IPO-bound Unicommerce’s net profit more than doubled to INR 13.1 Cr in the financial year 2023-24 (FY24) from INR 6.5 Cr reported in the previous year.

The startup, backed by AceVector (formerly Snapdeal), saw its revenue from contracts with customers or operating revenue rise 15% to INR 103.58 Cr in the reported fiscal as against INR 90.06 Cr in FY23.

In that, revenue from contracts with customers outside India increased over 54% year-on-year (YoY) to INR 3.8 Cr.

Total income stood at INR 109.4 Cr in FY24 as against around INR 93 Cr in the previous fiscal.

Unicommerce said in its red herring prospectus (RHP) that the growth of revenue from contracts with customers and annual recurring revenue (ARR) was possible as its revenue model is based on a transaction fee and a monthly minimum commitment for enterprise clients. 

“Our pricing and billing model allows us to earn revenue on incremental transactions processed by our clients, allowing us to grow revenues as volumes on our platform increase,” the startup said.

However, it is also pertinent to note that its ARR witnessed a marginal decline of 0.8% YoY in FY24 to INR 106 Cr.

Founded in 2012, Unicommerce is an ecommerce SaaS startup that enables end-to-end management of ecommerce operations for brands, sellers and logistics service provider firms. It was acquired by Snapdeal in 2015, but the latter sold 30% of its stake in Unicommerce to SoftBank later.

The startup said that for the quarter ended March 31, 2024, it had an annual run-rate of processing 791.63 Mn order items for 795 enterprise clients and 2,707 SMB clients.

Unicommerce’s RHP said that it was the largest ecommerce enablement SaaS platform in transaction processing in terms of revenue in FY21, FY22, and FY23, while also being the only profitable entity in this segment among the top five players. Increff, Vinculum, Browntape, and Easyecom are among the other players in the top five.

Zooming Into Expenses

Unicommerce’s total expenses rose over 9% to INR 91.9 Cr in FY24 from INR 84.1 Cr in the previous fiscal year, with employee benefit expenses continuing to account for the largest portion. 

Employee Cost: The startup’s employee benefit expenses increased 4.7% to INR 64.9 Cr during the year under review from INR 62 Cr in FY23. 

It accounted for 70.64% of the company’s total expenses in FY24, a decline from 73.74% in FY23.

Unicommerce spent INR 57.4 Cr towards salaries, wages and bonuses, while INR 3.7 Cr was spent on share-based payment expenses in FY23.

Server Hosting Expense: Unicommerce’s spending under this head saw a marginal increase of 0.2% YoY to INR 5.41 Cr in FY24.

While the increase in this expense was low in FY24, Unicommerce saw a significant 65.84% YoY increase in server hosting expense in FY23. The startup said that this rise was primarily due to an increase in the use of its platform and in items processed during this period.

Advertisement and Publicity Expense: Unicommerce’s ad expenses witnessed a 3.4% YoY decline to INR 3.8 Cr during the year under review. 

Legal and Professional Charges: The company spent INR 3.9 Cr in this bucket in FY24 as against INR 93 Lakh in the previous fiscal.

The public issue of Unicommerce comprises only an offer-for-sale (OFS) component of 2.56 Cr equity shares. Its IPO will open for subscription on August 6 and close on August 8. 

Besides Unicommerce, the IPOs of Ola Electric and FirstCry will also open this month. A number of new-age tech startups have gone public in the first seven months of 2024, and this number is expected to increase further amid the IPO boom.

The post Unicommerce FY24: Net Profit Doubles To INR 13.1 Cr, Revenue Crosses INR 100 Cr Mark appeared first on Inc42 Media.

Snapdeal-backed SaaS startup Unicommerce has filed a red herring prospectus (RHP) with the markets regulator Securities Exchange of India (SEBI) for its initial public offering.

Unicommerce’s IPO will open for subscription on August 6 and close on August 8. The bidding for anchor investors will open for a day on August 5, according to the RHP.

Unicommerce’s IPO has no fresh issue component to the IPO. Instead, it solely comprises an offer-for-sale (OFS) component with 2.56 Cr equity shares.  

Under the OFS, AceVector Ltd (formerly Snapdeal) and SoftBank will be selling up to 94.38 Lakh equity shares and up to 1.61 Cr equity shares.

Meanwhile, Snapdeal cofounders Kunal Bahl and Rohit Bansal, who hold a joint stake in Unicommerce via their VC firm B2 Capital Partners, have withdrawn from the OFS. Earlier, they planned to offload 22 Lakh equity shares.

AceVector is the largest shareholder in Unicommerce with a 38.18% stake. Meanwhile, SoftBank holds a 29.23% stake in Unicommerce via its UK-based entity SB Investments Holdings (UK). 

It is pertinent to note that Unicommerce filed a draft red herring prospectus (DRHP) with SEBI in January. It earlier planned to sell up to 2.98 Cr shares via its IPO.

Founded in 2012, Unicommerce is an ecommerce SaaS startup that helps businesses manage inventory across all online marketplaces. It was acquired by Snapdeal in 2015 but the latter sold 30% of its stake in Unicommerce to SoftBank.

Unicommerce posted a net profit of INR 6.3 Cr in the first half (H1) of the financial year 2023-24 (FY24). Revenue from operations stood at INR 51 Cr during the period under review.

In FY23, the startup’s net profit rose 8% to INR 6.4 Cr from INR 6 Cr in the previous fiscal year. Revenue from operations jumped 52% to INR 90 Cr from INR 59 Cr in FY22.

The post Unicommerce Files RHP For IPO, SoftBank To Sell Up To 1.61 Cr Shares appeared first on Inc42 Media.

The retail industry in India has witnessed a significant evolution, transitioning from small, independent shops to large stores, supermarkets, hypermarkets, and now ecommerce. This transition has taken place on the back of a dramatic change in the shopping habits of consumers.

Consequently, the retail landscape has seen a rise in tech-driven neighbourhood stores such as SuperK, Apna Mart, and Kirana King, especially after the pandemic. The most interesting, yet crucial, aspect of these players is that they are focussed on improving the shopping experience for customers living in the country’s rural areas. 

Making waves in this competitive landscape is the retail tech startup Frendy, which is bringing modern retail convenience to Tier III cities and beyond, with its eyes on markets where giants like Reliance and Tatas have yet to establish their presence.

Incorporated in 2019 by entrepreneurs Sameer Gandotra, Gowrav Vishwakarma, Ninad Patel and Harshad Joshi, Frendy aims to enhance the shopping experience for customers living in lesser-known areas of India through its spacious stores and app.

Interestingly, the founders of Frendy came up with the idea to launch Frendy when they noticed that hardly any retail player focussed exclusively on customers living in Tier III and beyond cities. However, what prompted them to execute their thesis was the strong aspirations of the people living in small towns and cities. 

“While there was a lot of chatter about ecommerce in the country at the time, most people from the rural parts of the country were untouched by its magic. Trust and last-mile assistance were missing in ecommerce in rural areas, so we started researching and realised that purely digital solutions wouldn’t work because these consumers haven’t even seen a proper modern retail experience. So, we came up with a phygital (physical plus digital) model,” the cofounder said.

This led to the creation of the Ahmedabad-based Frendy. The startup currently operates as an omnichannel retail store network that sells grocery, cleaning, beauty and other household products under its private-label portfolio. 

It also aims to disrupt the market by addressing the challenges faced by micro kirana stores, such as poor stocking, managing multiple SKUs, and maintaining discounted rates and profit margins. As per the founders, the brand has served approximately 1 Lakh+ households since its inception.

They added that the startup’s revenue doubled to INR 82 Cr in FY23 from INR 40 Cr in FY22. However, in FY24, it posted a revenue of INR 70 Cr (unaudited). Per the founders, the degrowth on the revenue front was the result of a strategic turnaround to reduce burn and enhance operational efficiency. 

