Reliance, BP form joint venture for fuel retail under Jio-BP brand. Boeing to suspend 737 MAX production in January. Netflix releases numbers on overseas business for the first time. Instagram rolls out new features to combat fake news. Licious raises $30mn from Vertex Growth Fund. HungerBox raises $12mn from Paytm and others.
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The Most Wonderful Time of the Year: This month, India’s banks are set for a $7.6bn earnings windfall thanks to the progress of bankruptcy proceedings in large cases.
The lenders are expected to benefit from the recovery process from four failed companies – Essar Steel India Ltd., Prayagraj Power Generation Co., Ruchi Soya Industries Ltd. and RattanIndia Power Ltd.
Among the banks, State Bank of India, IDBI Bank, Bank of India, Canara Bank and Bank of Baroda could be the biggest beneficiaries. The Print
All Day and All Night: On Monday, NEFT payments became available round the clock, 24x7. On top of it, the Reserve Bank of India has now barred banks from charging any fee for electronic fund transfers from savings accounts.
Between 12am and 8am on Monday, NEFT settled over 1.14mn transactions, according to the Central Bank. By providing round the clock payment services, India has also joined an “elite club of countries” which includes Australia, Hong Kong, Mexico, Sweden, Turkey, the UK and South Korea, among others. BS
A Suitable Match: Indian car-maker Tata Motors is reportedly in initial talks with a couple of Chinese automobile companies for a tie-up for its passenger vehicles business. As per sources, these companies may either invest directly in Tata Motors or form a joint venture.
The collaboration could include joint development of technologies related to electric mobility, sharing of manufacturing capacities, development of engines and platforms and other aspects of the business.
Zooming Out: Vehicle makers are increasingly seeking partnerships to invest in futuristic technologies to cope with stringent emission, fuel efficiency and safety standards. Livemint
Going Places: British energy major BP and Reliance Industries Ltd (RIL) have signed a definitive agreement to form their new Indian fuels and mobility joint venture branded as Jio-BP.
RIL will hold 51%, while BP will hold the remaining 49% in the JV that will assume ownership of RIL’s existing Indian fuel retail network and access its aviation fuel business. Reliance will receive INR7,000cr from BP for acquiring a 49% stake in the petro-retail JV.
The venture expects to expand from RIL’s current fuel retailing network of over 1,400 retail sites and 30 aviation fuel stations across India to up to 5,500 retail sites and 45 aviation fuel stations over the next five years to become the most preferred provider of automotive and aviation fuels. Hindu BusinessLine
Deal of the Day: Online fresh meat brand Licious has raised $30mn in Series E funding round led by Singapore-based Vertex Growth Fund. Existing investors 3one4 Capital, Bertelsmann India Investments, Vertex Ventures Southeast Asia and India, and Sistema Asia Fund also participated in the round.
The proceeds from the funding round will be used to expand presence in a greater number of Indian cities, augmenting capabilities in existing markets, strengthening omni-channel presence, and powering new product launches, especially in the ready-to-eat category. Yourstory
Funding for Food: Food tech startup HungerBox has raised $12mn in latest funding round led by Paytm and NPTK.
The Series C funding round also saw participation from existing investors Sabre Partners and Neoplux.
HungerBox offers management services to companies and institutions to improve and run their in-house cafeterias and canteens. HungerBox also enables its clients to connect with food partners through an app and get real-time updates of their order. VCCircle
US aircraft manufacturer Boeing has said that it will suspend production of its 737 MAX jetliner.
Boeing’s 737 MAX, which is made in Seattle, was grounded worldwide in March following two fatal crashes in Indonesia and Ethiopia within five months, which claimed 346 lives.
With no timeline for the plane's return in place, the production freeze by one of the largest US exporters is expected to impact suppliers, airlines and financiers across the globe, as well as the US economy. NYT
Fed No More: Amazon is blocking its third-party sellers from using FedEx's ground delivery network for Prime shipments, citing a decline in performance as the ecommerce giant heads into the final stretch of the holiday shopping season.
The ban on using FedEx’s Ground and Home services starts this week and will last “until the delivery performance of these ship methods improves,” according to an email Amazon sent Sunday to merchants.
Here, it is rather interesting to note that the emergence of Amazon as a delivery behemoth is already shaking the $900bn US logistics sector. Amazon Logistics – founded in late 2014 – is already shipping over 2.5bn packages annually in the country. As of August 2019, Amazon has delivered 46% of US packages bought on its e-commerce platform through its internal delivery arm. WSJ
Numbers Game: Netflix has revealed numbers regarding its overseas business for the first time. As of September 30, 2019, the streaming giant’s revenue from the Asia-Pacific region crossed $1bn. Last year this figure was $669mn, thereby registering a 57% increase.
Subscriber base for the same region stood at 14.48mn, up from 9.46mn in the same period and year and 5.8mn in 2017.
Outside the US, the largest region for Netflix is Europe, Middle-east and Africa (EMEA). While Asia is still a small portion of Netflix's overall business, it has registered the biggest gains across all regions in terms of revenues and subscriber base in the past three years, the data shows. ET Tech
Update: Instagram is reportedly all set to expand its fact-checking test. It will work with 45 third-party organisations to assess the truthfulness of photo and video content on its app.
On the Explore and hashtag pages, material rated as false will be hidden and covered with a warning blocking the content until users tap again to see the post. TechCrunch
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