Friday, 16 November 2018

Jabong Merges Into Myntra, Ananth Narayanan Will Continue To Lead

Myntra CEO will continue to lead
Myntra's independence as a business will be "preserved"
Jabong brand will also be retained
Putting rest to all speculations, Myntra has finally issued its statement in media. According to a company statement, Myntra and Jabong will now fully integrate all the remaining functions including technology, marketing, category, revenue, finance, and creative teams.
“Since Myntra’s purchase of Jabong in mid-2016, the two brands have been steadily integrating key business functions and streamlining processes. This has resulted in revenue growth and a significant improvement in the customer experience,” the company said.
It further added that the closer integration of Myntra and Jabong is a necessary step in the company’s continuing development. By better aligning its resources with the long-term plans, they can put the best structure in place to serve the sellers and brand partners and ultimately benefit the customers.
Myntra also cleared the clouds over the status of the CEO Ananth Narayanan. As per media statements, he will continue to lead the team. “Myntra’s independence as a business will be “preserved”. The Jabong brand will also be retained,” the statement added.
In a statement on Thursday (November 15), Krishnamurthy said he is committed to growing the Myntra business. “The Flipkart group is committed to the success of Myntra and growing the business, now more than ever… We want to empower the Myntra team to continue to operate independently to achieve even greater success.”
Earlier today, media reports quoted sources suggesting potential lay-offs in the Flipkart Group companies including Flipkart, Myntra and Jabong. Some media reports further reported that as the Flipkart founders move out from the company, at least 20 senior executives at Walmart-acquired Flipkart have reportedly floated their resumes to explore job opportunities.
Both Myntra and Jabong have been brought under the control of Flipkart CEO Kalyan Krishnamurthy following cofounder Binny Bansal’s exit as Group CEO earlier this week.

Leads Resign, Flipkart Sr. Executives & Jabong Jobs At Risk

Flipkart Group CEO Binny Bansal resigned last week over a personal misconduct issue raised by Walmart
Following it, Myntra CEO and CFO is also expected to have resigned
Potential lay-offs are further expected at Myntra-Jabong
Post the resignation of Flipkart Group CEO Binny Bansal over a ‘personal misconduct’ issue raised by Walmart, the company has entered into the restructuring mode. While the leads from several departments have already resigned, many senior executives at Flipkart are now looking for a shift.
Also, the employees of Flipkart subsidiaries including Myntra and Jabong are now uncertain of their status and are expecting a potential lay-off.
At present, Kalyan Krishnamurthy is leading Flipkart Group as the new CEO.


As per media reports, Myntra CEO Ananth Narayanan is speculated to put in his papers. He was followed by CFO Dipanjan Basu.
Chief marketing officer of Myntra and head of Jabong, Gunjan Soni, and Myntra’s chief strategy officer and head of categories, Ananya Tripathi, also quit the company earlier this year.
An ETRetail report further quoted sources stating that Myntra could lay-off around 100 to 400 employees as part of the rejig.
As far as Jabong is concerned, Myntra acquired the company in 2016 and was headed by CEO Ananth Narayanan. Jabong is now expected to lay-off around 50% of its 400 strong workforce. This calls for merger of the several departments of Jabong with Myntra such as technology, HR, finance among others.
Both Myntra and Jabong have been brought under the control of Flipkart CEO Kalyan Krishnamurthy following cofounder Binny Bansal’s exit as Group CEO earlier this week.
As per reports, merger of Myntra and Jabong with Flipkart is also on the cards. However, most probably, Flipkart Fashion and Myntra may continue to be run independently, “although it is not clear how much focus will remain on Jabong and if it will continue operations.”
In a statement on Thursday, Krishnamurthy said he is committed to growing the Myntra business. “The Flipkart group is committed to the success of Myntra and growing the business, now more than ever… We want to empower the Myntra team to continue to operate independently to achieve even greater success.”

