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India’s biggest eCommerce company, <keyword id="6354742" type="COMPANY" weightage="80" keywordseo="Flipkart">Flipkart</keyword>, has sealed country’s single largest office space leasing deal at two million square feet custom-built office campus in IT hub Bengaluru. 
 
The company seeks to expand operations and workforce, which currently occupies five lakh square feet across the city. Flipkart was initially in talks with the <keyword id="252055" type="COMPANY" weightage="80" keywordseo="Embassy-Group">Embassy Group</keyword> and vying for 3 million sq ft. However, the plan was revised and the deal was signed for 2 million sq ft for 20 years. Flipkart will pay rent at Rs 50 a month per sq ft. 
 
"Two million sq ft of office space seats over 20,000 people," a person involved in the transaction told Economic Times. 
Flipkart seeks to move all its operations from various offices to one location. 
 
Currently, its office space includes 106,000 sq ft in Mantri Commercio, 37,674 sq ft in Salarpuria Tech Point and 9,000 sq ft in Brigade Court. 
 
Flipkart confirmed the transaction, but didn't provide details. Head of Embassy Office Parks, Bhhavesh Kamdar, said the property will be delivered in two phases. “The Phase I comprising 1.5 million sq ft will be handed over in the next two years,” Kamdar told the financial daily. 
 
Meanwhile, Managing Director for South India at JLL, which was Flipkart’s adviser in the deal, Juggy Marwaha said that with the current supply-demand dynamics in Bengaluru, large occupiers who have better visibility of their business would find locking space in advance as the way forward. 
 
He told ET that Flipkart-Embassy deal was by far the single largest commitment of office space anywhere in the country "as a one-shot take up, without any option spaces reserved". 
 
The new campus will come up as part of Embassy Tech Village on the Outer Ring Road and will be owned by US private-equity giant Blackstone and Embassy Group. 
 
(Image: Indiatimes)

Flipkart leases the single largest office space in India-a whopping 2million sq ft!

Popular domestic e-tailer <keyword id="6354742" type="COMPANY" weightage="100" keywordseo="Flipkart">Flipkart</keyword> on Sunday agreed to take 3 million sq ft of prime office space in Bangalore from realty firm <keyword id="252055" type="COMPANY" weightage="100" keywordseo="Embassy-Group">Embassy group</keyword> at an annual rent of Rs 300 crore. This is the largest <keyword id="2564331" type="UNKNOWN" weightage="80" keywordseo="office-leasing-deal">office leasing deal</keyword>. 
 
In order to beef up support and technology operations, the Rs 300-crore deal is a part of Flipkart's expansion plans as the Bangalore-based firm will hire 12,000 people this year. 
 
With an aim to take on rivals like Snapdeal and Amazon, Flipkart has chalked out an ambitious expansion plan to grab a lion's share of the estimated over $3 billion e-commerce market in India. 
 According to <keyword id="6420759" type="PERSON" weightage="60" keywordseo="Anuj-Puri">Anuj Puri</keyword>, real estate firm <keyword id="150310" type="CITY" weightage="60" keywordseo="Jones-Lang-LaSalle">Jones Lang LaSalle</keyword> (<keyword id="6370127" type="ORGANIZATION" weightage="60" keywordseo="JLL">JLL</keyword>) India country head and chairman, "Flipkart has signed an irrevocable letter of intent with Embassy Group for leasing 3 million sq ft office space. The final agreement will be signed within 90 days." 
 
JLL India helped Flipkart in securing the office space in the Silicon Valley of India. "It is the biggest single occupier leased transaction, in terms of space volume, in India which demonstrates the beginning of Indian real estate office market recovery," added Puri. 
 
"The 3 million sq ft of office space will be leased to Flipkart in phases. We have won this transaction because of our reputation and experience of having dealings with large MNCs like Microsoft and IBM," said Jitu Virwani, Embassy Group chairman and managing director. 
 
The rental will be around Rs 90 per sq ft per month for fully furnished office space, added Virwani. 
 
