Snapdeal | Business Upturn

Snapdeal files for IPO, plans to raise Rs 12.5 billion

Keertiman Upadhyay — Tue, 21 Dec 2021 05:25:16 +0000

The E-commerce company, Snapdeal has today filed for IPO. The company plans to raise Rs. 12.5 billion through IPO.

According to Draft Red Herring Prospectus (DRHP) filed by Snapdeal, there is also an offer for the sale of 3 crore shares by existing shareholders. Softbank, Foxconn, Sequoia Capital & five other stakeholders will participate in the OFS.

Axis Capital Ltd, BofA Securities India Ltd, CLSA India Pvt Ltd and JM Financial Ltd are the lead managers to the issue. Snapdeal was founded in 2010 by Kunal Bahl & Rohit Bansal. Last week Kunal Bahl said in a blog that Snapdeal is a brand that is not in the urban subconsciousness.

Snapdeal plans to launch its partner store in January 2022. Snapdeal’s Net Merchandise Value has grown over 82.48% according to DRHP.

New e-commerce rules would affect businesses, according to Amazon and Tata

Aryan Jakhar — Sun, 04 Jul 2021 11:36:34 +0000

According to four sources familiar with the negotiations, Amazon Inc and India’s Tata Group informed officials on Saturday that plans for harsher rules for online retailers would have had a significant effect on business strategies.

In a meeting which was organised by the Consumer Affair Ministry and the Govt. Investment Promotion arm, Invest India, many of the executives had expressed their issues and the confusion which they had over the newly introduced rules and asked that on July 6 only they are having the deadline for submitting of comments be extended, according to the sources.

As the government had announced the new tough e-commerce rules on June 21, which aimed at strengthening the protection for the consumers, have caused a concern among the country’s online retailers (sellers) and notably the market leaders like Amazon and Walmart.

The new rules put the limitations on the flash sales, barring of misleading the advertisements and mandating the system of complaints, now Amazon and Flipkart will have to review their business structures and may increase the costs for domestic rivals which include Reliance Industries – JioMart, BigBasket, Snapdeal etc.

According to the proposed guideline, e-commerce companies must verify that neither of their affiliated businesses are featured as merchants on their platforms. Because Amazon owns an indirect ownership in at least a couple of its sellers, Cloudtail and Appario, this could have an impact on Amazon.

Alibaba founder Jack Ma’s net worth is whopping; Everything you need to know!

Sarthak Yadav — Tue, 05 Jan 2021 18:47:37 +0000

The Bloomberg Billionaires Index reported that Jack Ma founder of Alibaba and AliExpress has lost about $11 billion, dropping his net worth to $50.1 billion. Last year the fortune of the Chinese billionaire reached $61.7 billion.

In November 2020, Ant Financial the fintech arm of the Jack Ma owned tech conglomerate was set to raise $34 billion jointly on its listing on the Shanghai and Hong Kong stock exchanges making the biggest stock market debut in history.

These plans fell through after Chinese regulators launched a last-minute antitrust investigation and suspended the transaction. This caused the shares of Alibaba, a company that owns 33% of Ant Group, to fall and with them the fortune of the businessman. Jack Ma was on the verge of becoming the richest man in the Asian country again.

As reported by BBC the Hong Kong Stock Exchange commented that Ant Group “may not meet standards for listing and transparency requirements.” He also suggested that “recent changes” in the regulation of digital finance could have become an obstacle.

The State Administration for Market Regulation (SAMR) declared in a statement that they are investigating Alibaba group for “suspicion of monopolistic conduct.”

The only information brought to the public domain is that the investigation is related to the exclusivity policy of the group, which forces merchants to sell only on Alibaba and prevents them from doing so on other rival platforms.

The Central Bank of China ordered a reorganization of operations for Ant Group to rectify its insurance, loan and wealth management services.

Ant Financial has pumped billions of dollars across several companies in India like, Paytm, Snapdeal, Zomato, Big basket etc. The investment is close to around $2.7 billion.