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Flipkart Board Approves Walmart Deal For $15 Billion

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In a recent development the board of the ecommerce firm Flipkart, approved to sell 75% equity stake to a group of investors led by Walmart Inc., for $15 billion, Bloomberg reported. SoftBank will sell its 20+ per cent stake as a part of the deal, the report said. Google’s parent Alphabet Inc., is also likely to participate in the investment with Walmart. Reports also suggest the deal would be finalised in the next 10 days, although terms of the deal could still change.

The week noticed some surprising headlines about CEOs quitting the firms. From Jan Koum to Sachin Bansal, they seem to be taking extremely crucial decisions lately. Shortly after the Flipkart and the Walmart deal dominated the news, sources revealed Sachin Bansal, the online retail giant’s co founder, may exit the firm. This impending deal seems to play a vital role in his exit. Sachin may look to startup another venture again and also mentor other entrepreneurs. Even as the details are emerging, Walmart said it wants the duo, Binny Bansal and Flipkart CEO Kalyan Krishnamurthy, who have been actively running the daily operations, as more critical members, to stay back, the sources revealed.

Earlier, reports confirmed while CEO Kalyan Krishnamurthy would continue to head Flipkart, one among its founders, Sachin Bansal and Binny Bansal may exit. “Sachin is most likely to leave and Binny will stay.” Email sent to Flipkart and Sachin Bansal did not elicit a response at the time of filing this article. “I won’t be able to comment on anything related to this,” said Sachin Bansal in a text message.

Currently Sachin Bansal holds 5.5 % of shares in the company. If the deal with Walmart happens at a valuation of $20 billion his share would be worth over $1 billion. Flipkart buys back shares worth $ 350 million from its investors. The investors include DST Global, IDG Ventures and ICONIQ Capital. The online giant intends to sell a majority stake to the U.S., wholesale giant Walmart Inc.

Walmart Inc., is in advanced talks with Flipkart to acquire a dominant stake of more than 51 percent in the firm. All of it at a price of at least $18 billion, as sources reported to ReutersThe Walmart-Flipkart negotiations have been reported in the popular media for several months now.  The company also began the procedure of modifying itself in to a private limited company, changing its name to Flipkart Pte., Ltd., the filings showed. Furthermore, this is the second such transaction during the past 12 months.

In the latest instance, a number of minority Flipkart shareholders have been handed complete exits. In August 2017, most of Flipkart’s minority shareholders gave away a portion of their stakes to SoftBank.  Moving ahead, Accel Partners has clocked $113.5 Million through partial exits from Flipkart. Beside SoftBank and Accel Partners, IDG Ventures and Helion Ventures have gained excellent returns on their investment in the online giant. Other famous investors like Microsoft, Tencent and eBay have also invested in Flipkart last year.  

As of now, Tiger Global and SoftBank Group are the largest shareholders in Flipkart, each holding about 20% stake, and Naspers at about 13%. Sachin and Binny Bansal hold about 5% each in the company.

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Bernard Arnault Replaces Bill Gates As Second Richest Man In The World

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Bernard Arnault Replaces Bill Gates,Second Richest Man In World,Startup Stories,World Second Richest Person,2nd Richest Person in World,Bernard Arnault As Second Richest Man In World,Bernard Arnault Latest News,LVMH CEO Bernard Arnault

According to a report released by Bloomberg, Bill Gates, the co founder of Microsoft, was replaced as the world’s second richest person by Bernard Arnault, the Chairman of LVMH.  Bill Gates was ranked as the 2nd richest person in Bloomberg’s Billionaires Index for the last 7 years. However, he was replaced by Arnault after the French businessman added $ 39 billion in 2019 to his wealth, pushing his net worth to $ 108 billion.

 

Arnault, aged 70, joined world’s most exclusive wealth club after Jeff Bezos and Bill Gates, when his fortune surpassed the $ 100 billion mark for the first time in June 2019.  As the chairman and CEO of the luxury goods maker LVMH, most of Arnault’s wealth comes from his holdings in Louis Vuitton and Christian Dior.  He holds a 97 % stake in Christian Dior. Apart from Louis Vuitton, Bernard also oversees 70 other luxury good companies like Givenchy, Marc Jacobs, Sephora and Fendi, to name a few. 

 

Arnault and his family are among the list of luxury titans who pledged more than $ 650 million for the reconstruction of the Notre Dame Cathedral, which was destroyed by a massive fire in April 2019.

 

Bill Gates, with a net worth of $ 107 billion, lost the title of being the world’s second richest man because of his philanthropic work.  Gates donated over $ 35 billion to the Bill and Melinda Gates Foundation, founded in 2000 by him and his wife Melinda Gates.  The primary focus of the Foundation is to enhance healthcare and reduce extreme poverty. Amazon’s Bezos’ net worth was up slightly this year to $ 125 billion, despite his divorce settlement with his former wife MacKenzie Bezos, which saw MacKenzie keep 4% stake in his multinational technology company.  This made MacKenzie Bezos the 4th richest woman in the world.

