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.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 7,2020

New Delhi, Mar 7: Prime Minister Narendra Modi turned emotional on Saturday when a woman beneficiary of his government's generic medicine programme told him that she had seen God in him.

Dehradun-resident Deepa Shah, who suffered paralysis in 2011, was interacting with the prime minister through video-conference on the occasion of Jan Aushadhi Diwas.

"I have not seen god, but I have seen God in you," she said, tears rolling down her eyes.

Modi was visibly emotional as the woman repeated her remark.

She also thanked the Uttarakhand chief minister and others who had helped her all along and said doctors had once told her that she cannot be cured.

"But on hearing your voice I have become better," she told Modi while profusely thanking the prime minister for his efforts to reduce the cost of medicines.

An emotional prime minister paused for a moment before telling her that it was her courage that had won over her disease and that she must carry on with the spirit.

Shah was expressing her plight and how she had suffered due to high cost of medicines after she suffered from paralysis in 2011 and has now started saving Rs 3,500 every month after benefitting from the government's low-cost generic medicines programme.

Soon after Shah rose to express her views, Modi asked her to sit and speak as he said she was uncomfortable while standing.

"You have defeated disease with your own will power. Your courage is your god and that same courage has given you the strength to emerge from such a big crisis. You should carry on this confidence in you," Modi told her.

He said some people still keep spreading rumours about generic medicines, going by their past experience, wondering how can medicines be available so cheap and that there must be something wrong with the medicine.

"But, by seeing you countrymen would gain confidence that there is nothing wrong in generic medicines. These medicines are not at all of inferior quality than any other medicine. These medicines have been certified by the best laboratories. These medicines are made in India and is 'Make in India' and are cheap," the prime minister said.

He said there is demand for generic medicines from India across the world and the government has made it mandatory for doctors to prescribe generic medicines to patients, unless necessary.

Comments

Sameeksha
 - 
Monday, 9 Mar 2020

Wowww so emotional... Lol .really god in you??? Drama king and queen

angry indian
 - 
Sunday, 8 Mar 2020

in 2002 riot we have seen shaitan in you..how come shaitan become GOD...

 

did he put atleat one tear for his mother, did he feel sad when pregnant muslim woman brutally murdered..

this guy is 21st century dajjal..

Suresh SS
 - 
Sunday, 8 Mar 2020

Big Nautanki, Dramebaz

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 21,2020

Bengaluru, May 21: The COVID-19-induced lockdown saw a spurt in crybercrimes in India with Kerala recording the highest number during the period, according to an analysis of IT security solutions provider K7 Computing.

The report analyses various cyberattacks within India during the pandemic and reveals that threat actors targeted the States with COVID-19-themed attacks aimed at exploiting user trust.

The sudden surge in the frequency of attacks witnessed from February 2020 to mid-April 2020 indicates that scamsters across the world were exploiting the widespread panic around coronavirus at both the individual and corporate level, the company said in a statement.

These attacks aimed to compromise computers and mobile devices to gain access to users confidential data, banking details and cryptocurrency accounts.

The key threats seen during this period ranged from phishing attacks to rogue apps disguised as COVID-19 information apps that targeted users sensitive data.

Phishing attacks were noticed more in Tier-II and Tier-III cities while the metros fared better.

Smaller cities saw over 250 attacks being blocked per 10,000 users.

Users from Ghaziabad and Lucknow seem to have faced almost six and four times the number of attacks, respectively, as Bengaluru users.

In Kerala, regions like Kottayam, Kannur, Kollam, and Kochi saw the highest hits with 462, 374, 236, and 147 attacks respectively, while the state as a whole saw around 2,000 attacks during the period, the highest thus far in the country.

This was followed by Punjab with 207 attacks and Tamil Nadu at 184 attacks, the statement said.

A majority of the recorded attacks were phishing attacks with sophisticated campaigns that could easily snare even the most educated users, it said.

These attacks were aimed at heightening users fears and creating a sense of urgency to take action.

The report noted phishing attacks where scamsters posed as representatives of the United States Department of the Treasury, the World Health Organisation, and the Centres for Disease Control and Prevention.

Users were encouraged to visit links that would automatically download malware on the host computer such as the Agent Tesla keylogger or Lokibot information-stealing malware, infamous banking Trojans such as Trickbot or Zeus Sphinx, and even disastrous ransomware.

Other attacks included infected COVID-19 Android apps like CoronaSafetyMask that scam users with promises of masks for an upfront payment; the spyware app Project Spy; and seemingly genuine apps that are infected with dangerous malware like banking Trojans such as Ginp, Anubis and Cerberus, it was stated.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
July 16,2020

New Delhi, Jul 16: India's pharmaceutical industry will be able to produce Covid-19 vaccines not just for the country but also for the entire world, according to Microsoft co-founder and philanthropist Bill Gates.

A lot of "very important things have been done" in India and its pharma industry is doing work "to help make the coronavirus vaccine building on other great capacities that they have used for other diseases", said the Co-Chair and Trustee of Bill and Melinda Gates Foundation.

Speaking in a documentary -- Covid-19: India's War Against The Virus -- to be premiered on Discovery Plus this (Thursday) evening, Gates said India also faces a huge challenge due to the health crisis because of its gigantic size and urban centres with a lot of population density.

Commenting on the strength of India's pharma industry, he said, "India has a lot of capacity there -- with the drug and vaccine companies that are huge suppliers to the entire world. You know, more vaccines are made in India than anywhere-- starting with Serum Institute, that's the largest."

He further said, "But (there are) also Bio E, Bharat (Biotech), many others. They are doing work to help make the coronavirus vaccine, building on other great capacities that they have used for other diseases."

Stating that India joined Coalition for Epidemic Preparedness Innovations (CEPI), which is a group working on a global basis to build vaccines platforms, Gates said, "I am excited that the pharmaceutical industry there will be able to produce not just for India but also for the entire world. (This is) What we need to reduce the deaths and make sure we are immune, which is how we end the epidemic."

Gates said Bill and Melinda Gates Foundation is also a "partner with the government, particularly with the department of biotechnology, the Indian Council of Medical Research (ICMR) and the office of the principal scientific advisor provide advice and help about getting these tools going".

Commenting on the deadly virus breaching India's borders in the documentary which was shot extensively during the period of lockdown, he said, "India is still at the beginning of this, but there's a lot of very important things have been done.

“It's a huge challenge with India because you've got a gigantic country. You've got your urban centers with a lot of density-- and so that-- drives the spread. You have people moving around."

He, however, added: "Yet people are stepping up... Looking at how we reduce the spread while trying not to reduce food availability, equipment that people need."

Highlighting Gates foundation's role, he said it has "worked for the Indian government on health issues like introducing new vaccines over the last decade; and so when Covid-19 came along, we stepped in and said you know where are the gaps, we have been funding work on detection and isolation.

“We have been particularly active in UP and Bihar where we have done health delivery in the past."

The foundation is also working with the department of personnel and training to take their online training platforms and "are now using that guidance to help their frontline health workers", Gates said. 

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.