Meesho will expand its logistics network with software; foreign investors reduce their stakes in IT companies

E-commerce startup Meesho, which works with thousands of small and medium-sized businesses, is developing a software solution to expand its logistics network and reduce reliance on Delhivery, Ecom Express and Xpressbees, sources tell us.

Also in this letter:
■ Foreign investors are reducing their stakes in IT companies due to fears of a recession in the United States
■ EarlySalary Raises $110M in Funding Led by TPG and Norwest
■ Startup founders buy luxury homes to save tax

Meesho builds a logistics SaaS platform to expand its network

Meesho is building a logistics-focused enterprise software solution that small and medium-sized businesses will be able to use, people familiar with the matter told us.

Why? The software solution, which will be available to Meesho’s delivery partners, will expand the company’s logistics network and over time reduce its reliance on large third-party logistics companies such as Ecom Express, Xpressbees and Delhivery .

It will also allow Meesho to work more closely with local and regional players who may not have access to software solutions to handle large volumes of e-commerce deliveries.

Primary objective : Meesho commissioned former Myntra executive Sourabh Pandey, who currently leads Meesho’s execution and experience, to develop the product. Internally, it’s called logistics as a platform, a source quoted above said.

“Getting this product into service is one of the company’s main goals this year,” said a person with knowledge of the matter. “This will address many of the inefficiencies that exist in the Tier 2 and Tier 3 city supply chains,” one of the sources said.

Quotation: “Currently, end-to-end logistics capabilities have been developed by a few industry players and many small logistics companies and individuals are unable to participate in the ecosystem. In line with our vision to have 100 million small businesses succeed online, we are building a platform that will provide them with the operational know-how, network design capabilities, access to tools and technology to be part of that network,” the company said. .in a report.

Foreign investors are reducing their stakes in IT companies due to fears of a recession in the United States

IT recession

Foreign investors have reduced their stakes in major Indian IT companies such as Tech Mahindra, HCL Tech and Tata Consultancy Services amid global weakness in technology stocks amid fears of an impending recession in the United States, a market that represents 40% of sector revenue.

Details: Four of the five largest IT companies have been watching this downward trend for some time now. HCL Tech and Tech Mahindra saw the biggest drops on a yearly basis, according to data from Capitaline.

  • At the end of June, foreign portfolio investors (REITs) held 13.5% in TCS, compared to 15.4% a year ago and 14.2% in the January-March period, according to Capitaline.
  • Similarly, REITs held 6.95% of Bengaluru-based Wipro at the end of June, a level last seen in June 2016. A year ago their stake was 9.83% .
  • HCL Tech also saw a decline for the sixth consecutive quarter, to 17.9% – a level last seen during the 2008 financial crisis. The number was down from 23.2% in the same quarter l last year.
  • Tech Mahindra has witnessed the biggest outflow of REITs. Their stake fell to 30.4% in the June quarter from 36.2% in the same period last year.

Yes, but: Experts said this did not reflect any structural problems and was more related to investors’ preference for consumer-oriented companies, among others, amid high valuations.

Multiple tailwinds such as digitalization and big contracts to be re-competed may well see Indian IT services firms regain favor with foreign investors.

EarlySalary Raises $110M in Funding Led by TPG and Norwest

Expected salary

Digital lending fintech EarlySalary said it raised $110m (about Rs 878.8 crore) in a funding round co-led by TPG’s private equity fund Rise Fund and Norwest Venture Partners .

EarlySalary’s existing investor, Piramal Capital & Housing Finance Ltd., also participated in the round.

We reported on August 12 that EarlySalary was closing a $100 million fundraiser from TPG and Norwest. The round values ​​EarlySalary at around $300 million, as we reported at the time, citing people familiar with the details of the deal.

RBI repression: The funding closely follows the Reserve Bank of India’s (RBI) new guidelines on digital lending, which shifts the focus back to regulated entities, giving fintechs with an active NBFC (non-bank financial corporation) license an edge over others. EarlySalary operates an NBFC through which it lends with its partners.