 

Declared the richest man in Europe, Bernard Arnault has been climbing the ladder to success continuously.  His $ 39 billion addition to his wealth in 2019 alone, according to Bloomberg, is the biggest individual gain among the 500 people it ranks. 

 

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iPhone Unknown Facts

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Introduced by Steve Jobs in the year 2007, the iPhone is a technological revolution which changed the fate of smartphones forever.  It is also safe to say, the iPhone is one of the most coveted smartphones in the world.  

Here is a list of few things you may not know about this amazing piece of technology.

 

Unknown facts about iPhone

 

1) The iPhone was originally called ‘Purple.’ Scott Forstall, the ex software head of Apple, revealed, the phone was initially named ‘Purple,’ after ‘Purple Dorm,’ the building where it was built and developed.

2) Cisco Systems owns the patent for the name iPhone for its VoIP phone.  When Apple released its iPhone, Cisco sued Apple for using its name. Both the companies then reached a settlement and agreed to work together on products later in the future.

3) If you ever observed the iPhone commercials, you will notice, all the iPhones show the time as 9:41 A.M.  Apparently, 9:41 A.M., was the time when Steve Jobs first unveiled the iPhone.

4) The retina display on the iPhone is its most expensive feature.

5) We are all aware of the rivalry between Apple and Samsung.  Samsung was seen trashing the iPhone in many of its commercials.  Still, it looks like these companies are not rivals after all. According to technology intelligence experts, the processor that powers the iPhone is actually manufactured by Samsung.  Now that’s a shocker.

6) When the iPhone was introduced, founder Steve Jobs first used it to make a prank call to order 4,000 lattes from a nearby Starbucks store. 

7) iPhones are the most profitable products created by Apple.  They account for up to 70 % of Apple’s total revenue.

8) The iPhone earned 73 % of the profit of the smartphone industry in 2018. 

9) In 2007, iPhone was awarded the Invention of the Year by TIME magazine.

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10) By 2015, Apple sold around 700 million iPhones.  Reports also suggest, the users of iPhone are more loyal to their brand than Android users.

Do you know any other interesting facts about the iPhone?  Comment below and let us know.

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Union Budget 2019 – Startups Get Major Advantages

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Union Budget 2019,Startups Get Major Advantages,Startup Stories,Finance Minister Nirmala Sitharaman,Union Budget Session 2019,Union Budget Sessions,Union Budget of India,India Economy 2019,Union Budget 2019 Highlights for Startups,Budget 2019 Highlights,#Budget2019

The Union Budget of India is mostly about giving us an insight into how the government decides to spend public funds for the overall development of the Country. 

India’s Finance Minister, Nirmala Sitharaman, presented her maiden budget to the Parliament on Friday and walked us through the various plans which may take India’s economy to $ 5 trillion by 2025. 

The Indian startup ecosystem felt, the Interim Budget, which was helmed by Piyush Goyal in February, had overlooked their problems. 

However, giving a major boost to thousands of startups across the Country, the Narendra Modi led Government announced a list of measures the Government is going to take to “release the entrepreneurial spirit” in the Country.

Keep reading to find out what the Budget for new India has in store for business heads and startup founders.

 

Budget 2019 highlights for startups

1) The Modi Government will soon launch a TV program exclusively for the startups in India, which will air on the Doordarshan channel.  This program will serve as a medium through which emerging startups could meet venture capitalists and investors.  This TV program will be directed, executed and run by startups themselves.

 

2) The Startup India Scheme, which was launched in 2016 to support entrepreneurship among women and marginal segments of the society by providing them financial assistance, has produced more than 300 entrepreneurs as of today.  Mrs. Sitharaman said, this scheme will continue till 2025. This can prove to be a major boost for aspiring entrepreneurs.

 

3) A reduction in Goods and Services Tax (GST) and Income Tax for electric vehicle (EV) makers and owners has been proposed in the Parliament.  This move could prove to be profitable for EV startups in the Country.

 

4) Sitharaman announced, startups will no longer be under the scrutiny of Angel Tax.  Angel tax is applicable to startups which have raised their capital by selling shares above the market value.  This excess capital is considered as income and taxed accordingly, a move which was started in 2012. The waiver of angel tax could be a huge relief for startup owners.

 

5) The Finance Minister proposed a 100 percent foreign direct investment (FDI) to insurance intermediaries.  The FDI limit is currently 49 %. Apart from this, the Government also announced 100 % FDI in single brand retail startups.  Startups like PepperFry and UrbanLadder, which operate single brand stores, will benefit from this move.

 

6) The Government will also establish around 100 business incubators—80 for livelihood businesses and 20 for tech, in the financial year 2019-20.  According to the Government, this will help create up to 75,000 skilled entrepreneurs.

 

7) Businesses with an annual turnover below Rs. 5 crores can file quarterly GST returns, said Sitharaman. 

 

Apart from all this, the several measures announced for labour laws, rental segment and education can have an indirect impact on the startups of our Country.  With so many incentives announced to boost the Indian startup ecosystem, we may see a substantial growth in Indian startups.

What is your opinion about Union Budget 2019?  Comment below and let us know. 

 

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