Indian Startup News Ep 14: Zomato Contactless Dining, Facebook-Jio Deal and Swiggy Closes Kitchens

Описание: This week in Indian Startup News, Delivery of non-essential items by e-commerce companies to remain prohibited during the lockdown, change in foreign direct investment (FDI) policy to impact Chinese investment in Indian startups, Swiggy to downsize cloud kitchen business by cutting 1,000 jobs, OYO asks Indian employees to take 25% pay cut, and Zomato introduces contactless dining.

In funding news, Facebook invests $5.7 billion in Reliance Jio for a 9.99% stake, Dailyhunt raises $23 million, ITILITE raises $13 million, Bijak raises $11.8 million and Bugworks Research raises $7.5 million.

Top Startup News

Delivery of non-essential items by e-commerce companies to remain prohibited during the lockdown: In a revised order on 19th April, the government has confirmed that the delivery of non-essential items by e-commerce companies will remain prohibited during the lockdown. This decision will not only help the government save lives but also provide a level playing field for small retailers that are also allowed to only sell essential products during the lockdown period.

Change in FDI policy to impact Chinese investment in Indian startups: Over the years, China has emerged as major investors in Indian startups. At a time when startups are struggling to raise funds, change in India’s FDI policy could squeeze the funding pipeline for Indian startups that rely heavily on Chinese investors. In fact, at least 18 out of 23 Indian startup unicorns are funded by Chinese investors like Alibaba Group, Tencent Holdings, and Ant Financial.

Swiggy to downsize cloud kitchen business by cutting 1,000 jobs: Looking to cut costs and shifting focus back on its core business, India’s foodtech giant Swiggy is downsizing its cloud kitchen business and is expected to layoff 1,00 of its cloud kitchen staff. Coronavirus has forced startups to re-evaluate their business models and focus on profitability.

OYO asks Indian employees to take 25% pay cut: After cutting the salaries of its top executives and putting global employees on furloughs, OYO has turned to the Indian workforce. Suffering revenue losses between 50-60% across the globe due to coronavirus pandemic, Indian hospitality unicorn has decided to cut the salary of Indian employees by 25% in order to cut costs. Furthermore, the startup will also be asking some of its employees to go on leaves with limited benefits.

Zomato introduces contactless dining: After introducing contactless delivery, Zomato is now introducing contactless dining, to make dining at its partner restaurants by making it more safe, hygienic and seamless for its customers. Under contactless dining, the customers will be able to able to order their food right from their smartphones through its app by scanning a QR code to get the menu and also pay for their meals without having to touch anything at the restaurant.

Funding News

Facebook invests $5.7 billion in Reliance Jio for a 9.99% stake: Facebook has invested a massive $5.7 billion (43,574 crore rupees) in Jio Platforms, which is a wholly-owned subsidiary of Reliance Industries. With this investment, Facebook has now acquired a 9.99% stake in Jio Platforms, becoming its largest minority shareholder. Through this partnership, Facebook and Jio are committed to strengthening India’s digital economy by providing digital services to 60 million micro, small, and medium enterprises and 120 million farmers in India.

Dailyhunt raises $23 million: News platform Dailyhunt has raised $23.5 million in its series G round from investors like ByteDance, Falcon Edge Capital, Advent Capital Management, Sofina, and Goldman Sachs.

ITILITE raises $13 million: Saas-based travel startup ITILITE has raised $13 million from Greenoaks Capital, Vy Capital, Matrix Partners and the Managing Partner of Helion Venture Partners Ashish Gupta. The funds raised will be used for expanding its international presence and developing new products.

Bijak raises $11.8 million: B2B agritech startup Bijak has raised $11.8 million in its series A round from RTP Global, Omnivore, Tempo Ventures, Omidyar Network and Sequoia Capital’s Surge. As most of the startups are finding it difficult to raise funds, Bijak will have to be careful how it uses its funds and help its customers in these troubled times.

Bugworks Research raises $7.5 million: Biopharma startup Bugworks Research has raised $7.5 million in a fresh round from University of Tokyo Edge Capital (UTEC), Global Brain Corporation and Acquipharma Holdings. With the latest funding, the startup will be able to complete phase 1 studies of its GYROX series intravenous drug candidate.

Startup News Playlist:    • Indian Startup News Ep 3: FLIPKART SHUTS J...  

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