As per Virwani, the office space located at Outer Ring Road, Bangalore is part of Embassy Group's commercial project 'Embassy Office Park' in joint venture with private equity firm Blackstone. 
 
However, Flipkart declined to comment. 
 
"This is the largest ever office leasing transaction in India. It has taken over a year of thorough due diligence and process led by JLL India. We are proud to partner with an Indian company that is leading the technology business in the country," said Juggy Marwaha, managing director, south India for JLL. 
 
JLL had shortlisted over 10 developers and Embassy was selected after a long due and rigorous process, concluded Marwaha. 
Image: indiatimes

Flipkart Inks Largest Office Lease Deal With Realty Firm Embassy For Rs 300 Crore

With <a href="http://www.businessinsider.in/searchresult.cms?query=Flipkart&amp;sortorder=effectivedate">Flipkart</a> struggling with growth and raising fund, the <a href="http://www.businessinsider.in/searchresult.cms?query=e-commerce&amp;sortorder=effectivedate">e-commerce</a> has substantially scaled down its need for a huge office space in <keyword id="6354321" type="CITY" weightage="100" keywordseo="Bengaluru">Bengaluru</keyword>, which it leased almost two years back. 
 Amid sharp cuts in their valuations, India's biggest e-commerce company is now looking forward to lease just 0.83 million sq ft office space. Initially, the agreement was for 3 million sq ft from southern property developer <keyword id="252055" type="COMPANY" weightage="20" keywordseo="Embassy-Group">Embassy Group</keyword>, which was subsequently downsized to 2 million before the company finally decided on the current lease deal. 
 
The deal was made when the company was at its peak and at that time, it was the country's single largest office lease deal. 
 <keyword id="6354742" type="COMPANY" weightage="100" keywordseo="Flipkart">Flipkart</keyword> has not raised funds in the past 18 months, even as it defends its leadership position in a bruising marketplace war with <a href="http://www.businessinsider.in/searchresult.cms?query=Amazon&amp;sortorder=effectivedate">Amazon</a>. 
 Embassy Office Parks chief executive <keyword id="367476" type="PERSON" weightage="20" keywordseo="Mike-Holland">Mike Holland</keyword> confirmed the development, but denied there was a dispute between the two companies. 
 
"We have had conversations with them and see this as another normal part of any business, which provides opportunity for us to add some more space into the markat a time when there is not so much available," Holland told ET.

Amid sharp cut in valuation, Flipkart to lease smaller office as  it slashes mega Bengaluru office deal

<keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>, the poster child of the Indian startup ecosystem, was devalued for the seventh time in January 2017, by <keyword id="4205639" type="UNKNOWN" weightage="20" keywordseo="fidelity-partners">Fidelity Partners</keyword>. At a $5.56 billion valuation, Flipkart’s shares were valued at $52.13 in November 2016, down by 36.1 percent from $81.55 per share as of August 2016. The domino effect hit the cab aggregator <keyword id="6354720" type="PERSON" weightage="20" keywordseo="Ola">Ola</keyword> next with the US-based investment firm <keyword id="4205636" type="UNKNOWN" weightage="20" keywordseo="vanguard-world-fund">Vanguard World Fund</keyword> marking down Ola by over 40 percent. 
 According to their regulatory filing with the <keyword id="108474" type="ORGANIZATION" weightage="20" keywordseo="US-Securities-and-Exchange-Commission">US Securities and Exchange Commission</keyword>, the current valuation for Ola is now $3 billion, with its shares dropping from $311.27 per share in the previous quarter to $182.70 apiece. During their peak, Ola had raised $500 million at a valuation of $5 billion. 
 That’s not all. According to reports, e-commerce giant <keyword id="541988" type="COMPANY" weightage="20" keywordseo="SnapDeal">Snapdeal</keyword> is reportedly looking at raising funds at a lower valuation of $4 billion. At their last fundraising round, they raised $200 million at a valuation of $6.5 billion. 
 
Valuations are normally decided according to a company’s market share, its gross margins, and its rate of growth, among other factors, but is anyone talking about the elephant in the room? Does a number decide a company’s worth or does the mettle lie someplace else? 
 
