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HomeTechTata super app delayed again; Amazon tells CCI it didn't hide facts

Tata super app delayed again; Amazon tells CCI it didn’t hide facts


In September we reported that Tata Digital’s ‘super app’ was on hold till there was clarity on India’s ecommerce rules. Now, sources have told us the much-delayed app is likely to be launched in March 2022.


Also in this letter:

  • Didn’t hide any facts related to Future deal, Amazon tells CCI
  • Lenskart to raise $250 million at $5 billion valuation
  • DeFi firms ask government for clarity on crypto bill

Tata’s super app delayed again, launch now likely in March

Tata Group’s long-awaited ‘super app’ Tata Neu is now likely to be launched in March 2022.

Delays: The app was originally supposed to be launched in early 2021 but the launch was later postponed to the second half of this year. Now it has been pushed to complete integration of group entities such as 1mg or Tata Cliq onto a single platform and iron out any issues.

We had previously reported that the super app’s launch had also been delayed by the draft ecommerce policy, which proposes a “related-party clause” that would prevent Tata group firms from selling on their own platform.

Nationwide launch: Sources also told us that the Tatas are now planning to launch Neu nationally since it is being tested across the country. Earlier, it had planned to launch it in Bengaluru before rolling it out to other cities.

Rewards system: Neu users will be rewarded with ‘Neu Coins’ for their purchases. These can be used to claim other rewards across Tata Group products, sources told us. This is similar to platforms like Flipkart, which offers ‘Super Coins’ that can be redeemed for rewards.

The group is putting together various offerings across ecommerce, financial services, fashion, lifestyle, among others, to create a loyalty programme for its 45 million-plus customers which will help them use the Tata ecosystem of services and goods.

BigBasket is the backbone: We reported in October that BigBasket was building a unified supply chain and logistics network for Tata Neu.

Innovative Retail, the retail arm of BigBasket, made changes to its memorandum of association, inserting new clauses on the object of the firm that now includes “business of being service provider for various businesses, including providing third-party logistic services, warehousing, supply chain management, and last-mile delivery services to customers”.

“Companies like 1mg and BigBasket are also working closely [on Tata Neu]. BigBasket will play a crucial role in offering logistics support to the ecommerce ambitions of Tata Digital,” another source said.


Didn’t hide any facts related to Future deal, Amazon tells CCI

Amazon

Senior officials of Amazon India told the Competition Commission of India (CCI) in a hearing on Monday that the company did not hide any facts related to its Future Group deal and that it was compliant with foriegn investment laws, sources told us. Amazon India also told CCI – without naming Reliance Industries – that scrapping the Future deal would be anti-competitive and benefit its rivals in India.

Last month, the Delhi High Court had urged CCI to move ahead with the case and dispose of the matter. We also reported last month that CCI had made it clear that it would proceed with the matter with information on record if the parties did not take the opportunity to present their case.

Amazon India had asked CCI to revoke the nod it gave to the Rs 24,713 crore Reliance-Future Deal, according to reports last month. In August, we reported that it had made a similar request to markets regulator Sebi.

Backstory: In August 2020, Reliance Retail Ventures Limited (RRVL), a subsidiary of RIL, said it had agreed to buy Future Group’s retail businesses to bolster its presence in retail and its new commerce venture JioMart. The deal also included the purchase of Future Group’s wholesale and supply chain business.

Amazon quickly objected to the deal, citing its prior agreements with Future Group. In August 2019, Amazon had invested Rs 1,431 crore in Future Coupons, which held about 10% in Future Retail.

Amazon sent a legal notice to the Future Group in October 2020 the two companies have been fighting over the deal ever since.

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Lenskart to raise $250 million, doubling valuation to $5 billion

Lenskart

Lenskart founder Peyush Bansal

Lenskart is on the verge of closing a $250 million funding round at a valuation of $5 billion, less than five months after it raised $315 million at a valuation of $2.5 billion.

Funds such as KKR, Temasek, Falcon Edge Capital, Chiratae Ventures, and Bay Capital, which all participated in the previous round, are investing in the company again. Another two to three funds, such as Fidelity, are also said to be in negotiations with Lenskart.

No IPO yet: One of the sources said that this was not a pre-initial public offer round, as has been the case with other unicorns in the past few months. The company will look to achieve scale globally before deciding on a market listing in the next two to three years, he said.

“The company will use funds to open up some more technology centres around the world, including the US, and it will also invest about $100 million in developing the US market,” said a fund manager with knowledge of the deal. “Also in the works is another facility for global delivery, which will cost about $200 million. Since they operate on an integrated model—from frame to lens—they will have to build two-three plants at least, such is the demand.”

Offline, too: Apart from the online business, Lenskart is now closing in on 1,000 physical stores across markets. It has said it would launch a plant in Haryana next July with an investment of $150 million and an annual capacity of 50 million spectacles. Lenskart currently ships 30,000-35,000 glasses every day from its Gurgaon centre, as per an investor presentation.


DeFi firms ask government for clarity on crypto bill

Stacks (STX)

Decentralised finance (DeFi) companies have reached out to the finance ministry for details on the proposed cryptocurrency regulations. They are seeking clarity on how the government plans to manage and streamline blockchain operations.

What’s DeFi? Decentralised finance, or DeFi for short, is a system in which customers can access financial products directly on a decentralised blockchain network, without the need for middlemen such as banks and brokerages.

The aim is to democratise finance by replacing centralised institutions such as banks with direct, peer-to-peer relationships. Every financial service we use today — savings, loans, insurance and much more — could one day exist on a blockchain, not in a bank.

