April 1 already, a quarter down for 2022, phew! Happy April Fools Day..Apart from the jokes and pranks, we have another packed edition of the Morning Dispatch. The cryptocurrency industry is expected to lose an advantage by the financial year 2023 as new tax standards will be set from now on. Fuel price increases are now affecting e-commerce players, relatively directly, as delivery and logistics companies are increasing charges. Will prices increase for your purchases on Amazon and Flipkart, find out in writing.
Also in today’s edition
- TCS, Infy, Wipro join the race for small IT deals
- Flipkart is putting nearly $ 700M into its marketplace and healthcare unit
- SoftBank is slowing its investment pace amid the market crash
Crypto exchanges expect significant reductions in volumes as the new tax regime for VDAs enters
Hi, Apoorva here in Mumbai. A new chapter will begin today (and no, it’s certainly no joke on Fool’s Day) for crypto exchanges and retail investors in India. Despite major efforts, covering representations made to the Ministry of Finance, social media campaigns (#reducecryptotax – by crypto firms, crypto influencers and evangelists, the tax regime proposed for Virtual Digital Assets (VDAs) as part of Finance Bill 2022, will be implemented as of today.
What will happen starting April 1: Retail investors will have to cough up a flat 30% tax on gains in VDAs. Unlike other asset classes, retail investors will not have the ability to set off losses, claim costs or the cost of acquisitions, or even a reduced slab for long-term capital gains. .
More to come from July 1: 1% tax deducted and source (TDS) will take effect.
When fully implemented, what does it mean? A member of the crypto industry on condition of anonymity said the standards could evaporate volumes from exchanges up to the tune of 20-50% at least.
Quote: “The volume of trade is expected to decrease significantly after the new tax provisions take effect. The full impact (will be felt) next year, when even the common people who buy cryptos will feel (it), ”said Meyya Nagappan, head of international tax at Nishith Desai Associates.
According to industry estimates, the top 5-6 Indian crypto platforms have reached approximately $ 70-100 billion in trading volume for calendar year 2021 of which WazirX alone is approximately $ 43 billion. However, such growth is likely to take off this fiscal if the tax provisions are not changed, industry executives said.
Logistics companies are raising ecommerce freight rates as fuel prices are rising
Hi, Pranav here in Bengaluru. Today, we will break a story about the impact of rising fuel prices for the ecommerce and logistics industries.
First the news: Delhivery, one of the largest logistics companies in India serving for leading ecommerce firms like Amazon India, Flipkart and others, has decided to raise freight charges by 30% for Delhivery Air and Surface. Logistics aggregator Shiprocket, which operates in Delhivery, has told its clients about the increase in charges from April 1st! ETtech reviewed the note.
Quite a walk !: “This is due to the steep increase witnessed in commercial fuel charges in recent weeks and other systematic factors in the logistics markets,” the note read.
Do you have to pay more for your shopping? Online sellers, ultimately, have to pay a delivery fee in order for their orders to be shipped. This is one of the many charges they put out in the markets. Flipkart and Amazon are the biggest clients of companies like Delhivery and the increase in freight charges will affect the revenue per order of online vendors. Typically, independent online sellers pass on at least a portion of the price increase to consumers when marketplaces or delivery companies change their various share of the fee.
Quote: “Costs have gone up so there are some corrections needed,” Ecom Express cofounder TA Krishnan told ET. “Internally we are contemplating because even if we build our own infrastructure, the price of steel goes up, rents go up, we are evaluating, but we have not yet made a decision about it.”
Then what’s next? So far, major e-commerce platforms, Flipkart and Amazon India, have raised their seller commissions. Meesho, which operates on a zero-commission model, would be even more vulnerable if third-party delivery companies raise prices because it relies entirely on them to deliver products. Flipkart and Amazon India have in-house delivery weapons-Ekart and Amazon Transportation Services.
