#Marketwire is your quick summary of notable market movements in the technology industry. The firms covered in this segment include Uber, Google, DIPP, SVG Media, Parcelled and Lenovo
Uber Might Launch Its Own Payment Wallet in India
Global cab aggregator, Uber is considering to launch its own wallet in India. The firm had tied up with Paytm to collect payments, ever since RBI’s mandate for 2-step verification deterred it from charging credit cards, a model it follows in the West.
Eric Alexander, Head of Business, Uber Asia, said that the company will continue its association with Paytm, however it is going to keep the option of its own wallet in the country. Ola Cabs, Uber’s biggest rival in India has its own wallet for collecting payments. Read More
Private Equity Funding in Indian Startups Declines by 25%
According to a recent report by global research firm Goldman Sachs, private equity funding in Indian startups witnessed a downfall of 25% YoY from $2.5 billion in 2015 to $1.9 billion in 2016.
While the number of deals has picked up by 52% YoY in 2016, the average deal size has declined by 51% to $4.3 million, stated the report.
Moreover, the slowdown in private equity capital inflow has seriously impacted Series B and Series C round, forcing startups to lower cash burn rates and also restructure operations to focus on profitability. Read More
Over 400 Startups Filed Applications with DIPP for Recognition as Innovative Startups
More than 400 startups have registered with the Department of Industrial Policy and Promotion (DIPP) for government recognition and availing tax breaks and other benefits.
An inter-ministerial committee assessing such applications, has already considered 189 requests and out of that 148 applicants have been asked to properly attach relevant documents and 10 applications have been rejected as there was no innovation involved in that. Read More
Marc Andreessen Expects More M&A in Next Wave for Tech Startups
Marc Andreessen sees technology startups cashing out in a wave of acquisitions and public stock offerings over the next few years. According to him, many more merger and acquisition (M&A) deals this year and a stream of IPOs in 2017 and 2018 will occur.
According to CB Insights, there are now 168 unicorns or tech companies valued at $1 billion or more. Andreessen’s Menlo Park, California-based venture firm owns shares in seven unicorns (it includes Airbnb Inc., Pinterest Inc., and Magic Leap Inc. amongst others) with a combined value of $46.9 billion, states the research firm CB Insights. Read More
India to Have Over 10M Sellers Online by 2020: Nitin Bawankule
Nitin Bawankule, Industry Director, Google India says “India’s internet users are soaring, and over 10 million sellers are expected to be online by 2020 to cater to the huge consumer base, be it through marketplaces or on their own”.<
Google executive also announced that he expects that by then, the internet users in India would hit the 650 million mark. At present a majority of the Internet users are in urban cities, it is expected that the biggest growth in the Indian Internet penetration will come from rural cities next. Read More
SVG Media is Looking to Acquire & Invest in Ad-Tech Startups
Gurgaon based digital media company SVG Media has allocated a budget of $3-4 million to invest in early-stage ad-tech startups. The company has already made an investment in startup Mishtag, and is about close another round in a Delhi based Ad-Tech startup. Further, it is also looking to make acquisitions in the space to boost its presence in the country.
SVG Media Pvt Ltd, which is a joint venture between Vun Network and Smile Group, runs several entities such as Tyroo, DGM, Seventynine and Komli. It claims make up about 70% of India’s Internet base through these four entities. Read More
Parcelled Pivots its Business Model
On demand logistics startup Parcelled will now fulfil the delivery operations through third party partners. The company has reportedly let go off most of its delivery personnels.
Moving forward the company will focus only on its technology platform, thereby acting as a booking platform, aggregating outside vendors to complete the consumer demand.Read More
Lenovo Keen On Growing Market Share in India
Chinese technology firm Lenovo is keen on tapping India as a major market. This is while it’s losing its share in its home market, as per reports the company’s revenue in India grew by 90% in 2015, while it declined by 26% in China. The company had earned $1 billion in revenue from India in 2015.
Lenovo had acquired Motorola Mobility from Google in 2014. It started production of Lenovo and Motorola smartphones in India in August 2015. “We have a share of about 9% and we are focussed on growing that. Getting to double digits should not be difficult” says Lenovo Senior Vice President and Co-President Mobile Business Group (MBG) Aymar de Lencquesaing.Read MoreCategory Ecommerce News Startups