PhonePe is re-evaluating its ecommerce strategies. ETtech’s Top 5 today includes all of this and much more.
In this letter, we also include:
# Zilingo ex-CEO Ankiti Bose files FIR against cofounders
# Companies invested Rs. 13,000 crores in the EV Push
# US Senate passes TikTok divestment-or-ban bill
PhonePe Pincode is no longer available for non-food products in ecommerce biz rejig
Rahul Chari (left) and Sameer Ngam, cofounders of PhonePe
PhonePe Pincode is Exiting categories such as fashion, groceries and electronicsOpen Network for Digital Commerce, (ONDC), except for the delivery of food.
Go deeper: Pincode, according to an internal memo we reviewed, will be available only for ONDC food delivery domains and non-reserved ticketing starting April 23, 2024.
Why the change? PhonePe has refocused its efforts as ONDC’s end-user experience is not up to par with that of other consumer delivery applications.
An ONDC official said that the lack of standardisation in general and modern trade stores has caused problems with deliveries of groceries.
Flashback: It was reported today earlier that PhonePe invested Rs 90 crores in Pincode In the past year, there will be two installments: one in July of 2023 and one earlier in this month.
In the period between January 2023 to March 2024, ONDC completed 50 million orders. Nearly two thirds of these were transactions involving mobility, through companies such as NammaYatri. Of the nearly 17.5 million orders that were not mobility-related in March 2024 (including grocery), food and beverage accounted for almost 10%.
Good Glamm files arbitration case against investor in portfolio company IAN
Content-to-commerce unicorn Good Glamm Group has filed arbitration against Indian Angel Network The legal dispute between the portfolio companies, the investors and the company is intensifying.
Case details: After IAN, a former investor of the women’s hygiene product Sirona, which Good Glamm bought, accused Good Glamm and its Board of attempting a fraud on investors, the company filed a complaint with the Indian Council of Arbitration.
Good Glamm claimed that IAN had breached contractual terms and made defamatory remarks in response to a notice of default sent by an investor regarding payment dues relating to the Sirona transaction.
Portfolio firms and Tiff: Good Glamm bought The Moms Co. in 2021, for 100 crore rupees, from the founders of Sirona. Around Rs 500 crore was spent in the same periodGood Glamm has received default notices from claiming it did not pay the due final amount.
Good Glamm acquired an undisclosed partial stake in Sirona by 2021. It was planned to purchase the remaining shares by December 2023 under certain conditions. However, this hasn’t yet happened. The Moms Co was acquired by the company for 75%, and an agreement has been made to buy another 15% of it in 2023. The remaining shares will be purchased this year.
Mounting troubles: Just over a week after the legal dispute at Good Glamm occurred over dues, it has now escalated. Closed a round of $30 million from existing investors, at a flat value. A set of other measures has been implemented by the company. To reduce its spending, the company has laid off 150 employees.
Ankiti BOSE, founder of Zilingo, files a FIR for sexual harassment against other co-founders
Ankiti BOSE, Former CEO of B2B Fashion Startup Zilingo Has filed a sexual harassment case The company has filed a lawsuit against its cofounder Dhruv Kaplan and former Chief Operating Officer Aadi Vaidya.
The latest news on driving: The FIR states that in March 2021 the two men allegedly abused Bose by threatening her and asking for sexual favors. The FIR also claims that Bose was warned against discussing the company’s declining financial situation. On Tuesday, a case against two men was filed under Indian Penal Code sections 354(A) and (354(D), which pertain to stalking and sexual harassment, respectively.
Defense Statements Kapoor called Bose’s accusations against him “completely unfounded, false and malicious”. A thorough investigation had already proved her misconduct, and she was fired from the company. He said that this appears to be a retaliatory act. Vaidya said that the accusations against him are “completely false and baseless”.
Allegations of eviction and slander After alleged discrepancies in Zilingo’s accounting were discovered, The company has suspended Bose from his position as CEO. She was arrested in late June of that same year. Resignation from directorships Zilingo Pte Ltd and its subsidiary companies.
Financial investigation: Due diligence was conducted for a funding round in which the company was seeking to raise between $150 and $200 million, at an estimated valuation of $1 billion. By May 2022 Zilingo commissions Deloitte Bose’s harassment allegations should be investigated.
The PLI Scheme: Automobile firms spend Rs 13000 crore on EVs and parts
India’s auto and parts manufacturers In the last year, a total of Rs 13,000 crore was invested Production Linked Incentive Scheme (PLI).
Please tell me more. The government is expecting to reach its goal of attracting investment worth Rs 42,500 crores in 2-3 years. This will be well before the original timeline of 5 years.
Senior government officials confirmed that eight automakers, including Mahindra & Mahindra and Tata Motors as well as Bajaj Auto and Ola Electric and Toyota Kirloskar Auto Parts and TVS Motor Company have received approval and invested under the PLI program. They also said the investments expected from this sector in the next five years will be higher than the original estimate.
Quick: The Government had The PLI approved a Rs 25938 crore outlay Supporting the automotive industry in the region to transition to environmentally friendly technologies. This scheme offers financial incentives up to 18% for the domestic production of advanced automotive technologies.
Elon Musk’s Tesla may not be heading to India any time soon
US Senate passes TikTok ban or divestment bill: All you need to Know
The US Senate On Tuesday, the legislature passed a number of lawsByteDance – the Chinese owners of TikTok – has nine months to sell the US assets or else face a ban.
Please tell me more. Bill was approved by US House of Representatives Saturday, and US president Joe Biden said that he would sign the bill into law Wednesday.
TikTok tick-tock: Biden’s signature on the bill starts a clock that counts down 270 days until ByteDance has to sell TikTok. ByteDance may be close to selling TikTok near the end nine-month period if the President approves an extra 90 days.
Legal battle: TikTok will be available after the law is passed. It is likely that a lawsuit will be filed to end it. TikTok’s attorneys are expected to also ask for a preliminarily injunction. The company would like an injunction to prevent the enforcement of law so that it can continue with its case against the law’s constitutionality.
US-China rift: Washington and Beijing are engaged in an ongoing war of the Internet and Technology. The TikTok battle, which has lasted four years and is used by more than 170 millions people in America, is only one front. Apple announced last week that Beijing ordered the removal of Meta Platforms WhatsApp and Threads in China from their App Store due to Chinese national security fears.
Megha Mihsra in Mumbai and Ajay Ragh in Mumbai curated today’s ETtech Top 5 Newsletter.