Government may provide special purpose vehicle (SPV) to provide relief to telecom sector. Bounce raises $105m in Series D funding round. Government might allow direct overseas listing of Indian companies. Adani Group aiming to become the world's largest solar power player by 2025.
Table of Contents
For the Greater Good: "Giving 10% stake for 20% more business is worth it." That's what Deepinder Goyal, Founder and CEO of Zomato had to say about his company's acquisition of Uber Eats India, a "win-win deal" for the food delivery giant, as he put it.
Goyal said Zomato will get about 20% new users on a monthly active basis and manage 25% extra orders. "This is because we expect 80% of their business will move to us...This was a strategic acquisition for us - to grow in cities we were not strong in."
Food Makes the Money Go Round: Zomato is also in the process of closing a $350m financing round in the next 30-45 days, Goyal said. "We already have $250m...but our burn rate continues to come down. Most of [the money we raise] will be our war chest in case competitive activity spikes up again."
You can read Goyal's interview with ET Tech here.
Your Uber is Ready to Wage War: Uber, having left the food delivery scene in India, is now likely to turn all its might against Ola to try to dominate the ride-hailing industry.
Uber and Ola have been neck-and-neck in India’s $30bn ride-hailing sector for years now. Together, the two facilitate 3.65m rides daily. And now, with Uber concentrating solely on its ride-hailing business in the country, the Uber-Ola rivalry may intensify.
Stress Relief?: The Government is reportedly considering setting up a special purpose vehicle (SPV) to reduce the ailing telecom sector’s financial stress.
FYI: A special purpose vehicle, also called a special purpose entity, is a subsidiary created by a parent company to isolate financial risk. Its legal status as a separate company makes its obligations secure even if the parent company goes bankrupt.
What Does This Mean?: The Government will stop collecting annual licence fee (LF) and spectrum usage charge (SUC), which will be about ?4,83,000cr ($65.87bn) over 15 years, from operators. Instead, the operators will give LF and SUC to the SPV for the next 15 years and get equity in lieu of it.
The operators will also pay their old adjusted gross revenue (AGR) dues to the tune of ?1,20,000cr ($16.86bn) to the SPV in annual installments. This will also be considered as their contribution towards equity in the SPV. BS
Joining the Chorus: The deadline to pay AGR dues is January 23rd (today). And after Vodafone Idea said it will await the Supreme Court order before paying its dues to the Government, Bharti Airtel has decided to follow suit. Some legal experts believe failing to pay the dues before the deadline might invite contempt of court proceedings against the telcos. Livemint
Issued in Public Interest: Swedish furniture and home products retailer Ikea has recalled millions of ‘Made in India’ travel mugs from more than 400 stores across the world due to excessive levels of chemicals in the plastic product.
“There are no medical issues and this is purely a proactive initiative keeping the safety of our customers in mind,” Ikea said on its website, urging consumers to stop using the Troligtvis-branded travel mugs immediately.
Consumers can return the mug at any store and get a full refund without any proof of purchase. Online purchases will also be refunded. ET Retail
Marching Ahead: In a LinkedIn post, Adani Group Chairman Gautam Adani said that the his group is aiming to become the world's largest solar power company by 2025 and the biggest renewable energy firm by 2030.
"Our existing portfolio of renewable power generating assets stands today at over 2.5 GW. This is expected to more than double by 2020, with the implementation of 2.9 GW under construction capacity and further record three-fold growth touching 18 GW by 2025. To make this happen we have committed to investing over 70 per cent of our budgeted capex of the energy vertical into clean energy and energy-efficient systems," he said.
In 2019, the Adani Group was ranked as the sixth largest solar player globally. ET Energyworld
Infallible: "Yes Bank is a significant player in the market with an almost $40bn balance sheet...I have a feeling that it will not be allowed to fail," noted SBI Chairman Rajnish Kumar.
Kumar’s statement comes amidst speculations that SBI may eventually be asked to bail-out Yes Bank. However, last month Kumar said it was “out of the question that SBI will do anything for Yes Bank.” ET Markets
Riding on Gold: Bengaluru-based bike rental startup Bounce has raised $105m in Series D Funding round led by Accel Partners and Facebook Co-founder Eduardo Saverin's B Capital Group. The round also saw participation from existing investors Accel Partners India, Falcon Edge, Chiratae Ventures, Omidyar Network India, Maverick Ventures, Sequoia Capital India, and Qualcomm Ventures.
The funding round takes the total capital raised till date by Bounce to $194m, and raises its valuation to $520m. Proceeds from the funding will be used to focus on deeper Electric Vehicle (EV) integration and a platform play, and push towards profitability. YourStory
Going Places: In a bid to enable Indian companies to access a larger pool of capital and facilitate their movement towards fuller capital account convertibility, the government is expected to allow direct listing of Indian companies abroad.
Currently, Indian companies go for the depository receipts route to tap investors globally.
This, along with the decision to reduce the corporate tax rate to 15% for new manufacturing companies is expected to help Indian companies go global and also ensure that they do not register in foreign locations such as Singapore.
As per sources, the government is planning to allow listing only in select jurisdictions, which may include the US, the UK, China, Japan and Hong Kong. ET Tech
Show Up or Pay Up: As per a recent Central Board of Direct Taxes (CBDT) circular, it has been mandatory for employees to furnish PAN or Aadhaar under Section 206AA of the Income Tax Act for receiving amount on which tax is deductible. Financial Express
The CBDT further said that if an employee fails to furnish his/her PAN or Aadhaar number, as the case may be, to the employer, the latter will be responsible to collect TDS at higher of the following rates:
Levelling Up: Markets regulator SEBI has notified new norms governing portfolio managers, under which the minimum investment limit for investors has been doubled to ?50L, and the managers have been directed to increase their net worth to ?5cr within three years.
The new norms are aimed at curbing mis-selling, and weeding out dubious operators. Outlook
Hand-curated Business News from Top Publishers & Platforms, Richly Crafted to Fit into One Wholesome Email. Subscribe Now to receive a nuanced 360 Degree account of key events from the World of Business and Finance every day.