#Marketwire is a quick round up of notable business movements of the day. This segment features news from OYO Rooms, Indian Government and Zoomcar
OYO Rooms Introduces OYO Bazar, an Online Marketplace for Hotels to Procure Daily Essentials
In order to further boost loyalty amongst its partners and maintain margins, an online marketplace OYO Bazar is being set up by OYO Rooms. The platform will serve as a one-stop shop for hotels to procure daily essentials required to run their business
“As the market matures, hotel partners will look for more support from a single partner they work with. The intent is not to become an ecommerce company but to become a preferred supplier for our partners,” said Ritesh Agarwal, chief executive of OYO Rooms.
Hotel room aggregator OYO Rooms claims to have a network of more than 5,500 hotel partners. The startup looks to use this bulk sourcing capabilities and bargaining power to provide inventory to hotels at 20-25% cheaper prices than the market rates while generating 20-25% margins for itself in the process. Read More
All Online Purchases Likely to Attract GST from April Next Year
According to model GST law under which all purchases made online will attract a uniform GST, is likely to come into effect from April next year. The model law has cleared the confusion surrounding the levy of the tax on eCommerce transactions spanning different states but it will also make operations more complicated for the e-commerce platform.
The model law will be applicable for all those with an annual turnover of Rs.10 lakh or more. This limit is Rs. 5 lakh in the north-eastern states.
The model GST law says,“Every electronic commerce operator shall, at the time of credit of any amount to the account of the supplier of goods and/or services or at the time of payment of any amount in cash or by any other mode, whichever is earlier, collect an amount representing consideration towards the supply of goods and/or services made through it.” Read More
Zoomcar Turns to Marketplace Model, Aims for Profitability by 2017
Self-drive car rental startup Zoomcar is pivoting to a marketplace model. The decision is a part of a broader strategy as the company aims to become profitable by the end of 2017, expand into new markets and raise a fresh round of funding. The Bangalore based startup which raised $11 million from various investors such as Nokia Growth Partners and Sequoia Capital last year is in talks with existing and new investors to raise a fresh round of funding over the next 2-3 months in the bracket of $40-$50 million.
After it completes funding, Zoomcar plans to enter at least eight new markets, bringing the total number of Indian cities that it operates in to 15. “As part of our expansion, we will be moving into tier-2 and tier-3 cities also places like Calcutta which is a large tier-1 city where we haven’t launched yet. We found that it works well to have a lot of smaller cities that feed into larger cities and that is something that has performed nicely for us,” said Zoomcar CEO, Greg Moran. Read More
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