In less than a year, OYO's China business is half as big as India's

In less than a year of entering the Chinese market, Gurugram-headquartered budget hotel room brand OYO Rooms has built a base of over 50,000 rooms. This is almost half of the company’s entire inventory in India where it has been operational since 2013.

In this July alone, the SoftBank-backed company added over 25,000 rooms to its inventory in China. Even in the three months that ended in June, Oyo Rooms added a total of 47,000 rooms in China as compared to 34,000 in India, signifying a higher growth rate in the foreign market.

In his presentation to the investors on Monday, Masayoshi Son, Chief Executive of the Japanese investment giant said that OYO had added 81,000 rooms to its platform in the April-June period, which is about eight times the number of rooms the world’s largest hotel chain Marriott had added during the same period.

He also said that OYO in India with 101,000 rooms is now seven times larger than one of India’s largest hotel chains, Taj Hotels Resorts and Palaces. By the end of the year, Son said, the Ritesh Agarwal-led firm will grow to have between 150,000 and 200,000 rooms, making it over ten times larger than the Tata-owned hotel chain in the country.

Paytm receives final tranche from $445 mn funding from SoftBank, Alibaba

Paytm Mall has received the final tranche of its $445 million (about Rs 3,000 crore) funding from SoftBank and Alibaba, a move that will give the online shopping venture of Paytm more financial muscle to take on giants like Flipkart and Amazon. In April, Paytm Mall had closed $445 million funding round from SoftBank Investment Holdings and Alibaba.com Singapore E-commerce. According to the latest documents filed with the Registrar of Companies (RoC), Paytm E-commerce -- which runs Paytm Mall -- has issued a total of 237,705 shares to SB Investment Holdings (UK) and Alibaba.com Singapore E-commerce as part of the fourth tranche. The issuance of 211,293 shares to SB Investment Holdings and 26,412 shares to the Alibaba entity was approved by the Board of Paytm E-commerce on June 6, 2018, the documents added.

Alibaba-backed Paytm tops $29-bn mark in gross transaction run-rate

Digital payments major Paytm on Friday said it has crossed an annual gross transaction run-rate of $29 billion, driven by growth across mobile payments and bank transfers through its platform.

A Paytm spokesperson said the company is witnessing strong growth in both mobile payments usage as well as transactions through bank transfers, which has been recently introduced.

"We are already seeing a GTV (gross transaction value) run rate of $29 billion. We are currently logging about one billion transactions per quarter and we aim to double it this year," the spokesperson added.

GTV refers to the total transaction value through the platform in a given time period.

GM's self-driving car unit to get SoftBank push with $2.25-bn investment

Japan's SoftBank Group Corp will invest $2.25 billion in General Motors Co's autonomous vehicle unit Cruise, the companies said on Thursday, a deal that validates the venerable Detroit automaker's leadership in self-driving cars and sent GM shares up nearly 13 per cent.

The move by SoftBank's $100-billion Vision Fund is one of the highest profile, largest investments to date in self-driving technology, an industry that could revolutionize transportation but faces engineering, safety and regulatory challenges, as well as scepticism among potential users.

SoftBank has made a string of large bets in so-called mobility companies, such as ride services provider Uber Technologies Inc , expecting that transportation services for people and goods will explode. The Cruise deal extends that wager, betting that computers will displace drivers and cut operating costs.

GM Chief Executive Officer Mary Barra said GM might explore "other opportunities" with some of the companies that SoftBank has funded, including Uber, China's Didi, India's Ola and Southeast Asia's Grab.

Walmart's Flipkart deal gets rude welcome from market, shares plunge 4%

Walmart Inc.’s deal to buy a controlling stake in India’s biggest online seller is meeting skepticism on Wall Street.

The world’s largest retailer will acquire a 77 percent holding in Flipkart Group for $16 billion, the companies said earlier Wednesday. Flipkart co-founder Binny Bansal and other shareholders will hold the remainder. The tie-up values the Indian e-commerce giant at about $20.8 billion and marks a blow against rival Amazon.com Inc. as the battle for e-commerce supremacy goes global.

The deal -- Walmart’s biggest ever -- gives it greater access to India’s e-commerce market, which Morgan Stanley has estimated will grow to $200 billion in about a decade. But it will take some time for the business to turn profitable, and analysts on a Wednesday morning call about the deal adopted a cautious tone. S&P Global Ratings changed its outlook on Walmart to negative.

“As Flipkart is expected to generate meaningful losses for at least the next few years, this is clearly an investment for the future,” Moody’s analyst Charlie O’Shea wrote in a note.

Walmart shares dropped as much as 4.2 percent to $82.12 as of 10:28 a.m. in New York -- the lowest intraday price since October. The company’s stock was already down 13 percent this year through Tuesday’s close.

