Also in this letter:
■ TCS is all set to seal a likely $2-billion deal for BSNL 4G
■ Cashfree gets RBI nod for payment aggregator license
■ Good Glamm to acquire four beauty brands in int’l offline retail
Tata Digital’s revenue tripled to around Rs 16k crore after the acquisitions
Tata Digital, which invests in and operates the Tata Group’s ecommerce vertical, reported a three-fold increase in consolidated revenue to Rs 15,979 crore in the financial year 2021-22 (FY22) from Rs 5,315 crore in FY21 , according to the most recent regulatory filings. from Tofler.
Acquisitions drive growth: The increase in revenue mainly came from the company’s acquisition of a majority stake in e-pharmacy startup 1mg, and Supermarket Grocery Supplies Pvt Ltd, the parent company of e-grocer BigBasket.
Yes but: New venture losses widened more than five times to Rs 3,051 crore in FY22 due to new acquisitions.
BigBasket leads: The main contributor to the increased revenue was parent company BigBasket, which added Rs 7,238 crore to total revenue.
Tata Digital acquired BigBasket in May 2021.
Had this taken place at the beginning of the year, the revenue contribution would have been Rs 8,502 crore, according to the filings.
Tata Digital’s consolidated revenue also includes businesses like Croma, Tata Fintech, Tata Technologies and previous BigBasket acquisitions like DailyNinja and Savis Retail.
More purchases? Revenue is likely to increase further this year as Tata Digital may expand its portfolio of companies to include more scalable tech businesses.
One-stop shop: We reported on September 29 that Tata Industries is set to spin off some of its significant startup businesses like Tata Cliq, Tata Cliq Luxury, Tata Cliq Palette and Tata Health to Tata Digital in the next two weeks as part of a move to combine scalable ecommerce entities under one roof.
TCS is all set to seal a likely $2-billion deal for BSNL 4G
Tata Consultancy Services (TCS) and Bharat Sanchar Nigam Ltd (BSNL) are in the final stages of closing an estimated $2-billion deal (Rs 16,000 crore) to roll out the state-run telco’s 4G network, people told us. knows
First local player: The two companies have bridged differences in pricing and other commercial terms, they said, paving the way for the Tata group-led consortium to emerge as India’s first indigenous telecom network solutions provider in a market dominated by global majors.
“There have been many delays in the pricing procedure, but it is expected to be finalized in a few days,” said a person cited above, adding that the Center is keen to see a closure “as it is pending internally for some time. .”
The public-private combine is expected to roll out BSNL’s 4G services to 100,000 towers or sites, the person added.
Tejas Networks, a unit of Tata Sons, which is the parent company of TCS, is expected to locally manufacture network equipment for BSNL.
The state-run telco serves about 111 million wireless subscribers.
Market access: The successful launch of BSNL’s 4G network could put India in a coveted club of countries — such as the US, Sweden, Finland, South Korea and China — that have developed telecom network technology. The market is dominated by the likes of Sweden’s Ericsson, Finland’s Nokia and China’s Huawei and South Korea’s Samsung.
Cashfree gets RBI nod for payment aggregator license
Cashfree Payments has received in-principle approval from the Reserve Bank of India (RBI) to operate as a payment aggregator, two people with knowledge of the discussion told us.
A few picks: With this, Cashfree joins the likes of Razorpay, Stripe, Pine Labs, MSwipe and Innoviti, all of which have received RBI’s nod for a payment aggregator license. At least 185 fintech firms — including big names like Cred, Razorpay, and PhonePe — have applied for a license, we previously reported.
The payment aggregator framework, formally introduced in March 2020, says only RBI-approved companies can acquire and offer payment services to merchants.
Over the past few months, the RBI has been making presentations to payment gateway providers and other fintech companies that have applied for the license. However, it has been strict in its review of these applications, sources told us.
Analysis: In recent months, several online gateways and payment companies seeking a payment aggregator license have come under intense scrutiny for issues related to know-your-customer (KYC) guidelines and past dealings. in cryptocurrency exchanges and gaming apps.