What’s The Big Deal about Valuations? 
 
While Valuations and devaluations are part of the game, they are a mix of market environment, risk appetite, a fund manager’s biases, hot new trends, fear of missing out, the multiples comparable are commanding, and of course, expected cash flows and margins. 
In 2015, we lauded the entry of Flipkart, Ola and Snapdeal in the Unicorn club. The first quarter of 2015 saw over $1.7 billion funding in start-ups and all we hear now are downturns with reality hitting the magic creatures to the ground and forcing them to compete in a horse race for fund-raising. 
 
<a href="http://www.businessinsider.in/heres-how-uber-is-letting-you-earn-from-its-platform-uberdost/articleshow/57083396.cms">ALSO READ: Here's how Uber is letting you earn from its platform 'UberDost'</a> 
 
While there were muffled concerns of profitability and unit economics, the dynamics took a harder turn when in the middle of 2016 the world economic dynamics shifted. 
 
Suddenly, the pouring funding started slowing down, news of firing rounds, internal tiffs, and investor involvement began to cloud the startup skyline. 
 
Now the lauded valuations started to seem bloated and overhyped, and the cost-cutting started and it doesn’t seem to end. 
 
 
 
 
The secret is in the Business Model 
 <keyword id="824043" type="COMPANY" weightage="20" keywordseo="Business-Insider">Business Insider</keyword>, while digging deeper into factors ailing the startup ecosystem in India, realized that business models had to be one of the core ingredients to a startup’s success or failure. So, we got in touch with key players, notable investors and successful companies that had a say in the functions of the industry. 
 
What clearly emerged was that there were mainly three business models that most start-ups and unicorns, followed in India- 
 
1) Cut prices to gain industry share and chase profit later 
2) Set up person-to-person exchanges 
3) On-Demand Model 
 
Now we break down the models to see why Indian start-ups think they’d work and why they haven’t succeeded yet. 
 
Investors’ Point of View 
 <keyword id="262067" type="PERSON" weightage="20" keywordseo="Mahesh-Murthy">Mahesh Murthy</keyword>, Co-Partner, Seedfund, one of India’s most vocal investors told us what’s wrong with the Indian startup ecosystem,”The problem is that we are idolizing businesses that are not ‘New’. There is nothing elusive or different about the companies we look up to, they are just copycats.’’ 
 Seedfund, which is an early stage VC firm has invested in companies like Redbus.in, Chumbak, Carwale, and Voonik. “Real businesses need little or no marketing. The cost of acquiring a customer shouldn’t be higher than your investment in your product which is what is happening right now’’<keyword id="20148" type="PERSON" weightage="20" keywordseo="murthy">Murthy</keyword> comments on the viability of the business models of India’s best-known <keyword id="6362513" type="ORGANIZATION" weightage="20" keywordseo="Startups">startups</keyword>. 
 “Innovation for the sake of innovation is useless. Most consumers prefer the companies that are competitors to Flipkart, Snapdeal, and Ola and that speaks volumes. We are just looking for great service coupled with great value for money and <keyword id="18635" type="CITY" weightage="100" keywordseo="Amazon">Amazon</keyword> and Uber give us that while the other companies don’t hit the mark while getting celebrity endorsements with full-page ads.’’ 
 “Rule Number 1 of business: Never lose money. Rule Number 2: Don’t forget Rule Number 1,” said <keyword id="71133" type="PERSON" weightage="20" keywordseo="Warren-Buffet">Warren Buffet</keyword>, probably the most popular investor in the world. 
 <keyword id="542474" type="PERSON" weightage="20" keywordseo="Reid-Hoffman">Reid Hoffman</keyword> from <keyword id="28120" type="CITY" weightage="20" keywordseo="Linkedin">LinkedIn</keyword> and now a VC says that as a VC, you should be able to put your money into a startup and walk away from your investment and at the most, you are best placed to understand a sector if you have built a business in it or at the very least, worked in it. For Indian start-ups, we see the opposite happening with Flipkart who recently appointed <keyword id="6379357" type="UNKNOWN" weightage="20" keywordseo="Kalyan-Krishnamurthy">Kalyan Krishnamurthy</keyword> as CEO, who is an ex-employee at Flipkart’s key investor, Tiger Global. 
 
