Also in this letter:
■ Honor withdraws its team in India due to rising tensions
■ Shein private bids show $30bn valuation down since April: report
■ C. Vijayakumar of HCL Tech is the highest paid IT CEO in India.
Zomato market cap falls below latest private valuation as lock expires
Stock price of the online food delivery platform Zomato fell more than 14% and reached a minimum of 46 rupees. in the early hours of trading on the BSE on Monday, pushing its market capitalization below its latest private estimate of $5.5 billion.
Shares rebounded slightly to close at Rs 47.55, down 11.37% on the day.
Why? The mandatory lockup for promoters, employees and other shareholders who bought shares before the IPO ended on July 23, one year after they were listed.
Credit: Yahoo Finance
More than 613 crores of Zomato shares have been blocked since the distribution date, which is about 78% of the total shares.
Annual decline: Zomato had blockbuster listing on indian stock exchanges July 23, 2021. Its shares are up as much as 83% from an IPO price of Rs 76 at some point on opening day after listing at Rs 115 a share – a premium of more than 50% on the offering price.
But since then, its share price has declined—sometimes quickly.
Although the company attributed this to macroeconomic factors, its recent decisions have certainly affected its share price.
After Zomato announced the acquisition of fast commerce platform Blinkit for Rs 4,447 crore ($568.16 million) in a share deal in June, its share price suffered a similar setback.
Honor recalls its team in India due to rising tensions
Chinese smartphone brand Honor pulled his team out of India Rising geopolitical tensions and scrutiny of Chinese smartphone makers were revealed by CEO Zhao Ming in an interview with the South China Morning Post.
Zhao said the company’s Indian business would continue to be managed by local partners and remain operational, although he would take a “very safe approach.”
At its peak in 2018, Honor’s market share in India was 3%. The company dropped out of the top five after the US government imposed tough sanctions on its former parent company Huawei.
Phone makers feel the heat: Chinese smartphone brands such as Vivo and Oppo have faced increased regulatory pressure from India’s central authorities over alleged fraud and tax evasion.
Directorate of Fiscal Intelligence (DRI) On July 13, an alleged customs evasion of nearly Rs 4,389 crore by Oppo’s Indian division was discovered..
And last month, the Department of Enforcement (ED) ransacked Vivo offices and related companies and froze their bank accounts on suspicion of money laundering.
ED blames Vivo: Monday ED accused Vivo of trying to destabilize India’s financial system and threaten its sovereignty.
The agency claimed that Vivo’s bank accounts were “clearly involved in money laundering” and it “was carried out as an attempt to destabilize the country’s financial system, as well as threaten the integrity and sovereignty of the nation.”
Shein’s private filings show $30 billion fall in valuation since April: report
Investors in Chinese fast fashion startup Shein seek sell their stakes in the company at a 30 percent discount from its last known valuation of $100 billion.amid fears of a slowdown in growth ahead of plans to go public in the US, reports Bloomberg.
Investors are also concerned about Shein’s poor environmental, social and governance record, as well as the recent global plunge in technology stocks, which they believe could impact IPO demand. Shein aims to be listed in the US by 2024.
Fire Growth: Shein, founded in 2008 by Chris Xu, has become the third most valuable startup in the world with $16 billion in annual sales. It has also become the epitome of fast fashion, outpacing the likes of H&M, Zara and Uniqlo thanks to the surge in e-commerce sales due to the pandemic.
Yes, but: It has also generated controversy, especially around environmental damage, worker exploitation, and copyright theft. A drop in its valuation could further dampen the spirits of global investors, who have already weathered a 25% drop in the private valuation of Bytedance, the world’s second most valuable startup.
Tweet of the day
Si Vijayakumar of HCL Tech is the highest paid CIO in India.
HCL Technologies CEO S. Vijayakumar is the highest paid CEO among India’s leading IT services companies. with an annual salary of over $16 billion. thanks to a two-year $12.5 billion incentive, the company said in its annual report.
In fiscal year 22, Vijayakumar also received 900,060 limited stock items. HCL Technologies Chief Financial Officer Pratik Aggarwal’s FY22 Compensation Increased 36%.
Interestingly, Vijayakumar did not receive a pay raise in FY22, in contrast to the 20% and 43% raises received by Wipro’s Thierry Delaporte and Infosys’ Salil Parekh, respectively. Delaporte and Parekh rank second and third on the list of highest paid CIOs, with Rajesh Gopinathan of TCS coming in fourth.
Completed ETech deals
■ Better Opinions, an event-based trading startup Y Combinator, raised $2.5 million during the seed round from Metaplanet VC, Goldwater Capital and several other investors. Established in 2021, Better Opinions allows users to make predictions in various categories such as cricket, cryptocurrency, politics and entertainment and win real money if their predictions come true. The platform currently serves over 600,000 users and plans to use the funds to expand its product and technology team.
■ ChefKart home cooking services platform powered by Gurugram. raised $2 million in investment led by Pravega Ventures and Blume Ventures. The round also included Zomato co-founder Deepinder Goyal, Titan Capital and Cred founder Kunal Shah. ChefKart offers qualified and verified home chefs who prepare hygienic meals according to the preferences of the customers. It plans to use the funds to expand into new regions.
Today’s ETtech Top 5 newsletter was curated by Zaheer Merchant from Mumbai and Ruchir Vyas from New Delhi. Graphics and illustrations by Rahul Awasti.