Good Glamm to acquire four beauty brands in international offline retail
Good Glamm Group will bring four of its acquired beauty brands — Sirona, The Moms Co, St Botanica and Organic Harvest — to international markets, starting with retailing in megastores such as Carrefour, Lulu Mall and BabyShop in Dubai, Qatar and Saudi Arabia, said Good Glamm founder Darpan Sanghvi.
Feminine hygiene brand Sirona and The Moms Co, which makes natural beauty products, will start selling at Carrefour and Lulu Mall next month, followed by St Botanica and Organic Harvest.
Online vs offline: The move is in line with Good Glamm’s ambition to compete with traditional fast-moving consumer goods companies, which themselves have been bringing their D2C brands to physical retail in recent months.
Yes but: In India, the majority of the retail push for these brands continues to be online.
IPO plans: Good Glamm Group, which owns the MyGlamm franchise of beauty and personal care products, hopes to become profitable next fiscal and launch its initial public offering by mid-2024, Sanghvi said.
TWEET OF THE DAY
US, Europe downturn and WFH hit office space leasing in India
The slowdown in the US and Europe, which is delaying the expansion of multinationals, and a slow return to office space in the technology sector threaten to affect the leasing of office space in India, according to experts at global property consulting firms. -property.
Driving news: More than a dozen requests for leasing office space have been withdrawn in the past six weeks, they said. Many of the companies are also resizing their operations, which means they can also reduce office space requirements.
Amazon, which has acquired half a million sq ft from DLF in Gurgaon, has decided not to exercise its option to lease another 100,000 sq ft for now, said one of the people we spoke to.
“Paytm, which has taken up 550,000 sq ft in Noida, is looking for another tenant to fill the space as its own employees are still working from home,” he said. “Many other companies are doing the same as the return to the office is slow.”
Techies avoid offices: According to property consultants, up to 45% of employees have returned to offices since the pandemic. While it has been 80% in the BFSI sector, in IT, which employs millions and occupies huge office space in India, only 30-35% have returned on a regular basis.
ET Ecommerce Index
We launched three indexes – ET Ecommerce, ET Ecommerce profitable, and ET Ecommerce Non-Profitable – to track the performance of recently listed tech firms. Here’s how they’ve fared so far.
The new US Bill aims to give H-1B visa holders a faster path to citizenship
A new bill introduced in the US Senate, which seeks to offer citizenship to certain categories of people, will benefit Indian tech workers in the US if passed.
Details: Under the Renewing Immigration Provisions of the Immigration Act, which was introduced in the Senate on Wednesday, an immigrant who has lived continuously in the US for seven years can qualify for a green card.
The bill was introduced by Senator Alex Padilla and co-sponsored by Senators Elizabeth Warren, Ben Ray Lujan and Dick Durbin. A companion bill was introduced in the House of Representatives by Congresswoman Zoe Lofgren, who is also the Chair of the House Subcommittee on Immigration.
Decades of waiting: The law would provide a path to a green card for up to eight million people, including H-1B visa holders, children of long-term visa holders, dreamers and others. If approved, the bill could further benefit Indians as they currently face decades-long wait times for permanent residency due to the country’s quotas.
Other Top Stories By Our Reporters
ServiceNow could double its India numbers in the next few years: Digital workflow company ServiceNow could double its numbers in India in the next few years as it doubles in size globally, chief executive Bill McDermott told us in an exclusive interview. McDermott, who was in India earlier this week as part of a global tour to meet clients, said it is likely that the India development center will soon be larger than its main US facility.
JetSynthesys to invest $50 million to build metaverse practice: PDigital entertainment and gaming firm JetSynthesys said it will invest $50 million to boost its metaverse capabilities over the next few years. Rajan Navani, managing director, JetSynthesys said that this will be a separate category for the company, which will create a rich experience for consumers.
International Selections We Read
■ Meta officials cite security concerns for not releasing all-India hate-speech study (WSJ)
■ PUBG creator’s next project is an open source metaverse for everyone (The Washington Post)
■ TikTok creators make Hollywood movies in minutes and get millions of views (Rest of World)