Uber's autorickshaw service back in India 2 years after it was shut down

Cab-hailing major Uber is re-launching its 'AUTO' service in India, almost two years after shutting down the offering in March 2016, starting with Bengaluru and Pune.

The US-based company, which is locked in an intense battle with homegrown player Ola, will allow customers to book autorickshaw rides through 'AUTO' option on its platform later this month in these two cities.

Ola, which also allows booking autorickshaw rides under 'Auto' service, had launched the offering in Bengaluru and Chennai in 2014. Ola Auto is currently operational across 73 cities with over 120,000 lakh autos associated with the company.

An Uber spokesperson said the company had "paused" the service "to see how that side of India's transport ecosystem evolves".

"Auto rickshaws are ubiquitous to mobility options in many Indian cities. To expand transportation choices for our riders, we are excited to launch AUTO in Bengaluru and Pune," the spokesperson told PTI.

In its previous attempt, Uber's AUTO offering was available in New Delhi, Coimbatore, Indore and Bhubaneshwar.

"We are re-launching AUTO starting with two cities. Gradual geographical expansion like this is common to how we operate in cities around the world and it is something that we are looking at very closely," the spokesperson said.
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Benchmark, Menlo Ventures ready to sell some Uber stock: SoftBank

SoftBank Group-led team of investors has confirmed that they have found likely sellers for the tender offer for app-based cab aggregator, Uber's shares.

According to TechCrunch.com, Uber shares from existing shareholders will be sold at more than 30 per cent discount as compared to the last private round.

"SoftBank and Dragoneer have received indications from Benchmark, Menlo Ventures, and other early investors of their intent to sell shares in the tender offer. Any sales by these shareholders will be pursuant to the same terms and conditions as will be offered to all other eligible holders that participate in the tender offer," said a statement from SoftBank Group.

Moreover, Sequoia Capital, Tencent and TPG are also looking to invest in Uber.

Sequoia Capital had previously invested in Uber through its 'scout' programme, which involved covertly finding deal opportunities through its network.

Alfred Lin, a partner in Sequoia, also made an angel investment at the seed stage.

Today, Uber employees with at least 10,000 of vested shares will be eligible to sell.

Moreover, other Uber shareholders, which include venture capitalists, angel investors and former employees could also be eligible.
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News digest: Bharat-22 ETF, GST rate cut, Mallya's trial, and more

SoftBank set to take driver's seat in Ola

Japanese investment giant SoftBank is close to acquiring an additional 10-12 per cent stake in ANI Technologies, the parent company of Ola, to increase its holding in the ride-hailing firm to around 50 per cent ahead of its planned investment in global rival Uber. SoftBank will pay between $400 million and $500 million to Tiger Global, the second-largest backer of Ola, to give the US firm a partial exit, people familiar with the development told Business Standard on condition of anonymity. Read more

Reliance Industries, Adani, REC issue $1.7-billion bonds

Reliance Industries, Adani Abbot Point Terminal, and Rural Electrification Corporation (REC) on Monday launched bond issues overseas worth $1.7 billion in order to reduce their finance costs. The bond issues follow last week’s upgrade by Moody’s of India’s sovereign rating from the lowest investment grade Baa3 to a notch higher at Baa2. The agency has also upgraded the ratings of several public sector companies such as State Bank of India, Indian Oil Corporation, Oil and Natural Gas Corporation, and NTPC as well as those of private sector lender HDFC Bank. Read more

Vijay Mallya's extradition trial confirmed from December 4

Vijay Mallya, 61, the beleaguered Indian businessman facing an extradition demand from the Indian government in a British court, will fight the attempt to drag him back to India not just on the issue of poor prison conditions in India, but on the alleged demerits of New Delhi’s argument. Read more
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Uber rival Grab to raise $2 bn from SoftBank and China's Didi, reports WSJ

Grab, Uber Technologies Inc's biggest rival in Southeast Asia, is raising as much as $2 billion in funding from Japan's SoftBank Group and China's top ride-hailing firm Didi Chuxing, the Wall Street Journal reported on Friday.

The deal, which could close in the next few weeks, would value Singapore-based Grab at more than $5 billion, the Journal reported, citing people familiar with the matter.

The reported funding comes amid efforts by Grab to transform into a consumer technology firm that also offers loans, electronic money transfer and money-market funds.

Grab declined to comment, while SoftBank and Didi did not immediately respond to Reuters requests for comment.

Grab, which operates its ride-hailing platform in 55 cities across seven countries, raised $750 million in a funding round in September, with sources then valuing the five-year-old startup at over $3 billion.

The reported deal also comes at a time when San Francisco-based Uber, the world's largest ride-hailing service, faces setbacks at home ranging from accusations of a sexist work culture and driver protests.

Uber's challenges have culminated in the departure of co-founder and CEO Travis Kalanick, who stepped down under investor pressure last month.
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Former Google exec Nikesh Arora in the running to take Travis Kalanick's Uber job

Wanted: a seasoned executive to take the top position at a troubled technology start-up. Must be willing to fix a broken culture, deal with an aggressive predecessor, battle a risky lawsuit and prepare the company for an initial public offering. Self-starters preferred.