Flipkart Headquarters

The things are not smooth at Flipkart headquarters as well.
It was a well known fact that not many senior executives at Flipkart have been the die hard fan of Krishnamurthy. As the Flipkart founders move out from the company (that too in a political fashion), at least 20 senior executives at Walmart-acquired Flipkart have reportedly floated their resumes to explore job opportunities, as per media reports.
As said, the executives fear duplication of roles if Walmart decides to merge Myntra-Jabong with Flipkart and hence looking out for options.
“While Flipkart’s fashion business has been run by close to 100 employees, the same functions at Myntra are run by 1,000 people. Sourcing for all three platforms may be merged while further synergies are being explored,” said a few of the ET sources.
In August this year, when global retail giant Walmart acquired Indian ecommerce unicorn Flipkart for $16 Bn, it was seen as the sign of the maturity Indian startup ecosystem has gained, thereby giving a wonderful exit to the investors in the company. However, the way Walmart has pushed the founders Binny Bansal and Sachin Bansal out of their own company, it has forced the startup ecosystem stakeholders to think once again on their fund raising and exit strategy.
Update: The media reports later confirmed that Ananth Narayanan will continue as CEO of Myntra

Thursday, 15 November 2018

CAIT wants govt to launch e-commerce marketplace in partnership with trade associations

Traders' body CAIT Thursday urged the government to launch an e-commerce marketplace portal in partnership with trade associations where small traders, artisans and women entrepreneurs can sell their products in a 'fair and transparent manner'.
The Confederation of All India Traders (CAIT) said it has also sent a letter to Union Commerce Minister Suresh Prabhu Thursday alleging "that the e-commerce business in India is highly vitiated and has been gripped by a few big online companies who are indulging into predatory pricing, deep discounting and loss funding" against the FDI guidelines of the government.
Representational image. Reuters
Representational image. Reuters
The commerce and industry ministry notifies FDI policies through press notes. Press Note 3, which was released in 2016, enlists guidelines for foreign direct investment in e-commerce sector.

"The government in association with trade associations should launch an e-commerce marketplace portal where small traders, artisans, women entrepreneur and others can sell their products in a fair & transparent manner," CAIT said to Prabhu.
In the letter to Prabhu, the traders' body also demanded early announcement of an e-commerce policy and formation of a Regulatory Authority to monitor the e-commerce business in India.

