Bengaluru: Mint presents a wrap of the happenings in the e-commerce and start-up world this week. Who’s laying off people? Whose valuation was marked down?
Flipkart Ltd, India’s biggest e-commerce portal, had its valuation marked down for the sixth time this year, this time by a mutual fund managed by US-based Vanguard Group. Vanguard lowered the value of the Flipkart shares it first bought to $102.65 apiece as of 31 March 2016 from $136.87 on 30 September 2015. This would put Flipkart’s valuation at $11 billion. Read more
Earlier in May, Morgan Stanley Mutual Fund Trust, a mutual fund investor in Flipkart, lowered its estimate of the online retailer’s valuation by 15.5% for the second successive quarter in a row.
Flipkart remains India’s most popular e-commerce brand according to the E-tailing Leadership Index (ELI), compiled by consulting firm Redseer and published in Mint. In this index, Flipkart came first with a score of 91, with Amazon at 87, while Snapdeal came in third with a score of 60. RedSeer surveyed about 3,000 online shoppers in 30 cities, tracking prices of more than 600 mobile phones across India’s top five e-commerce firms, which include Paytm and Shopclues. Read more
Grofers, the most-funded hyperlocal delivery start-up, having raised about $165 million from SoftBank, Tiger Global and Sequoia Capital, will lay off 10% of its workforce. The company, which has about 1,500-2,000 people, also revoked job offers to 67 students who were scheduled to join the start-up in July, citing adverse market conditions.Read more
No week passes without a mention of the two biggest taxi-hailing companies in India, Ola and Uber. And this week, their fight is not in getting more customers or drivers, but on their blogs, where Ola’s COO Pranay Jivrajka and Uber’s general manager of South and West India, Bhavik Rathod, posted, questioning each other’s compliance with Indian regulations. Read more
Cisco Systems Inc. has launched a programme for start-ups called LaunchPad. In this programme, Cisco is going to work with start-ups to create products together and take them to market through its channels. Read more
The doom and gloom continues as yet more start-ups shut down. Grocery delivery start-up GrocShop and home-décor marketplace Zimply shut down.