Old rivals, new game: Flipkart Azim Premji vs Amazon Narayana Murthy

August 14, 2014

azim-premji-and-narayana-murthy

Bangalore, Aug 14: India's tech titans and fierce cross-town rivals, Wipro's Azim Premji and Infosys' N R Narayana Murthy, are squaring off in the burgeoning $3-billion e-commerce market space too. Premji has gone with the domestic players; he has investments in Myntra (recently acquired by Flipkart) and Snapdeal while Murthy has placed his bets on global e-tailing giant Amazon.

India's rapidly growing e-commerce market is turning out to be a two-horse race between Amazon and Flipkart.

Earlier this year, the Wipro chairman through his investment arm, Premji Invest, and a clutch of other investors, pumped in about $50 million in fashion e-tailer Myntra. Snapdeal, another e-commerce player, got $100 million in funding from five investors including Premji Invest.

More recently, Amazon and Murthy's family office, Catamaran Ventures, floated a JV to help small and medium businesses join the online bandwagon.

Catamaran holds a majority 51% in the JV—Taurus Business and Trade Services.

"Myntra and Snapdeal needed money and expertise from successful Indian entrepreneurs. From an investment perspective, Premji's investments are a more classic VC style investment that fosters local entrepreneurship with a very high risk-reward ratio," said Praveen Chakravarty, a successful angel investor and co-founder of Mumbai Angels. However, he has a counter view on the Amazon transaction. "It seems to me as a low-risk, financial return-focused yield investment that has risen out of an opportunity driven by regulations in India."

(Premji has gone with the domestic players; he has investments in Myntra and Snapdeal while Murthy has placed his bets on global e-tailing giant Amazon.)

Sources privy to developments in Amazon said that the US e-tailing behemoth was scouting for a big brand that could invest Rs 100 crore in cash with a guaranteed return on investment of around 20% at the time of exit. TOI could not ascertain the nature of the Amazon-Catamaran tie-up, as both parties have not disclosed the financials of the deal.

"Amazon doesn't need money nor does it need hand-holding and guidance," said a senior executive of a Bangalore-based VC fund-house, who requested anonymity as the subject was sensitive in his opinion.

Deepak Srinath, director—digital practice at Bangalore-based Allegro Capital Advisors, said comparisons between Premji and Murthy's venture is not like-to-like. "Having said that, it's easier to be a financial investor. But in the case of Catamaran, they are setting up full-scale operations and would be managing business operations. It's not easy to stick your neck out in this fashion which is a high-risk game in itself."

Aashish Bhinde of Avendus Capital said both Murthy and Premji have carved their own paths to align with players in the country's e-commerce play. When asked if Murthy's embraced a safe game plan with assured returns, while Premji's is a higher risk affair, Bhinde said he doesn't agree with those characterizations. "I believe they both are bullish about the sector but have different investment strategies. While one is taking a portfolio investment approach, the other has made a more strategic move," he added.

With Flipkart raising $1 billion in fresh funds and Amazon pouring $2 billion into the India market, many existing players could fall off the investors' radar paving the way for a two- or a three-way race between Amazon, Flipkart and Snapdeal in India. So far, Flipkart has raised close to about $1.7 billion from a clutch of investors as it fights Amazon and Snapdeal in a fast-growing e-commerce market. India has 243 million internet users, and this number continues to grow rapidly due to increased smartphone penetration.

Higher disposable incomes and internet connectivity are pushing the Indian middle class to shop online. The two IT czars are fighting it out in an e-commerce market that's expected to touch $32 billion by the end of this decade.

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Agencies
July 30,2020

Ahead of the grand foundation stone-laying ceremony of the Ram Temple on August 5, Ayodhya priest and 16 police personnel, involved in the mega event on August 5, have tested positive for COVID-19. Priest Pradeep Das is one of the four priests who regularly perform puja at the Ram Temple site in Ayodhya.

Das has been placed under home quarantine and contact tracing is underway, reported.

Meanwhile, Uttar Pradesh police and Sashastra Seema Bal have been put on high alert in the districts bordering Nepal ahead of Prime Minister Narendra Modi's visit to Ayodhya on August 5.

PM Modi likely to launch postal stamps on Ram Temple, Ramayana during Ayodhya visit: Report
Counterfeit products create Rs 1-lakh-crore hole in economy, incidents up 24% in 2019: Report
On July 29, Uttar Pradesh reported a record single-day spike of 3,570 COVID-19 cases, taking the infection tally to more than 77,000, while 33 fresh fatalities pushed the death toll to 1,530.