ET E-Commerce Index

We have launched three indices – ET Ecommerce, ET Ecommerce Profitable and ET Ecommerce Non-Profitable – to track the performance of recently listed technology companies. Here’s how they’ve fared so far.

ET eCommerce Tracking

Startup founders buy luxury homes to save tax


Startup founders and corporate developers looking to save on taxes have become the top buyers of luxury real estate after selling shares or stakes in their companies, representatives from international brokerage firms told us.

Tax relief: Long-term capital gains from the transfer of shares (listed and unlisted) or the sale of interests in a start-up may be avoided under Section 54F of the Income Tax Act 1961 , if the earnings are invested in residential property.

High Net Worth Individuals (HNI) from all walks of life have purchased properties in the recent past. The list includes promoters such as Shekhar Bajaj of Bajaj Electricals and his family; Rajan Bharti Mittal, Vice President of Bharti Enterprises; Siddharth Jain of Inox; Pooja Dhoot, wife of Videocon group manager Anirudh Dhoot; Shailesh Dalmia and his wife Natasha; and Anil Gupta, promoter of KEI Industries.

Reliance and Meta advertise groceries on WhatsApp


Jio Platforms, a subsidiary of Meta and Reliance Industries, has announced the launch of an end-to-end shopping experience on WhatsApp.

Details: The first-of-its-kind initiative will allow users in India to browse JioMart’s grocery catalog, add items to their cart and complete the purchase without leaving WhatsApp, they said. The announcement was made at Reliance’s Annual General Meeting.

Launching an end-to-end shopping experience within WhatsApp is a long-term goal of Meta Founder and CEO Mark Zuckerberg.

In April 2020, Meta (then Facebook) acquired a 9.99% stake in Jio Platforms in an all-cash deal worth Rs 43,574 crore to boost its presence in India.


No plans to rename Zomato app to “Eternal”: Deepinder Goyal

Deepinder Goyal

Deepinder Goyal, co-founder and CEO of Zomato, said the company has adopted Eternal as its internal identity, but there are no plans to rebrand the Zomato app to Eternal.

He also said he has no intention of stepping back from the day-to-day running of the food delivery business.

Catch up fast: We reported on August 1 that Zomato is internally renaming itself to “Eternal” – a larger organization that will house multiple companies, each with their own CEOs. This raised questions about Goyal’s role and title within the company.

In his words: “We didn’t want the Blinkit team to feel like a son-in-law once the transaction was completed. We had to make sure that Zomato and Blinkit were placed on the same level in the hierarchy of importance in our day-to-day work life,” Goyal explained in a disclosure to BSE on Monday.

Other Top Stories by our journalists

Demolition of the twin towers of Noida

Noida demolition becomes internet event: Indians closely followed the demolition of the twin towers of Noida on the Internet on Sunday. Shortly after an implosion triggered by 3,700 kilograms of explosives knocked the towers to the ground in the afternoon, feeds on WhatsApp, Twitter, Facebook and other platforms were flooded with photos, videos and memes. It was probably the first time an event of such magnitude was filmed, consumed and shared on social media across India.

“No proposal to ban foreign phones under Rs 12k”: The government and MeitY will always intervene in market situations where there is “crowding out of Indian brands due to unfair trading practices”, Minister of State for Electronics and IT Rajeev Chandrasekhar said on Monday. On reports that the government plans to ban smartphones under Rs 12,000 from foreign brands, he said that although the ministry has no such proposal, it will ensure through initiatives and political interventions, that Indian brands would also survive and thrive.

Karnataka Aerospace and Defense Policy: The Karnataka government will develop Bengaluru, Belagavi, Mysuru, Tumakuru and Chamarajanagar as aerospace and defense manufacturing hubs with the aim of attracting $6 billion in investment and creating about 60,000 jobs over the of the next five years. This is part of the new aerospace and defense policy that the government has notified.

Global Choices We Read

■ The WhatsApp grocery store is already huge in Brazil. A startup wants to take it over. (Rest of the world)
■ Telegram-powered media is waging a guerrilla war against Russia (Wired)
■ Online creators are de facto therapists for millions of people. It is complicated. (The Washington Post)

Comments are closed.