Also Read: How DeFi could one day liberate finance

Most DeFi companies have tied up with co-operative societies in the country to offer services to customers. In many cases, companies are even opening branches and plan to roll out ATMs.

Quote: “We are in touch with the finance ministry and state registrars to understand which path has been taken and so far, it seems that crypto is allowed as an asset class and once it gets regulated we will add more co-operatives in our network to make it nationwide,” said Kumar Gaurav, founder and chief executive of Cashaa, which offers saving accounts, debit cards, crypto loans, and monthly rupee deposits.


Flipkart’s Shopsy enters grocery business to take on DealShare, Meesho

Flipkart

Flipkart said on Tuesday that it has started offering groceries as a category on its five-month-old social commerce platform Shopsy.

Details: Groceries on Shopsy will be available across 700 cities, spanning over 5,800 pin codes. The platform will have 6,000 products across 230 categories such as staples, FMCG, and other dry groceries, matching the selection and range available on Flipkart Grocery. The platform will offer a flat 5% commission margin to its resellers.

An increasing number of companies are now selling groceries through the social commerce model. DealShare has been a prominent player while Meesho has been doubling down on groceries through Farmiso. We previously reported that Udaan has also entered the space through Price Company.

Change of plan: When Flipkart launched Shopsy in July, the company specifically mentioned that it would not offer groceries. The change in plan is similar to that of Grofers, which a few months ago pivoted to quick grocery deliveries. On Monday the company changed its name to Blinkit, saying it was looking beyond groceries and saw itself as a quick delivery company.

Zomato appointments: Meanwhile Food delivery platform Zomato announced the appointments of Nitin Savara as deputy chief financial officer and Anjalli Ravi Kumar as chief sustainability officer.

Rebel Foods’ war chest: Rebel Foods, which operates a network of cloud kitchens and digital brands, said it is committing $150 million (about Rs 1,138 crore) for strategic brand investments and acquisitions in India and around the world. It will use this investment pool over the next few quarters as it looks to scale existing partnerships and build new ones with more than 40 Indian and international brands, it said in a statement.


Despite price cut, Netflix’s rates remain in a league of their own

Netflix India

Netflix announced on Tuesday that it was reducing the price of its subscriptions in India to boost its user base. The timing was no coincidence, as rival Amazon Prime Video had previously announced an increase in its prices effective Tuesday.

Despite Netflix’s price cut and Prime Video’s hike, the former remains in a league of its own, price-wise, in India’s video streaming market.

New prices: The price of Netflix’s cheapest monthly plan, which covers phones and tablets, has been slashed 25% from Rs 199 to Rs 149. The largest price drop is for the basic full-service plan, which comes in standard definition (480p) picture quality. It is now priced at just Rs 199 a month, a 60% cut from Rs 499.

The cost of the standard plan, which comes in high definition 1080p picture quality, has been cut from Rs 649 to Rs 499 a month. The full-service premium plan, which offers 4K+HDR picture quality, is down from Rs 799 to Rs 649.

Netflix is still five times the cost: Netflix’s cheapest plan, which is available only on mobiles and tablets, still costs Rs 1,788 a year, more than the most expensive offerings Prime Video, Disney+ Hotstar and any other Indian player. Its most expensive plan on the other hand works out to a whopping Rs 7,788 a year, more than five times the Rs 1,499 that Prime Video and Disney+ Hotstar charge for their top annual plans.

Netflix vs Prime Video

OTT rivals: Amazon Prime Video, on the other hand, is increasing its rates from today. The cost of the annual subscription plan is up 50% from Rs 999 Rs 1,499. The monthly plan, which used to cost Rs 129, will now cost Rs 179, while the cost of the quarterly plan has been raised from Rs 329 to Rs 459.

Disney+ Hotstar introduced new annual plans in September. The cheapest plan costs Rs 499 a year and is for mobiles only. The Rs 899 annual plan covers any two devices, while the Rs 1,499 annual plan offers up to 4K picture quality across up to four devices.

Booming market: India’s video streaming market is expected to touch $12.5 billion by 2030 from about $1.5 billion in 2021 on the back of access to better networks, digital connectivity and smartphones, said a report by RBSA Advisors in July.


Other Top Stories By Our Reporters

D2C startup Bewakoof adds marketplace Bazaar to its platform: Youth-focused direct-to-consumer (D2C) firm Bewakoof is adding a marketplace business called Bazaar to its platform. The company, which makes personalised and quirky brands under the same name, plans to host around 150 brands on its platform but will also continue to be listed as a brand on other marketplaces, cofounder and chief executive Prabhkiran Singh told ET in an exclusive interview.

Consumers now game for Epic’s metaverse tool: Epic Games Inc, the American video game company known for its hit battle game Fortnite, is seeing significant adoption of its metaverse tools by consumers and enterprises across sectors in India, a senior executive said. Metaverse is an online world where people exist in shared virtual spaces through what are known as avatars.

India’s upcoming data laws critical for future technology, says Infosys CEO: The upcoming data protection laws in India should not be viewed as a cost to enterprises but a critical element of the building blocks of the future of technology, the chief of India’s second largest IT firm has said.


Global Picks We Are Reading

  • UK politicians urge government to enforce stricter rules on Big Tech (CNBC)
  • Uber, Google, Ford delay office return as Omicron’s spread threatens business districts (WSJ)
  • Her Instagram handle was ‘Metaverse.’ Last month, it vanished. (NYT)





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