{"id":14770,"date":"2024-04-01T01:37:43","date_gmt":"2024-04-01T01:37:43","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/01\/ecommerce-growth-slowing-ola-electrics-debt-funding\/"},"modified":"2024-04-01T01:37:43","modified_gmt":"2024-04-01T01:37:43","slug":"ecommerce-growth-slowing-ola-electrics-debt-funding","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/01\/ecommerce-growth-slowing-ola-electrics-debt-funding\/","title":{"rendered":"Ecommerce growth slowing; Ola Electric\u2019s debt funding"},"content":{"rendered":"
\"Ecommerce<\/div>


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Ecommerce companies have seen a notable dip in gross sales by value so far this year. Details on this and more in today\u2019s ETtech Morning Dispatch.

Also in this letter:<\/span>
\u25a0 Interoperability spurs mobile payments revolution
\u25a0 Infosys to get Rs 6,300-crore tax refund gain
\u25a0 Zomato gets tax demand of Rs 23 crore<\/p>\n
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Ecommerce sales growth in slow lane this year<\/p>\n

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Ecommerce firms saw gross sales growing 12% to 15% by value in the first three months <\/a>of 2024 compared to a year ago, market research data showed. This was slower than the 20% year-on-year growth seen in the first quarter of 2023.<\/p>\n

Volume growth critical:<\/span> The decline was indicative of softer demand as order volumes shrunk, even as the uptake of expensive items helped keep up overall sales. However, month-on-month sales are improving, fueling hope that with the onset of summer, increased demand for certain categories could bolster full-year sales figures.<\/p>\n

\"Ecommerce<\/div>\n

\u201cThough this January was bad, we have seen growth return over the last three weeks, and we will likely see an about 20% growth rate return by April,\u201d Satish Meena, advisor at Datum Intelligence, said.<\/p>\n

Beauty bucks slowdown:<\/span> Beauty and Personal care, for instance, saw strong sales during January and February, helped in part by winter sales and increased gifting around Valentine\u2019s day. Health and fitness, which usually does not see a huge jump in sales during the festive period, saw an increase in sales pushed by a post-festive drive towards health-focused activity. <\/p>\n

\u201cWe see another spike in April to June, as a younger, health-conscious base gets their summer breaks,\u201d said Pallav Bihani, founder of health-focused supplements and equipment maker Boldfit.<\/p>\n

Brands continue to grow:<\/span> Certain segments like beauty and personal care bucked the wider slowdown to grow considerably in the first quarter. New-age beauty and personal care brands likely grew over 25%, while the health and fitness category likely grew between 15- 20%. Home furnishing products also performed better than expected with between 15-18% growth. <\/p>\n

Post festive slump:<\/span> A wide array of sellers and brands executives told ET that the market was recovering from a slump after bumper festive season sales in the final quarter of 2023. The clearance of fashion and peripheral inventory and the lack of major smartphone launches also weighed on sales. The spike in inflation also played a key role in the dipping curve for online retail.<\/p>\n

Also read |<\/span> Ecommerce clicks dip in December, triggering growth concerns<\/a><\/p>\n

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Ola Electric raises Rs 410 crore in debt<\/p>\n

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\"Ola<\/div>\n

Ola Electric, the initial public offering (IPO)-bound electric two-wheeler maker, has raised Rs 410 crore (around $50 million) from debt financing platform <\/a>EvolutionX Debt Capital.<\/p>\n

Driving the news:<\/span> Regulatory filings with the Registrar of Companies (RoC) show that Ola Electric Mobility Ltd, the parent company of Ola\u2019s EV business, has raised the amount by issuing non-convertible debentures to EvolutionX, which was set up by DBS and Temasek, and has backed Indian startups such as Udaan, PharmEasy, Mensa Brands and LendingKart.<\/p>\n

\"ola<\/div>\n

The backdrop:<\/span> Prior to the latest debt fundraise, the company had closed another $240 million debt financing<\/a> from State Bank of India in October \u2013 part of its overall $384 million financing round, including an equity raise from Singapore\u2019s sovereign wealth fund Temasek. At the time, Ola Electric was valued at $5.4 billion. According to Tracxn, the company has raised a total of over $1 billion in equity and debt funding so far.<\/p>\n

IPO plans:<\/span> On December 22, Ola Electric filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi), proposing to raise up to Rs 5,500 crore through a fresh issue, <\/a>apart from an offer-for-sale (OFS) component of 95.2 million shares. People aware of the matter said the company\u2019s founder Bhavish Aggarwal has been on a roadshow pitching the IPO to global investors. <\/p>\n

One more thing:<\/span> Separately, Ola Electric Mobility \u2013 the parent company for Ola\u2019s EV business \u2013 will infuse Rs 500 crore into its wholly-owned subsidiary Ola Electric Technologies Pvt Ltd (OET), RoC filings showed. The investment in OET, which could be in one or more tranches in the form of either equity or debt, comes close on the heels of Ola Electric\u2019s plans to enter the commercial EV segment. <\/p>\n

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How interoperability oiled the wheels of mobile payments revolution<\/p>\n

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\"RBI<\/div>\n

With interoperability in netbanking, the Reserve Bank of India (RBI) has managed to bring all payment systems in the country within a network infrastructure. <\/a><\/p>\n

What is interoperability?<\/span> Through this system, any bank and any payment method can settle transactions on each other\u2019s platform. There is no need for proprietary technology to settle payments between individual entities.<\/p>\n

\"RBI<\/div>\n

How does this help?<\/span> Interoperability provides quite a few benefits:<\/p>\n