Additionally on this letter:
■ Zilingo’s Ankiti Bose information FIR in opposition to cofounder, ex-COO
■ Companies invested Rs 13,000 crore in EV push
■ US Senate passes TikTok divestment-or-ban invoice
PhonePe’s Pincode exits non-food classes in ecommerce biz rejig
From left: PhonePe cofounders Rahul Chari and Sameer Nigam
PhonePe’s Pincode is exiting a number of classes like vogue, grocery and electronics, apart from meals supply, on the Open Community for Digital Commerce (ONDC).
Go deeper: In accordance with an inside observe reviewed by us, Pincode will solely be subscribed to ONDC domains of meals supply and unreserved journey ticketing from April 23, 2024.
What’s behind the rejig? Individuals within the know stated PhonePe is realigning its focus as the tip shopper expertise on ONDC remains to be not at par with different shopper supply apps.
A senior authorities official informed us that ONDC has been witnessing points with grocery deliveries attributable to lack of standardisation of normal commerce and smaller fashionable commerce kirana shops.
Flashback: We reported earlier at present that PhonePe has ploughed in Rs 90 crore in Pincode within the final one 12 months in two tranches – one in July 2023, and one other earlier this month.
Between January 2023 and March 2024, ONDC fulfilled 50 million orders, of which almost two-thirds had been mobility transactions by way of members corresponding to Namma Yatri. In March 2024, of the virtually 17.5 million non-mobility orders, grocery accounted for 4.5%, whereas meals and drinks made up for almost 10%.
Good Glamm initiates arbitration in opposition to portfolio firm investor IAN
Content material-to-commerce unicorn Good Glamm group has initiated arbitration proceedings in opposition to Indian Angel Community (IAN), because the authorized battle between the corporate, its portfolio corporations and their traders intensifies.
Driving the information: The corporate has initiated proceedings on the Indian Council of Arbitration, after IAN, an investor in girls’s hygiene model Sirona that Good Glamm had purchased, accused the agency and its board of trying to cheat traders.
Good Glamm has alleged a breach of contractual phrases in opposition to IAN and accused it of constructing defamatory feedback, countering a default discover despatched by the investor over cost dues associated to the Sirona deal.
Tiff with portfolio corporations: Founders of Sirona, which Good Glamm acquired in 2021 for Rs 100 crore, and The Mothers Co, which it purchased the identical 12 months for round Rs 500 crore, have despatched default notices to Good Glamm, claiming that it had not paid the ultimate due quantity.
In Sirona, Good Glamm had acquired a partial undisclosed stake in 2021. The remaining shares had been to be bought by December 2023, topic to sure circumstances, however that has not but been accomplished. It acquired 90% of The Mothers Co, with an settlement to buy the remaining this 12 months.
Mounting troubles: The authorized hassle at Good Glamm over cost of dues has come simply over a month after it closed a $30 million spherical from present traders at a flat valuation. The corporate has additionally put in place a set of measures, together with shedding 150 individuals, to rein in its money burn.
Zilingo’s Ankiti Bose information FIR in opposition to cofounder Dhruv Kapoor
Ankiti Bose, former CEO of B2B vogue startup Zilingo, has filed a case of sexual harassment in opposition to the corporate’s cofounder Dhruv Kapoor and its former chief working officer Aadi Vaidya.
Driving the information: In accordance with the FIR, in March 2021, the 2 allegedly threatened Bose and sought sexual favours. It additionally states that she was threatened in opposition to talking concerning the firm’s deteriorating monetary situation.
A case was registered in opposition to the 2 males underneath sections 354 (A) and 354 (D) pertaining to sexual harassment and stalking, respectively, of the Indian Penal Code on Tuesday.
Defence statements: Kapoor termed Bose’s allegations in opposition to him as “utterly baseless, unfaithful and malicious”. “A radical investigation has already confirmed her wrongdoing primarily based on which she was terminated from the corporate. This seems to be nothing however retaliatory behaviour,” he stated. Vaidya additionally stated the allegations in opposition to him had been “utterly baseless and unfaithful”.
Ouster and allegations: In April 2022, after alleged discrepancies had been present in Zilingo’s accounting, the corporate suspended Bose because the CEO. Later in June that 12 months, she resigned from the directorships at holding firm Zilingo Pte Ltd in addition to its subsidiaries.
Monetary investigation: The alleged discrepancies in its accounting had been found on the time of a due diligence course of for a brand new funding spherical, by way of which it was trying to increase $150-200 million at a valuation of $1.2 billion. In Could 2022, Zilingo commissioned Deloitte to look into the harassment expenses levelled by Bose.
PLI scheme: Auto corporations make investments Rs 13,000 crore to make EVs, components
Car and auto components makers in India invested a complete Rs 13,000 crore previously 12 months for manufacturing inexperienced automobiles and associated components underneath the federal government’s Manufacturing Linked Incentive (PLI) scheme.
Inform me extra: The federal government expects to attain its goal of attracting investments value Rs 42,500 crore within the subsequent 2-3 years, effectively forward of the preliminary timeline of 5 years
Eight automakers and components suppliers, together with Mahindra & Mahindra, Tata Motors, Bajaj Auto and Ola Electrical, have invested and bought approval underneath the PLI scheme, senior authorities officers informed us. They added that investments envisaged from the sector over the five-year interval will exceed the preliminary estimate.
Catch up fast: The federal government had authorized an outlay of Rs 25,938 crore underneath the PLI scheme to assist the native automotive business to make the transition to eco-friendly applied sciences. The scheme extends monetary incentives of as much as 18% to spice up home manufacturing of superior automotive expertise merchandise.
Additionally learn | Why Elon Musk could not drive Tesla to India anytime quickly
US Senate passes TikTok divestment-or-ban invoice: all it’s good to know
The US Senate handed laws on Tuesday, giving ByteDance, the Chinese language proprietor of TikTok, about 9 months to divest the US property of the favored brief video app, or face a nationwide ban.
Inform me extra: The invoice was handed by the US Home of Representatives on Saturday and US President Joe Biden has stated he’ll signal it into legislation on Wednesday.
Tick-tock for TikTok: As soon as Biden indicators the invoice, a 270-day clock begins throughout which ByteDance should promote TikTok. If it appears to be like like ByteDance is near divestment close to the tip of the nine-month interval, the president can authorise a further 90 days for any deal to be finalised.
Authorized battle: As soon as the invoice is signed into legislation, TikTok is anticipated to sue to cease it. TikTok’s legal professionals are additionally anticipated to ask the courtroom for a preliminary injunction. It might need an injunction barring enforcement of the legislation to permit its full case difficult the constitutionality of the legislation to maneuver forward.
US-China rift: The four-year battle over TikTok, which is utilized by 170 million individuals in the US, is only one entrance in a warfare over the web and expertise between Washington and Beijing. Final week, Apple stated Beijing had ordered it to take away Meta Platforms’ WhatsApp and Threads from its App Retailer in China over Chinese language nationwide safety considerations.
Right this moment’s ETtech High 5 publication was curated by Megha Mishra and Ajay Rag in Mumbai.
