Connect with us
SS

Latest News

Alibaba and Softbank to set up a battle with Amazon via Flipkart

Published

on

alibaba, softbank, alibaba and softbank to set up a battle with amazon, E-commerce wars, e commerece latest news, amazon vs flipkart, flipkart to battlw with amazon, startup stories, startup stories india,


A worthy deal between Flipkart and Snapdeal has set uncontrolled speculation over the past few weeks. Another deal like SoftBank to be a minority stakeholder in Flipkart has some fruitful conclusions.

Before the above deals come to fruition, here is something which is recent:

The deal between Flipkart and Snapdeal is not finalized yet, the discussions are going on. Flipkart’s announcement on Monday about their $1.4 billion funding was kept secret and is very critical to understand. The acquisition of eBay and Snapdeal are different.

The Tencent and Microsoft investment into Flipkart was done some months back, but Flipkart is waiting for the Snapdeal deal to get it soon. Because of that delay in Snapdeal’s deal, they announced the $1.4 billion fund raise.

SoftBank is very interested in investing in Flipkart and wants to buy Snapdeal. Flipkart is not interested in this arrangement, but is looking for investments from SoftBank. Kalaari, Nexus and the founders of Snapdeal are on the board other than SoftBank.

To sign off on the deal, SoftBank offered them $10 million but they wanted $100 million each. Flipkart is not at all interested to be a part of Snapdeal. The total Snapdeal valuation is nearly $900 million.
Bringing this discussion to an end, let us have a look at the outcomes of the Flipkart and Snapdeal alliance.

What is in it for SoftBank?

It will become a minority investor in Flipkart. 33% stake in Flipkart is already with Tiger Global. The value of their shares are up to $1.4 million and will sell to Softbank for $500 million. So Tiger Global’s stake will come down to 20%. Softbank would have spent nearly $2.5 million for a 20 percent stake in Flipkart.

The only competitor with Amazon locally is Flipkart and getting stakes in it will surely make SoftBank more successful. Other than investing in Snapdeal, SoftBank also invested in Ola and Housing. To make the future good in India, SoftBank is willing to invest in Flipkart which may give an affirmative result.

What is in it for Flipkart?

It is crystal clear that Flipkart is not interested in getting Snapdeal, but looking for an investment from SoftBank. They are willing to give Snapdeal as a gift of a deal. The Indian e-commerce giant wants the investment to compete against Amazon. If they get Snapdeal, one of the competitors will be removed in the market.

What is in it for Indian Startups?

It is good that a company is getting acquired rather that collapsing. The employees who leave the organization may worry. The negative thing for the startup ecosystem is that now raising funds will be harder.

From Alibaba’s side:

If SoftBank invests in Flipkart, Alibaba automatically comes on to the field. As everyone knows SoftBank holds about 30% stake in Alibaba. Masayoshi Son, founder of SoftBank also invested in Paytm and Snapdeal.
So, If Alibaba invests in Flipkart directly or indirectly it will be a tug of war between Alibaba, SoftBank and Flipkart on the one side and Amazon on the other side, in the Indian market.

Latest News

Calmosis is revolutionizing healthcare in India with legal cannabis use! 

Published

on

An Indian Startup Pioneers the legal use of cannabis in Indian Healthcare

Forget everything you thought you knew about healthcare in India. A groundbreaking startup called Calmosis is making waves in Bengaluru with its unique approach to holistic wellness, led by a dynamic duo: Karan and Praveen.

 

Calmosis product.

 

Karan Naidu, a BMSCE graduate who calls Bangalore home, has poured his passion and resources into building Calmosis. By his side is Praveen Singh Rajput, a serial entrepreneur and author who helms the gifting marketplace startup FRINZA. Praveen brings his business acumen honed at Symbiosis Institute of Business Management, Bangalore, to the table.

Together, they’ve drawn inspiration from a personal quest – helping Karan’s mother overcome sleep issues. This led to the birth of Calmosis, offering meticulously crafted elixirs that blend the wisdom of Ayurveda with natural cannabis extracts.Vijaya, as cannabis extracts are known in ancient Indian medicine, has been revered for centuries for its medicinal properties. Calmosis harnesses this potential to promote restful sleep, alleviate stress and anxiety, and even ease migraines. 

Unlike traditional medications that often come with unwanted side effects, Calmosis’ Peace Mantra and Sleep Mantra elixirs provide a safe and natural alternative. But Calmosis’ mission extends beyond physical well-being. Their commitment to quality and transparency shines through rigorous product testing and personalized consultations with expert Ayurvedic doctors, ensuring each customer receives the perfect blend for their individual needs.

