23rd, June 2017
The announcement came saying Flipkart and Snapdeal will merger and become one company rather compete and kill each others in the market. This announcement came almost one and half month back, but there is no further process happened.
As per the source, Softbank wants to go slow on the related transaction between Snapdeal’s digital payment arm Freecharge and Paytm. The other rumour in the market witnessing is Flipkart wanting to just pay $400 Mn for Snapdeal’s marketplace.
The process has hit by another hurdle. PremjiInvest, the investment arm of Wipro Chairman Azim Premji, has reportedly sought further clarity on the how the rights of minority shareholders will be upheld and protected.
To date, PremjiInvest has participated in two funding rounds, including $500 Mn private equity round in August 2015 and $100 Mn Series E round in May 2014, along with a consortium of other investors.
Premjiinvest is trying to build consensus among other minority investors. This includes the likes of Singapore’s sovereign wealth fund Temasek, and asset manager BlackRock etc. The aim is to oppose special payouts to certain shareholders, as per a source aware of the development.
Apart from PremjiInvest, Ratan Tata, Foxconn, Alibaba Group, Ontario Teachers’ Pension Plan, eBay, and Hong Kong-based hedge funds, among others own about 40% of the company. However, they do not have a board representation
Freecharge which is part of Snapdeal is suppose to merger with Patym in a deal to be estimated to be $40 -$50 Mn. Last month, Jasper Infotech, which owns and runs Freecharge had made a fresh investment of $3.38 Mn (INR 22 Cr) in Freecharge. The sources suggested that Softbank does not want to take the risk of prolonging the Flipkart-Snapdeal merger by allowing Snapdeal to sell Freecharge first and get a few months more of operating capital.
However, the proposed deal value of $45 Mn to $90 Mn will be a steep downfall in FreeCharge’s valuation of $450 Mn in 2015, at the time of sale to Snapdeal.
20th, June 2017
Nirmala Santharam, Minister of State for Commerce and Industry has announced her plan to introduce SAARC meet up for Startup. SAARC (South Asian Association for Regional Cooperation) is going to be exchange program for Startups in India.This meetup will help to understand the startup ecosystem in SAARC nations. SAARC nations include Afghanistan, Bangladesh, Bhutan, India, Nepal, Maldives, Pakistan and Sri Lanka.
SAARC meet up for startup help to identify the opportunities and share the idea for mutual growth.
She also sought the views of Indian startup ecosystem stakeholders upon the viability of the program. And also urged the startups to suggest ideas about the people who can be invited for the meet.
Recently, she also infused $183k in a Mangaluru Startup Incubator from the Member of Parliament (MP) fund.
20th, June 2017
Paytm’s Payments Bank will go live on Unified payments interface (UPI) in August announcement by the company. Payments Bank widens its payment network for merchants and consumers.
Paytm said now their merchants across online and offline spaces will also be able to accept money from Paytm’s Payments Bank as users will be given a UPI ID. UPI ID will facilitated the instant fund transfer between two bank account on the mobile platform.
Patym got licence for their Payments bank from RBI during January and started their operation from May 2017. Payments Bank offers 4% interest initially on deposits. However, initially, it will be available on an invite-only basis. Patym will roll out the beta banking app for its employees and associates for now.
The company had announced plans to open 31 branches and 3,000 customer service branches within the first year.
19th, June 2017
Ministry of Corporate affairs (MCA) notified a change in operational and compliance relaxation. Some of the key points are - ability to raise deposits from members, with exemption from procedural compliance for an extended period of five years.
In June 2015, MCA had permited all private companies including startups to rasie funds from their shareholders to the extent of 100 % of their paid up capital and free reserve. Such companies were exempt from procedural requirements such as issue of an offer circular or creation of a deposit repayment reserve.
Other compliance relaxations, announced by the MCA in its notification dated June 13, include exemption from preparing and including cash flow statements with annual accounts. In the absence of a company secretary, a director of a startup is permitted to sign annual returns filed with the registrar of companies. Instead of holding a board meeting every quarter, startups are deemed as compliant with the Companies Act, if they hold a meeting once in six months. The only caveat is that the gap between two board meetings shall be at least 90 days.
