Connect with us

Uncategorized

Reliance says its $3.4 billion deal with Future Group ‘fully enforceable under Indian law’ despite Amazon winning an arbitration order

Published

on

Reliance Retail, India’s largest retail chain, said on Sunday evening that its proposed deal to acquire Future Group’s assets for $3.4 billion — against which Amazon has filed a legal proceeding — is fully enforceable under the Indian law and it intends to complete the deal “without any delay.”

Mukesh Ambani’s firm issued the statement after Amazon won an emergency order from a Singapore arbitration panel to temporarily halt the proposed sale between the two Indian retail giants.

The American e-commerce group, which indirectly bought a 3.58% stake in Future Group’s Future Retail business last year, reached out to a Singapore arbitration panel earlier this month over the multi-billion dollar proposed deal.

Amazon’s deal with Future Retail had given the American e-commerce giant the first right to refusal on purchase of more stakes in Future Retail, the Indian firm had said at the time. Amazon, Walmart’s Flipkart, and Reliance Industries, the most valuable firm in India, are locked in an intense battle to shape how hundreds of millions of Indians would shop in the future.

In a statement, an Amazon spokesperson said the company was “grateful for the order which grants all the reliefs that were sought. We remain committed to an expeditious conclusion of the arbitration process.” The tribunal hearings are expected to commence in a few weeks.

Future Group, which has yet to comment on Amazon’s objection, entered the deal with Reliance Industries because the company could not continue to navigate through the losses the pandemic has caused to the business, its founder Kishore Biyani said at a virtual conference earlier this month.

At the moment, it is unclear whether today’s injunction is enforceable in India. Indeed, in a statement, a Reliance Industry spokesperson said that Reliance Retail’s transaction for acquisition of assets and business of Future Retail were conducted under “proper legal advice” and the “rights and obligations are fully enforceable under Indian law.”

Reliance Retail “intends to enforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay,” the spokesperson added.

The legal proceeding in Singapore has come as a surprise to many in the industry, as Amazon is said to be preparing to acquire a multi-billion-dollar stake in Reliance Retail, according to earlier reports by ET Now and Bloomberg.

With e-commerce commanding only between 3 -7% of all retail sales in India — and Reliance Retail launching its own e-commerce business to fight Amazon and Flipkart — Amazon’s reported future deal with Reliance Retail is already been seen by many industry analysts as crucial for the American e-commerce firm’s future in India. Amazon, which kickstarted its journey in India seven years ago, has invested more than $6.5 billion in its local business in the country.

Founded in 2006, Reliance Retail serves more than 3.5 million customers each week (as of early this year) through its nearly 12,000 physical stores in more than 6,500 cities and towns in the country.

The retail chain, run by India’s richest man, Mukesh Ambani, has raised about $5.14 billion by selling about an 8.5% stake in its business to Silver Lake, Singapore’s GIC, General Atlantic and others in the past two months.

Ambani’s other venture, Jio Platforms, this year raised over $20 billion from more than a dozen marquee investors, including Google and Facebook.

In the meantime, Walmart’s Flipkart on Thursday acquired a 7.8% stake in Aditya Birla Fashion, a fashion retail conglomerate that operates over 3,000 stores in India, for $203.8 million. Flipkart dominates in the online sales of apparels in India, thanks in part to Myntra, a fashion e-tailer it bought it in 2014. Over the years, the Walmart-owned firm has made several more investments in strengthening its fashion category. In July, it invested $35 million in Arvind Fashions, part of a decades-old Indian retail giant.

Lyron Foster is a Hawaii based African American Musician, Author, Actor, Blogger, Filmmaker, Philanthropist and Multinational Serial Tech Entrepreneur.

Continue Reading
Comments

Uncategorized

Adobe expands customer data platform to include B2B sales

Published

on

The concept of the customer data platform (CDP) is a relatively new one. Up until now, it has focused primarily on pulling data about an individual consumer from a variety of channels into a super record, where in theory you can serve more meaningful content and deliver more customized experiences based on all this detailed knowledge. Adobe announced its intention today to create such a product for business to business (B2B) customers, a key market where this kind of data consolidation had been missing.

Indeed Brian Glover, Adobe’s director of product marketing for Marketo Engage, who has been put in charge of this product, says that these kinds of sales are much more complex and B2B sales and marketing teams are clamoring for a CDP.

“We have spent the last couple of years integrating Marketo Engage across Adobe Experience Cloud, and now what we’re doing is building out the next generation of new and complimentary B2B offerings on the Experience platform, the first of which is the B2B CDP offering,” Glover told me.

He says that they face unique challenges adapting CDP for B2B sales because they typically involve buying groups, meaning you need to customize your messages for different people depending on their role in the process.

An individual consumer usually knows what they want and you can prod them to make a decision and complete the purchase, but a B2B sale is usually longer and more complex involving different levels of procurement. For example, in a technology sale, it may involve the CIO, a group, division or department who will be using the tech, the finance department, legal and others. There may be an RFP and the sales cycle may span months or even years.