What is a business model? 
 
A business model explains which consumer pain a startup chooses to relieve, why your solution works better than competing ones and how big a wedge a company can drive between what customers are willing to pay and the costs. 
 
Breaking down the Business Models 
 
There are broadly the following business models at play when it comes to start-ups that hold the public eye in India: 
 
1. Cut prices to gain an industry share and chase profit later: Target a huge market and sell a product at the lowest price with fast delivery and great service. As the company grows, expand the product line, negotiate volume discounts with suppliers, invest in technology, customer response time and cut waste from the operations. Then deliver the lower costs to customers in the form of lower prices. 
 
This was Amazon’s model which is still one of the fastest growing companies in India and the world. Although it was founded back in 1994, Amazon didn’t actually make a profit until 2001. Amazon has some profitable projects, but the money made from them is typically used as investments to fund other Amazon businesses and ventures. The company invests its profits in new lines of businesses and uses them to expand. In short, Amazon seems to value growth over profits. 
 
 
 
​ <keyword id="8589" type="PERSON" weightage="20" keywordseo="padmaja">Padmaja</keyword> <keyword id="980938" type="PERSON" weightage="20" keywordseo="Ruparel">Ruparel</keyword>, President, Indian Angel Network doesn’t believe in this model simply because she thinks that Indian consumers are flighty, “There is a constant need to lure the consumer to stick with you which is tricky when you’re not the only player in the market. Your focus here is on how quickly you can grow the market and not on your business strategy.’’ Ruparel believes in investing in a much more stable business model, “We are old-fashioned for sure as our focus is on businesses building a top-line and a bottom-line. We ascertain a business by unit economics and even though the cycle might be slightly longer, B2B start-ups create a sustainable business.” 
 
“The consumer is surely attuned to buying online which was their aim, but only some players will remain in this market. Consolidation is inevitable as loss-making businesses can’t stay afloat for long, but only time will tell who will remain the top dogs here,’’says Padmaja when asked about the future for consumer-centric start-ups. 
 
India’s perspective: “E-commerce companies like Snapdeal and Flipkart are following a similar model to that of Amazon in India. The difference is that Amazon can afford to lose money in India as it is profitable in other markets. The former players are just playing in India where they’re losing money trying to compete with Amazon,” comments Mahesh Murthy. 
 
2. Set up person-to-person exchanges: A house owner in a town has a huge house that has idle rooms that aren’t occupied. The young professionals living in the city need accommodation in different towns to work flexibly but they don’t want to own a house or live in expensive hotels. It seems to be working for <keyword id="719382" type="COMPANY" weightage="20" keywordseo="Airbnb">Airbnb</keyword> which doesn’t own any inventory and millions of people have taken advantage of these services, and Airbnb now has a market value estimated at $30 billion—roughly the same size as the <keyword id="183920" type="CITY" weightage="20" keywordseo="Marriott-International">Marriott International</keyword> hotel chain. 
 
Vikram Gupta, CEO, IvyCap Ventures, “India is not a mature market where you can write off $100 million checks to companies that are spearheaded by college graduates or in some cases, dropouts. The entire ecosystem is disturbed as new companies were getting funding at overhyped valuations. The market has started to finally stabilize and we see investors going back to the revenue as a yardstick for company’s growth instead of the GMV. The businesses are coming back to realistic valuations and while they might have money left in the bank, they are looking to reduce their cash burn rate.” 
 
 
 
India’s perspective: Companies like <keyword id="2808667" type="UNKNOWN" weightage="20" keywordseo="OYO">OYO</keyword> are trying to work with small hotels and guesthouses and have even leased their own properties but the burn-rate is consistent. With simplifying its business model and focusing on one aspect; people sharing their homes with people and minimal revamping, Airbnb has revolutionized how the world sees hotel accommodation forever. 
 