Nevertheless, the startup, since its inception, has garnered significant interest from Auxano Capital, AT Capital Singapore, Metara Ventures, Let’s Venture Angel Fund, Desai Ventures, Auxano Capital, Priya Joseph, Rohan Jain and Rishabh Jain of The Wellness Co., and Apurva Salarpuria family office, among others. It has raised a total of $5 Mn in its journey so far.

Frendy’s Permutations & Combinations

Speaking with Inc42, the cofounders said that much has gone into creating a robust customer base. Gandotra added that Frendy’s business model has undergone multiple iterations from time to time on the back of changing customer demands, market conditions and opportunities. 

From September 2019 to February 2020, Gandotra added, they operated Frendy as a referral-based ecommerce platform, offering groceries and products under categories like fashion and accessories, home decor and kitchenware. 

But when the Covid-19 pandemic brought the world to its knees, the founders shifted their focus from other categories to strengthen their grocery segment, all while boosting their last-mile delivery play.

In March 2022, they began focussing on micro kiranas as agents and by October 2023, they launched Frendy Marts, which function as both retail outlets and micro-warehouses.

Currently, the startup operates 25 mini marts (also known as Frendy Marts), which are present in small towns of Gujarat like Chitroda, Khodiyarnagar, Nikol, Gondal, etc. The founders said they keep on adding 3-5 new mini marts every month. 

These mini marts serve as modern retail outlets for villages or towns with populations of 10,000 to 15,000 people. Frendy’s mini marts also serve as fulfilment centres or warehouses and a one-stop supply hub for micro kiranas. The startup has its central warehouse located in Ahmedabad.

“We initially launched with a wider assortment of around 10,000 SKUs, including fashion and accessories. Currently, our catalogue has been reduced to 5,000 SKUs as we focus mainly on groceries and have largely eliminated fashion items. Of these, 1,000 SKUs are available at the Mart, 1,000-1,500 at micro kiranas, and 4,000 at the central warehouse,” he added.

Although the business model has changed over the years, one thing that has remained constant for the cofounders is their commitment to technology.

Frendy’s Tech At Play

To facilitate hassle-free shopping, Frendy uses its in-house app, which has around 5,000 SKUs. This app allows micro kiranas to access a digital product catalogue, place orders, and receive deliveries from mini marts. Consumers can either order directly through this app or request the micro kirana owner to place an order on their behalf.

Further, its in-house digitised network includes WhatsApp-based merchandising and customer engagement tools. The customer app features interactive pricing, offers and discounts, trending products, and vernacular language support. In addition to this, its logistics app, integrated with Mart POS, facilitates demand forecasting, inventory management, and provides strong analytics and business insights. 

Further, its CRM system includes a delivery app for order tracking and payments; a micro store/partner app with data dashboards, analytics, payments, and CRM functionalities, including ticketing and communication; and a Mart POS with easy operation, data analytics, ARS, AI-based merchandising, and payment processing. Additionally, it also has a warehouse management system to handle inventory, order management, accounting, and vendor interactions.

Currently, about 90% of its consumers make purchases in person at micro kiranas, while only 10% use the app.

The app is mainly used by partners and micro kiranas to manage orders. The platform allows users to check product availability and prices with ease.

Frendy’s Expansion Plans

Operating in Gujarat, the startup has plans to emerge as the next DMart. Interestingly, as per Gandotra, the country can easily accommodate another 20 DMarts. 

With its eyes on covering the 20,000 villages in India that comprise 60% of the rural population, the startup eventually aims to expand to larger towns and Tier III cities. 

“The initial focus is on acquiring the rural areas of Gujarat before expanding to other states in the coming years,” the cofounder added.

As per Gandotra, within Gujarat, there are about 1,100 towns, which provides the startup ample opportunities for the next two to three years. 

“This regional focus will allow us achieve greater efficiency as we will be operating within the same state,” he said, adding that the brand is currently focussed on creating differentiation by providing a standardised and superior retail experience.

As per the founder, Frendy stores also offer amenities such as tea stalls and video game consoles for kids, making the shopping trip more enjoyable and convenient.

By FY25, the cofounders aim to establish 70-80 Frendy Marts. “Our primary focus is on solidifying the foundation of our business through these marts, which will then facilitate easier scaling.”

While the rural retail sector currently features only a few players like SuperK and ApnaMart with strategies similar to Frendy’s, it is only a matter of time before major retail giants such as Reliance enter these markets. With that said, it will be interesting to see how Frendy is able to solidify its rural game play before shedding some of its market share to other bigger rivals.

[Edited by Shishir Parasher]

The post Can Frendy Be The Next DMart With Its Village-Only Playbook? appeared first on Inc42 Media.

As Apple continues to increasingly distance itself from China and boost its production in India, the Cupertino-based tech giant is reportedly set to begin manufacturing iPhone Pro and Pro Max models in the country, starting with iPhone 16 series, as early as this fiscal year, with Foxconn handling the production.

So far, only non-Pro models have been produced locally. 

“This year, Apple will manufacture the Pro and Pro Max models in India to make sure the India-assembled iPhone 16 Pro models are available in the country after the launch,” a source was quoted as saying by Moneycontrol.

Sources told Moneycontrol that Foxconn’s facility in Sriperumbudur, Tamil Nadu, will soon start the ‘new product introduction’ (NPI) process for the pro models of iPhone 16 and will enter mass production stage once the phone is launched.

The source further said that Foxconn typically receives first preference for new product manufacturing due to its extensive capabilities and deep integration within Apple’s supply chain.

This development builds on Apple’s existing operations in India. Last year, India-built iPhone 15 series were available to the customers on the first day of global sales. Apple assembled $14 Bn worth of iPhones in India during FY24, constituting 14% of its global iPhone production.

Apple currently holds a 6% share of India’s smartphone market. 

In 2023, the company accounted for 23% of the smartphone revenue share, surpassing Samsung’s 21%. Apple shipped over 10 Mn iPhones in India in 2023, up from 6 Mn in 2022.

For the upcoming iPhone 16 series, expected to launch in September, Apple anticipates high demand. The company is preparing 90 Mn units for 2024, 10% more than the iPhone 15 series. Apple Chief Operating Officer Jeff Williams recently visited China’s manufacturing hub, Shenzhen, to discuss the supply chain ahead of the iPhone 16 series launch.

Apple has aggressively increased production of its flagship iPhone devices in India through Foxconn and Tata Electronics. Tata, which acquired Wistron operations, is acquiring Pegatron’s India operations, including an iPhone manufacturing plant near Chennai and another under-construction unit.

Beyond iPhones, Apple is exploring production of other devices in India. The company is considering manufacturing iPads through Foxconn, encouraged by the government’s push to attract more supply chains. Apple plans to start AirPods production in India early next year, with efforts to increase production of components for AirPod wireless charging cases through US-based contract manufacturer Jabil in Pune.

Apple aims to manufacture 25% of all its iPhones in India over the next 3-4 years, up from the current 14%. 

The post Apple To Start Manufacturing iPhone 16 Pro, Pro Max Models In India This Year appeared first on Inc42 Media.

The Competition Commission of India (CCI) has intensified its scrutiny of the $8.5 Bn merger between Reliance Industries and Walt Disney’s India media assets, reportedly asking the companies nearly 100 questions, including specifics on sports rights.

In a confidential submission to the antitrust body in May, Reliance and Disney said that their merger would not harm competition. The companies argued that the cricket rights, which will expire in 2027 and 2028, will open up opportunities for rival bidders. They also highlighted that advertisers would still be able to target cricket audiences effectively.

The CCI has now sought further details through two sets of questions, including why YouTube, which primarily features free, user-generated content, should be considered in the same market as subscription streaming services like Netflix and Disney, news agency Reuters reported.

