Inside Mukesh Ambani’s Reliance e-commerce plan

download (5).jpgSource: LiveMint.com, Jun 14, 2018

Mumbai: Billionaire Mukesh Ambani is planning to enter the e-commerce business by combining the best of online and offline shopping experiences, a business model that will require zero cash burn to acquire customers.

As part of the plan being put together by two of Reliance Industries Ltd’s (RIL) consumer-oriented units—Reliance Jio Infocomm Ltd and Reliance Retail Ltd—the company plans to sign on local merchants, boosting their sales through what is known as O2O (online-to-offline) marketplace, a business model that Chinese e-commerce giant Alibaba has pioneered, said one person with direct knowledge of the matter, on condition of anonymity.

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Online retail sales in India seen growing to $32.7 billion this year

Source: LiveMint.com, June 08, 2018

Bengaluru: Online retail sales in India are expected to grow by 31% this year to touch $32.70 billion, led by e-commerce players Flipkart, Amazon India and Paytm Mall, according to a report by marketing research firm eMarketer. However, India’s growth rate in e-commerce is yet to catch up with countries such as China and Indonesia in the Asia Pacific market.

Flipkart, Amazon and Paytm Mall have been expanding into new sectors, including grocery, and with Walmart’s recent $16 billion acquisition of Flipkart, e-commerce in India is expected to launch more offline retail stores with private labels playing a larger role in segments such as fashion and electronic accessories. Read the rest of this entry »

Initiative to generate clean energy

Source: Financial Express, Jun 05, 2018

Mumbai: In its global initiative to generate clean energy, e-commerce major Amazon India today said it will install 8,000-kilowatt (kW) rooftop solar panels at its fulfilment centres and sortation sites in the country by year-end to make them self sustaining. The company has so far installed close to 1,600 kW of solar power panels at its two fulfilment centres in Delhi and Hyderabad, it said in a statement. It plans to expand the initiative to another five fulfilment centres and two sortation sites located in Bangalore, Mumbai and Chennai, while further expanding existing capacity in Delhi.

“By the end of 2018, we plan to expand this installation to an additional seven Amazon operations sites in India,” said Akhil Saxena, vice-president, customer fulfilment, Amazon India.

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Walmart-Flipkart deal brings Esops back in the spotlight

Source: ETRetail.com, May 15, 2018

BENGALURU: As the world’s biggest ecommerce acquisition was announced at Flipkart’s Bengaluru office last week, across the town at fintech company KrazyBee, employees were suddenly interested in knowing more about its employee stock ownership plans (Esops).download (5).jpg

With Flipkart employees landing a $500 million jackpot following the company’s acquisition by Walmart, startups are seeing enquiries pour in from their employees seeking information such as on how to value their Esops and ways to exercise their stocks.This, despite some degree of dissatisfaction within Flipkart over how much present and past employees can cash in.

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Why Walmart-Flipkart deal is a sign of India’s retail FDI potential

Source: Financial Express, May 11, 2018

After incessant media speculation on the impending acquisition of Flipkart by Walmart (with an occasional comment about Amazon also being in the fray), the deal has finally been formally announced. How this acquisition will pan out for Flipkart and Walmart will only be known in the next few years, and would surely be the subject of many a case study then. However, beyond its impact on the shareholders of Walmart and investors in Flipkart, there are many possible interesting implications of this deal, which will not only affect India’s retail sector but also the larger e-commerce ecosystem, and then probably several other important sectors that intersect with retail, such as the agriculture, food processing, manufacturing of consumer goods ones, and even the exports sector.

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Walmart buys 77 per cent stake in Flipkart for $16 billion

images.jpgBengaluru: US retail giant Walmart has signed a definitive agreement to acquire a 77 per cent stake in India’s largest e-commerce marketplace Flipkart with an investment of around $16 billion, making it the largest transaction in history of the online retail space globally.

The deal, which wiped away $10 billion of Walmart’s market capitalisation as investors reacted negatively in early morning trade on the New York Stock Exchange, stands out for several exits. The biggest was Sachin Bansal selling his entire 5.96 per cent stake for $1.23 billion and parting ways with Flipkart that he had founded in 2007 along with friend from IIT, Binny Bansal (not related). Sachin was nowhere around at the Flipkart campus when the Walmart top team led by CEO Doug McMillon addressed employees in a townhall meeting Wednesday evening.

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Walmart plans $2-3 billion push for Flipkart

Source: ETRetail.com, May 07, 2018

Global retail giant Walmart plans to pump $2-3 billion (over Rs 13,000 crore) as fresh equity into Flipkart to strengthen its hold on the e-commerce company, while buying existing shareholders for a majority control in a deal that is expected to be announced this week.

Sources told TOI that the Beast of Bentoville may look at roping in more investors over the next few years, while ensuring that the e-tailer’s operations are in sync with its India strategy. Over the next two years or so, a Flipkart IPO is also planned, although the exact listing time will be linked to market conditions.

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