This is essentially the pitch that Uber is making to potential chief executive candidates after Travis Kalanick, the ride-hailing company’s co-founder, was ousted from the top spot last month. By some accounts, the job appears to be a thankless one at a company whose reputation is in the toilet. So who would want it?

Quite a few people, as it turns out.

Despite a series of scandals that have rocked Uber to its core this year, competition for the chief executive position is robust, according to people familiar with the search who asked to remain anonymous because the process is confidential. The company has received a flood of interest since Mr. Kalanick vacated his seat in June, and Uber’s board has interviewed multiple candidates.

For those applicants, the calculus is easy. Despite Uber’s problems, executives see an opportunity to shepherd the company — which operates in more than 80 countries and pulls in billions of dollars each quarter — through the most trying time in its eight-year history.

“This is a fantastic opportunity for someone who’s wired for problem solving and wants to make their mark by turning around the image of the company,” said Jason Hanold, managing partner at Hanold Associates, a boutique executive search firm. “Yes, they’re inheriting Uber’s entire toxic culture. But they’re also getting thousands of employees who are hungry to change it.”
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Softbank-Saudi tech fund becomes world's biggest with $93 bn of capital

The world's largest private equity fund, backed by Japan's Softbank Group and Saudi Arabia's main sovereign wealth fund, said on Saturday it had raised over $93 billion to invest in technology sectors such as artificial intelligence and robotics.

"The next stage of the Information Revolution is under way, and building the businesses that will make this possible will require unprecedented large-scale, long-term investment," the Softbank Vision Fund said in a statement.

In addition to Softbank and Saudi Arabia's Public Investment Fund, the new fund's investors include Abu Dhabi's Mubadala Investment, which has committed $15 billion, and Apple Inc.
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Once sold to Flipkart, Snapdeal staff could be richer by Rs 193 cr

Sale of a company often leaves employees high and dry, but not in the case of Snapdeal that may offer a Rs 193 crore bonanza to its staff if the homegrown e-commerce firm is taken over by larger rival Flipkart.

According to sources, if the deal goes through, the founders will give half of their payout ($30 million) for the proposed scheme which would cover all current employees of Snapdeal.

Snapdeal has about 1,500-2,000 staffers.

"The founders have asked the Board to carve out $30 million (about Rs 193 crore) from their settlement for payouts to the Snapdeal team. They want to ensure that the team does not get sidelined in any manner," they added.

Some former senior executives of Snapdeal, who have left the firm in the past 12 months, could also benefit from the process.

E-mails sent to Snapdeal did not elicit any response.

The intent is also to compensate for the ESOPs that were issued to senior employees.

The value of their shares and options have eroded and would be worthless once the deal is signed, one of them said.

Interestingly, the deal-linked payment would also be extended to employees who do not own ESOPs to reward those staying on with Snapdeal till the proposed transaction with Flipkart is complete.

If the deal goes through, Snapdeal founders will get $60 million (cumulative), of which half will be given to employees.

Japanese conglomerate and Snapdeal's largest investor SoftBank has initiated the process to sell the beleaguered online marketplace to bigger rival Flipkart.

It has managed to get Board members, which also includes the founders (Kunal Bahl and Rohit Bansal) and early investors Kalaari and Nexus Venture Partners, to agree to the potential deal.
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Snapdeal sale to Flipkart: Softbank inches closer to bring Nexus on board

Japan's SoftBank is believed to have moved a step closer to securing the consent of co- investor Nexus Venture Partners (NVP) for selling Snapdeal to India's largest e-commerce firm Flipkart.

A meeting was held on Tuesday and the impasse over the sale could end soon, people familiar with the matter said.

SoftBank - the largest shareholder in Snapdeal - has been making all efforts to get NVP on board for the sale of Snapdeal, and a breakthrough could come as early as this week.

They added that while attempts have been going on for the past few weeks, NVP finally seems to be warming up to the idea.

A board meeting is expected to take place tomorrow to deliberate upon the issue.

E-mails sent to Snapdeal, SoftBank and NVP did not elicit any response.

An 'yes' from NVP is crucial for the deal to go through.

The seven-member board of Jasper Infotech (which operates Snapdeal) includes representation from investors SoftBank, Kalaari Capital and NVP, as well as co-founders Kunal Bahl and Rohit Bansal.

NVP and Kalaari were early stage investors in Snapdeal.

The deal between Snapdeal and Flipkart, if completed, would mark the biggest acquisition in the Indian e-commerce space and change the landscape of the sector that is witnessing intense competition among players.

Sources had highlighted that valuation has been one of the hurdles in the deal, as Kalaari Capital and Nexus were not in agreement with the valuation given by SoftBank.

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