How Walmart decided to oust an icon of India’s tech industry

Flipkart co-founder and former CEO Binny Bansal. Photo: AFP
Flipkart co-founder and former CEO Binny Bansal. Photo: AFP
Bangalore/New York: For Binny Bansal, the end of his long run as co-founder of India’s most successful startup came Saturday when he began calling colleagues to say he was done. The 37-year-old was stunned that officials from Walmart Inc., his startup’s new owner, were probing details of an affair years earlier. An investigation found no evidence of wrongdoing. Nevertheless, a decade after he created e-commerce leader Flipkart, he was calling to say goodbye.
His ouster, announced Tuesday from Walmart’s hometown of Bentonville, Ark., left workers at Flipkart, half a world away in Bangalore, stunned and struggling to make sense of the cryptic explanation. They worried about Walmart’s motivations and wondered if other Flipkart leaders would exit.
In its announcement, Walmart said it had initiated an independent investigation into an allegation of “serious personal misconduct.” The probe didn’t uncover evidence to support the charge. However, company said, “it did reveal other lapses in judgment, particularly a lack of transparency, related to how Binny responded to the situation. Because of this, we have accepted his decision to resign.”
The explanation satisfied almost no one. Flipkart employees and workers at other startups wondered whether Walmart was using the episode to push Bansal aside. His co-founder left after the deal was completed, and several Flipkart employees saw the timing of his resignation as suspicious. Walmart’s handling of the situation raises more questions than answers, said Kannan Ramaswamy, a professor at the Thunderbird School of Global Management at Arizona State University.
“Like it or not, Bansal is one of the very successful entrepreneurs in the country and India likes to claim such heroes as its own, so I don’t think this issue will disappear,” said Ramaswamy, who specializes in management strategy in the country. “There has to be more information forthcoming.”
Walmart declined to comment for this story and Bansal did not respond to questions.
This account of what led to Bansal’s departure was pieced together from interviews with two dozen people directly involved in the events or associated with the company. It doesn’t answer all the questions swirling around the e-commerce giant long heralded as the leading example of India’s rise. But it clarifies some of the key details that led to the ouster of one of the country’s most celebrated entrepreneurs.
The allegations against Bansal arose just after Flipkart agreed to sell a controlling stake to Walmart, the American retailing giant. The deal came after months of negotiations during which Walmart archrival Inc. pressed hard to win the deal. In May, Walmart agreed to pay $16 billion for a 77 percent stake.
The woman who had been involved with Bansal contacted executives at Walmart in July, as they were working to close the U.S. company’s biggest deal ever. She alleged that Bansal had sexually assaulted her in 2016.
Walmart took the allegations seriously enough that it appointed a global law firm to investigate the charges. The independent probe found that he’d had a consensual, extramarital relationship with the woman and that she was not an employee at the time of their involvement, though she had previously worked at Flipkart, according to people with knowledge of the investigation.
But Walmart’s senior executives still had questions. They wanted Bansal to explain why he hadn’t disclosed the allegations during the signing of the deal, particularly while answering mandatory questions about litigation risk, according to the people. They also wanted to know about alleged payments Bansal had made to the woman, perhaps to encourage her silence, one of the people said.
The co-founder insisted he didn’t have any obligation to disclose the relationship, especially because there was no evidence of assault. He also didn’t think he should have to answer more questions after the investigation. The questioning was particularly galling because Bansal had led formulation of policies for sexual harassment and whistle-blower complaints. Eventually, Bansal announced he’d had enough, the people said.
It’s unusual to hold an executive responsible for relationships outside of the workplace, according to legal experts, but they do have to answer questions honestly.
“I don’t think he had an obligation to report to a new owner a previous intimate relationship,” said Alan Exelrod, an attorney in San Francisco at Rudy, Exelrod, Zieff & Lowe. “The flip side is that if he’s asked and he doesn’t tell the truth, then he’s in trouble.”
The decision most likely turned on executives’ ability to trust Bansal and their desire to avoid a public relations disaster, said David A. Tauster, an associate attorney in Nixon Peabody’s labor and employment practice group.
“You could see how Walmart would read between the lines and think, ‘You know what? The harassment is not the only thing at issue here,’’ Tauster said. “The risks of keeping this executive on are not going to outweigh the benefits of just using this as an opportunity for a somewhat clean break.”
With Flipkart, Walmart has a lot at stake in India’s growing online retail market. The 1.3 billion country’s retail market projected to grow to $1 trillion by 2020. Without a single dominant local retailer and booming mobile internet access rates, Walmart and Amazon are in fierce competition to emerge as the market’s leader. With Bansal’s departure, Kalyan Krishnamurthy, who has led the Flipkart online retail business, will take on additional responsibilities.
Grabbing control of Flipkart has become critical for Walmart, which has also strengthened its own ethics and compliance practices in the wake of a six-year international corruption investigation. The company cultures were completely different in this way, according to people familiar with both firms. At Flipkart, an extramarital affair would be considered personal; Walmart executives thought it was worth disclosing.
In a statement that announced the news internally, Walmart said it had full confidence in the strength and depth of leadership at Flipkart and would support the subsidiary’s “desire to evolve into a publicly-traded company.”
While echoing many of the words in Walmart’s communique, Bansal’s email explicitly described the events as personal. He was stepping away from the operating role but would continue on the Flipkart board and as a large shareholder.
“Thank you for all the goodwill that you’ve shown towards me over the years,” he ended, in an emotional sign off. “I’m grateful to have had the opportunity to help get us to where we are today.

