Saturday, 21 October, 2017

Flipkart vs Amazon: It's a two-horse race in India

Corp Chairman and CEO Masayoshi Son attends a news conference in Tokyo Japan Flipkart Announces Funding from SoftBank, Calls It 'Biggest Private Investment in an Indian Tech Company'
Juana Turner | 12 August, 2017, 00:13

In India, investments by Son, with SoftBank and the Vision Fund, is valued at over $6 billion, with stakes in taxi-hailing app Ola, hotel room aggregator Oyo Rooms, advertisement aggregator InMobi, a joint venture with Bharti Enterprises and Foxconn for setting up solar and wind farms, besides those in Snapdeal and Paytm. There is a lot of market to go for - in 2016, only 1.7% of India's total retail sales were online. Primary capital is the investment directly made into the company, whereas, the secondary capital is buying shares from existing stakeholders.Though Flipkart did not confirm the amount invested, Mint quoted 3 people directly aware of the development.

This is vital ammunition as it seeks to retain its market share lead over Amazon India, which has received capital commitments of $5bn from its U.S. parent. "It will not be easy for Flipkart to go against it", he said adding that the world will be ruled by artificial intelligence, robotics and machine learning, and that Amazon is way ahead of the market is using these new technologies to remain the world leader over the next 5-7 years.

Softbank's Vision Fund, one of the world's largest tech-focussed investment funds has invested, from what sources tell CNBC-TV18 about Dollars 2.5 billion in Flipkart.

The latest deal further consolidates SoftBank's position in one of the fastest-growing e-commerce markets in the world, where it invested $1.4 billion in another Internet firm One97 Communications just three months ago.

SoftBank was supposed to invest $1.52 billion in the proposed merged Snapdeal-Flipkart entity, but after the talks fell through, SoftBank chairman Masayoshi Son said that he respects the decision of the founders and chose to focus the fund's effort in Flipkart.

Amazon, on its part, has pumped in close to $600 million across various units in India since January this year. Till date, Flipkart has raised about $4.6 Bn funding in 14 rounds, excluding the current round. In fact, SoftBank Chairman and Chief Executive Officer Son is an early backer of Alibaba, the e-commerce company that dominates China, a market that Amazon has not been able to crack.

"India is a land of vast opportunity". But its efforts were thwarted after the founders of Snapdeal -Kunal Bahl and Rohit Bansal - resolved to stay independent.

Earlier reports had suggested that Softbank was in talks with Flipkart to invest at least ₹10,000 crores. This deal makes SoftBank one of the largest shareholder in Flipkart. "As the pioneers in Indian e-commerce, Flipkart is doing that every day".

Recommended

  • What we know so far on presidential election announcement

    What we know so far on presidential election announcement

    Odinga's comments raised the specter of post-election violence, which blighted Kenya 10 years ago in similar circumstances. Nr Odinga urged his supporters to remain calm but added: "I don't control the people". "We have caught them".
    Netflix Unveils The First Trailer For 'The Crown' Season 2

    Netflix Unveils The First Trailer For 'The Crown' Season 2

    The Crown tells the inside story of Queen Elizabeth II's reign, which each ten episode season covering a decade of her reign. So you do follow someone from infancy to adulthood in that way. " The Crown " Season 2 is highly anticipated by audiences.
    Cops: Girl Poured Boiling Water on Friend at Sleepover

    Cops: Girl Poured Boiling Water on Friend at Sleepover

    Panton said that Merritt "basically moved into their apartment" about a month ago and had consistently stayed overnight. At least one other girl was also there. "My daughter was sleeping and Jamoni poured cold water on Aniya".
  • Trump Sends Navy Destroyer To Challenge China At Sea

    Trump Sends Navy Destroyer To Challenge China At Sea

    McCain "traveled close to Mischief Reef in the Spratly Islands, among a string of islets, reefs and shoals", Reuters reported. In addition to freedom-of-navigation operations, the USA has also conducted bomber overflights in the South China Sea.
    Malignaggi Says McGregor Can't Progress Due To Arrogance

    Malignaggi Says McGregor Can't Progress Due To Arrogance

    He also knows he'll be a ideal 50-0 when he retires for a third time, whether he's willing to admit it or not. What happens? Any damn thing can happen in a fight.
    Vicious pitch-invading cat attacks Major League Baseball  employee

    Vicious pitch-invading cat attacks Major League Baseball employee

    So, what happened to Rally Cat? Down 5-4 in the sixth inning to the Royals on Wednesday night, the Cardinals loaded the bases. One woman, a flight attendant named Becky, was intently searching for the Rally Cat Thursday afternoon in City Garden.
  • Apple iPhone 8 Trying Too Hard To Not Be Galaxy S8

    Apple iPhone 8 Trying Too Hard To Not Be Galaxy S8

    The iPhone will be celebrating its tenth anniversary this year, and Apple is doing everything to make it memorable for its fans. Some reports also state that Apple may ditch the Touch ID system completely and introduce a more powerful, Face ID system.
    PGA Championship Moves to May

    PGA Championship Moves to May

    I was able to spend a lot of time with grandkids and got re-focused. Never feel like you're out of the hole. You can't write yourself off, ever".
    Christiansen appointed as new LEGO Group CEO

    Christiansen appointed as new LEGO Group CEO

    Lego, a competitor to Mattel, has been focusing on manufacturing of colorful plastic internet locking bricks and minifigures. He said he is "honoured to have the opportunity to join an organisation as iconic and purpose-driven as the LEGO Group".
  • Former Vanderbilt star Jordan Matthews traded to the Buffalo Bills

    Former Vanderbilt star Jordan Matthews traded to the Buffalo Bills

    We have some people in the building who have been around him. "There's no insurance on any of these things", Roseman said. Matthews was taken in the second round of the 2014 NFL Draft and the Eagles moved up 12 spots in that draft to get him.
    Consumer Reports No Longer Recommends Surface Hardware

    Consumer Reports No Longer Recommends Surface Hardware

    Consumer Reports published its reliability study today and has already been picked up by most major sites, including Reuters . Problems included device freezing, unauthorized shut downs, and touchscreen failures.
    Dr Ruth Pfau passes away

    Dr Ruth Pfau passes away

    The doctor of German descent had been feeling unwell since weeks and her doctors were not very hopeful, sources said . Pfau first witnessed leprosy, an infectious disease that affects the skin and other organs of the body, in Karachi .

Anthony Scaramucci Media Tour Includes Stephen Colbert, George Stephanopoulos Anthony Scaramucci Media Tour Includes Stephen Colbert, George Stephanopoulos He also lampooned The Mooch for his New Yorker interview but said he was a "broken man" when Scaramucci was sacked . Well, next week, we will be able to get some more details of that story straight from the horse's mouth.

Suspended Fox Host Bolling Sues Reporter Over Sexual Harassment Article Suspended Fox Host Bolling Sues Reporter Over Sexual Harassment Article On one occasion when she was in town, he took her into his office and told her it was his favorite place to have sex, she said. Fox Business host Charles Payne is now suspended, pending the outcome of an investigation into his own sex harassment charges.

CONTAMINATED eggs being sold in Britain and YOU could have eaten some CONTAMINATED eggs being sold in Britain and YOU could have eaten some More than 180 Dutch chicken farms were closed amid follow-up examinations. "Legislation forbids the use of fipronil on poultry". The Netherlands is Europe's biggest egg producer - and one of the largest exporters of eggs and egg products in the world.