Amazon to deliver third party ecomm orders; ETSA winners will receive prizes on November 19


At the end of April, we reported that Flipkart was opening up its Ekart logistics branch to other e-commerce companies. Now, Amazon India is following suit with a new vertical called Amazon Shipping. A pilot project is underway and the company should officially announce it in a few months.

Also in this letter:
â–  ETSA winners will receive their prizes in Bangalore on November 19
â–  Paytm net loss widens to Rs 571 crore in Q2; turnover up 76%
â–  Unacademy cuts another 350 jobs in second round of layoffs

Amazon India set to deliver third-party e-commerce orders

E-commerce major Amazon set to open its logistics infrastructure in India to orders from other online businessesseveral informed sources told us on the subject.

This will make the major US e-commerce company a direct rival to Flipkart’s new logistics company Delhivery, Xpressbees, Ecom Express and Ekart, which recently started integrating external merchants to fulfill non-Flipkart orders.

We reported in April that Flipkart’s Ekart was on board platforms like Nykaa, FirstCry and others to ensure their deliveries.

Details: Amazon tapped direct-to-consumer (D2C) brands, logistics aggregators and other companies that take direct-to-consumer orders to launch the new vertical, called Amazon Shipping.

A pilot project is underway and Amazon should make an official announcement in the coming months.

“…Now you can ship orders you have received through your own website or via social media or any other means,” read an email from a senior Amazon executive.

For now, it looks like Amazon is focusing on individual brands and some logistics aggregators. He has already launched the service in the UK and quietly tested it in the US.

One of the customers using the beta service said it was billed by Amazon Seller Services, which runs the Indian market unit.

Amazon Transportation Services (ATS) is one of the leading Amazon Indian Entities, which houses the logistics activity. The US e-commerce giant’s local shipping services arm reported revenue of Rs 4,581 crore in FY22, an increase of 12.6% from the previous year. Its losses increased by 38% to Rs 95 crore in FY22.

ETSA 2022 winners will receive their prizes in Bangalore on November 19

ETSA Winners 2022

The eighth edition of The Economic Times Startup Awards (ETSA) will be held on Saturday, November 19in Bangalore to honor this year’s winners in nine categories in what will be a star-studded gathering of the who’s who of India’s new economy.

The most coveted recognition for the nation’s entrepreneurial talent, ETSA will welcome top policymakers, unicorn founders and tech investors to an invitational gathering of 350 guests.

Winners: In a virtual meeting that lasted more than two hours on October 28, a high-level judging panel led by Infosys CEO and MD Salil Parekh selected the winners in nine categories from a shortlist of 45 nominees.

  • Razorpay, the Bengaluru-based online payment solutions company, won the honors as Startup of the yearwhile Falguni Nayar, founder and CEO of Nykaa, won the new CEO of the Year award.
  • Shekhar Kirani, Partner, Accel, won the Midas Touch Award for Best Investor.
  • The price for the Bootstrap Champ went to Noisea smart clothing brand with huge revenue and profit while the price for Top Innovator went to Eyestema cell therapy company based in Bengaluru.
  • Cloud telephony platform Exotel was chosen as the winner of the Comeback Kid category while Solinas Integrity, a high-tech company founded at IIT Madras that develops robotic solutions for the pipeline and sewerage industry was voted best on campus.
  • Smita Deorah, co-CEO, Lead, an edtech company, won the Woman Ahead category and plastic recycling start-ups Banyan Nation was the social enterprise winner.

Paytm net loss widens to Rs 571 crore in Q2; turnover up 76%

Vijay Shekhar Sharma

Digital payments company Paytm announced a 76% increase in revenue in the second quarterdriven by strong growth in loan growth.

Paytm’s parent company, One 97 Communications, said revenue rose to 1,914 crore rupees ($233.81 million) in the July-September quarter from 1,086 crore rupees a year earlier.

The consolidated net loss widened to Rs 571 crore from a loss of Rs 473 crore a year earlier, the company said in an exchange filing.

PB Fintech’s losses are reduced: Meanwhile, PB Fintech, the parent entity of insurance platform Policybazaar and credit marketplace Paisabazaar, reported consolidated losses of Rs 186.6 crore in the July-September quarternarrowing after a loss of Rs 204.3 crore in the previous quarter.

The group’s total revenue rose to Rs 633.8 crore during the period from Rs 552.6 crore in the quarter ended June 30. Operating revenue reached Rs 573 crore.

