#Marketwire is your dose of notable movements in the technology ecosystem. This segment features updates from AskMe Group, Flipkart, Nykaa and DIPP.
AskMe Group Suspends Operations Indefinitely
Getit Infoservices-owned, AskMe Group has shut down its operations owing to a shortage of funds. AskMe runs different portals in the domains of online classifieds, eCommerce, e-grocery, finance etc. Getit Infoservices is owned by Malaysia based Astro Holdings, which had acquired the company in 2010 for $20 million.
Getit Group now has its total liabilities exceed the assets by around $50 million, and Astro Group is trying exit the country without paying its dues. It has released a statement which says “AENL has made sustained and long term investments in Getit totalling nearly $300 million to date to keep the business afloat during often volatile market conditions. Unfortunately, Getit has not been able to make its business profitable and sustainable despite these huge investments by AENL. An independent review by advisors has concluded that there is little prospect for turnaround and the business is insolvent,”.
There were reports of a management buy back being triggered to give Astro an exit which didn’t go through. The management team including – AskMeGrocery head Ankit Jain, AskMeBazaar CEO Kiran Murthy and CMO Manav Sethi have resigned. There are reports saying that the group has laid off over 4000 of its employees. Read More
Flipkart Launches Flipkart Advantage like Programme ‘F-Assured’
Flipkart had tried a similar scheme called Flipkart Advantage back in 2014 which did not work out. Flipkart Advantage had a subscription based model like Amazon Prime, however F-Advantage is free of cost. Customers can avail 2-4 day delivery on products that carry a F-Assured badge. Read More
Beauty eCommerce Portal Nykaa Forays into Apparel Retail
Cosmetics products portal Nykaa has entered into apparel retail by the launch of a lingerie section. The company aims to increase repeat buyers by offering more categories on its store.
Founded in 2012 by Falguni Nayar, the company claims to be clocking 5 million monthly and 100,000 orders per month, with an average ticket size of Rs.1,400, as of March. The new section was launched a month back. Nayar says that the company is getting close to 5% of its turnover from this segment already. Read More
DIPP to Set Credit Fund Guidelines for Startups by September
DIPP is working on guidelines to make borrowing money easier for startups. In accordance with the Startup Action Plan announced by Prime Minister Narendra Modi, a credit guarantee mechanism, through the National Credit Guarantee Trust Company or SIDBI, would get funding of Rs 500 crore annually for the next 4 years.
Under this mechanism, startups would be able to avail a venture debt from formal banking systems. DIPP will finalise the guidelines by September and will further submit it for cabinet’s approval. Read More