🥡 Zomato scores big on IPO!

06/24/2021

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Indian Food Delivery App Zomato Goes 65% Up On Its First Trading Day

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Zomato, a prominent food delivery company and consumer tech start-up based out of Gurgaon, India, had issued its share for 76 Indian Rupees (INR), equivalent to US$1.

On the debut day of trading in Mumbai, India, the stock surged to a price of 138.9 INR, close to $1.87. The stock ended its trading day on the Bombay Stock Exchange (BSE) at 125.8 INR, nearly equal to US$1.69.

Overall, the brand secured a market cap of US$13.2 billion, more than double the valuation it had managed to achieve in the private markets, earlier this year.

Zomato’s success story is highly insightful for India’s thriving startup ecosystem and the interest investors are showing in putting their money into the second largest internet market in the world.

In another instance of high-value investments flowing into India’s online startup ecosystem, Swiggy, Zomato’s main competitor, has secured a funding of US$1.25 billion from SoftBank’s Vision Fund 2, Prosus, and others. Swiggy registered a valuation of US$5.5 billion.

Among other Indian companies willing to go public, financial services startups Paytm and Mobikwik have already filed for an IPO, while an online insurance aggregator Policybazaar will file its papers within a few weeks.

Taboola Plans to Decides to Acquire Connexity for $800 Million

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Taboola operates a well-known grid-based advertising and content recommendation network whose service is spread across media properties.

With the acquisition of Connexity, Taboola plans to penetrate the market of e-commerce. Connexity is a marketing technology company with a retail and e-commerce focused advertising network. Symphony Technology Partners had been its owner since 2011.

The Connexity acquisition is Taboola’s first vital move since it went public in June. According to Google Finance, Taboola has a market cap of US$1.9 billion. However, Taboola claims that its market cap is US$2.35 billion.

In terms of the financial arrangement of the deal, $260 million came as cash on hand, while $300 million from committed debt financing and $240 million through ordinary shares, issued to the seller.

Taboola expects its acquisition of Connexity, earlier known as Shopzilla, to lead it to a gross profit of more than US$500 million.

In its earlier avatar as Shopzilla, the company had taken relevant brands, such as Become.com, Skimlinks, and PriceGrabber, under its ambit. Over the years, it has built a significant e-commerce related network.

Amazon Seeks an Experienced Digital Currency and Blockchain Product Lead

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Amazon’s Payments Acceptance and Experience team is looking for a digital currency and blockchain product lead.

The responsibility of the lead executive comprises developing the strategy and product roadmap for the company’s digital currency and blockchain development efforts.

The leader should have experience and expertise in the areas of central bank digital currencies, blockchain, and cryptocurrencies.

The lead will also have to work with cross-functional teams within amazon to include the brand’s customer experience insights, technical strategies, and capabilities.

It appears that Amazon is working on developing a new service allowing its users to shop in digital currencies. However, it is not yet clear whether it would launch its own currency.

Online Merchants Penalised for Fake Reviews, Inflated Sales in China

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The State Administration for Market Regulation (SAMR) in China, in collaboration with its local branches, has investigated more than 3,000 cases involving fake reviews and inflated sales.

The investigations have resulted in the regulatory agency imposing a fine of 206 million Yuan or US$31.8 million.

China’s tech sector has experienced more than a decade of unrestrained growth. Now, it is time for the government to put the regulatory and legislative framework in place.

Alibaba Group Holding, one of the giants in the Chinese business world, has paid a fine of US$2.8 billion alone in April.

The authorities imposed this fine on Alibaba, penalizing it for its monopolistic behavior. They have also initiated investigations against Meituan, an on-demand service giant, under the country’s antitrust laws.

The spectacularly well-known ride-hailing platform Didi Chuxing is also under an intense cybersecurity review after it was listed on the NYSE. The current investigation efforts of SAMR have a two-pronged strategy. For bigger platforms, the regulators look into monopolistic malpractices.

For the smaller companies, the investigations focus more on the issues stemming from unfair competition behavior.

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