In response, Reliance and Disney have argued that YouTube also offers licenced, paid content and boasts a wide reach.

The CCI has also inquired about the ownership and duration of sports rights held by the companies, as well as details on previous bidders for these rights.

However, the report added that the CCI is not currently raising concerns about the rights but is gathering information.

Earlier this year, RIL and Viacom 18 and The Walt Disney Company announced the signing of binding agreements to set up a joint venture that would combine the businesses of Viacom18 and Star India Private Limited.

The merged entity will have over 100 TV channels and two leading over-the-top platforms – Disney+ Hotstar and JioCinema. It will exclusively hold the rights to distribute Disney’s content in India, in addition to Reliance and Viacom18-owned sports content. Additionally, RIL said it would invest INR 11,500 Cr in the JV to fuel its growth.

Experts told Inc42 earlier that the merged entity will have the content to cater to all segments of viewers and grab a big market share in the Indian media and entertainment space. Besides, it is also set to disrupt the country’s OTT landscape.

In its financial report for the second quarter of 2024, US based entertainment major Walt Disney said it incurred over $2 Bn charges due to goodwill impairments related to Star India and entertainment linear networks in India.

The company said that the dent could be attributed to entering a binding agreement with Reliance Industries Limited in the quarter to contribute Star India’s operations in a new joint venture.

The post CCI Intensifies Scrutiny Of Reliance-Disney Merger With Nearly 100 Questions appeared first on Inc42 Media.

The digital and new commerce business contributed 18% to the total revenue of Reliance Retail in the June quarter (Q1) of the financial year 2024-25 (FY25). 

The retail giant did not disclose the contribution of the segment in its quarterly financial statements for the quarter ended March 2024. However, the vertical accounted for 19% of the retail giant’s total revenue in Q3 FY24. 

“Retail business delivered robust financial results, as compared to last year, well supported by all consumption baskets… The digital and new commerce segments are also scaling up rapidly,” Reliance Industries Ltd (RIL) chairman and managing director (MD) Mukesh Ambani said.

Overall, Reliance Retail’s net profit jumped 4.6% to INR 2,549 Cr in the quarter ended June 2024 from INR 2,436 Cr in the year-ago period. Sequentially, profit declined more than 7% from INR 2,746 Cr in Q4 FY24. 

Meanwhile, operating revenue rose 6.6% YoY to INR 66,260 Cr in Q1 FY25 even as the top line witnessed a sequential decline of nearly 2% from 67,610 Cr in the quarter ended March 2024. 

“Reliance Retail delivered resilient performance during the period and strengthened its position as India’s foremost retailer… We continue to make strides in delivering better retail experiences for our customers as we embrace innovation to improve products, processes, and platforms along with integrating advanced technologies,” said Reliance Retail Ventures’ executive director Isha Ambani.

New Commerce Business Scales Up

In a statement, the retail conglomerate said that JioMart Digital, its consumer electronics vertical, saw its merchant base jump 14% year-on-year (YoY) during the quarter under review. 

Overall, the digital commerce platform JioMart saw average bill value grow 16% YoY, largely on account of surge in consumer electronics sales due to the ongoing heat wave in North India. 

“The business (JioMart) continued investments in stores, platform enhancements, product design and sourcing capabilities to further strengthen the value proposition to the customers. These initiatives will help sustain growth momentum in (the) near and medium term,” said the company. 

Fashion ecommerce platform AJIO also added 1.9 Mn customers during the quarter under review and expanded product catalogue by over 20% compared to the same period last year. 

The retail major also said that its “grocery new commerce” arm opened 30 new “Metro format” stores in Q1 FY25, taking the total store count to over 200 spanning 180+ cities.

IPL Continues To Drive JioCinema

The conglomerate said that its “entertainment revenue” declined 5% YoY as the revenue from the Indian Premier League (IPL) was split between two quarters (Q4 FY24 and Q1 FY25) as against the entire revenue from the tournament being booked in Q1 FY24 last fiscal year.

It clocked a viewership of 620 Mn for IPL 2024, up 38% YoY. 

“JioCinema also witnessed a sharp increase in engagement, with audiences spending a total of more than 350 Bn minutes watching the most popular annual sports spectacle, an increase of 50%+ YoY. Viewers watched an average of 75 minutes per session, up from 60 minutes last year,” added the statement.

Meanwhile, it said that JioCinema’s non-sports advertising saw “strong growth” albeit on a small base on the back of revamped SVOD offering. 

The company also said that it continued to make investments in the sports and digital segments to drive long-term growth for its entertainment business. 

Giving an update about the merger between Viacom18 and Star India, the conglomerate said that it obtained the approvals of their respective creditors in June this year, in line with the directions of National Company Law Tribunal (NCLT). The companies are in the process of obtaining other requisite approvals for completion of the transaction, added RIL. 

Meanwhile, Reliance‘s digital giant Jio Platforms reported a 12% YoY jump in its consolidated net profit to INR 5,693 Cr in Q1 FY25 even as operating revenue soared 13% YoY to INR 29,449 Cr during the period under review.

Overall, RIL saw its consolidated net profit decline 4% YoY to INR 17,448 Cr in the quarter ended June 2024. 

The post RIL Q1: Digital & New Commerce Business Contributes 18% To Reliance Retail Revenue appeared first on Inc42 Media.

B9 Beverages Ltd, which owns craft beer brand Bira 91, is reportedly planning for an initial public offering in 2026. The startup claims to be the fourth-largest beer company in India, sitting at a market share of 5% across key regions.

Citing people close to the development, ET reported that B9 Beverages has tapped investment banking firm Morgan Stanley for its pre-IPO process.

“We are planning our IPO in 2026. This is contingent on meeting operating milestones in the business,” B9 Beverages’ CEO Ankur Jain was quoted as saying in the report.

Last month, the beer brand raised $25 Mn (about INR 208 Cr) via external commercial borrowing (ECB) from its existing backer Kirin Holdings.

Founded in 2015 by Jain, B9 Beverages is a craft beer brand that is known for its beer, ciders and seltzers. B9 Beverages counts Peak XV Partners, Sofina and DS Group among its marquee investors, and has acquired $449 Mn in funding so far.

Bira 91 claims to sell its beer across 550 towns and cities, spanning over 18 countries. The startup claims to be the fourth-largest beer company in India.

Gearing up for its initial public offering (IPO), craft beer maker Bira 91 became a public entity, in December 2022, while also renaming itself as B9 Beverages Ltd, as per its regulatory filings.

The beer company’s net loss rose 12% to INR 445.4 Cr in the financial year 2022-23 (FY23), from INR 396 Cr in the previous fiscal year, burdened by higher expenses and excise duty.

The post Bira 91 Maker Plans To Go Public In 2026 appeared first on Inc42 Media.

Apple Inc’s annual sales in India have jumped to a record high of nearly $8 Bn as the iPhone maker is rapidly expanding its market where it now makes more devices and has rolled out two flagship stores.

As per Bloomberg’s report, citing sources, revenue in India surged by approximately 33% over the 12 months ending in March, up from $6 Bn the previous year.

The report further said that iPhones accounted for more than half of the sales.

This signals positive for the company to expand the country further, given the strong market opportunity and having established its two operational flagship outlets in India.

In April, Apple’s two India-based company-owned outlets each reported revenue of INR 190-210 Cr in the fiscal year ended March 31, 2024 (FY24), emerging as the top-performing retail outlets of the iPhone maker globally.

In January last year, Union Minister Piyush Goyal said the tech giant was aiming to increase the share of its production in India to 25% of its total production from 5%-7% then.

The company manufactured iPhones worth INR 1 Lakh Cr in India in 2023. In terms of its total output, ‘Made in India’ iPhones worth INR 65,000 Cr were reportedly exported in the twelve month period between January and December 2023.