Paytm's Parent Company One97 Communications Widens Net Loss to Rs 1,490.4 Crore

Paytm's parent company One97 Communications has reported a higher net loss of Rs 1,490.4 crore for the year ended on March 31, 2018, compared to Rs 879.6 crore in the previous fiscal, according to regulatory filings.

One97 Communications' revenues from operations, however, grew manifold to Rs 2,987.41 crore in FY2017-18 as against Rs 624.76 crore in FY2016-17, according to the company's filings to the Corporate Affairs Ministry provided by business intelligent platform Tofler.

Its employee benefits expenses during the fiscal under review were at Rs 540 crore.

The filing stated that the company has a number of subsidiaries including Paytm Entertainment, Paytm Money, Mobiquest Mobile Technologies, Little Internet, Xceed IT Solution, Nearbuy India and Acumen Game Entertainment among others.

A separate filing of Paytm E-commerce – which operates as Paytm Mall – showed that Paytm's e-commerce venture had registered a net loss of Rs 1,787,55 crore in FY2017-18 as against a loss of Rs 13.63 crore in the previous financial year.

The entity, which competes against the likes of Flipkart, Amazon, Snapdeal and Shopclues, saw its revenue from operations rising manifold to Rs 744.15 crore in FY2017-18 from Rs 7.16 crore in the previous year.

Wednesday, 14 November 2018

Binny Bansal resigns from Flipkart over charges of personal misconduct

Flipkart co-founder and group chief executive Binny Bansal on Tuesday abruptly resigned from the company, following an internal investigation into an allegation of “serious personal misconduct”, sending shockwaves across India’s startup ecosystem. Walmart-owned Flipkart didn’t specify the allegation but one person familiar with the matter said it was related to an alleged sexual harassment by Bansal in 2016.
The investigation did not find any evidence to support the allegation that was made by the complainant. But it showed “lapses in judgement” on Binny Bansal’s part, said Walmart, adding that the episode revealed “particularly a lack of transparency, related to how Binny responded to the situation”.
“Binny has been an important part of Flipkart since co-founding the company, but recent events risked becoming a distraction and Binny has made a decision to step down. His decision follows an independent investigation done on behalf of Flipkart and Walmart into an allegation of serious personal misconduct. He strongly denies the allegation,” Walmart said in a statement on Tuesday.
Binny Bansal, in a letter to Flipkart employees, “strongly denied” all allegations of serious personal misconduct made against him, Reutersreported on Tuesday. “My plan was to continue in my current role for a few more quarters to continue transition after closing deal with Walmart... My decision to step down has been accelerated by certain personal events that have taken place in the recent past,” he said in the letter.
According to another person aware of the development, Bansal will remain on the board of Flipkart and continue to be a shareholder in Flipkart for now. Bansal owns shares worth $700-800 million in Flipkart and was contracted to stay on at the company till 2020.
Bansal’s ouster comes months after his fellow Flipkart founder Sachin Bansal was also forced out of the company during its sale talks with Walmart in April, following a bitter fallout with the then board of Flipkart. In May, Walmart agreed to buy 77% in Flipkart for $16 billion.
Binny Bansal’s exit marks the end of an era at not just Flipkart, but also for the entire Indian startup ecosystem, which has bestowed rockstar status on the two Bansals (not related), as their success with Flipkart inspired a new generation of entrepreneurs.
The latest development effectively hands over control of the entire group to Flipkart CEO and former Tiger Global Management executive Kalyan Krishnamurthy, who has been running the e-commerce firm since his return to Flipkart in June 2016.
Walmart said that Myntra and Jabong, which till now had operated as independent platforms within the Flipkart Group, will now be rolled into Flipkart’s core e-commerce business, which is led by Krishnamurthy.
Myntra and Jabong CEO Ananth Narayanan will now report to Krishnamurthy. Walmart also added that both Krishnamurthy and PhonePe CEO Sameer Nigam will now report directly to the board of Flipkart.
Walmart also added that Binny Bansal has been contemplating a transition for some time and that the company had been working on a succession plan, which has now been accelerated.
Mint first reported on 24 September that Flipkart was considering naming a new CEO at the group level to replace Bansal, who took over the chairman’s role in May after former chairman Sachin Bansal left Flipkart over differences with the company’s board.
Mint had also reported that Krishnamurthy was the frontrunner to take over from Bansal.
Walmart did not reveal any further details about the incident. Mint could not immediately verify what transpired during the alleged incident.

