SpiceJet profits tank 77% in Q3. US Lawmakers reach agreement on US-Mexico border wall. Swiggy forays into on-demand product deliveries. Softbank invests in robotic-delivery vehicle startup.
Now to Today's Top Business News Stories in Our End Of Day Wrap Up:
SEBI expresses reservations over Etihad exemption. SpiceJet profits tank 77% in Q3. Operators may cut losses in next fiscal.
Not Too Sure: SEBI expressed doubts regarding grant of an exemption to Etihad Airways in connection with its open offer to the minority shareholders of Jet Airways.
Why: The regulatory body says that such an exemption is against SEBI’s takeover norms and is only possible if the company is in distress and has undergone insolvency.
What You Need to Know: Exemption for making an open offer was among the key conditions set by Etihad for infusion of funds into debt-ridden Jet Airways.
Massive Fall: SpiceJet reported a 77% Y-o-Y decline in profits to INR55cr vs INR240cr last year on back of higher aviation fuel cost and decline in Rupee.
Cutting Losses: Indian airline operators are likely to cut their cumulative losses by as much as two-thirds in the next fiscal owing to increasing ticket prices, as per aviation consultancy CAPA India. Learn how they plan on doing so here.
Fashion startup Zilingo raises $226m in series D funding.
Going Big: Singapore-based fashion startup Zilingo has raised $226m in its latest funding round led by Sequoia Capital, Temasek Holdings, Burda Principal Investments and others.
Expanding Horizons: The company, which started as a fashion marketplace, has been rapidly growing its B2B tools and platforms, which include providing value-added services to its merchants as well as marketplaces to help them source efficiently from manufacturers.
The proceeds will be used to expand Zilingo’s business into Philippines, Indonesia and Australia.
Next Gen: A group of analysts used a variety of data including financial health, strength and size of the market to identify 50 startups that may be on the path to achieving a $1bn valuation. Read more on them here.
US Lawmakers reach agreement on US-Mexico border wall.
Truce: Top four lawmakers on the House and Senate Appropriations Committees reached an agreement in principle to end the month-long tussle over border security and avoid another partial government shutdown.
The deal would include $1.38bn for 55 miles of modern physical barriers along the border with Mexico.
Is it Enough?: It still remains to be seen whether President Trump will accept the deal, as he had sought $5.7bn to build a border wall and the speculated funding is far lower than that.
Slowing Down: Q4 results from US companies indicate that slowing growth in China is modest, but broad. Read more on this here.
Amazon to acquire home wifi startup Eero.
A Good Buy: Amazon to acquire router manufacturer Eero.
The Plan: Acquisition of Eero will allow Amazon to help customers better connect smart home devices. The tech giant currently has millions of Echo speakers and third-party gadgets tied to its Alexa ecosystem in homes, and acquiring Eero could help it bring everything together more seamlessly.
Eero was last valued at $215 million in a Series D funding round in 2017.
Bright Future: Read more on how the acquisition benefits Amazon in the race for the smart home market here.
Softbank invests in robotic-delivery vehicle startup. Swiggy forays into on-demand product deliveries.
Driver Not Found: SoftBank Group invests $940m in robotic-delivery vehicle startup Nuro.
Nuro focuses on creating its own electric vehicles, specially made for delivering items like groceries over short distances. The investment would augment Softbank’s push into driverless vehicles segment.
Branching Out: Online food delivery service Swiggy is branching out into on-demand product deliveries with the launch of its newest offering Swiggy Stores.
The Proposition: Swiggy Stores will offer products from more than 3,500 stores including fruits and vegetables, kiranas and supermarkets, florists, baby care, health and supplements, among others.
The move will leverage Swiggy’s growing delivery fleet of 1.25 lakh active delivery partners and potentially make it the one-stop delivery app granting access to every store in the city.
Click here to read how Amazon looked to the past to build the future.
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