The Cupertino-based tech giant shipped more than 10 Mn iPhones last year, clinching the top smartphone brand by revenue in India, surpassing its Korean rival Samsung, according to a report by market research firm Counterpoint.

Apple accounted for 23% of smartphone revenue share in 2023, despite capturing just around 6.5% market share by volume – its highest ever – as compared to Samsung which had 18% volume share and 21% revenue share, followed by Vivo with 13% revenue share.

Meanwhile, the Competition Commission of India (CCI) has reportedly found the iPhone maker guilty of abusing its dominant position in the app store market, earlier this month.

Citing a confidential report of the CCI’s investigation unit, Reuters said it found that Apple influences how digital businesses reach end consumers through its iOS platform and App Store. 

The post Apple’s India Sales Touch Nearly $8 Bn Mark As iPhones Demand Soar appeared first on Inc42 Media.

Amazon-owned Project Kuiper may soon join Bharti-backed Eutelsat OneWeb and Reliance Jio’s satellite arm in obtaining a satcom licence in India as the Jeff Bezos-led firm has submitted the documents to the government.

ET reported, citing officials close to the matter, Amazon has submitted all the necessary details, including its network diagram, to the Department of Telecommunications (DoT), and these documents are currently under evaluation.

“If all goes well and no more documents are required, the Amazon proposal will be taken up by an inter-ministerial committee in the next meeting,” a source was quoted as saying in the report. 

Project Kuiper aims to launch its initial satellite constellation with 3,232 low earth orbit (LEO) satellites and intends to commence service rollout by the end of 2024.

India’s satcom industry is still in its early stages, but major global players in the space sector see it as a significant opportunity.

The DoT has yet to grant the global mobile personal communication by satellite services (GMPCS) licence to SpaceX and Amazon, which is the first step towards launching satcom services in India.

Amazon might secure a global mobile personal communication by satellite services (GMPCS) permit before Starlink, a source told ET.

The Indian Space Promotion and Authorisation Centre (IN-SPACe) is currently reviewing the applications for landing rights authorisation from Elon Musk-led Starlink and Amazon-owned Project Kuiper.

Besides, Eutelsat OneWeb backed by Bharti Enterprises and Reliance Jio’s satcom venture Orbit Connect India have already obtained GMPCS permits from the government. 

Amazon is the fourth company in India to apply for a licence to provide space communication services, following Eutelsat OneWeb, Jio’s satcom unit, and Starlink.

The post Amazon’s Project Kuiper May Soon Join Eutelsat OneWeb, Others To Secure Satcom Licence In India appeared first on Inc42 Media.

In a major blow for big tech giant Apple, competition watchdog Competition Commission of India (CCI) has reportedly found the iPhone maker guilty of abusing its dominant position in the app store market. 

Citing a confidential report of the CCI’s investigation unit, Reuters said it found that Apple influences how digital businesses reach end consumers through its iOS platform and App Store. 

The report said that Apple’s iOS ecosystem has become indispensable for developers. Due to this, the company has been implementing unfair trade practices. 

“Apple App Store is an unavoidable trading partner for app developers, and resultantly, app developers have no choice but to adhere to Apple’s unfair terms, including the mandatory use of Apple’s proprietary billing and payment system,” the CCI unit said in the June 24 report.

The report is currently under the review of senior CCI officials and hasn’t been made public. Apple will have the opportunity to respond to these findings as the investigation proceeds.

Inc42 has reached out to CCI and Apple to seek clarity on the development. The story will be updated on receiving their responses. 

It is pertinent to note that Apple has been under CCI’s lens since 2021.

Initiating its investigation, the watchdog observed that the Apple’s App Store is the only channel for app developers to distribute their apps to iOS consumers which are pre-installed on every iPhone and iPad.

Apple has maintained that the commission charged by it does not impact the competitiveness of developers. 

A year after CCI began investigating Apple, the Alliance of Digital India Foundation (ADIF) became a party in the probe after a Jaipur-based non-profit organisation (NPO), Together We Fight Society, filed a separate case. 

The NPO alleged that high in-app fees and other restrictions raise costs for app developers and customers alike, hurting competition and acting as a barrier to enter the market. The scrutiny got heightened with Tinder owner Match Group filing a similar antitrust lawsuit against the tech giant.  

Last year, reports said that the CCI’s findings in Apple’s case were similar to its findings in the case of Google Play. 

In 2022, the CCI imposed a penalty of INR 936.44 Cr on Google for abusing its dominant position with respect to its Play Store policies, apart from issuing a cease-and-desist order. The Commission also directed Google to modify its conduct within a defined timeline.

Earlier this year, Google told the National Company Law Appellate Tribunal (NCLAT) that the penalty levied by the CCI on the company was “amorphous and overbearing”.

The post Apple Abused Its Dominant Position In App Store Market, Says CCI Report appeared first on Inc42 Media.

Update | July 12, 12:37 PM

Months after Inc42 reported that Jio Financial Services (JFS) applied to the Reserve Bank of India (RBI) to convert itself into a core investment company (CIC) from a non-banking financial company (NBFC), following a regulatory mandate, the company has now officially secured approval from the central bank, it said in an exchange filing.

Original Story| November 22 , 12:54 PM

Jio Financial Services (JFS), which was recently carved out from Reliance Industries Ltd (RIL), has applied to the Reserve Bank of India (RBI) to convert itself into a core investment company (CIC) from a non-banking financial company (NBFC) following a regulatory mandate.

JFS, demerged from RIL in July, was listed on the stock exchanges in August this year. The deep-pocket fintech entity has emerged as one of the major competitors to the fintech startups across segments, including payments, insurance and asset management.

In a Tuesday (November 21) exchange filing, the company reported submitting an application for a shift from NBFC to CIC to modify its shareholding pattern and control post the demerger from Reliance Industries, following RBI regulations. 

According to RBI guidelines, CICs are companies predominantly investing in their group entities through equity, preference shares, convertibles, or loans. These entities serve as passive holding companies solely for maintaining control over their group companies without engaging in other financial activities.

Jio Financial Services has denied reports of raising money through bond issuance, refuting a Reuters claim that suggested a potential fundraising of up to INR 10,000 Cr.

The company clarified that it complies with disclosure obligations under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and agreements with stock exchanges.

Earlier this year, JFS collaborated with BlackRock, the world’s largest asset management company, to enter India’s mutual fund market.

Recently, JFS announced that the RBI had approved the appointments of Isha Ambani, Anshuman Thakur, and Hitesh Kumar Sethia as directors of the company. 

The company recently launched a soundbox, along with a range of other offerings – from personal and merchant lending to insurance and retail payments. 

JFS competes with the likes of Paytm, PhonePe, BharatPe, PB Fintech, InsuranceDekho, CRED, Zerodha and Groww in the fintech space.

The company saw its consolidated profit after tax (PAT) double sequentially to INR 668.2 Cr in Q2 FY24, while its operating revenue increased over 61% quarter-on-quarter to INR 608 Cr.

Inc42’s analysis forecasts the domestic fintech market to reach a market size of $2.1 Tn by 2030, with a projected 18% CAGR from 2022. Within this, lending tech is anticipated to dominate, constituting the majority at $1.3 Tn. 

JFS aims to decode the fintech business with a direct-to-consumer (D2C) approach, emphasising cost efficiencies and facilitating personalised customer interactions.

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Reliance Industries’ (RIL) telecom business Reliance Jio Infocomm Ltd could be headed for a possible public listing in 2025, either via an initial public offering (IPO) or spin-off, as the conglomerate major did with Jio Financial Services (JFS), said global brokerage Jefferies.

The brokerage said in a recent research report on RIL that as Jio leads the way in the recent tariff hikes, unlike its past business strategy, while also keeping feature phone tariffs unchanged, it shows the company’s focus on monetisation and subscriber market share gains.

