WeWork files confidential documents for IPO. Spotify hits 100 million paid users globally. Samsung's Q1 profits plunge by 60%. Yes Bank shares plunge c. 30%. Standard Chartered plans $1bn buyback. Jet Airways staff seeks to bid for the grounded airline. Milkbasket raises INR20cr from Sachin Bansal's BAC Acquisitions. InCred raises INR600cr in Series A funding round. The US intensifies pressure on its European allies to ban Chinese-made gear from their telecom networks.
Moving on to the top Business stories of the day.
WeWork files confidential documents for IPO. Spotify hits 100 million paid users globally.
Joining the Ranks: Co-working giant, WeWork, which was rebranded as the We Company early this year, has filed paperwork confidentially with the US Securities and Exchange Commission to hold an initial public offering (IPO), joining the ranks of Slack, Lyft, Uber and Pinterest.
WeWork, valued at $47bn in January, has raised $8.4bn in a combination of debt and equity funding since it was founded by Adam Neumann and Miguel McKelvey in 2010.
A Record 100 Million: Music-streaming platform, Spotify topped 100 million paid users globally in Q1, after growing subscribers 32% since it went public about a year ago. This is twice as many as Apple's paid subscribers at 50 million.
Spotify is the first music service to have hit this milestone.
The US intensifies pressure on its European allies to ban Chinese-made gear from their telecom networks.
Mounting Pressure: The US has intensified pressure on its European allies to ban Chinese-made gear from their telecom networks, asserting that such equipment could be a shared national-security threat to the West and could compromise intelligence sharing.
The US has warned allies that if they used “untrusted” suppliers to build out new telecom networks, Washington would have to reassess their ability to share information and be interconnected with them in the way they are this day.
Meanwhile: Britain’s National Security Council last week decided that it would allow the Chinese telecom giant to construct noncore parts of its 5G networks.
New Moves: As per this report, Ola and Flipkart are gearing up to launch credit cards in partnership with large banks.
The move is likely to give these platforms insight into the spending pattern of their card users and help them enter an under-penetrated credit market.
Ride-hailing platform Ola is likely to launch a credit card in partnership with SBI, and begin pilots as early as next week.
Previously: In October last year, Amazon Pay tied up with ICICI to launch a co-branded credit card, which offers customers added rewards and benefits on the Amazon India ecosystem.
Samsung's Q1 profits plunge by 60%.
The Fall: Samsung posted revenues of $45.1bn in Q1 FY19, down 20% from the $56.5bn it posted previous year. Operating profit fell 63% to $5.3bn vs $15.6bn last year.
Samsung noted that while the sales of its new Galaxy S10 smartphone were “solid”, memory chip and display businesses, didn’t perform well and “weighed down” the company’s results overall.
Bonus Read: Google’s parent Alphabet Inc. in the first quarter posted its slowest revenue growth since 2015. The tech giant’s once-untouchable online-advertising operation took a body blow, hurt by mounting competition and struggles within its increasingly high-profile YouTube unit.
The poor results highlight the risks for one of Silicon Valley’s biggest names in effectively leaning on one massive, if lucrative, business. Read this article to understand how Google might be showing its first cracks in years.
Milkbasket raises INR20cr from Sachin Bansal's BAC Acquisitions. InCred raises INR600cr in Series A funding round.
Milkbasket: Gurugram-based hyperlocal delivery startup, Milkbasket has raised INR20cr in a debt funding round led by Flipkart Co-Founder Sachin Bansalthrough his tech fund, BAC Acquisitions.
The proceeds from the funding round is likely to be used for investment in automation and expansion.
Previously, Milkbasket has raised nearly INR111cr from Mayfield Advisors, Beenext, Kalaari Capital, Unilever Ventures, Lenovo and Blume Ventures.
Launched in 2015, Milkbasket delivers groceries, including branded milk, fruits and vegetables, in Noida, Bengaluru and Gurugram.
InCred: Tech-driven non-banking financial company (NBFC) InCred has raised INR600cr in Series A funding round led by Dutch development finance institution FMO.
The round also saw participation of US-based asset manager Moore Capital, India/Latin America-focussed PE fund Elevar, and Alpha Capital, an early-stage investor of InCred.
The latest funding round will increase the total equity capital of the company to over INR1,000cr.
InCred is likely to use the proceeds to boost its balance-sheet lending, as well as to make further investments in technology initiatives to drive its analytics and risk management capabilities.
Yes Bank shares plunge c. 30%. Standard Chartered plans $1bn buyback. Jet Airways staff seeks to bid for the grounded airline.
Shares of Yes Bank on Tuesday slumped as much as 30% before closing at INR166.75, on back of brokerage firms downgraded the stock and cutting target price after the lender reported a loss of INR1,507cr for Q4 against a profit of INR1,180cr last year and guided to lower growth in the ongoing financial year.
Foreign brokerage Macquarie double-downgraded Yes Bank to "underperform" with a 40% lower target price of INR165 a share and cut FY2020-21 estimate earning per share by 45% each. Morgan Stanley is "underweight" on the stock and lowered its target price to INR125 from INR160 a share. Edelweiss Securities has downgraded the stock to "hold" from buy and reduced its target price to INR250 a share, from INR279 a share.
Standard Chartered has announced a buyback of as much as $1bn of shares, its first such in at least 20 years as quarterly profit rose 10%, signalling progress in its turnaround strategy.
The Good Samaritan: A group of airline employees has written to SBI seeking permission to allow a consortium of employees and external investors to bid for the company's management control.
Employees of Jet Airways have put forth a proposal to take control of it by infusing INR7,000cr. Under a proposal submitted to SBI, the lead lender, the employees plan to put up capital through stock options worth INR4,000cr and raise another INR3,000cr from external investors.
On April 17, the airline announced a temporary shutdown due to lack of funds.