Flipkart receives Rs 2,190 crore fund infusion from Singapore-based parent

Source: Financial Express, Dec 12, 2018

Flipkart India has received Rs 2,190.64-crore fund infusion from its Singapore-based parent, according to filings made with the Registrar of Companies which were sourced by FE from business signals platform paper.vc.

A total of 7.45 lakh equity shares were allotted at a premium of Rs 29,399 per share, according to the documents. The allotment was made on December 4.

The investment in Flipkart’s wholesale arm comes close on the heels of the e-commerce major’s arch rival Amazon India getting a Rs 2,200-crore fresh funds boost from Singapore-based Amazon Corporate Holdings and Mauritius-based Amazon.com.inc, regulatory filings showed.

Walmart-backed Flipkart and Amazon are locked in an intense competition to outdo each other in India’s burgeoning e-commerce market. Cheap data tariffs and a rise in internet consumption have boosted India’s e-commerce story.

The e-commerce market in India is expected reach $ 200 billion by 2026 from  $38.5 billion in 2017, according to estimates by IBEF (India Brand Equity Foundation).


Amazon invests fresh funds of Rs 22 billion in India marketplace

Source: Business Standard, Dec 05, 2018

E-commerce giant Amazon has infused fresh funds of Rs 22 billion into Amazon Seller Services, its marketplace unit, according to a filing by the company. This takes the overall fund infusion in the unit to Rs 75 billion so far in this fiscal year. The infusion comes at a time when reports suggest that Amazon India is almost on par or even has exceeded the domestic rival in terms of gross sales on its platform. However, the burn rate continues to remain at a higher level as e-commerce giants have set their sights to win the underpenetrated tier-II and tier-III types of markets that require a different approach.

Fresh consultations begin for e-commerce policy

Source: The Hindu Business Line, Dec 03, 2018

New Delhi: The Centre has revived its unfinished agenda of drafting a national e-commerce policy, this time under the Department of Industrial Policy & Promotion (DIPP), and fresh consultations with stakeholders have begun for inputs, a government official has said.

“The consultation process and the drafting of the policy is being led by the DIPP this time instead of the Commerce Department. The idea is to formulate a policy which would balance the interests of all stakeholders and would be acceptable to most,” the official told BusinessLine.

The government’s first attempt of drafting an e-commerce policy, led by the Commerce Department, was abandoned after the first draft came in for heavy criticism by most stakeholders, including both domestic and foreign e-commerce companies. Read the rest of this entry »

Amazon’s Future Retail deal goes beyond tackling Flipkart

Source: LiveMint.com, Dec 03, 2018

Future Group founder Kishore Biyani is negotiating an agreement with Amazon that will give the US-based online retailer the option to acquire Biyani in the future, The Economic Times reported last week. The report said the e-commerce giant is in an advanced stage of talks to buy a 9.5% stake in Future Retail Ltd. Amazon has been testing the waters with stakes in smaller offline companies, including Shoppers Stop Ltd and Aditya Birla Group’s food and grocery retail chain, More. A stake in Future Retail will be a far bigger step in marrying its online presence with offline stores.

Analysts at Morgan Stanley said in a note to clients that Future Retail has a strong store distribution compared to that of its peers. “Other large physical retailers with comparable formats have a markedly lower store footprint with coverage that spans only about 50% of Future Retail’s locations,” they said in a 21 November report.

As on 30 September, Future Retail had 1,336 stores, including 284 Big Bazaar stores, covering 15.4 million sq.ft, across 373 cities. Read the rest of this entry »

Bigbasket eyes $200 mn investment in fresh funding in next few months

Source: Business Standard, Nov 16, 2018

Mumbai: After successfully raising $300 million from Alibaba Group earlier this year, online grocery store Bigbasket now aims to raise up to $200 million over the next few months, a top company official said.

The Bengaluru-based company aims to raise funds from both the existing as well as new investors and the funds will be used for marketing, to build infrastructure and to develop technology.

“We will probably look at a further investment of close to $150-200 million in the next few months. We already had some early talks with investors,” Bigbasket co- founder and chief executive Hari Menon told PTI here.

Menon said the fund will be used largely for marketing, and to develop infrastructure and technology. The company normally spends Rs 1.5 billion annually on marketing. Read the rest of this entry »

India Post’s e-commerce portal aims to boost parcel business network

Source: Business Standard, Nov 13, 2018

Leveraging its parcel business network, India Post on Tuesday announced the soft launch of its e-commerce portal.

“IndiaPostOffice has launched an e-commerce portal and I am glad that today I have received the first parcel by this e-commerce portal,” Communications Minister Manoj Sinha said in a tweet.

While details of the e-commerce service that will be provided through India Post could not be ascertained, an official source that the Department of Posts has done only soft launch and full-fledged operations of the service will start around or after mid-December.

The Department of Posts has been focussing on the e-commerce sector to increase its revenue receipts. The Department facilitates has collected and remitted more than Rs 27 billion under cash on-delivery till January 2018 since its introduction in December 2013. Read the rest of this entry »

How no-cost EMIs are dramatically changing e-commerce landscape

Source: Business Standard, Oct 28, 2018

New Delhi: No-cost equated monthly instalments (EMIs) offered to consumers by credit card companies and NBFCs are dramatically changing the e-commerce landscape.

As much as 20 per cent of the gross merchandise value (GMV) of sales made on e-commerce platforms is being financed through the no-cost EMI route. Just two years ago, the share of such sales was 4 to 5 per cent, according to estimates by finance and e-commerce companies that Business Standard spoke to.

E-commerce major Amazon.com said that during its big sale that concluded this month, as much as three of the four EMIs taken by consumers were no-cost EMIs.

The company said that for products of over Rs 20,000, at least one in every three transactions was through a financing scheme. Read the rest of this entry »