3. On-Demand Model: Smartphones have driven transformational shifts in how we consume goods and services, and many consumers have become acclimated to purchasing at the press of a button. The on-demand model allows a startup to leverage new technology while utilizing existing infrastructures. Another benefit lies in the use of freelance labor with its obvious advantages in cost cutting. 
 
Uber is a great example of the sharing economy where they connect the supply to the demand of taxis without investing in their own fleet. 
 
India’s perspective: <keyword id="6362049" type="UNKNOWN" weightage="20" keywordseo="Ola-Cabs">Ola Cabs</keyword> is Uber’s biggest competitor in India and while both companies burn a lot of money trying to lure customers to get into a taxi, Uber is currently the world’s most valuable startup at $69 billion. 
 
<a href="http://www.businessinsider.in/online-cab-players-in-2016-completed-nearly-half-a-billion-rides-with-250-y-o-y-growth-in-india/articleshow/57273938.cms">ALSO READ: Online cab players in 2016 completed nearly half a billion rides with 250% y-o-y growth in India</a> 
 
Winner Speak 
 V. Krishnan, Co-founder, and Director of <keyword id="1675768" type="UNKNOWN" weightage="20" keywordseo="Justdial-Ltd">JustDial Ltd</keyword> who likes to call his company an ‘18-year old startup’ says that for a successful business you don’t need an extraordinary idea, “The problem with start-ups today is that they don’t focus on profitability. To create a profitable business, you need extraordinary execution, not an idea. Giving money to people to use your services doesn’t make sense. The Indian customers are not loyal to brands, but to offers. Our goal was to create a world-class business and a world-class company.’’ 
 
For the first ten years of JustDial’s existence, the company didn’t raise any funding. The company ran on a shoe-string budget and used its own money to survive. In 2006, when internet penetration and broadband gained traction in India, the company was ready with its fully functional website to complement its telecom services. From 2-3% internet users to now 85% internet users, the company has grown to 200 Cr web searches annually, without any cashback or incentives. The company is probably one of the rarely profitable internet companies in the country today. 
 
<a href="http://www.businessinsider.in/65-of-start-ups-feel-indian-startup-eco-system-may-be-in-a-tech-bubble-report/articleshow/57205211.cms">ALSO READ: 65% of start-ups feel Indian startup eco-system may be in a tech bubble: Report</a> 
 
“The core business of start-ups isn’t ready but there is marketing happening. India is going to be giving you a lot of opportunities. Everyone wants to create a company, raise a great valuation and sell it off to do something bigger; the attitude is wrong," he signs off. 
​ 
Business Insider got in touch with Flipkart, Ola, Snapdeal, and Uber for this story but the companies chose to not comment on the same. 
 
​ 
 
Business Insider’s Take 
 
While popular Indian start-ups struggle to survive without additional funding coming in, we see some internet companies like JustDial and BookMyShow staying afloat, without investor-intervention. 
 
When it comes to businesses and business models, investors and successful companies agree that the tried and tested works; build a business with a strong product that you can alter as technology develops. The business of losing money can only take you so far if you don’t put it to good use. 
 
There’s a difference between investment into a product and burning money, and the start-ups better realize that before they get acquired or relinquished by the players who created the game that they’re set to lose. 
 
The market is big enough for companies that create value for customers not just for start-ups that create customers; the difference is everything. 
 
(Graphics: All figures in INR crores for the financial year 2015- 2016. Source: <a href="http://www.livemint.com/Companies/vtqiTC9VgJgnUfOAH2QdiL/Flipkart-still-Indias-top-startup.html">Mint Research</a>) 
 
**For Oyo, the result is from Apr-Dec 2015. 
*BookMyShow is the only company mentioned that has profits.

BI Investigation: Business models akin to Amazon and
Uber’s aren’t working for Indian startups

As the festive season kicks off on Monday with big sales promotions, firms which provide last-mile services to ecommerce sites are encouraging their employees to go the extra mile. On offer are silver coins, cash, gift vouchers, gadgets, refurbished homes and the chance to upgrade skills to take on higher-level roles.
 

	These firms include Ola, delivery agencies such as Gojavas and Roadrunnr, and staffing firms such as Quess Corp and TeamLease.
 