These moves create a case for a possible public listing of the company in 2025, as per Jefferies. 

Jio could list at a $112 Bn valuation, adding around 7-15% upside to RIL stock, said the brokerage.

“The decision to spin off or IPO Jio hinges on balancing the upside potential of full value unlocking in the spin-off with the lower controlling stake,” said the Jefferies analysts.

“With 33.7% minority shareholding in Jio, RIL could fulfill IPO (requirements) by listing 10% of Jio. Since Jio is past its peak capex phase, the entire IPO could be an offer for sale by minorities. However, 35% of an IPO is reserved for the retail segment that would require large mobilisation from retail investors. While RIL would retain majority control after the listing, our analysis suggests the Indian stock market imputes a holdco (holding company) discount of 20-50% to a listed subsidiary in arriving at a holdco’s fair value,” the analysts said.

On the other hand, with the vertical spin-off route, there would be no holding company discount but a lower stake for the owner. Jefferies believes that it is more likely for RIL to spin off Jio.

The brokerage also said that both domestic and foreign investors seem to favour the spin-off route for Jio’s potential listing. 

With that, the brokerage maintained its ‘buy’ rating on RIL and a price target of INR 3,580, which implies an over 12% upside to the stock’s last close on the BSE.

Jefferies also said that assuming Jio is spun off from RIL’s stable, its fair value for RIL would be INR 3,580. Whereas, if Jio goes the IPO way, RIL’s fair value would fall to INR 3,365 in the base case scenario given the 20% holding company discount.

It is pertinent to note that after a demerger from RIL last year, JFS started trading on the Indian bourses in August 2023. Since then the company has penetrated across verticals in digital payments, insurance, asset management, and other such segments, becoming a key competitor to fintech startups in India.

Meanwhile, Jio has evolved to become a digital giant. It goes without saying that Jio, Reliance Retail and JFS have become key competitors to the major startups and tech companies in the country. 

An investor told Inc42 last year how Jio gave Reliance the “pipeline through which it can feed all these services in the future.”

Jio posted a 12% year-on-year (YoY) increase in its consolidated net profit to INR 5,583 Cr in the March quarter of FY24. Its operating revenue increased 13.4% YoY to INR 28,871 Cr in the quarter.

The post Reliance Jio Could List At $112 Bn Valuation In 2025: Jefferies appeared first on Inc42 Media.

Original equipment manufacturer (OEM) Xiaomi India plans to ship 70 Cr devices, including smartphones, televisions, tablets, and connected devices, over the next decade.

Speaking with ET, Xiaomi India president Muralikrishnan B said that the company plans to further expand its manufacturing partnerships in India for enhanced local value addition. 

“Today as of 2023, we are already looking at the non-semiconductor BOM (bill of materials) of the phone at about 35% being locally sourced. Over the course of the next two years with our strategy to broaden and deepen the company localisation ecosystem, we expect that number to go up to 55% of the non-semiconductor board of a smartphone,” Muralikrishnan said. 

Noting that the smartphone maker plans to source locally over the next two years, the Xiaomi India top executive also said that the company is looking to increase the “net domestic value addition” for its smartphones to 22% by 2025. For context, he said that the metric stood at about 18% at the end of 2023. 

He also said that Xiaomi has already sold 25 Cr devices in its ten-year stint in the country so far. 

On the OEM’s future sales strategy, Muralikrishnan said that the company would focus on four key aspects namely “cutting-edge products” at competitive pricing, marketing outreach across social media, an omnichannel distribution strategy and shoring up investments in after-sales service. 

The Xiaomi India president also believes that the premiumisation “trend” has impacted the entry-level and mid-range smartphone segments. 

While noting that the average selling price of smartphones in India has gone up to INR 20,800 in 2024 (so far) from INR 8,800 in 2014, Muralikrishnan added that the mid segment (INR 10,000 to INR 15,000) will continue to command a lion’s share in India’s smartphone sales.

Emphasising that “single product brands won’t survive henceforth”, he said that consumers were more inclined lately towards an “ecosystem experience” of connected devices encompassing phones, smartwatches, and tablets.

Xiaomi’s pivot to India comes at a time when the Indian government has pulled all stops to roll out a red carpet for global electronics companies under its “Make in India” initiative. Be it subsidies, sops or production-linked-incentives (PLIs), the union government has left no stone unturned to woo these OEMs. 

On the other hand, more and more manufacturers are looking to pivot to India as geopolitical tensions between Beijing and Washington SC escalate. 

While Apple vendor Foxconn has aggressively scaled up its presence in India in the past few years, Xiaomi too has ramped up production in the country in partnership with homegrown contract manufacturer Dixon Technologies.

Interestingly, in February this year, Xiaomi has internally told Indian authorities that smartphone component suppliers were wary of setting up operations in the country. At the time, it had also urged local officials to consider offering manufacturing incentives and lowering import tariffs for certain smartphone components.

That said, Xiaomi slid to the second spot in terms of smartphone shipments in the first quarter (Q1) of 2024 with 19% market share, as per Counterpoint data. 

The post Xiaomi India Plans To Ship 70 Cr Devices Over The Next Decade appeared first on Inc42 Media.

After a report said that Tesla has put its India investment plans on the back burner, Ola founder and CEO Bhavish Aggarwal said that it would be a loss for the Elon Musk-led electric car manufacturer, not India.

Responding to a post on X, Aggarwal wrote, “If true, this is Tesla’s loss, not India’s. While the Indian EV and Lithium ecosystem is early, we’re gaining momentum quickly. It’ll be too late for Tesla when they look at India seriously again in a few years.”

Earlier, a Bloomberg report said that India doesn’t expect Tesla to move forward with its planned investment in the country any time soon. 

The report said that the company’s executives have stopped contacting Indian officials since Tesla CEO Elon Musk postponed his visit to India in April this year.

Musk postponed his trip to India, during which he was scheduled to meet Prime Minister Narendra Modi, due to “very heavy Tesla obligations”. He was expected to announce the company’s plans to enter India and set up a manufacturing unit in the country.

Soon after postponing the India visit, Musk visited China.

Meanwhile, Indian officials believe that Tesla is facing capital issues and is unlikely to announce fresh investment in India in the near future.

The developments come at a time when the adoption of electric vehicles (EVs) is on the rise in the country. This increase comes on the back of the Centre’s Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme and production-linked incentive scheme to promote domestic manufacturing of EVs and batteries.

The Indian EV market is projected to become a $150 Bn opportunity by 2032. However, electric cars just accounted for 1.3% of car sales in India last year. The adoption of EVs in the country is being led by two-wheelers and three-wheelers.

Ola Electric continues to dominate the Indian electric two-wheeler market, accounting for nearly 50% sales. Besides, it is also manufacturing battery cells and is currently working on developing solid-state batteries.

While Aggarwal earlier claimed that Ola Electric aims to launch its electric car in 2024, there have been no updates on the matter.

The startup is currently gearing up for its INR 5,500+ Cr initial public offering and got SEBI’s approval last month for the public issue.

Ola Electric’s net loss widened 88% to INR 1,471.6 Cr in the financial year 2022-23 (FY23) compared to INR 783.4 Cr in the year ago period. Meanwhile, revenue from operations surged 605% year-on-year (YoY) to INR 2,630.9 Cr in the period under review.

The post “Tesla’s Loss, Not India’s”: Bhavish Aggarwal On Elon Musk-Led Co Delaying Investment Plans appeared first on Inc42 Media.

Electric auto major Tesla appears to have shelved its plans to set up a manufacturing plant in India. 

Tesla executives have stopped contacting Indian authorities after the company’s CEO Elon Musk postponed a visit to India in April this year, Bloomberg reported, citing sources. 

As per the report, Indian authorities do not expect the EV major’s proposed investments in the country to materialise. 