Myntra future uncertain as Walmart puts it under Flipkart

 Walmart Inc.’s latest decision to put Myntra and Jabong under Flipkart has created uncertainty about the direction of the specialty online retailers, which had largely operated independently within the Flipkart Group since Myntra was acquired by the e-commerce firm in 2014. Two people familiar with the matter said that Walmart was still evaluating if there was sufficient differentiation between Flipkart and Myntra for the latter to continue as an independent company.
Walmart wants to keep Myntra as a brand but it is still evaluating possibilities of integrating some roles between Myntra and Flipkart’s fashion business and running the two more closely, they said.
Until now, Myntra, while being a wholly owned unit of Flipkart, has operated completely independently. Flipkart’s fashion business is headed by former Aditya Birla executive Rishi Vasudev.
Myntra, which acquired smaller rival Jabong in July 2016, is on track to generate $1.8 billion in gross sales this financial year, an increase of 45% from last year.
Its dominance in fashion was a major attraction for Walmart, which agreed to pay $16 billion to buy a 77% stake in Flipkart in May.
The uncertainty over Myntra’s direction comes after Walmart-owned Flipkart said on Tuesday that co-founder Binny Bansal had resigned from the company after an investigation into an allegation of “serious personal misconduct” against Bansal.
The Flipkart co-founder denied the allegation and the investigation into Bansal’s conduct did not find any evidence to support the allegation that was made by the complainant.
But Bansal resigned nevertheless after the investigation revealed “lapses in judgement, particularly a lack of transparency, related to how Binny responded to the situation”.
Along with Bansal’s resignation, Flipkart and Walmart also said that Myntra and Jabong will now operate as businesses under Flipkart and that Myntra chief executive Ananth Narayanan will report to Krishnamurthy.
Narayanan had joined Myntra, which was acquired by Flipkart in May 2014 for $330 million, as its first outside CEO in October 2015. Since then, he has led a turnaround of Myntra that is reeling from an ill-conceived move to become an app-only platform. Narayanan reversed that decision and reopened Myntra’s desktop and mobile websites. Under him, Myntra improved margins, accelerated revenue growth and built a strong leadership team.

Tuesday, 13 November 2018

Amazon Wholesale’s Revenues Jump By 73% For FY18

Amazon India had reportedly channeled most of its B2B services through its main seller Cloudtail
Amazon India is expected to reach $70 Bn in GMV and $11 Bn in net sales by 2027
Amazon India uses its wholesale unit as a distribution channel that sources products from brands directly
Amazon Wholesale, the US-based ecommerce giant’s Indian Business-to-Business (B2B) platform, reportedly raked in revenue of  $1.68 Bn (INR 12,224 Cr) in FY18, up 73% from $970 Mn (INR 7047 Cr) in FY17.
Amazon India uses its wholesale unit as a distribution channel that sources products from brands directly and then supplies these to third-party vendors to sell on their online marketplaces. Walmart-owned Flipkart also has its own B2B distributor called Flipkart India.
According to the documents sourced from Tofler, a business intelligence platform for India, Flipkart India’s revenue saw a jump of 40% to $2.19 Bn (INR 21,438.65 Cr) in FY18.
The growth since FY17 has been attributed to the change in ecommerce guidelines in 2016, which mandated that sales from a single seller could not exceed 25% of the total gross merchandise volume (GMV) of a marketplace.
Prior to this rule, Amazon India had reportedly channeled most of its B2B services through its main seller Cloudtail. However after 2016, the ecommerce company started using Amazon Wholesale as a buyer and distributor to new sellers.
It also set up another seller entity Appario, in partnership with Patni Group last year, which recorded a total income of $104.44 Mn (INR 759 Cr) in the financial year 2017-18.
This has seen Cloudtail’s revenue growth stagnate, even as several subsidies to the entity from the ecommerce company have been cut. Cloudtail, the joint venture between Amazon and Catamaran, has reported a revenue increase of 27% to $966 Mn (INR 7149.21 Cr) in FY18 for the period ending March 31, 2018, according to the company’s regulatory filings.
Amazon India’s B2B wholesale distributor purchased goods worth $1.14 Bn (INR 7,734 Cr) in FY17, in comparison to $591.1K (INR 4 Cr) in the previous year.
Further, a major boost to Amazon’s Indian operations came with a Citi research report suggesting that Amazon India could be valued at $16 Bn right now. The report added that Amazon India is expected to reach $70 Bn in GMV and $11 Bn in net sales by 2027.
Despite registering almost a billion dollars in loss for the fiscal year 2017-18, Amazon’s India Unit, Amazon Seller Services has continued to place big bets on India’s ecommerce and offline retail sectors