 

 

The company’s impact goes far beyond personal health. Calmosis champions social responsibility and sustainability by ethically sourcing ingredients and embracing eco-friendly practices, creating a positive ripple effect on local communities and the environment.

Embarking on a journey towards a healthier you with Calmosis is as easy as a few clicks. Visit their website, place an order, and have their transformative products delivered straight to your door. In a world obsessed with constant hustle,Calmosis offers a much-needed oasis of calm. Combining the wisdom of ancient practices with modern innovation,they’re helping individuals rediscover balance and tranquility in today’s fast-paced world. So, ditch the chemical concoctions and embrace the power of nature’s healing touch with Calmosis. They’re rewriting the healthcare narrative in India, and you can be part of the revolution.

 

Continue Reading

Latest News

Mercedes Hits the Brakes on EVs: Profit Woes Lead to Focus on Gas-Powered Cars

Published

on

StartupStories - Mercedes

Luxury carmaker Mercedes-Benz is experiencing a shift in gears, prioritizing gasoline-powered vehicles over its previously ambitious electric vehicle (EV) strategy. This comes after disappointing sales figures and shrinking profit margins for their electric offerings.

The Dream Runs out of Charge:

Mercedes, a leader in the luxury car market, had set a goal to be fully electric by 2030. However, sluggish sales of their electric vehicles, particularly the high-end EQS and EQE sedans, have forced a recalibration of their plans. The company’s profit margin dipped to a concerning 9% in the first quarter of 2024, falling below their long-term target range.

Why the Slow Charge?

Several factors are contributing to the lackluster performance of Mercedes’ EVs:

  •  Price Point Pinch: The high price tag of Mercedes’ electric cars, ranging from $70,000 to $120,000, limits their appeal compared to more affordable electric options. 
  •  Competition Heats Up: Other luxury carmakers like Tesla and BMW are offering strong competition, with some even surpassing Mercedes in EV sales growth. 
  •  Infrastructure Concerns: Gaps in charging infrastructure and anxieties about range remain significant deterrents for potential EV buyers.

Back to the Drawing Board:

In response to these challenges, Mercedes CEO Ola Källenius announced a revised strategy. The company will:

  •  Extend Focus on Combustion Engines:  Production of gasoline-powered and hybrid vehicles will continue well into the 2030s, catering to customer demand.
  •  Rethink EV Strategy: Mercedes will analyze consumer preferences and market trends to refine their electric car offerings. This may involve focusing on more affordable models or improving features to enhance range and charging efficiency.

The Road Ahead

The shift by Mercedes highlights the complexities of the automotive industry’s transition to electric vehicles. It underscores the need for car manufacturers to balance ambitious environmental goals with the realities of consumer behavior and market competition.

Is this a Permanent Pause?

While Mercedes is putting the brakes on its all-electric vision, it doesn’t necessarily signal a complete retreat from EVs. The company may leverage this time to strengthen its electric offerings and ensure they are competitive in the rapidly evolving market. Only time will tell if Mercedes can reclaim its position as a leader in the electric vehicle race.

Continue Reading

Artificial Intelligence

Reddit Soars After Strong Earnings and Upbeat Outlook

Published

on

Reddit, the social media platform known for its online communities and meme culture, saw its stock price jump significantly after releasing its first earnings report since going public in March. Investors were impressed by the company’s strong financial performance and optimistic forecasts for the future.

The report highlighted a surge in user engagement, with daily active users increasing by 37% to 82.7 million in the first quarter. This growth was accompanied by an 8% rise in average revenue per user, indicating Reddit’s success in monetizing its platform. 

Perhaps the most significant factor driving the stock price increase was Reddit’s forecast for the second quarter. The company projected revenue to fall between $240 million and $255 million, exceeding analyst expectations. Additionally, Reddit anticipates achieving break-even status or even generating a profit, surpassing predictions of a loss.

This positive outlook can be attributed in part to Reddit’s flourishing advertising business. The company is also capitalizing on a new revenue stream: content licensing deals with artificial intelligence (AI) firms. Reddit’s vast collection of user-generated content provides valuable data for training AI models, attracting companies like Google.

Analysts believe Reddit is still in its early stages of monetization and predict continued growth in the coming quarters, fueled by advancements in ad targeting and measurement tools. This optimism is reflected in the stock price surge, which has climbed roughly 70% since Reddit’s IPO.

Overall, Reddit’s first earnings report paints a bright picture for the company’s future. With a thriving user base, increasing revenue opportunities, and a promising outlook, Reddit appears well-positioned for continued success in the ever-evolving social media landscape.

Continue Reading
Advertisement

Recent Posts

Advertisement