Swiggy to Acquire Indian Arm of Uber's Food Delivery Service, CBI Issues Look-Out Circular Against Chanda Kochhar, Govt Raises Interest Rates on Provident Funds to 8.65% for FY19 et al.

Swiggy to acquire Indian arm of Uber's food delivery service. CBI issues look out circular against Chanda Kochhar, Deepak Kochhar and Venugopal Dhoot. EPFO Board raises interest rates on provident funds to 8.65% for FY19.

 

Now to Today's Top Business News Stories in Our End Of Day Wrap Up:

 

FOODTECH

Swiggy to acquire Indian arm of Uber's food delivery service. Swiggy, Zomato bet big on Artificial Intelligence to boost delivery.

More on Their Plate: As per an Economic Times report, Swiggy, is in talks with Uber to buy the Indian arm of its food order and delivery platform, Uber Eats.

The deal could be seen as an attempt by Uber to cut down its losses from its India business as it prepares for a public offering at a possible valuation of $120bn-$150bn later this year. 

Face Off: Reports suggest that the deal may involve a share swap, which will grant Uber about 10% stake in Swiggy, currently valued at $3.3bn. 

Need for Speed: Research Firm RedSeer has stated that the online food delivery market in India is expected to hit $4bn by 2020 and food-delivery giants Zomato and Swiggy are planning to use AI to boost their services as they await the rapid expansion.

 

MISGOVERNANCE

CBI issues look out circular against Chanda Kochhar, Deepak Kochhar and Venugopal Dhoot. ED registers money-laundering case against former IL&FS top executives.

Lookout: The CBI has issued a look out circular against ex- ICICI CEO Chanda Kochhar, her husband and NuPower Renewables founder Deepak Kochhar and Videocon Group Managing Director Venugopal Dhoot in light of the ongoing ICICI-Videocon loan fraud case. 
 

Hit Refresh: The development comes after the CBI had last month registered a criminal case against the three.
  

Knock Knock: The ED on Wednesday raided six IL&FS offices across Delhi-NCR and Mumbai in connection with a money laundering case registered by the probe agency against it. 

What You Need to Know: The agency initiated the money laundering probe on basis of an FIR lodged by the Economic Offences Wing of the Delhi Police in December last year against Ravi Parthasarathy, the then company director Hari Sankaran, IL&FS Rail, IL&FS Transportation Networks and others.

 

RBI

RBI releases minutes of its MPC meeting. To tighten stance on deals between promoters and lenders.

Switching Stance: What made an inflation-worried Monetary Policy Committee turn into a growth benefactor in under two months? Read here.

Minutes: RBI released the minutes of the meeting for its 15th MPC meeting that took place from February 5-February 7 earlier this month. View the full report here.

Iron Grip: RBI to tighten norms on deals between promoters and lenders in view of the recent cases of standstill agreements by companies with lenders to delay selling pledged shares.

Recap: Recently, the promoter entities of debt-laden Anil Ambani-led Reliance Group announced that it had reached an “in-principle standstill agreement” with at least 90% of its lenders, asking them not to sell pledged shares in the group till September. In a similar instance, Subhash Chandra-led Essel Group had signed a similar agreement with lenders, comprising banks, mutual funds and NBFCs, for a standstill till September 30.

 

EPF

EPFO Board raises interest rates on provident funds to 8.65% for FY19.

New High: EPFO hikes interest rate on provident funds deposits for FY2018-19 to 8.65% from 8.55% in FY2017-18, for its six crore subscribers.

This is the first time since 2016 that the interest rates have been raised.

The EPFO manages a corpus of over INR11tr. In 2017-18, it had fresh accruals of INR1.31tr. In the year ending March 2019, the annual deposit is pegged at INR1.46tr. 

Benefits?: Learn more on how this hike affects your provident fund savings here.

 

CHINA

Tesla to introduce Model 3 in the Chinese market ahead of schedule. Search engine Baidu affected by the Chinese economic slowdown.

Early Bird: Tesla announced that its Model 3 would hit the Chinese markets a week before the planned release. 

Cutting Costs: The company has said that manufacturing in the world’s largest market for electric cars would help it reduce transport and tariff costs.

Close Finish: The early release comes in a bid to avoid complications that will arise after the trade deadline threatened by the US would have passed. Tesla hopes the arrival of its latest model will help reverse a recent revenue slide in its second biggest market.

Freefall: Tesla’s revenue from China declined 13% to $1.76bn last year, even as its global revenues jumped 83% to $21.46bn, on back of Model 3 sales in the US.

Bleak Outlook: Chinese search engine giant Baidu expects to slow revenue growth in lieu of tighter regulations in advertisement and a slump in the Chinese economy.

The company reported that it estimated a 12%-18% Y-o-Y growth in revenue in the current quarter at $3.5bn - $3.7bn – slowest since the first or second quarter of 2017.

Its Q4 revenue was up 22% to $3.96bn yuan Y-o-Y.

 

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