Flipkart’s B2B And Ecommerce Arm Post A Combined Loss Of $435 Mn In FY18

Flipkart India recorded a total loss of (INR 2,063.8 Cr), which is a jump of more than 700%,
Flipkart Internet posted a consolidated loss of (INR 1,160.6 Cr) for FY18, a fall of 29%
Walmart has also set up a function called ‘Partnership Services’ to help Flipkart Group expand by leveraging its global scale and best practices
Global retailer Walmart-owned Flipkart has announced its financial results for both its B2B arm – Flipkart India and ecommerce platform – Flipkart Internet.
According to the documents sourced from Tofler, a business intelligent platform for India, Flipkart India recorded a total loss of $280.4 Mn (INR 2,063.8 Cr), which is a jump of more than 700%, as compared to $33.29 Mn (INR 245.04 Cr) in FY17. At the same time, Flipkart Internet posted a consolidated loss of $157.68 Mn (INR 1,160.6 Cr) for FY18, which is 29% less than the previous year’s $222.83 Mn (INR 1,640.2 Cr).
The combined loss of the two Flipkart entities — Flipkart India and Flipkart Internet—  was recorded as $434.7 Mn (INR 3,200 Cr) in FY18.
Here are some key statistics of the fiscal year for these entities:
Operational Revenues
  • Operational revenue of Flipkart India saw a jump of 40% to $2.19 Bn (INR 21,438.65 Cr) in FY18 from $2.07 Bn (INR 15,264.42 Cr) in FY17
  • For Flipkart Internet, the revenues from operations were $37.92 Mn (INR 279.2 Cr),  a 48.3% jump from $25.57 Mn (INR 188.24 Cr) in the previous year
Total Revenues:
  • The total revenues for Flipkart India were (INR 21,657,6 Cr), against (INR 15,569.26 Cr) in the previous year
  • Flipkart Internet’s total Revenue was (INR 3060.2 Cr), against (INR 2253.5 Cr)
Employee Expenses
  • With huge sales, delivery promises to customers etc, Flipkart India spent $2.94 Bn (INR 331.54 Cr), a 99% jump from $22.63 Mn (INR 166.6 Cr)
  • At the same time, Flipkart internet decreased its expenses on employees reaching $134.23 Mn (INR 988 Cr) from $140.38 Mn (INR 1032.8 Cr)
Net Worth:
  • Flipkart Internet’s net worth for the fiscal year was $237.7 Mn (INR 1,749.80 Cr)
  • The net worth for Flipkart India was $863.12 Mn (INR 6,353.60 Cr)
Flipkart’s holding company is registered in Singapore. The revenue of Flipkart Internet is mainly generated from services like seller commission and from the sale of products on the marketplace.
Flipkart Internet operates as a subsidiary of Flipkart Private Ltd. which is currently in a tough war with players such as Amazon India and Paytm Mall, among others. However, with Walmart acquiring Flipkart for $16 Bn, the ecommerce company is now preparing to touch the international markets.
Earlier this month (October 18), reports surfaced that Myntra has started selling its private brand named All About You at Walmart stores in Canada. All About You, launched in 2015, is a women fashion brand that’s endorsed by well-known Bollywood actor Deepika Padukone.
Walmart has also set up a function called ‘Partnership Services’ to help Flipkart Group expand by leveraging its global scale and best practices.
For now, Flipkart can be given the benefit of doubt, considering the period ending at March 31, 2018, as a battle of dominance with its arch rivals. With the Flipkart Group eyeing an IPO in possibly the next three years, and with a backing from global retail giant Walmart, now the financials for the next financial year are expected to clear the picture further.