Musk’s team has not made any further enquiries with Indian officials, as per the report. Local authorities were also given to understand Tesla was facing capital issues and the company does not plan on pledging fresh investment into India in the near future.

Meanwhile, the Centre is now reportedly banking on domestic legacy auto players such as Tata Motors and Mahindra & Mahindra to boost EV production in the country. The report added that Tesla would still be “welcome” to avail the new import tax policy if the EV maker reignites plans to set up a unit in the country. 

The development comes two months after Musk, in April, announced the postponement of his trip to India during which he was scheduled to meet Prime Minister Narendra Modi and announce Tesla’s plans to enter the country. 

However, just a few days later, Musk ended up visiting China, a move that added a layer of mystery to the development.

Tesla’s waning interest in India comes after a year of hectic talks between the EV major and Indian officials. Prior to the cancellation of his visit, reports had surfaced that the automaker was looking to pledge $2 Bn worth of investments to set up a factory in India to produce low-cost Tesla cars under INR 20 Lakh. 

In the run up to Musk’s visit, the Centre unveiled a new EV policy that offered reduced import taxes to foreign carmakers that commit to investing at least $500 Mn (INR 4,150 Cr) and establishing a manufacturing plant in India within three years.

But, the sops appear to have failed to woo Tesla. Curiously, it was reported in April that the Musk-led EV company planned to use its existing factories to build new and affordable vehicles, rather than invest in building new factories in India.

The latest development comes at a time when India is witnessing a jump in EV adoption, largely on the back of the sale of electric two-wheelers and three-wheelers. Meanwhile, EV car sales in the country jumped 21% year-on-year (YoY) to 40,663 units in the first half of calendar year 2024.

Despite the growth, a vast majority of the Indian EV market still remains untapped. As per a report, EV cars accounted for a mere 1.3% of the total car sales in the country last year. As a result, there is a large scope for growth and has seen legacy players like Tata and Mahindra launch a series of new EV-focussed offerings. 

At the heart of all this is the growing Indian EV space, which is projected to be a $150 Bn market opportunity by 2032.

The post Tesla’s India Plans Take A Backseat As EV Major Ceases Contact With Authorities appeared first on Inc42 Media.

Reliance Retail Ventures is set to launch the Chinese fast-fashion label Shein within the coming weeks, with plans to offer the latter’s products through its app and brick-and-mortar stores.

The retail giant is likely to tap former Meta director Manish Chopra to head Shein’s operations in India, ET reported.

The India operations will be managed by a company wholly owned by Reliance Retail, with Shein receiving a license fee as a share of the Indian firm’s profit. All relevant and sensitive data will be hosted and stored in India, with Shein having no access or rights to the data.

This comes almost a year after Shein secured an approval from the Indian government for its partnership with Reliance Industries.

To diversify its supply chain, Shein reportedly will be sourcing goods from India for its global operation in the middle east and other markets.

Due to geopolitical issues, the Indian government banned 59 Chinese apps in India in 2020, including fashion platform Shein which gained immense popularity among young Indians during its operation in the country.

After its ban in India, Shein relaunched in India on Amazon during its annual Prime Day sale in 2021. A petition was later filed before the Delhi High Court saying the Chinese brand would have “access to personal and sensitive data of several millions of Indian citizens”.

Centre told the Delhi High Court that Shein was banned in the interest of India’s sovereignty and security of the State but a blanket order against the sale of its products on third-party platforms could not be passed under the IT Act. It added that the sale of Shein’s products on a third-party platform is not covered under the Section 69A.

Following Shein’s ban in India, London-based Urbanic attempted to capture the Gen Z market but could not achieve the same level of disruption. Fashion marketplaces like Myntra have also introduced Gen Z-focused features on their platforms. Additionally, several D2C startups, including FabAlley, FableStreet, and Souled Store, are striving to appeal to both millennials and Gen Z.

Last year, Shein raised $2 Bn at a valuation of $66 Bn. It competes against the global fast fashion brands Zara, H&M. Moreover, Shein is planning to go public in London in the near future. However, the online retailer has plans to debut in Hong Kong if its attempt to list in London falls through.

The post Reliance To Launch IPO-Bound Chinese Fast Fashion Brand Shein In India appeared first on Inc42 Media.

The Securities and Exchange Board of India (SEBI) has approved the initial public offerings of omnichannel retailer FirstCry and SaaS startup Unciommerce.

As per the latest update on the regulator’s website, SEBI issued its observation letter to Brainbees Solutions Ltd, the parent of FirstCry, on June 25. Meanwhile, Unicommerce was issued the observation letter on June 28.

In SEBI’s parlance, issuing an offer letter is a greenlight to proceed with the offer.

As per the DRHP, SoftBank-backed FirstCry is looking to raise INR 1,816 Cr via a fresh issue of shares. Its IPO will also comprise an offer-for-sale (OFS) component of up to 5.4 Cr equity shares. 

Shareholders, including SoftBank, Premji Invest, TPG Growth and Mahindra & Mahindra, will offload shares under the OFS.

It is pertinent to note that Firstcry first filed its DRHP in December last year. However, it withdrew the IPO papers after SEBI flagged that some of the key indicators were missing. Following this, the kids-focussed retailer refiled its DRHP in April this year.

As per the updated draft papers, FirstCry posted INR 4,814 Cr sales in the first nine months of FY24. Its net loss stood at INR 278.2 Cr during the period.

The startup’s net loss stood at INR 486 Cr in FY23 on an operating revenue of INR 5,632.5 Cr. 

On the other hand, Unicommerce’s IPO will not have any issue of fresh shares. It will include only an OFS component of up to 2.98 Cr shares. 

SoftBank affiliate SB Investment Holdings (UK) Limited plans to offload up to 1.6 Cr shares, while AceVector (formerly Snapdeal) will offload up to 1.14 Cr shares. 

Unicommerce filed its DRHP with SEBI in January this year. 

Last month, the startup filed an addendum to the DRHP to classify SoftBank-owned Starfish I Pte Ltd and Snapdeal’s cofounders Kunal Bahl and Rohit Kumar Bansal as its promoters. 

On the financials front, Unicommerce posted a profit of INR 6.3 Cr in the first half of FY24 on an operating revenue of INR 51 Cr. In FY23, it reported a net profit of INR 6.4 Cr, up 8% from INR 6 Cr in the previous fiscal year. For the same period, operating revenue rose 52% to INR 90 Cr from INR 59 Cr in FY22.

The post SEBI Approves IPOs Of Unicommerce, FirstCry appeared first on Inc42 Media.

A month after injecting 1,660 Cr in its ecommerce marketplace in India, US-based ecommerce giant Amazon has infused an additional INR 600 Cr (about $72 Mn) in its Indian fintech arm Amazon Pay India.

As per regulatory filings accessed by Inc42, Amazon Pay allotted 59.99 Cr shares to Amazon Corporate Holdings and 59,952 Cr shares to Amazon.com for INR 10 apiece.

With this, Amazon’s investment in Amazon Pay this year now stands at INR 950 Cr. The company infused INR 350 Cr in the fintech arm in February this year, Economic Times reported.

Earlier, Amazon infused INR 1,000 Cr in Amazon Pay in 2021. 

It is pertinent to note that Amazon Pay India received payment aggregator licence from the Reserve Bank of India (RBI) in February. Additionally, it holds a prepaid payment instrument (PPI) licence since 2017. 

Amazon Pay offers services like UPI payments, bill payments, ticket bookings, and buying car and bike insurance.

The fintech entity is also looking to further diversify its offerings. For instance, in April it started working with the National Payments Corporation of India (NPCI) to roll out credit services to customers through UPI. Amazon already offers instant credit through its BNPL product called Amazon Pay Later option. 