Startup, according to MCA 's notification, denotes an entity recognised as such by the DIPP's notification. It can be a private company, firm or LLP , which has not completed seven years from incorporation (10 for biotech sector), is innovative or has a scaleable business model. Further, its turnover for any of the financial years since incorporation should not be more than Rs 25 crore.
17th, June 2017
When it comes to insolvency process of business, it used to be cumbersome process. Getting insolvency certificate used to take long time rather than raising fund for business. Keeping all these problems in mind government has proposed changed the process.
As per the new process, Start-ups and small business can get insolvency process completed by 135 days, with the IBBI notifying new norms in this regard.
The norms for fast tracking the process have been notified under the Insolvency and Bankruptcy Code.
Small companies are those defined under the Companies Act, 2013 while the definition of startups was described through a notification by the commerce and industry ministry last month.
As per the new regulation‘ insolvency process shall be completed within a period of 90 days, as against 180 days in other cases. However, the adjudicating authority may, if satisfied, extend the period of 90 days by a further period up to 45 days for completion of the process .
17th, June 2017
India’s first start up district will get its first incubation centre soon. The GoI announced its first start-ups district program in the month of February .The proposed centre is located near Mallikatta, and it is planning to operate within four months.
The incubation will have world class infrastructure with high speed internet connection, business meeting rooms, plug and play cubic. The initial project is developed in 6000 Sq ft floor space which will incubate 60 seats.
The centre will help the start-ups to operate from their home town and also this will help is reducing the talents attrition rate.
17th, June 2017
Youwecan, VC fund backed by cricketer Yuvrajsingh invested in online Table researvation platform EasyDiner.
As per the report, VC fund has invested an undisclosed amount in EasyDiner. It is also confirmed that Yuvraj Singh will eb global brand ambassador for the app.
EasyDiner was founded in 2015 by hotelier Mr Vir Sanghvi and his friends. This app allow users to book and reserve the table in eight Indian cities and Dubai. The present stats of app -53000 restaurants, more than 15 lakhs unique users. The reservation platform offers reviews, recommendations, insiders’ tips, dining concierge services and deals, for every reservation.
In August 2015, the startup raised $3 Mn in a new round of funding led by Saama Capital and its existing investor DSG Consumer Partners. The app's USP is to guarantee table reservations at sold out standalone restaurants like The Indian Accent and Farzi. t also offers discounts or a free glass of wine or a dessert at popular restaurants including those in 5-star hotels of ITC Taj Group, Marriott and The Oberoi Group.
17th, June 2017
The development took place after sexual harassment allegations raised by his ex-colleagues against him.
In March this year, an anonymous post by Indian Folwer on ‘Medium’ accused the then CEO and cofounder of TVF, Mr Arunabh Kumar of molesting and harassment lasting more than a year alleging that she was prevented from leaving because of a binding contract she had with the company.
The followed post, there were many posts on some other platforms came into light accusing Arunabh Kumar. Following this he was granted anticipatory bail.
As per the source Mr Dhawal Gusain will replace him as new CEO of TVF and Arunabh Kumar will available for TVF team as a mentor.
Though we do not have any update on the registered case and accused case, we believe there will be justice for the victim and punitive action will be taken against the culprit.
16th, June 2017
GrwothEx an online counselling platform announced its acquisition of technology platform of Edtech start up Leapwired for an undisclosed amount.
Leapwired, technology platform founded by Akshay Bhaskar & Pranav Jang Bahadur in 2016. LeapWired is a telephonic consultation platform for students to get connected to experts from their dream colleges. The firm is based in gurugram.
GrowthEx which has more than 10000 users, 5000+ counsellers and 1000+ programmers. They operate in India, Singapore, Quatar, Brazil etc.. GrowthEx was founded in 2014 by Varun Saxena & Ayesha Raval. It is an online platform enabling personal and professional life counselling. It is facilitated by an online and offline community of learners sharing common growth goals.
The company also provides courses for K-12, entrance exams, certifications and up skills for working professionals.
GrowthEx raised an undisclosed amount of funding in 2017 from a clutch of investors. At the time of funding, the startup said that the funds would be used to scale up the number of experts and programmes on the platform. The investment will also be used enhance technology and multifold increase the community engagement initiatives.
The competitors for Edtech startup – Leapwired such as BYJUs, Edupritine, Uncademy etc has raised funds during Q1 2017.