Monday, 12 November 2018

After DCGI Rap, Ecommerce Cos Commit To Prevent Sale Of Fake Cosmetics

DCGI has ruled that companies may face a police complaint if they fail to prevent sale of fake products
The companies will have to include seller information on their websites
Recently luxury online store received a High Court warning for selling fakes
In a meeting with the Drug Controller General of India (DCGI), ecommerce companies like Amazon and Flipkart have reportedly promised to prevent the sale of “unregulated and fake cosmetics.”
The increased vigilance from the regulator comes after a rise in reports that cosmetics and pharmaceuticals are some of the most commonly counterfeited products on ecommerce websites.
The DCGI also ruled that if the company discovers fake products being sold on their website, they must prevent sale of such products. If they fail in doing so, the companies will have to face severe action including formal police complaint, the regulator warned.
According to reports, representatives of the ecommerce companies had met with DCGI on November 1. This move came in after the regulatory body had issued notices to Flipkart, Amazon and IndiaMART for selling fake cosmetics on their platform.
It had also warned the ecommerce portals that penal action will be taken if they fail to respond within 10 days.
The companies from now on, will also have to provide seller information on their websites including license number of the cosmetics seller, the importer’s name and also the validity of their license.
According to DCGI, items such as stem cell-based cosmetics, serums, skin whitening creams, glutathione injections and hyaluronic acid filler injections were some of the illegally imported products which were being sold on the ecommerce platforms.
Citing unnamed sources, a Livemint report also claimed that certain cosmetic products being sold on the platform included certain ingredients which are not allowed to be used by humans.
DCGI had also conducted raids at 30 locations in eight states.
Recently this month, the Delhi high court has directed a Delhi-based fashion ecommerce platform named to check and verify the authenticity of every item which is listed on its platform for sale.
The Delhi high court also pointed out Amazon Seller Services and asked them to delist some sellers on its platform who were accused of selling fake products.
In order to get a better view on the sale of fakes on ecommerce platforms, LocalCircles had conducted a survey in which 35% of 27K participants said that cosmetics ordered online were most likely to be counterfeit.
The survey results also showed that nearly 19% of the respondents had received fake products from etailers in the last six months.