As per reports, more than 100 Mn customers use Amazon Pay UPI for various transactions. The ecommerce major also claims that Amazon Pay has so far partnered with 8.5 Mn brick-and-mortar sellers and more than 10,000 online sellers.

However in terms of monthly UPI transactions, Amazon Pay is behind its rivals like PhonePe, Paytm, Google Pay.

As per NPCI data, Amazon Pay processed 6.8 Cr UPI transactions worth INR 7,419 Cr in May out of the total 1,403.58 Cr UPI transactions worth INR 20.44 Lakh Cr during the month.

The development comes at a time when Amazon’s ecommerce rival Flipkart is also looking to make a mark in the fintech space. On Wednesday, Inc42 reported that Flipkart has launched its fintech app super.money app in beta mode. While super.money currently offers UPI payments, the ecommerce giant plans to  soon introduce a number of other financial services.

The post Amazon Pumps In Another INR 600 Cr In Amazon Pay India appeared first on Inc42 Media.

Reliance Retail’s digital commerce arm JioMart has reportedly rolled out a pilot for instant delivery of groceries and fast-moving consumer goods (FMCG) products in some parts of Mumbai and Navi Mumbai.

The service is now live on the JioMart app under the ‘hyperlocal delivery’ section. While JioMart will deliver orders within an hour in the initial stages, it plans to reduce the delivery time to 30-45 minutes at a later stage, the Economic Times reported.

JioMart also intends to gradually expand its quick commerce delivery service to include apparel and electronic items.

Inc42 has reached out to Reliance Retail for a comment on the development. The story will be updated on receiving a response.

Unlike Zomato-owned Blinkit, Swiggy Instamart and Zepto, which have embraced a dark store model for their quick commerce operations, JioMart will bank on Reliance Retail’s network of over 18,000 stores across the country for fulfilling these orders.

The company is reportedly leveraging technology platforms Fynd and Locus for order fulfilment and optimisation of delivery routes.

Reliance Retail’s chief executive for grocery business, Damodar Mall, and JioMart’s chief executive Sandeep Varaganti are part of an interdepartmental team tasked with overseeing the quick commerce operations.

The company plans to scale up its team as the service gradually expands to other cities and more categories get added.

The development comes nearly a month after reports surfaced about Reliance Industries planning a foray into the quick commerce segment.

At the time, reports suggested that JioMart would roll out grocery delivery service in 7-8 cities in the initial stages, with plans to take it to around 1,000 cities in future.

It is pertinent to note that this is not JioMart’s first attempt to enter the quick commerce space. It previously offered 90-minute grocery delivery services through JioMart Express, which was shuttered last year.

Its re-entry into quick commerce comes at a time when the other players in the space are sprucing up their product catalogue amid a surge in demand for instant delivery services.

Earlier this year, Zomato-owned Blinkit launched a new category to deliver sports and fitness essentials from top brands like Adidas, Boldfit and boAt among others. Blinkit’s rivals – Zepto and Swiggy Instamart – have also been expanding their product portfolio. 

The competition in the space is expected to heat up further as Walmart-owned Flipkart is set to launch quick commerce offerings across Delhi, Bengaluru, and Mumbai.

According to a report, the Indian quick commerce industry’s gross merchandise value shot up 77% year-on-year to $2.8 Bn in 2023. 

The post JioMart Rolls Out Pilot In Mumbai, Navi Mumbai For Grocery Delivery In An Hour appeared first on Inc42 Media.

SaaS startup Unicommerce Esolutions has added Starfish I Pte Ltd and Snapdeal cofounders Kunal Bahl and Rohit Kumar Bansal as its promoters in its IPO documents filed with the Securities and Exchange Board of India (SEBI).

In an addendum filed with the markets regulator earlier this month, the startup said that the three will be tagged as promoters with effect from May 29.

Starfish is an investment holding company and is 100% owned by SoftBank. It did not hold any shares in Unicommerce as of May 29. SoftBank holds a stake in Unicommerce via SB Investments Holdings (UK) Ltd.

It is pertinent to note that Unicommerce, in its draft red herring prospectus (DRHP), filed in January this year, classified only AceVector Ltd (formerly Snapdeal) as a promoter.

Ahead of the new additions to the promoter list, SoftBank-owned Starfish also signed an indemnity agreement with AceVector, Bahl, and Bansal on May 17 to protect itself and its employees from any claims arising out of it being tagged a promoter of the startup, as per the addendum.

“In the event a Loss has arisen out of or on account of a Claim… against Starfish, its affiliates, its directors, agents, officers, representatives and employees (“Starfish Indemnified Persons”), in accordance with the terms of the Indemnity Agreement, among others, in connection with any Claims against the Starfish Indemnified Persons on account of Starfish being classified and named as a Promoter of our Company, the Responsible Promoters will be required to indemnify, defend and hold harmless Starfish Indemnified Persons… ” the addendum read.

The development was first reported by Moneycontrol.

Meanwhile, a Unicommerce spokesperson told Inc42, “AceVector, along with Bahl and Bansal, have been the operators of Unicommerce, whereas SoftBank has been a financial investor. Pursuant to all entities being classified as promoters of Unicommerce, the operating entities have agreed to indemnify the financial investor. The same has been recorded in the company’s filings with SEBI as well.” 

Unicommerce was founded by three classmates at IIT Delhi – Ankit Pruthi, Karun Singla and Vibhu Garg. It was later acquired by Snapdeal in 2015. Unicommerce provides a suite of SaaS products that it claims enables enterprises and small and medium businesses (SMBs) to efficiently manage their entire journey of post-purchase ecommerce operations. 

Its suite also includes a warehouse and inventory management system (WMS), a multi-channel order management system (OMS), an omnichannel retail management system (Omni-RMS), a seller management panel for marketplaces (Uniware), post-order services for logistics tracking and courier allocation (UniShip), and payment reconciliation (UniReco).

As per the startup’s DRHP, its IPO will comprise only of offer for sale (OFS) and there would be no fresh issue. of shares.

While SB Investment Holdings (UK) is looking to sell up to 1.6 Cr shares in the IPO, AceVector is looking to offload up to 1.14 Cr shares. B2 Partners intends to sell up to 22 Lakh shares via the OFS route. 

Unicommerce reported a net profit of INR 6.3 Cr in H1 FY24. In FY23, the startup’s net profit increased by 8% to INR 6.4 Cr from INR 6 Cr in the previous fiscal year. 

Operating revenue stood at INR 51 Cr in H1 FY24. In FY23, the operating revenue grew 52% to INR 90 Cr from INR 59 Cr in FY22.

The post Unicommerce IPO: SoftBank, Snapdeal Cofounders Added As Promoters appeared first on Inc42 Media.

Amazon’s grocery delivery arm Amazon Fresh has expanded its services to 130 cities, including Ambala, Aurangabad, Hoshiarpur, Dharwad, Una, Suri, among others. This more than doubles the vertical’s presence from about 50 Indian cities last year. 

Amazon Fresh delivers groceries, including fruits, vegetables, chilled products, beauty, baby, personal care, and pet products. It claims to source these items from over 11,000 farmers and undertake a ‘4-step quality check’ to ensure quality of the produce.

“Our expansion and focus on quality products demonstrate our commitment to serve customers and offer them the best online shopping experience for fresh produce and daily essentials. Further, customers can avail benefits from cashback, offers, and bank discounts, adding value to their every purchase,” Amazon Fresh director Srikant Sree Ram said in a statement. 

The company claimed that its recent in-app launch of multiple thematic stores and events like mango store, summer store, IPL store etc., along with features like personalised widgets, buy again option, saved preferences, have helped it gain traction with consumers.

Last year, Ram said that over half of Amazon Fresh’s userbase comes from Tier-II and III cities. 