Flipkart puts nearly $ 700 million into its marketplace and healthcare unit: Leading ecommerce Flipkart has put approximately $ 553 million into its business marketplace, according to recent regulatory filings made in Singapore. Additionally, it pumped another $ 143 million into its healthcare unit Flipkart Health, these offerings showed. With the entry of new capital, it brings Flipkart’s total cash infusion to two entities — Flipkart Marketplace Private Limited and Flipkart Health Private Limited — to nearly $ 700 million.
INFOGRAPHIC INSIGHT
TCS, Infy, Wipro join the race for small IT deals
Large IT players including the likes of Tata Consultancy Services (TCS), Infosys and Wipro provide stiff competition to mid-tier IT companies as they are all fishing for smaller deals in the $ 20 range. -million. Mega $ 100-million-plus deals are still available in the market, but the frequency and duration of them are declining as clients seek to split their digital needs among vendors to diversify dependencies, say analysts and industry leaders.
Backstory: Deals in the $ 20 million range-traditionally the skill of mid-sized IT providers like Mindtree, Mphasis, LTI, and Hexaware-are now the backbone of the industry, and companies need to allocate more resources to manage this segment in the future, they say.
The $ 20-million client bucket: For example, TCS is expected to restructure its operational model to focus specifically on the $ 20-million client bucket while the likes of Infosys and Tech Mahindra recently launched metaverse and 5G co-innovation practices for clients.
Deals Done with ETtech
■ Chennai -based digital supply chain startup Wiz Freight raised Rs 275 crore in a funding round led by Tiger Global with participation from Axilor, Foundamental, Arali Ventures, Stride Ventures and Alteria Capital.
■ OneCode, a platform that provides on-ground resellers to financial firms, has raised $ 13 million (or Rs 100 crore) as part of its latest round of funding led by General Catalyst, the company said. According to the company, it will use the capital to invest in hiring the functions and accelerate the development of its product and technology. With the investment, the company will expand its presence to 100 additional cities and increase the size of its agent network.
Sales of software products in India will reach $ 30 billion by 2025, says Nasscom
The National Association of Software and Services Companies (NASSCOM) today launched a report stating that India’s software product industry is expected to post $ 30 billion in annual revenue by 2025.
Behind the emerging industry: With the ever-evolving needs of consumers, businesses continue to innovate, leading to a changing global market and 10% annual growth in the IT services sector, generating high revenues for to shareholders and investors over the last decade. Estimates are also being put on the lookout as local players expand around the world and many new companies have entered the products space, says a report by industry body Nasscom and market research firm UnearthInsight. .
The quote: “We are very big about their international expansion as global markets are opening up for Indian product companies,” said Ramkumar Narayanan, chairman of the Nasscom Product Council.
TWEET OF THE DAY
Other Top Stories By Our Reporters
SoftBank CEO Masayoshi Son
Hit hard by the crash, Masayoshi Son said SoftBank will slow tech bets: Masayoshi Son, founder of SoftBank, told the group’s top leadership to be slow in technology investments due to the crash in its holdings, according to a report in the Financial Times (FT)
This is important because SoftBank’s Vision Fund is one of the largest and most influential tech investors in the world.
Microsoft launches Startups Founders Hub platform in India: Microsoft said on Thursday that it has launched the Microsoft for Startups Founders Hub in India, to empower early stage startup founders in India with more than $ 300,000 worth of benefits and credits. This will give startups free access to the technology, tools, and resources they need to build and run their business.
ServiceNow has opened two data centers in India: Software-as-a-service (SaaS) company ServiceNow has announced the opening of data centers in Mumbai and Bangalore to meet strong demand from its Indian customers and meet their local preferences to reside in the data.
Global Selections We Read
■ US Senators Urge FTC to Review Microsoft-Activision Merger (WSJ)
■ Facebook fails to label 80% of posts promoting bioweapons conspiracy theory (The Guardian)
■ Ronin Network: What the $ 600m hack says about the state of crypto (BBC)
ETtech Morning Dispatch is now curated by the ETtech team. Graphics and illustrations by Rahul Awasthi.
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