Losses on a half-year basis, however, widened to Rs 391 crore, more than 24% higher than the loss of Rs 315.2 crore in the first half of the previous fiscal year.

ET E-Commerce Index

We have launched three indices – ET Ecommerce, ET Ecommerce Profitable and ET Ecommerce Non-Profitable – to track the performance of recently listed technology companies. Here’s how they’ve fared so far.

ET eCommerce Tracking

Unacademy cuts 350 more jobs in second round of layoffs


Edtech startup Unacademy has embarked on another round of layoffs, cut up to 350 jobs in an effort to cut costs and realize profits, according to an internal memo sent by Gaurav Munjal, co-founder and CEO of Unacademy Group.

Munjal said the restructuring exercise would affect around 10% of the group’s employees.

Cost reduction: On November 4, Munjal tweeted that Unacademy had reduced its monthly cash burn from 20 to 7 million dollars.

The company had previously laid off around 1,000 contract and full-time employees, as we reported in April. In July, Munjal tell the employees that Unacademy would not lay off any other workers or try to cut other expenses.

Laid-off Twitter employees up for grabs: Meanwhile, fired Twitter employees in India are up for grabs, according to half a dozen search firms and executive search firms. Executives at these companies told us that despite a slowdown in hiring, Twitter talent won’t have trouble finding jobs.

Consortium restructures terms of Oyo founder’s 2019 loan

Oyo Loan

A consortium led by Mizuho-Nomura has restructured the terms of the financing agreement worth approximately $2.2 billion whereby Oyo founder Ritesh Agarwal bought out a 23% stake in his company in 2019, people familiar with the matter have said.

Catch up fast: In May 2019, Agarwal bought a 23% stake in his company for $2.2 billion from early backers of Oyo Lightspeed and Sequoia through RA Hospitality, a holding company set up for the purpose. This made Agarwal the second largest shareholder in Oyo holding 33%, with 46% held by SoftBank, valuing the company at $9.6 billion.

Details: The revised terms include a reduced quasi-equity component of $950 million, from $1.8 billion previously, due to an $850 million write-off, the people quoted above said.

This $950 million component is tied to the valuation of the business and has a repayment term of 10 years. Under the new terms, the loan component of $383 million is now payable by 2027 instead of 2025.

The markdown signals a more restrained approach by financial groups to investing in startups, experts said.


Reliance, HCL may enter semiconductor race; explore participation in ISMC

semiconductor manufacturing

Reliance Industries and HCL Major Software are independent evaluate deals to buy a 30% stake each in semiconductor wafer candidate ISMC Analogseveral people familiar with the developments told us, signaling heightened interest in India’s ambitious move to seed a semiconductor manufacturing ecosystem in the country.

Details: The oil-telecom conglomerate and the software group founded by Shiv Nadar are likely to invest through subsidiaries, said the sources who estimate that “the total investment of the two parties could exceed Rs 4,000 crore (500- $600 million)”.

ISMC Analog, a consortium of Mumbai-based Next Orbit Ventures and Israeli tech firm Tower Semiconductor, is one of three applicants vying for grants under the Center’s Rs 76,000 crore SemiconIndia scheme. He chose an electronics cluster near Mysuru in Karnataka, to build his $3 billion fab.

Term sheets for the two proposed deals were signed recently, according to the people quoted above. We have not been able to independently verify when the parties signed the term sheets.

Other Top Stories by our journalists

Start-up funds

Chiratae launches a growth fund: Local technology-focused venture capital firm Chiratae Ventures launched its first growth fund and scored its first close at Rs 759 crore ($92.6 million)with an option to raise another Rs 750 crore. It aims to close the fund permanently by December.

Zomato Pay is going live in select cities, replacing Pro: Foodtech platform Zomato has rolled out Zomato Pay – the third iteration of its restoration program – in several cities, including Delhi, Mumbai, Bengaluru, Ahmedabad and Kolkata. In August, the company announced that it was recalibrating its loyalty programs and that it had closed new registrations and renewals for its flagship Zomato Pro program.

Amazon India launches a mobile-only Prime Video package: Amazon is launching a single-user, mobile-only version of its Prime Video streaming service in India for Rs 599 per year. The company launched the mobile-only plan with telecom service provider Airtel last year and is now extending the service to all users. Customers can subscribe to the service through the Android app or on Prime Video’s website.

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