	Wiser after the surge in business last year took them by surprise, companies want to make sure they'll be able to handle the extra load this time around.
 

	And a crucial aspect of that is motivating those at the end of the chain. "Compared to last year, when some of these sales saw a great deal of chaos, this time the level of preparedness on the part of the companies is much better," Rituparna Chakraborty, cofounder and senior vice-president, Team-Lease Services, a recruitment agency, told ET. "This in turn will also lead to people performing better and earning more." For example, a delivery person in Bengaluru earning a monthly salary of Rs 12,000 can boost that by 50-60% through incentives, Chakraborty said.
 

	Ola said incentives will help ensure that clients can get cabs when they want. "These initiatives motivate drivers to be more available on the platform during the festive season and will help us bridge the demand-supply gap," said Anand Subramanian, senior director, marketing communications.
 Hyperlocal delivery company Roadrunnr's best staff will get silver coins daily. Weekly incentives include kitchenware and electronic gadgets. The company's clients include <keyword id="541988" type="COMPANY" weightage="100" keywordseo="SnapDeal">Snapdeal</keyword> and Myntra. The top 10-15 Runnrs, as they are called, will also be trained in soft skills, spoken English and computers to help them in career advancement, said Aneek Mukherjee, director, Roadrunnr. <keyword id="103483" type="PERSON" weightage="100" keywordseo="Raj-Kumar">Raj Kumar</keyword>, 22, hopes he can be one of the winners at Roadrunnr. During the festive season, the number of orders can double to 30 on a weekday compared with 14-15 on regular days and about 20 on the weekend, he said. One of the top performers at his branch in Bengaluru, he said, "These initiatives make all the extra trips worth it." While India's online retail market is expected to grow to around $50 billion by 2020 from $4 billion at the end of 2014, according to industry estimates, competition among the top ecommerce sites such as <keyword id="6354742" type="COMPANY" weightage="100" keywordseo="Flipkart">Flipkart</keyword>, Amazon and Snapdeal will be at full pitch. And with online sellers focusing more on margins rather than discounts, companies will need to work harder on service. 

	They also need to make sure rivals don't poach their people. "Retention is the biggest challenge since the environment is tight. Everyone from old players to the new is fighting for a share," said Guruprasad Srinivasan, Quess Corp's CEO for people and services. The company provides delivery agents for the top ecommerce companies — staffing has surged to 20,000 from 3,500 in a year. Srinivasan said most ecommerce companies are paying bonuses and incentives this time round. Riders are also crucial for companies such as Faasos, which delivers restaurant orders placed on its website.

	 
	 
	(Image credits: clubpenguin.wikia)

This festival season has surprises in store for hard working employees!