Amazon Infuses $30 Mn In Amazon Pay

Till date, Amazon Pay has received nearly $250.69 Mn (INR 1,820 Cr) from the parent company
Amazon Pay’s financial results for the fiscal year 2017-18 showed a leap of 5100% in revenue
The company invested heavily in advertising and promotions
Global ecommerce company Amazon continues to invest heavily in India and has announced a fresh infusion of $30.35 Mn (INR 220 Cr) into its digital payments arm— Amazon Pay.
The development comes close on the heels of an earlier investment of $81.29 Mn (INR 590 Cr) in the payments arm, ahead of its festive season, with plans to offer huge cash backs to customers during the Amazon’s festive season sales.
In December 2016, Amazon had launched Amazon Pay Balance, a payment option which is similar to a mobile wallet but limited to transactions within the platform.
The company received $33.5 Mn (INR 230 Cr) earlier in July 2018, taking its total funding to nearly $250.69 Mn (INR 1,820 Cr) since 2016.
Inc42 had recently reported that Amazon Pay’s financial results for the fiscal year2017-18 showed a leap of 5100% in revenue.
At the same time, the company’s net loss amounted to 85% of its revenue, reaching $45.17 Mn (INR 334.2 Cr). The net loss for the year widened 88% from the $24.04 (INR 177.88 Cr) loss for the previous year.
As the company invested heavily in advertising and promotions— $34.78 Mn (INR 264.7 Cr), a jump of 113% from $16.74 Mn (INR 123.9 Cr) in the previous year— the directors of Amazon Pay noted that “Amazon Pay Balance: Money”, was a key initiative to shift customer behavior from cash to digital means for their payments both on and off Amazon.
“While the services of the company saw significant adoption in a short period of time, the new KYC regulations have impacted customer experience and negatively altered the migration trajectory of cash customers to digital. APIPL, however, remains committed to solving this challenge and has applied for a KUA license to offer customers digital Aadhar-based KYC services which are currently under review with UID,” the company noted in its fillings.
In a move to make a stronger footprint in the digital payment industry, Amazon invested $5 Mn in Bengaluru-based digital payments company ToneTag in June, which is now reportedly looking to roll out new payment modes for Amazon in the next three to four months.
Interestingly, digital transactions accounted for 75% of all transactions on Amazon India during its recent festive season sales thanks to Amazon Pay, through which the company offered large cash backs and other easy payment options.
The overall digital payment scenario in India is burgeoning with opportunities. With the National Payments Corp of India (NPCI) recording 405.87 Mn transactions in September 2018 for a value of $8.18 Bn (INR 59,835 Cr), the state of digital payments in India seems to be improving.
According to a July 2018 report by Niti Aayog, titled “Digital Payments – Trends, Issues and Opportunities”, the digital payments market in India is expected to grow to $1 Tn by 2023. The report also stated that the mobile payments industry is slated to rise from $10 Bn in 2017-18 to $190 Bn by 2023.
The major players in the digital payments market continue to be Paytm, PhonePe, Google Pay(previously Tez) etc, with WhatsApp Pay stuck in regulatory hurdles.

Ecommerce Companies Miss November 10 Deadline To Deposit TCS

The deadline had been deferred many times since July 2017
Ecommerce companies have been asked to deposit tax collected in October by November 10
The companies who have missed the deadline may face an 18% interest the tax amount
Ecommerce companies may face penalties for missing a November 10 deadline to deposit tax deducted at source (TCS) on payments made to their sellers. However, according to reports, several companies have blamed this on difficulties in registering for TCS in some states.
Global ecommerce company Amazon has reportedly informed its sellers that it was unable to implement TCS for October, the season for various festive season sales, in 12 states due to “technical issues”.
An Amazon executive informed sellers on Saturday through their Facebook group that due to “technical issues” the company was not able to report TCS in Gujarat, Punjab, Goa, Bihar, Chandigarh, Chhattisgarh, Meghalaya, Assam, Himachal Pradesh, Jammu and Kashmir, Andaman and Nicobar, and Lakshadweep.
Several state governments have demanded that ecommerce companies have an office and physical address in the state to be able to register themselves for depositing taxes deducted from their vendors. Following protests by ecommerce companies, the Union government had stepped in and clarified that ecommerce companies can register with their head office address and are not required to have an office in each state.
Amazon informed sellers that it was “working with the (Goods and Services Tax) authorities” to resolve the technical issues.
For the uninitiated, the deadline for TCS provisions, introduced as a part of Section 52 of the Central Goods and Services Tax Act, has been deferred many times since July 2017 and was finally set to be implemented from October 1, 2018. Ecommerce companies had to deposit a taxes collected from their sellers for the month of October by November 10.
According to the anti-tax avoidance measure, ecommerce companies will have to deduct tax at the rate of 1% (CGST)+1% (SGST) before making the payment to the supplier for proceeds of a sale, as per the provisions of the act.
The Internet and Mobile Association of India (IAMAI) had earlier raised objectionsagainst the move, calling the tax an “unfair liability” imposed on the sector.