"There are 29,997 active COVID-19 cases in the state and 45,807 patients have been discharged after treatment," Additional Chief Secretary, Medical and Health, Amit Mohan Prasad told reporters. "The death toll due to the disease has reached 1,530," he said.

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Agencies
June 4,2020

New Delhi, Jun 4: CSIR Director-General Shekhar Mande said on Thursday that the World Health Organisation's (WHO) decision to halt hydroxychloroquine (HCQ) drug trial was taken in haste and the global body should have actually analysed the data before making the decision.

"I firmly believe that WHO decision was taken in haste it was a kind of knee jerk reaction they should have actually analyse the data on their own before temporarily suspend the trials that is my personal opinion," Mande said.

India's nodal government agency ICMR (Indian Council of Medical Research) overseeing the country's response to the coronavirus pandemic last month wrote to the WHO citing differences in dosage standards between Indian and international trials that could explain the efficacy issues of HCQ in treating COVID-19 patients.

In addition, Dr Sheela Godbole, National Coordinator of the WHO-India Solidarity Trial and Head of the Division of Epidemiology, ICMR-National AIDS Research Institute also wrote a letter via an email to Dr Soumya Swaminathan, Chief Scientist at World Health Organisation.

In a letter, Dr Godbole stated: "There was no reason to suspend the trial for safety concern," attributing it to the current RECOVERY data which differs significantly from the non-randomised assessment by Mehra et al, a scientific paper.

Referring to the letter, the CSIR head said, "We don't know what actually happened behind the scenes but the hypothesis is that because of the paper published in Lancet. It is a very well known journal and if Lancet has done due vigilance in publishing the paper. 

Therefore, the WHO thought the paper's findings are right that's why WHO hold based on what is published on Lancet. The WHO shouldn't have accepted it immediately this should have taken their own due vigilance to find out that study is right or not."

DG CSIR said because there is a global outcry it must have put pressure on both Lancet as well as WHO and both of them now retracted from their original position. "WHO has started a trial again and Lancet has put an expression of concern on their website both of these are very welcome development for science," he said.

"So I am pretty sure that Lancet would have published the reports only after seeing somewhere the drug failed to work," Mande said.

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News Network
June 13,2020

New Delhi, Jun 13: About 56 per cent of children were found to have no access to smartphones which have emerged as essential tools for online learning during the coronavirus-induced lockdown, according to a new study that surveyed 42,831 students at various school levels.

The study ''Scenario amidst COVID 19 - Onground Situations and Possible Solutions'' was conducted by child rights NGO Smile Foundation with an aim of analysing the access to technology.

The findings of the study showed that 43.99 per cent of surveyed children have access to smartphones and another 43.99 per cent of students have access to basic phones while 12.02 per cent do not have access to either smartphones or basic phones.

A total of 56.01 per cent children were found to have no access to smartphones, the study said.

"Concerning television, it was noted that while 68.99 per cent have access to TV, a major chunk of 31.01 per cent does not. Hence suggesting that using smartphone interventions for enhancing learning outcomes is not the only solution," it said.

At the primary level of education (class 1 to 5) 19,576 children were surveyed while at upper primary level (class 6 to 8) 12,277 children were surveyed. At secondary level of education (class 9 to 10) 5,537 children were surveyed and at higher secondary level (class 11 to 12) 3,216 children were surveyed.

The survey based on which the study was conducted used two approaches - over the telephone wherein the NGO reached out to the children whose database it already had -- students enrolled in various education centres of the NGO -- and second was through community mobilization wherein community workers went door to door to get answers.

The survey was conducted in 23 states, including Delhi, Gujarat, Maharashtra, Karnataka, Tamil Nadu, West Bengal, Andhra Pradesh, Telangana, Uttar Pradesh, Haryana, over a period of 12 days from April 16 to April 28.

The lockdown induced by the COVID-19 pandemic in March prompted schools and colleges to move to the virtual world for teaching and learning activities. However, many experts say the digital divide in the country may turn online classes into an operational nightmare.

As per official statistics, there are over 35 crore students in the country. However, it is not clear as to how many of them have access to digital devices and Internet.

Santanu Mishra, co-founder and executive trustee, Smile Foundation, said the findings clearly show that the digital divide is a real challenge, and multiple approaches need to be implemented to cater to all across the nation.

"As an exercise before we start any programme, we do a baseline study to understand the on-ground challenges so that our programmes can bring in real work and real change. With the onset of the pandemic, following indefinite school closures, it is more important than ever to understand the situation and how can we ensure that children are given quality education. Through this, we understand that customized modules need to be built in accordance with the channel of communication," he said.  

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