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Bhavish Aggarwal And SoftBank To Clash?

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SoftBank Group Corp., is a Japanese multinational conglomerate holding company, headquartered in Tokyo, Japan. The company is having a conflict with Bhavish Aggarwal, the Co founder of Ola.

The previous year Bhavish Aggarwal averted a deal proposed by Tiger Global Management. The deal basically involved selling off a part of Ola to SoftBank. Tiger Global owns 16% of Ola while SoftBank is the company’s largest shareholder with a stake of 26 %-27%. Ola even changed its Articles of Association (AOA,) in order to avoid SoftBank from buying its shares, without the approval from the company’s founders and the board. Since then, Tiger Global partner Lee Fixel resigned from the Ola board.

Furthermore, SoftBank is all set to buy up the shares of Ola from Tiger Global. India’s two most powerful start up capitalists, SoftBank and Tiger Global,  are considering ways to get around the terms of Ola’s AoA and could come up with a deal on their own.

According to Livemint, Ola denied SoftBank and Tiger Global were exploring such a deal. “Ola’s shareholders are fully committed to the company and are strong backers of Ola’s Founders in their mission. Ola’s shareholders are reputed global institutions and we can unequivocally assert that none of them will do anything which violates their contractual agreements and contravenes Indian laws. Ola is focused on fulfilling its mission of building a global institution every Indian is proud of (and) will not be detracted or drawn into useless speculations,” an Ola spokesperson said in an email. SoftBank declined to comment about it. Tiger Global didn’t respond to an email seeking comment.

According to the Articles of Association (AOA,) SoftBank has the right to appoint one more director “provided that such person is reasonably acceptable to the founders and all other shareholders.” But, SoftBank’s right to appoint a second board member will not apply if the Japanese company ends up owning 50% or more of the preference shares in Ola’s ongoing funding round.

However, if the situation gets even more tense between the cab hailing company owner, Mr. Aggarwal, and the Japanese conglomerate holding company firm, then SoftBank would favour Uber India’s business, leaving Ola behind.

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Binny Bansal Sells ₹531 Crore Worth Flipkart Shares To Walmart

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Binny Bansal Sells ₹531 Crore Worth,Flipkart Shares To Walmart,Startup Stories,Latest Business News 2019,Binny Bansal Sells Flipkart Shares,Flipkart CO Founder Binny Bansal,Flipkart Business News,Flipkart Latest News,Walmart Flipkart Deal

Binny Bansal, an Indian billionaire, entrepreneur and co founder of the e-commerce website Flipkart, sold $ 76.4 million worth of his shares in Flipkart to Walmart’s Luxembourg entity FIT Holdings SARL.

Binny Bansal, along with his partner Sachin Bansal, co founded the Flipkart and served as its Chief Executive Officer until January 2016.

Walmart, a multinational retail corporation, bought Flipkart in 2018 and back then, Bansal sold a small portion of his shares and held 3.85 % of stake.

Now, according to the documents filed by Flipkart with the regulators, Binny Bansal transferred 539,912 equity shares to FIT Holdings SARL.  These shares are valued to be $ 76.4 million (approximately Rs. 531 crores.)  This latest deal left him with only 3.52 % stake in Flipkart.

Vivek Durai, the founder of Paper.vc, a business intelligence platform, said, “With this transfer, Binny Bansal has monetised a small portion of his shareholdings. He had sold 1,122,433 shares for about $ 159 million during the Walmart takeover.”

According to his contract with Walmart, Binny Bansal is entitled to sell more than half of his shares to Walmart by August 2020 and he could gain around $ 400 million from this transaction.

Bansal, who is mostly based in Singapore, is now an investor in India’s  startup ecosystem and is also the co founder of xto10X Technologies, which was launched last year.

In December 2018, Binny Bansal invested a sprawling $ 25 million dollars in the online insurance startup Acko.  He also invested in several AI and healthtech startups.

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Facebook Reveals Details Of Its Cryptocurrency Libra

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On the 18th of June, Facebook revealed details of its brand new cryptocurrency called Libra.  An alternative to cash, this cryptocoin can be used to buy things or send money to people with close to no fees.  The cryptocurrency is going to be launched by an association called The Libra Association, which consists of a group of companies interested in getting Libra out into the world.

You can use Libra to buy or cash out your Libra at local stores like grocery stores and through third party wallet apps.  To make using Libra an easier task, Facebook owned Calibra Wallet will be built into WhatsApp and Messenger, thereby simplifying transaction processes.  Although certain countries have banned the use of cryptocurrencies, Facebook is trying to break new ground with the launch of Libra.

While Facebook is launching Libra, the social media giant is not going to be in complete control of the cryptocoin.  The coin will be controlled by a consortium consisting of its founding members, Visa, Uber and Andreessen Horowitz. The three companies have invested at least $ 10 million each into the creation of this cryptocurrency.

Customers interested in holding or transferring the newly acquired token will be given multiple options to do what they wish.  To further simplify matters, Facebook will let customers access transactions through this cryptocurrency via a special app designed for iOS and Android.

To protect the identity of its users while making transactions through the new app, Facebook won’t require you to share personal details.  “The advent of the internet and mobile broadband has empowered billions of people globally to have access to the world’s knowledge and information, high fidelity communication, and a wide range of lowercost, more convenient services,” the Libra Association said in a paper announcing the cryptocurrency.

Libra will be made available to the world during the first half of 2020.  As of now, Facebook is focusing on building relationships in international waters.

Stay tuned for more updates.

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Facebook Invests In Indian Startup Meesho

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Facebook Invests In Indian Startup Meesho,Startup Stories,Latest Business News 2019,Indian Startup Meesho,Facebook Invested in IIT Alumni,Social Commerce Startup Meesho,Meesho First Startup Investment in India,Facebook Makes another Investment in India

On the 13th of June, social media giant Facebook announced, it invested an undisclosed amount in Indian startup Meesho.

A Bengaluru based startup, Meesho works with resellers and emerging brands using social media.  This is the first time Facebook invested in a startup based in India. Through this investment, Facebook aims to increase its commitment to the Country’s vibrant internet ecosystem.

“Facebook is an ally for India’s economic growth and social development. We are excited about India and its rapidly rising Internet ecosystem. With this investment in Meesho, we want to fuel a business model that can result in rapid job creation and the rise of a female entrepreneurial class in India,” Ajit Mohan, the Managing Director of Facebook India, said in a statement.

It was two primary factors which made Facebook invest in Meesho.  The first reason was how the startup is growing outside the Tier II and III cities, where new users are present.  The second reason is, Meesho has a larger user base, 80 % of which are women.

So far, Meesho has raised $ 50 million from a Series C funding round in November last year.  According to industry reports, the startup helps people using its service earn close to Rs. 25,000 every month!  With WhatsApp playing a crucial role in the app’s growth, it comes as an added blessing that Facebook invested in this particular startup.

Through investments like these, Facebook is capitalizing on the social media boom happening in India.

Stay tuned for more updates.

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