Amazon’s $575 mn investment delivers a $1 bn blow to food delivery sector

Source: Business Standard, May 20, 2019

In a market that took a breather after China played hardball on trade and talks on Brexit hit a dead-end, one sector got hot again: food delivery. But Amazon’s decision to take the lead in a $575 million funding round in British startup Deliveroo wasn’t welcomed by all investors.

The news plunged the sector into turmoil, as the three major Europe-listed players — Just Eat, Takeaway.com and Delivery Hero — had the better part of $1 billion of their collective market value wiped out. It doesn’t necessarily spell trouble for those players in the long run, though.

“A bounceback is on the cards — after all, the others aren’t going away, so Just Eat etc., will be looking for investment now, too, in order not to be left behind,” wrote IG Group Chief Market analyst Chris Beauchamp in an email. “The sector has plenty of room for growth, so the race is on to see who can get funding next.”

The hit was still sizable, and those stocks already have a large short base, which is something to keep an eye on. Read the rest of this entry »

Ecommerce companies Flipkart, Amazon log out of deep discounts

Source: ETRetail.com, May 16, 2019

KOLKATA: Deep discounts offered on India’s two largest ecommerce marketplaces, Walmart-owned Flipkart and Amazon, have vanished for over three months now, said executives from leading consumer companies.

Nothing is sold below cost price anymore, they said, though discounts may be more on private label products owned by the marketplaces, which are treading cautiously after the revised foreign investment policy for ecommerce came into effect in February.

The two marketplaces have decided to take it slow, at least until the next government takes charge, hoping to fend off the offline trade lobby, which is a massive vote bank and has been lobbying with the government and political parties against deep discounts online, said four executives of leading companies. Read the rest of this entry »

BigBasket gets $150 million in funding, becomes the latest unicorn

Source: Business Standard, May 06, 2019

New Delhi: Mirae Asset-Naver Asia Growth Fund (Mirae-Naver), a leading investor operating in global growth markets, the UK Government’s development finance institution,CDC Group, and Alibaba Group said on Monday they have led a $150-million round of fundraising for Supermarket Grocery Supplies (SGSPL), which owns the Bigbasket brand.

The round values Bigbasket at over $1 billion, according to the company, making it the newest Unicorn out of India. Business Standard first reported the deal on March 28.

The financing round, which Mirae-Naver has led through one of its funds, marks the group’s largest investment in India. Mirae Asset-Naver Asia Growth Fund is a joint venture between Seoul-based Mirae Financial Group and Naver Corporation, South Korea’s leading internet company. Alibaba Group, which had previously led the Series E round at SGSPL in 2017, participated in the current financing round as well. The Jack Ma-led group aims to enable the growth of local Indian companies like SGSPL, as more users come online in the country. Read the rest of this entry »

E-commerce bandwagon turns lifeboat for global brands

Source: ETRetail.com, May 06, 2019

Apart from taking fashion to the far corners of India, the growth of ecommerce is giving global brands struggling in the local market another shot at success.

Arvind Fashion is said to be in talks with Walmart-owned Flipkart to offload the India licences for a raft of foreign brands, including Izod, Nautica, Gant and Ed Hardy, according to people familiar with the development.

US-based VF Corp, owner of the Vans brand, is also said to be talking to the ecommerce company to sell its India licence, they added. Read the rest of this entry »

Amazon beefs up cloud biz, data centre infra in India

Source: ETRetail.com, May 06, 2019

NEW DELHI: Amazon is beefing up its data centre infrastructure and cloud services business in India as the clamour around data localisation grows louder everyday.

The Seattle-headquartered company has infused around Rs 1,380 crore into its local data centre arm, Amazon Data Services India (ADSIPL), documents sourced from business intelligence platform Paper.vc showed.

Apart from its online retail business, Amazon operates ADSIPL and Amazon Internet Services (AISPL). The latter undertakes the resale and marketing of Amazon Web Services (AWS) in India and directly competes with its Chinese rival Alibaba’s cloud services business. Read the rest of this entry »

BigBasket to invest $100 million to strengthen supply chain

Source: LiveMint.com, Apr 28, 2019

NEW DELHI: Alibaba-backed company BigBasket is pumping in $100 million (about ₹698 crore) to strengthen its supply chain by setting up vending machines and smaller distribution centres across various cities it operates in.

The online grocery platform — which is registered as Supermarket Grocery Supplies — had recently raised $150 million in funding, led by Mirae Asset-Naver Asia Growth Fund, CDC Group and Alibaba Group.

Founded in 2011, BigBasket operates in 25 Indian cities. It plans to utilise the proceeds of this fundraising – which has placed the Bengaluru-based company in the unicorn club (companies with valuation of $1 billion and above) – to further penetrate into existing markets with more investments in the first mile, scaling-up of its supply chain and for developing new reseller channels. Read the rest of this entry »

Amazon Retail India plans to enter 60 smaller cities

Source: ETRetail.com, Apr 23, 2019

New Delhi: Amazon’s fully owned food retailing subsidiary in India appears to be finally taking off after New Delhi gave its assent to the venture for locally sourced items two years ago, multiple suppliers to the online grocer told ET.

Amazon Retail India (ARIPL), currently present in more than 100 cities, plans to expand to another 60 tier 2-3 cities in the next 12-14 months, according to three people familiar with the development. In 2017, the company received federal approval for investing $500 million in a venture to sell locally-produced food items.

Multiple food distributors in various cities said currently Amazon is in the process of lining up dozens of small delivery centres, in the range of 2,000 sq ft, in tier-2 and tier-3 cities for its hub-and-spoke supply chain model that will primarily be fed by large warehouses located in surrounding areas. Read the rest of this entry »