In the grocery delivery vertical, Amazon Fresh primarily competes with Flipkart, BigBasket and JioMart. Flipkart recently claimed that it clocked 1.6X year-on-year (YoY) growth in its grocery business in FY24.

Flipkart also said that it is eyeing Tier-II cities, including Aurangabad, Bokaro, Chhattarpur, Guwahati and Vizag, to deepen its presence. It also claimed that it is the only ecommerce company offering next-day grocery deliveries in more than 200 cities.

Meanwhile, Amazon Fresh claims to deliver groceries in 2 hours. However, quick commerce players like Zepto, Zomato-owned Blinkit, and Swiggy Instamart are competing with these ecommerce giants, delivering products in about 10 minutes.

Consequently, JioMart and Flipkart are also looking to enter the quick commerce segment. 

JioMart is likely to begin delivering groceries in select cities in under 30 minutes soon. The digital commerce arm of Reliance Retail is expected to roll out the quick commerce service in 7-8 cities in June, and has plans to increase these to 1,000 cities in the near future. 

On the other hand, BigBasket’s quick commerce arm, BBNow, has been operating for almost two years now. It claims to deliver groceries in 10 minutes to over 10 Mn customers. 

Meanwhile, Zepto, Blinkit, and Swiggy Instamart are also gearing up to expand their services. While Swiggy is looking to go for an IPO, Zomato is infusing $36 Mn in Blinkit. Zepto is said to be looking to raise a funding round to the tune of $650 Mn. 

The post Amazon Fresh Expands Presence To 130 Cities appeared first on Inc42 Media.

Delhi NCR-based beer brand Bira 91 has raised $25 Mn (about INR 208 Cr) via external commercial borrowing (ECB) from its existing backer Kirin Holdings.

Earlier this year, the company’s board passed a special resolution to secure $25 Mn via ECB from Kirin Holdings in two tranches of $12.5 Mn each, regulatory filings showed.

It further said that Kirin Holdings may opt to convert the ECB into Series D Compulsory Convertible Preference Shares (CCPS).

Entrackr reported the development first.

Founded in 2015 by Ankur Jain, Bira 91 sells craft, lager and strong beers under names such as Bira 91 Rise, White, Gold, Blonde Summer Lager and Boom among others. In 2020, it started selling non-alcoholic beverages.

Over the years, it has established a presence across 550 towns and cities, spanning over 18 countries. 

The startup claims to be the fourth-largest beer company in India, sitting at a market share of 5% across key markets. 

The latest investment comes three months after Tiger Pacific Capital reportedly acquired nearly 4% stake in Bira 91’s B9 Beverages for $25 Mn in March. 

It is pertinent to note that Bira 91 is eyeing a public listing after converting into a public company in 2022.  

As per data compiled by Inc42 DataLabs, Bira 91 raised more than $252 Mn in total funding till February 2024. The startup counts Peak XV Partners, Sofina Ventures, Japan’s Kirin’s Holdings and MUFG Bank among its backers.

The company has also been on an aggressive buying spree for quite some time. In October 2022, Bira 91 acquired alco-beverage chain The Beer Cafe in an all-stock deal. 

The post Bira 91 Raises $25 Mn Debt From Japan’s Kirin Holdings appeared first on Inc42 Media.

Reliance Retail-owned omnichannel beauty retail platform Tira has rolled out new private label brand Akind, marking its foray into the skincare space.

The move is a part of Reliance Retail’s strategy to expand its portfolio of proprietary brands. In the last two months, Tira has unveiled two private-label brands, Nails Our Way and Tira Tools.

Under Akind, cofounded by angel investor Mira Rajput Kapoor, the company has rolled out nine products to begin with. The price of these products range between INR 500-900. The brand will be sold across Tira stores and also on the official Tira website.

“The Akind range was meticulously formulated with care, trial and error, and extensive research into high efficacy ingredients that act as targeted solutions for specific problems, and what better way  to bring this vision to life than powered by Tira, the ultimate destination for curated beauty  brands,” said Kapoor.

“This launch represents a significant milestone in Tira’s journey. As we continue to expand and evolve, we remain committed to innovation and excellence, ensuring that every offering enhances our customer’s beauty experience,” said Reliance Retail Ventures’s executive director Isha Ambani.

In April last year, Reliance launched Tira to take on major players in the segment like Nykaa, Tata Cliq Palette and Sephora. The beauty retail platform’s product offerings across verticals include makeup, haircare, fragrance, men’s beauty products and baby care among others.

Erlier, Reliance also launched ‘Tira Tools’ to make its entry into the beauty accessories space.

This development comes at the backdrop of growing investor interest in the beauty and personal care segment. 

Few weeks ago, Skincare solution startup CHOSEN by Dermatology has secured a seed funding of $1.2 Mn from friends and family. 

Last year, Gurugram-based D2C beauty and personal care startup Clensta bagged INR 75 Cr in a funding round led by TradeCred. 

Not to mention, the beauty and personal care segment presents a huge business opportunity with market is expected to grow from $5 Bn in 2023 to $28 Bn in 2030, at a CAGR of 28%.

The post Reliance Retail-Owned Tira Forays Into Skincare Space With Mira Kapoor’s Akind appeared first on Inc42 Media.

The initial public offerings (IPOs) of the Flipkart marketplace and PhonePe digital payments platform could take a couple of years, a Walmart executive said.

Speaking on the sidelines of Walmart’s shareholder meeting near its Bentonville, Arkansas, headquarters late Thursday, executive vice president for corporate affairs, Dan Bartlett said, “This is something we’re looking at over the next couple of years.”

Walmart might prioritise an IPO for PhonePe ahead of Flipkart, despite Flipkart being the more mature business, he said, as reported by news agency Reuters.

PhonePe is “one of the largest payment platforms” in India, Bartlett noted. He highlighted PhonePe’s integration with the country’s Unified Payments Interface (UPI), which enables users to transfer money across multiple banks without disclosing account details.

“There’s a lot of processes that have to be put in place before we go public,” Bartlett said, referring to PhonePe. He added that the choice between listing on the Indian exchange versus others is “under consideration” for the future IPO.

In May, the Unified Payments Interface (UPI) ecosystem continued to be dominated by PhonePe and Google Pay, with the two apps collectively commanding over 85% of total transactions.

According to data from the National Payments Corporation of India (NPCI), PhonePe accounted for 48.6% of the total UPI transactions, with 683.19 Cr transactions valued at INR 10.33 Lakh Cr.

Earlier it was reported that, Flipkart initiated talks to redomicile its parent entity to India from Singapore, while Walmart-owned PhonePe already moved its HQ back to India.

In PhonePe’s case, the company was valued at close to $10 Bn in 2022 when it redomiciled to India and is said to have shelled out close to $900 Mn+ to register its parent entity in India. The reverse flipping tax in Flipkart’s case is also likely to be significant.

Meanwhile, PhonePe’s net loss crossed the INR 2,500 Cr mark in the financial year ended March 31, 2023. The Bengaluru-based decacorn’s consolidated net loss rose 39% to INR 2,795.3 Cr in the financial year 2022-23 (FY23) from INR 2,013.7 Cr in the previous fiscal year due to a sharp increase in its ESOP expenses.

PhonePe’s operating revenue surged an impressive 77% to INR 2,913.7 Cr during the year under review from INR 1,646.2 Cr in FY22.

On the other hand, Flipkart Internet Private Limited, the B2C arm of Walmart-owned Flipkart, saw its operating revenue near the INR 15,000 Cr mark in the year ended March 31, 2023. The marketplace arm’s operating revenue zoomed 42% to INR 14,845.8 Cr in the financial year 2022-23 (FY23) from INR 10,477.4 Cr in FY22.

The company also managed to reduce its cash burn, which helped it reduce its net loss by 9% to INR 4,026.5 Cr during the year under review from INR 4,419.5 Cr in FY22.

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