Anti-trust regulator Competition Commission of India has approved Amazon’s plan to acquire a minority stake in Mumbai headquartered Future Group, The Economic Times reported. The Future Group and US-based retail behemoth are planning to jointly roll out a business plan that will help the Kishore Biyani-led Future Group to achieve $1 billion of incremental revenue by 2021, the report said.
Post the acquisition, Amazon will aim to expand its hyperlocal platform, Amazon Now, into newer cities in India by riding on the Future Group’s store network. Amazon also plans to sell Future Group’s FMCG and fashion private brands through its India e-commerce marketplace, the report added.
The US-based retail behemoth Amazon competes with Walmart-owned Flipkart in India. With the recent approval, Amazon eyes at expanding its hyperlocal platform Amazon Now. The company already has a minority stake the Aditya Birla Group-owned More. Industry watchers say India might be heading towards a retail oligopoly. Indian traders recently held demonstrations against both Amazon and Flipkart for violating the FDI norms.
Paytm to layoff 500 employees
One97 Communications, which owns and operates digital payments platform Paytm is planning to lay off over 500 employees at mid and junior levels, The Entrackr reported. The report said that the Noida headquartered company has been trimming its workforce for the past few days across four main verticals which include KYC, O2O, retail and transportation teams. The company is culling jobs to curb expenses. Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, and a few southern states recorded the maximum layoffs, the report added.
Ola restructures operations, plans to go public in next 20 months
ANI Technologies, which owns and operates Ola is restructuring its operations, The Economic Times reported. The company is reducing overall staff strength by 5-8%, which will impact about 350 jobs, the report said. Under the restructuring, a group of employees is also being moved to adjacent businesses, including Ola Electric and Ola Financial Services. Also, Ola is stepping up its governance and compliance processes as it plans to go public in 18-20 months, the report added.
Karnataka govt planning to enact new legislation for app-based services
Karnataka government is planning to either enact new legislation or flash a set of new regulations, which app-based services such as Uber, Ola, Swiggy and Zomato will have to follow in respect of their workers, The Economic Times reported. The labour department has formed a set of draft rules which is being checked by the National Law School of India University (NLSIU) professors Babu Mathew and V Nagaraj, the report said.