Adobe believes this kind of sale should still be able to use the same customized messaging approach you use in an individual sale, perhaps even more so because of the inherent complexity in the process. Yet B2B marketers face the same issues as their B2C counterparts when it comes to having data spread across an organization.

“In B2B that complexity of buying groups and accounts just adds another level to the data management problem because ultimately you need to be able to connect to your customer people data, but you also need to be able to connect the account data too and be able to [bring] the two together,” Glover explained.

By building a more complete picture of each individual in the buying cycle, you can, as Glover puts it, begin to put the bread crumbs together for the entire account. He believes that a CRM isn’t built for this kind of complexity and it requires a specialty tool like a CDP built to support B2B sales and marketing.

Adobe is working with early customers on the product and expects to go into beta before the end of next month with GA some time in the first half of next year.

Continue Reading

Uncategorized

Two-year-old Day One Ventures raises new $52.5M fund to invest in Valley startups

Published

on

Back in 2018 Day One Ventures launched in Silicon Valley specifically designed to be both a VC and an investor that would also lead marketing and communications for its portfolio. Two years on, Day One has invested in numerous startups to do just that and has today filed with the SEC its new $52.5M fund.

The new fund is similar to the first one: investing across industries from pre-seed to seed, with occasional series A investments (from $100K to $5M).

The fund was founded and is headed by Russian émigré Masha Drokova, who, since arriving in the US a few years ago, has been variously a PR and angel investor, but famously dumped her former life in Russia as a politician and TV reporter.

Drokova says the fund focuses on ‘day one’ companies, as defined by Jeff Bezos, which have ‘customer obsession’ in-built into their company culture.

She says the fund was raised during the pandemic over zoom with $45 million coming from LPs in the first fund. More than 30% of the capital is invested in POC founders; it has 25 female founders in its portfolio; and 33% of its capital is invested in high-growth ‘impact’ companies. Day one has frequently co-invested with Andreessen, Index Ventures, Founders Fund, and Lightspeed.

The fund has had three exits so far: Lvl5, Acquired, Feastly and has invested in Remote.com (with Index and Sequoia).

So far among its portfolio is:

DoNotPay: British founder Joshua Browder, started a chatbot that pays your parking ticket, cancels subscriptions and gets refunds for you. This raised a $15M series A led by Coatue and Andreessen.
Superhuman: An AI-based email client for execs founded by Brit Rahul Vohra – it has raised $35M series B from Andreessen.
MSCHF: This creates viral and controversial products on a Supreme-drop-like model, invested with Founders Fund.
Truebill: a personal finance & savings app.

The fund says its portfolio companies have now raised $825 million in aggregate; over 25% of its capital is in fintech companies; over 30% in AI-powered startups; and it claims to have hit over 500 media publications for its portfolio.

Speaking to TechCrunch, Drakova said “We choose startups with ‘customer obsession’ as the main focus for selection. Secondly, our value add in communications means we have people like Jack Randall who did comms for Robin Hood on our team. Not many women immigrants to the US have raised as much as this, as fast as this. So it’s a good sign for the market.”

Continue Reading

Uncategorized

India bans another 43 Chinese apps

Published

on

India is not done banning Chinese apps. The world’s second largest internet market, which has banned over 175 apps with links to the neighboring nation in recent months, said on Tuesday it was banning an additional 43 such apps.

Like with the previous orders, India cited cybersecurity concerns to block these apps. “This action was taken based on the inputs regarding these apps for engaging in activities which are prejudicial to sovereignty and integrity of India, defence of India, security of state and public order,” said India’s IT Ministry in a statement.

The ministry said it issued the order of blocking these apps “based on the comprehensive reports received from Indian Cyber Crime Coordination Center, Ministry of Home Affairs.”

The apps that have been banned include popular short video service Snack Video, which had surged to the top of the chart in recent months, as well as e-commerce app AliExpress, delivery app Lalamove, and shopping app Taobao Live. Full list here. At this point, there doesn’t appear to be any Chinese app left in the top 500 apps used in India.

Tuesday order comes as a handful of apps including PUBG Mobile and TikTok explore ways to make a return to the country. In recent weeks, PUBG has registered a local entity in India, partnered with Microsoft for computing needs, and publicly vowed to invest $100 million in the country. Though it is yet to hear from the government.

Tensions between the world’s two most populous nations escalated after more than 20 Indian soldiers were killed in a military clash in the Himalayas in June. Ever since, “Boycott China” sentiment has trended on social media in India as a growing number of people post videos demonstrating destruction of Chinese-made smartphones, TVs and other products.

In April, India also made a change to its foreign investment policy that requires Chinese investors — who have ploughed billions of dollars into Indian startups in recent years — to take approval from New Delhi before they could write new checks to Indian firms. The move has significantly reduced Chinese investors’ presence in Indian startups’ deal flows in the months since.

More to follow…

Continue Reading

Trending