Paytm Mall fraud
What's the news?
Paytm's founder & CEO Vijay Shekhar Sharma said 10 employees in its e-commerce business were sacked while 100 vendors were delisted from the marketplace post an audit conducted by E&Y. The investigation concluded that there was a Rs 5-10 crore fraud in the company.
What was the issue?
At Paytm Mall, where cashbacks had become the mainstay for the business, several employees were siphoning off cashbacks into their own bank accounts in collusion with vendors on the platform, according to media reports. Last month, ET had reported that the e-commerce entity had burnt roughly $150 million to $200 million in the September-October period last year on cashbacks and marketing. Read more.
The dismal PoS rollout in India
What's the news?
Banks have achieved only 44% of the last year's target to deploy 20 lakh point of sales (PoS) terminals in India, according to a letter written by a key official in the Ministry of Electronics and Information Technology, addressed to top executives of banks. While 41% of the target was attained in the northeast, in the rural areas it was worse at 16%.
What is the government's plan now?
The government has set a new target of 40 billion digital payments to be done in the country in the current financial year, bumping up last year’s target by more than 33%. To achieve this, banks have been mandated to deploy 8.5 million PoS terminals across rural areas and the northeastern states. Read more.
Ola pumps $60M funds into its International business
What's the news?
Ola has pumped in about $60 million into its international operations over the last 15 months, according to regulatory filings sourced from Singapore's Accounting and Corporate Regulatory Authority.
What is the investment for?
The capital invested only reflects additional costs of running local operations, marketing and incentives, according to sources aware of Ola’s plans. The amount spent on technology, people and call centres in these international markets are housed in India, and hence doesn't reflect on the filings made in the island nation. Read more.
New regulatory framework likely for scooter sharing startups
What's the news?
On-demand scooter sharing, which has emerged as an alternative for last-mile mobility especially in cities like Bengaluru, is ripe for a new regulatory framework as startups such as Vogo, Bounce and Drivezy chart ambitious expansion plans.
What's the significance?
Currently, these players come under the ‘Rent a Motorcycle Scheme, 1997’ which allows anyone with more than five vehicles to register as an operator. However, the scale of these startups far exceeds the regulation’s intent. The existing rules also do not address the use of such vehicles for point-to-point commuting. Read more.
Falcon Edge may back Stanza Living
What's the news?
Falcon Edge Capital could invest up to $30 million in Delhi-based student accommodation venture Stanza Living, as investor interest in the sector continues to heat up. Stanza Living is believed to be in the process of raising about $50 million in fresh financing.
Where will the money be used?
The proceeds will be used to strengthen scale and operations in existing cities, enhance its tech platform and possibly even look at buying out competitors, a source aware of the development told ET. The company currently has more than 20,000 beds across 10 cities and plans to increase that to 1 lakh beds by year-end. Read more.