Search Result for : Snapdeal

The Dollar Business Bureau Softbank, the largest investor in Snapdeal is exploring options for a merger with Paytm. Currently, the Alibaba group has a 40% stake in Paytm, with investments close to $1 billion, and Softbank was one of the early investors in Alibaba. Market-pundits averred that the deal could go in for an equity exchange in the value of $1 bn, which meant that an all-stock merger of Snapdeal with Paytm was more probable. The Son led Softbank had earlier been mulling a possibility of a merger with Flipkart too. Conversations with the Bengaluru-headquartered Flipkart for strategic mergers have been in news for about three months now. There was also conversation with Tiger Global, the large investor in Flipkart, and trade ...

The Dollar Business Bureau After Flipkart roped in $1.4 billion funding from a consortium of private investors recently (eBay, Microsoft, and Tencent), Ola is the second struggling home-grown new-generation startup to avail a fresh capital of $250 million - $300 million from Japanese telecom major Softbank this year. As revealed by the filings in Registrar of companies, SIMI Pacific Pte, Softbank's subsidiary, has bought 12,97,945 shares at a premium of Rs 12,895 in ANI Technologies, the parent company of Ola. Struggling to overcome severe competition from American cab service provider Uber, market leader Ola's story is not very different from the face-off between Flipkart and Amazon. But the similarities between the two cases extend beyond the market dynamics, to include the involvement of the same global mega-investor Softbank. The Japanese backer of Ola, after ...

The Dollar Business Bureau E-commerce player Amazon India has got a licence for operating mobile wallet or pre-paid payment instrument (PPI) in India as it is trying to compete against its rivals in e-commerce space, Paytm and Snapdeal, more aggressively. The approval for mobile wallet will help the online marketplace to leverage the booming market for digital payments in the country. “We are pleased to receive our PPI license from the RBI (Reserve Bank of India). Our focus is providing customers a convenient and trusted cashless payments experience,” Amazon India said in a statement. In December last year, the US-based e-commerce major had launched the Pay Balance service for cashing in on the boom in digital payments space. Like the services of other mobile ...

The Dollar Business Bureau In a new development that has surfaced in India's tumultuous e-commerce industry, Softbank is brokering a merger between arch rivals Flipkart and Snapdeal. Consolidation seems to be a logical step in an environment where no single player is able to decisively emerge successful. It was recently reported that Softbank, the single largest financial backer of Snapdeal, will assume a 15% stake in the combined entity. The Japanese telecom giant is to invest up to $1.5 billion in order to assume a significant partial ownership of the Flipkart-Snapdeal pie. Flipkart, India's indigenous e-tailing platform, fell from its all-time high valuation of $15.2 billion in 2015 to $10 billion in 2017, when it initiated a new round of fund-raising. The Indian Unicorn is said to have bagged $900 million ...

Sneha Gilada After reaching a significant milestone by clearing C-GST, S-GST, I-GST and UT-GST laws, the GST Council has now touched upon e-commerce, a sector which struggles with ambiguity under the current indirect tax regime. According to the model GST law, it will now be mandatory for e-commerce platforms like Flipkart and Snapdeal to deduct up to 1% TCS (Tax Collected at Source) when making payments to sellers who use their portal to sell their merchandise. Experts have expressed concerns regarding the ground implementation of such a tax. Such a tax, when the transaction involves an interstate movement of goods, could escalate to 2%, as it will have to be levied twice. Industry concerns voice that the rule may discourage sellers from using digital marketplaces to sell their products, contributing to the hardships of ...

Ranjeet Mahtani & Sweta Rajan The Central Government is in the process of vetting the drafts of the Model GST laws. The game plan is for the revision of the drafts to conclude during the next meeting of the Goods and Services Tax Council on February 18, 2017, to ensure that they can be tabled before the Parliament in the second leg of the Budget Session commencing on March 9, 2017.  GST Rates The classification of goods across the 5-tier rate slabs (0%, 5%, 12%, 18% and 28%) is expected to be decided in May-June, 2017. Meanwhile, the Revenue Secretary has indicated that the applicable tax slab can be estimated based on a simplistic formula – the rate slab closest to the existing ...

The Dollar Business Bureau The Indian e-commerce industry will have to grow at a CAGR of 45% to reach a size of $80 billion by 2020, an industry study said. The industry registered a staggering growth of 180% in 2015 but slumped to a mere 12% in 2016 due to a host of internal and external factors. Currently, the industry is valued at $14.5 billion, and there were previous estimates of the sector touching $100 billion by 2020, according to a study by RedSeeer Consulting. India’s major retailers such as Flipkart and Snapdeal felt the prolong impacts of these unfavourable market condition, limiting their 2016 growth. However, Amazon succeeded in assessing the market conditions altered its market share strategy to capture a big chunk of this competitive ...

The Dollar Business Bureau Japanese telecommunications company, SoftBank, has written off the value of two of its biggest start-up investments in India. The company has marked down about $555 million in share value in investments in ANI Technologies, the owner of cab aggregator Ola, and Snapdeal owner Jasper Infotech.  Out of overall value, about half of the value written-off is the result of appreciation in Japanese currency against the other currencies.  In its report on consolidated income for the first six months of the current fiscal ended on September 30, SoftBank has winessed a loss of 58,140 million yen (around $557 mn) from its financial assets at the fair value, majorly on account of its funds invested in India. Out of this, a loss of 29,622 million yen ...