Snapchat Inc. CEO Evan Spiegel now, denies on his comments after his ex-employee made allegations on him that he commented Snapchat to be an “app for rich people” and India is a not profitable market for Snapchat expansion as it is a poor country.
A twenty-page document, filed by an ex-employee of Snapchat, Anthony Pompliano, presented an extract which exposed the style of work. He sued the company on the work style which was being carried out under Evan’s Supervision was questionable and is uncertain. The extract of the allegation is that the CEO of Snapchat Evan Spiegel reacted Saying “this app is only for rich people. I don’t want to expand into poor countries like India and Spain.”, On being said that the performance of Snapchat in Foreign Markets is poor.
Snap Inc., with official documents, opposed the claims and further said, “This is ridiculous. Obviously, Snapchat is for everyone! It’s available worldwide to download for free.”
There was also a clarification released to the press on Pompliano’s Section with regards to the allegation that Snapchat were showing inflated numbers to its investors. “In the notice, we filed with the court when we unsealed Pompliano’s original complaint (attached), we wrote: ‘Snap did not give investors misstated user metrics back in 2015; nor did Snap employees commit any of the panoplies of alleged bad acts that litter Pompliano’s complaint. Snap will demonstrate as much at the appropriate time in the appropriate forum’,” says the statement.
It was stated that Evan, traveled to speak at the Economic Times Startup Awards in 2015, and also is a leading Entrepreneur, especially in India.
Pompliano’s Statement disturbed a considerable number of Snapchat users from India, carrying the hashtag “BoycottSnapchat“ basing on social networking sites, provoking the users to rate the app with one star and uninstall the app to show opposition. As a result of people’s reaction to defend their nation from a statement which is not proved by the court of law, the app ratings fell short instantly. The Google Play store showed one-star ratings in a big number for snap chat and the Indian Users’ comment threads countered his statement.
A few users also commented on the portals which said that India is hard geography for monetising. “A true but hard fact is that the Indian market does not monetize well! Average revenue per user is way too low in comparison to the cost of acquiring a customer,” says Facebook user Ravindra Sonavane. This opinion, somehow, could not influence the snapchat users. Evidently, many users are participating in the protest.
Binny Bansal Sells ₹531 Crore Worth Flipkart Shares To Walmart
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.
Facebook Reveals Details Of Its Cryptocurrency Libra
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.
Facebook Invests In Indian Startup Meesho
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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