Flipkart, Amazon festive sales hit $2 billion

Source: ETRetail.com, Oct 16, 2018

BENGALURU: Flipkart and Amazon’s annual Dussehra sales that just concluded are estimated to have touched $2 billion, about a third more than last year, reflecting improved customer sentiments.

Business consulting firm Redseer said the top e-commerce platforms – including also Paytm Mall, Snapdeal and others – generated sales of $2.3 billion. Before the sale started, it had predicted total sales between $2.5 and 3 billion.

Forrester Research said Flipkart alone did close to $1 billion of gross sales. It said Amazon narrowed its gap with the home-grown e-tailer this year, compared to the last. All of these numbers will be finetuned over the next few days as more data flows in.

Last year, top e-commerce firms had estimated to have done under $1.5 billion in sales. The sentiment last year was adversely impacted by GST implementation, and the lingering effects of demonetisation. Read the rest of this entry »

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Ecommerce companies give global brands a second chance at India success

Source: ETRetail.com, Oct 09, 2018

KOLKATA: India’s two largest online marketplaces — Flipkart and Amazon — have helped give a new shot of life to some global smartphone and electronics brands that have struggled to make it big in India on their own.

BlackBerry, TCL, Asus, Honor, Nokia, Thomson, Inalsa and Kodak, which either failed to crack the Indian market or withdrew from it, have not only made an impressive comeback but are also expanding and entering new categories after achieving record sales, senior executives of the two marketplaces said. Flipkart and Amazon have handheld these brands — from providing consumer insights to developing products and expanding into new categories.

They have helped by enabling faster payment, reducing the credit period and providing a marketing push, executives of these companies said. Asus and Huawei’s Honor smartphones, which were relaunched in India through Flipkart, achieved sales of 1 million for the first time. Honor was the fifth-largest smartphone by market share in India in the first quarter, according to Counterpoint Technology Market Research. Read the rest of this entry »

The big PE, VC deal flow in Indian internet ventures: $8b in last fiscal, $7b in April to September 2018

Source: Financial Express, Oct 08, 2018

India’s online environment is thriving. Private equity firms and venture capitalists invested a chunky $7 billion into online ventures between January and September, data sourced from research agency Tracxn showed. That may be a little less than the $8 billion they bet during this time last year but it’s nonetheless impressive.

Private Internet companies have done well for themselves picking up over $6 billion, estimates by Jefferies say. Of this, over a third of the investments or $2.4 billion flowed in during the September quarter alone. Read the rest of this entry »

E-commerce companies will have to register in every state for collecting TCS

Source: The Hindu Business Line, Sept 29, 2018

New Delhi: E-commerce operators will have to register themselves in every state where their suppliers are located for collection of TCS and foreign companies can appoint an ‘agent’ on their behalf for securing such registration, the CBIC has said.

E-commerce companies will from October 1 have to deduct 1 per cent tax collected at source (TCS) before making payments to their suppliers.

The Central Board of Indirect Taxes and Customs (CBIC) has come out with a list of 29 FAQs answering industry queries on the modalities to be followed by the e-commerce operators for deducting TCS. Read the rest of this entry »

Walmart, Flipkart plan to cross-sell private brands

123.jpgSource: ETRetail.com, Sept 25, 2018

MUMBAI: The Indian unit of Walmart said it could leverage Flipkart to cross-sell each other’s private brands, use the expertise of the e-commerce firm in technology and analytics, and in turn, help them with grocery retailing.

“Currently, we are selling our private brands only in our stores but don’t see any reason why we can’t sell it outside our stores. With Flipkart, there is an option,” said Krish Iyer, chief executive at Walmart India. “Flipkart is a platform and there are sellers on it, and when you talk about grocery, it’s about getting the right sellers to complete the mix. They are very good at technology, analytics and customer relationship management.”

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Flipkart acquires Israel-based start-up Upstream Commerce

7.jpgSource: LiveMint.com, Sept 25, 2018

Bengaluru: Flipkart has acquired an Israel-based analytics start-up called Upstream Commerce, as India’s largest online retailer looks to support its massive seller base with services such as real-time pricing and information on product assortment.

This is Flipkart’s second acquisition in as many months, after the Walmart-controlled e-commerce firm acquired Indian artificial intelligence start-up Liv.ai in August. The latest buyout will also enable Flipkart to have an outpost in Israel, which is widely regarded as one of the world’s foremost start-up ecosystems.

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Samara-Amazon bags Aditya Birla Group’s retail chain More for Rs 42 bn

Source: Business Standard, Sept 20, 2018

Mumbai: Almost 11 years after setting up the food and grocery retail business, Aditya Birla Group on Wednesday signed a deal to sell Aditya Birla Retail (ABRL) to home-grown private equity fund Samara Capital and global e-commerce giant Amazon.

The Group did not disclose the value of the deal, but sources said it was around Rs 42 billion. The buyers, they said, would take Rs 40 billion debt in ABRL, which runs stores under the ‘More’ brand.

The Birlas are likely to end up with losses amounting to Rs 70 billion in the venture, given that they had invested Rs 110 billion of personal capital, by way of both equity and debt of ABRL, said sources. Read the rest of this entry »