The <keyword id="375475" type="General" weightage="20" keywordseo="future-retail" source="Orion">Future Retail</keyword> counsel on Tuesday informed the Supreme Court that his client is broke and Amazon has driven the firm to its knees, after Amazon's counsel submitted that talks between the parties to settle legal disputes have failed and Reliance is taking over Future's shops. Senior advocate Harish Salve, representing Future Retail, submitted before a bench headed by Chief Justice N.V. Ramana that nothing has been transferred and the rent for the shops have not been paid for over two years. "We had no money, which is what we've been telling all forums. Landlords are terminating our leases," said Salve. He also said that Amazon was bringing them to their knees and they were broke. Salve's response came following submissions from senior advocate Gopal Subramanium, representing Amazon, that Reliance is taking over Future Retail stores, despite the highest court direction that no assets will be transferred. "It's been recorded, and during pendency the orders have been flouted...," said Subramanium. At the outset, Amazon counsel informed the top court that efforts at resolving a long-running dispute between his client and Future Retail, have failed. "The efforts did not work and the conversation is over. Nothing is happening," said Subramanium. The counsel for both parties agreed on resuming arbitration proceedings at the tribunal, which have been put on hold by the Delhi High Court. Salve added one can talk about the glory and grandeur of things, "but when we're broke, we're broke". He said the shops' takeover started 15 days ago. "We have no control. Reliance is taking action despite the ongoing litigation. Reliance is taking over. We can't do anything," said Salve. He further added that not one store has been surrendered and Reliance took away the boards as they're entitled to, all our assets are where they are. Senior advocate Mukul Rohatgi, representing Future Coupons, reiterated "the shops are there! What's the point of saying it's been taken over?" Salve added: "We can't do anything. What do we do? We haven't signed anywhere. In fact Mr Biyani went and protested." Another counsel for Amazon said, "So suddenly they are saying there's no money so the shops are taken over? Look at the conduct." The bench said, "Proceedings are going on and everything is happening. We're getting a feeling that by adjourning matter, we're being lenient." Subramanium said: "Let us go back to the tribunal...80 per cent shops surrendered to Reliance." After a detailed hearing, the top court allowed Amazon to file an application in the matter and scheduled the matter for further hearing on Wednesday. The top court was hearing Amazon's challenge against Delhi High Court's order staying further arbitration proceedings with the <keyword id="44949" type="General" weightage="20" keywordseo="future-group" source="Orion">Future Group</keyword> before the Singapore Arbitration Tribunal. Future Retail Ltd (FRL) entered into a Rs 24,713 crore deal with Reliance Retail to sell its business, which has been objected to by the US-based e-commerce giant Amazon. SEE ALSO <a href="https://www.businessinsider.in/business/ecommerce/news/four-years-later-sachin-bansal-is-still-battling-eight-lawsuits-from-his-flipkart-days/articleshow/90202495.cms" data-type="tilCustomLink">Four years later, Sachin Bansal is still battling eight lawsuits from his Flipkart days</a> <a href="https://www.businessinsider.in/stock-market/news/paytms-shares-hit-an-all-time-low-plunging-below-the-700-mark-after-rbi-pulls-up-its-payments-bank/articleshow/90193957.cms" data-type="tilCustomLink">Paytm’s shares hit an all-time low plunging below the ₹700-mark after RBI pulls up its payments bank</a> <a href="https://www.businessinsider.in/business/startups/news/interview-you-will-be-able-to-own-bajaj-made-yulu-bikes-by-next-year/articleshow/90172838.cms" data-type="tilCustomLink">INTERVIEW: You will be able to own Bajaj-made Yulu bikes by next year</a>

Amazon is bringing us to our knees, we're broke: Future Retail tells Supreme Court

