Funding & Firing Continues đźš’

Week's Recap: PhonePe's Pincode, Dunzo's IPO, Google Vs CCI

Author

Prakhar Singh
April 04, 2023

Good morning, It's time to grab a cup of chai and dive into the exciting world of business. From funding rounds to product launches, we've got you covered. So sit back, relax, and let's see what's been brewing in the scene this week.

In today’s email:

  • PhonePe’s new Pincode: Partnership with ONDC 🤝

  • Dunzo’s $75M Funding & 30% Firing: Profits & IPO Plans

  • Google vs CCI: NCLAT’s Rs 1,338 crore fine

1. PhonePe’s Pincode📍

This just happened: Payments Giant- PhonePe has forayed into e-commerce with a new app called Pincode, which will be plugged into ONDC.

Why it matters: Pincode aims to connect digitized neighborhood stores and bring the small merchant ecosystem into the digital shopping fold. With nearly 450 million registered users on the PhonePe app, the company strategically opted to launch a new app instead of integrating it into the existing one.

  • It will offer hyperlocal shopping options in various categories, and the company aims to reach 1cr daily orders by the end of 2023.

The Big Picture: The foray into the e-commerce space under the ONDC umbrella is an opportunity PhonePe couldn't afford to miss. As ONDC expands the consumer base for a seller, the company looks to expand Pincode to the top 10 cities in the first year of its operation. It also plans to do an IPO in the next 2-3 years. Read More

2. Dunzo’s Funding & Firing 📉

What happened: Reliance-backed delivery firm Dunzo is laying off 30% of its workforce, affecting nearly 300 people, according to sources. The company has also reportedly raised $75 million through convertible notes from existing investors Google and Reliance.

What is a convertible note?

A convertible note is a form of short-term debt that converts into equity, typically during a future financing round, or an IPO. It requires no valuation to be ascribed to a company immediately, and has been used widely by Indian startups over the last few years.

Why it matters: Dunzo is one of India’s leading hyperlocal delivery platforms that offers a range of services from grocery shopping to courier delivery. The company operates in 10 cities across the country and claims to have over 2 million monthly active users. The layoffs come amid a competitive and challenging market for online delivery startups in India. Read More.

3. Google vs CCI: NCLAT’s Rs 1,338 crore fine⚖️

What happened: Google announced on Wednesday that it is evaluating its legal options following the National Company Law Appellate Tribunal’s (NCLAT) partial upholding of the Competition Commission of India’s (CCI) Android dominance ruling against the tech giant.

The Big Picture: The NCLAT’s order is the latest development in a long-running legal battle between Google and CCI, which began in 2014 when two complaints were filed against Google for abusing its dominant position in the Android ecosystem.

  • The CCI had found Google guilty of imposing unfair conditions on original equipment manufacturers (OEMs) and app developers, and had imposed a penalty of Rs 1,338 crore on Google in October 2022.

  • Google had also approached the Supreme Court, which had refused to intervene and directed the NCLAT to hear the matter. Read More.

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Catch Up Quick 🚀

Arunachal Pradesh is photo of the weekin the Atlantic

  • UFC Merges with WWE for $9.3 Billion: UFC has agreed to acquire WWE for $9.3 billion and create a new publicly traded company that will run both UFC and WWE. The deal will give Endeavor a 51% stake in the new company, while WWE shareholders will retain 49%.

  • Meta Blue Tick To Cost INR 1,450 For Mobile In India: Meta Verified will cost Rs 1,099/month if subscribed from a web browser. The program is in the beta phase, and interested users have to currently join the waiting list to get their accounts verified.

  • Swiggy Valuation Dropped: Invesco, one of the top investors in food tech giant Swiggy, has slashed the company's valuation from $10.7 billion to $8 billion amid challenging market conditions.

  • ZestMoney Layoffs: The company plans to layoffs after digital payments giant PhonePe canceled its plans to acquire the company over due diligence concerns, according to Moneycontrol.

  • India collects Rs 157.9 crore on crypto taxes: According to Finance Ministry, India has collected Rs 157.9 crore direct tax on payments made upon virtual digital assets (VDA) transfer until March 20, 2023.

Stocks in Newsđź’¸

  • Godrej Consumer: planning to invest Rs 100 cr in a start-up fund.

  • Century Textiles: Birla Estates, a subsidiary of the company, announced its entry into the Pune residential real estate market.

  • IIFL Finance: raised $100 million (around Rs 819 cr) in long-term funding from Export Development Canada and Deutsche Bank.

  • M&M Financial Services: RBI has imposed a penalty of Rs 6.77 cr on the company for norms related to disclosure of interest rates to borrowers at the time of sanction of loans.

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