#Marketwire is your quick summary of notable market movements in the technology industry. The organisations covered in this segment include Alibaba, Shopclues, PayU, RBI, Nasscom, Snapdeal, Exclusively, Ola and TaxiForSure.
Alibaba Reportedly Looking to Acquire Shopclues to Merge With Paytm
Alibaba has reportedly held discussions to acquire Gurgaon-based Shopclues. The Chinese eCommerce firm has stakes in other Indian marketplaces, namely Snapdeal and Paytm. It is seeking to acquire firms in this domain to establish a dominating stance in India before it enters the country next year.
As per a TOI report, if the deal goes through, ShopClues would be merged with Paytm’s marketplace. The company has raised $250 million till date, and is valued over $1 billion. It is also rumoured that the talks may fall apart since Shopclues’ management is negotiating for a much higher valuation. Read More
PayU Gets Semi-Closed Wallet Licence from RBI
Joining the league of its contemporaries in the digital payment space, PayU has now received its semi-closed wallet license from the Reserve Bank of India. A semi-closed wallet allows users to pay to a specific set of merchants approved by the wallet provider.
PayU Chief Nitin Gupta says that the wallet will also have an offline presence for making payments via PayU’s POS terminal. Read More
NASSCOM Says India Will Have 730M Users by 2020
According to a report on ‘The Future of Internet in India’ by NASSCOM and Akamai, number of Internet users in India will hit 730 million by 2020. The report says that 75% of new Internet users will come from rural areas. Additionally, 75% of the total user base will consume content in vernacular languages. Read More
Snapdeal to Shut Down Exclusively
Snapdeal is shutting down its luxury goods marketplace Exclusively.com in order to cut costs. Exclusively which was founded in 2010 by Sunjay Guleria and Mohini Boparai Guleria has had a history of fluctuating ownership.
It was sold to Myntra in November 2012, only to be bought back again by the Founders in June 2013. Then in further February 2015 it was sold to Snapdeal in an all stock deal. Read More
Ola Shuts Down TaxiForSure Operations
Ola has shut down the operations of TaxiForSure, its former rival firm which it had acquired in 2015. Ola has integrated its services and is laying off at least 700 of TFS employees with 3 months salary as severance pay.
The total cost reduction by these layoffs is estimated to be Rs 30 crore a month. Read More
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