.

“Today’s announcement makes it explicitly clear that Indian entities can perform any location data collection and we can collect data on our own,” he said. “Additionally, the location data from agencies like municipality will be made available to Indian entities.”

Flipkart-backed 25-year-old firm MapMyIndia said today’s move by the government is “historic” as it opens up maps and the geospatial sector and ushers the self-reliance era in “strategic areas of maps to empower all 1.3 billion Indians and give unprecedented opportunities and growth for Indian companies.”

Modi said: “The reforms will unlock tremendous opportunities for our country’s start-ups, private sector, public sector and research institutions to drive innovations and build scalable solutions. India’s farmers will also be benefited by leveraging the potential of geo-spatial & remote sensing data. Democratizing data will enable the rise of new technologies & platforms that will drive efficiencies in agriculture and allied sectors. These reforms demonstrate our commitment to improving ease of doing business in India by deregulation.”

Flipkart doubles down on rewards program, partners with 5,000 retail outlets in India

By Manish Singh

Flipkart on Monday launched SuperCoin Pay that its customers will be able to use across thousands of retail stores across the country as Walmart-owned e-commerce giant bets on its loyalty program to win and sustain its user base in the world’s second largest internet market.

The Bangalore-headquartered e-commerce giant said it had partnered with over 5,000 retail outlets including TimesPoints, Peter England, Cafe Coffee Day and Flying Machine across India to give its customers a “greater value and choice” to cash in on their Flipkart loyalty program, called SuperCoin Rewards. Flipkart customers earn these SuperCoins when they make purchases on the e-commerce platform.

Customers will be able to pay up to 100% of the bill value through SuperCoins, Flipkart said, pointing out that traditional loyalty programs have struggled to gain traction because they locked customers to their platform and made it difficult to convert reward points to cash.

Its retail partners operate in a wide-range of categories including fashion, grocery, food and beverages, travel, health and wellness. These retail partners will offer a QR code to make it easier for Flipkart customers to redeem their rewards points.

The move comes as giant e-commerce firms in India aggressively partner with physical and digital stores across the country. Amazon, too, has broadened its offering in recent years to offer coupons and discounts that Amazon Pay customers can redeem when making purchases at Urban Company, Domino’s, BigBazaar, More, Oyo Rooms, Licious, BookMyShow, Swiggy, and RedBus, for instance.

“The lines between online and offline shopping are becoming increasingly blurred, and our intention is to make the consumers’ shopping experience more rewarding, no matter where they shop,” said Prakash Sikaria, Vice President of Growth and Monetization at Flipkart, in a statement.

“Being a part of the SuperCoin programme enables our partners to reap the benefits of Flipkart’s 300 million customer base through a truly integrated rewards initiative,” he added.

Flipkart said customers on its platform have earned over a billion SuperCoin to date.

❌