<ul><li><keyword id="163404" type="COMPANY" weightage="20" keywordseo="Softbank">SoftBank</keyword> is looking to invest in secondary deals in India i.e. buy out investors in other <keyword id="6362513" type="UNKNOWN" weightage="20" keywordseo="startups">startups</keyword>.</li><li>Many of SoftBank’s star bets in India are either struggling or staring at an uncertain future</li><li>Rajeev Misra, the CEO of the <keyword id="3749718" type="PERSON" weightage="20" keywordseo="softbank-vision-fund">SoftBank Vision Fund</keyword>, reportedly said that talks are underway for 15-20 deals.</li></ul>SoftBank Vision Fund has invested over $10 billion and has $13 billion more to invest in India. That would seem like good news for new startups— or its existing bets like <keyword id="6354720" type="UNKNOWN" weightage="20" keywordseo="ola">Ola</keyword>, <keyword id="2808667" type="PERSON" weightage="20" keywordseo="OYO">OYO</keyword>, or Paytm— but it really isn’t. The Japanese billionaire <keyword id="357983" type="PERSON" weightage="20" keywordseo="Masayoshi-Son">Masayoshi Son</keyword>’s India office would rather spend that money on buying out investors in other startups because there is a shadow on the prospects of its current investments⁠; the COVID-19 coronavirus pandemic has hurt some firms and some others were struggling even before the outbreak. In an interview with <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/amid-turmoil-at-softbank-its-vision-fund-scouts-for-secondary-deals-in-india/articleshow/75398164.cms">Economic Times</a>, the fund’s CEO Rajiv Misra said, “We are actively looking at India, to invest at the right valuation. SVF1 and 2 are both interested in buying secondary positions from early-stage investors who are wanting to exit as their fund lives come to an end. Next three months, we will announce deals as currently we are in mid-stages of talking to 15-20 companies for both secondary and primary investments.” Misra also told ET that SVF1 has invested $81 billion so far and has also returned $10.7 billion to investors. The fact is SoftBank has already bet over $10 billion in India’s startup ecosystem but many of its bets are bleeding or staring at an uncertain future. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">SoftBank Vision Fund star India investments </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Last reported valuation </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Delhivery </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1.5 bn </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FirstCry </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1.2 bn </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Grofers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$650 mn </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ola </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$5.7 bn </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">OYO </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$10 bn </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Paytm </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$16 bn </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">PolicyBazaar </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1.5 bn </td></tr></tbody></table> The fault in his stars For instance, OYO, which owes a lot of its $10 billion valuation to the share buyback by the founder <a href="https://www.businessinsider.in/business/startups/news/oyo-founder-ritesh-agarwal-admits-the-share-buyback-in-2019-was-bad-timing/articleshow/75125466.cms">Ritesh Agarwal</a>, before coronavirus rattled the world, is part of the hospitality industry whose prospects are bleak at best in the near to medium term. The recent spate of problems, including the recent layoffs, further dent the <a href="https://www.businessinsider.in/business/startups/news/in-oyo-crisis-ritesh-agarwal-has-a-task-to-rebuild-the-companys-brand/articleshow/73282573.cms">brand value</a>, and possibly, the valuation too. Son has $1.5 billion riding on OYO. Meanwhile, the other big <keyword id="6357120" type="DEFINITION" weightage="20" keywordseo="paytm">Paytm</keyword> has seen a spike in valuation in the last three years but the road ahead is fraught with risks as it goes to head-to-head against the combined might of Reliance Jio and Facebook ⁠— owned by two of the world’s richest men Mukesh Ambani and Mark Zuckerberg respectively⁠— in payments, retail and more, areas that Paytm has called itself a leader in. The future of ride-hailing services like Ola in the post-COVID world with a rising preference for work-from-home is just as <a href="https://www.livemint.com/companies/news/india-s-gig-economy-goes-off-the-rails-as-the-coronavirus-crisis-deepens-11585508887763.html">uncertain</a>.Softbank’s investment gave Grofers another lease of life but in reality, online delivery of essentials is an overcrowded space with everyone from BigBasket to Amazon to Flipkart fighting it out. SoftBank itself poured in $5 billion into the second vision fund (SVF2) with a total reported size of $108 billion. Indian eyewear company Lenskart became the first company in India to receive funds from SVF2 in December 2019, just months before the world went into recession. According to <a href="https://www.reuters.com/article/us-softbank-group-results/softbank-sees-16-5-billion-full-year-vision-fund-loss-idUSKCN21V0TT">a Reuters report</a>, the group said it sees a $16.5 billion loss for its $100 billion Vision Fund. Thi was the first time in 15 years Softbank posted a loss because of ‘the deteriorating performance of its tech bets’. The group as a whole is set to report a $12.5 billion loss in FY20. SoftBank announced its largest ever share buyback to prop up their value in March. Son has already pledged two of every five shares in Softbank as collateral for loans. So it’s hardly a surprise that Son is having second thoughts on his own ‘vision’. "I promise you I'll start to be more careful and listen. My view doesn't change, but my behavior becomes a little more careful,” he <a href="https://tech.economictimes.indiatimes.com/news/internet/softbank-ceo-masayoshi-son-tells-us-investors-hell-be-more-careful/74451463">reportedly told his investors in the US.</a> SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/oyo-turns-to-masayoshi-son-for-help-in-japan-but-softbank-itself-is-struggling/articleshow/75201970.cms">OYO turns to Masayoshi Son for help in Japan, but SoftBank itself is struggling</a> <a href="http://businessinsider.in/business/news/chalk-and-cheese-when-steve-schwarzman-first-met-masayoshi-san/articleshow/74522400.cms">Chalk and cheese: When Steve Schwarzman first met Masayoshi Son</a>

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