LIC Housing Finance increases lending rate by 50 bps

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October 1, 2022

LIC Housing Finance Ltd (LIC HFL) has increased the LIC Housing Prime Lending Rate (LHPLR), the benchmark rate to which the interest rate on its loans is linked, by 50 basis points.

Commenting on this lending rate revision, MD & CEO Y. Viswanatha Gowd said: “Interest rate hike is in line with the prevailing market condition. We expect this trend to stabilise soon. We are taking care to price our products adequately so that the EMI outgo for our customers remains reasonable. We are confident that the sentiment in the Real Estate Industry will be buoyant during the festive season and the fundamental parameters of the Indian economy will continue to be strong.”

According to a research report from the State Bank of India’s Economic Research Department, the RBI increased the Repo rate by 50 basis points to 5.90%, as was widely expected, as the MPC seeks to maintain focus on withdrawal of accommodation to ensure that inflation remains within the target in the future while supporting growth.

Since the US dollar is still appreciating, elevated imported inflation pressures are a potential source of future inflation.

“We believe that a 35 bps rate hike in December looks imminent, but beyond December, it would be a touch and go,” the report said.

Flipkart, Paytm partnership: Customers can now shop from the payment app

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September 30, 2022

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Payments company Paytm has collaborated with Walmart-owned Flipkart as sales have resumed in preparation for the festive season. Paytm claims that during the Flipkart Big Billion Days Sale 2022, the company will grant customers special access through which they can click on the Flipkart icon in the app’s shopping category.

Users can access Flipkart Lite by clicking the Flipkart icon in the Paytm app. According to the company, users can also enjoy incredible deals and discounts from the homepage of the Paytm app and take advantage of Paytm’s faster, safer, and more convenient checkout options.

Paytm stated earlier this month that it would serve as the payment partner for Flipkart’s Big Billion Days Sale. According to the payment app, it would ensure greater use of digital payments in smaller cities and villages.

Paytm said, “The partnership would give a boost to the digital revolution in the country of which Paytm has been at the forefront of driving financial inclusion in India. Paytm Super app is a one-stop shop for all needs, be it bill payments or financial services like insurance, education fee payment, medicine delivery, lab tests, and shopping, among others.”

Amazon acquired Kochi cashierless retail startup Watasale

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September 30, 2022

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The Kochi-based firm Watasale was purportedly acquired or acqui-hired by US e-commerce giant Amazon at some point in the last two years.

Watasale gained prominence in 2018 for opening India’s first cashierless store, praising Amazon Go’s similar instant checkout stores in America for supporting their decision to build the business.

According to TechCrunch, the entire Watasale team has joined Amazon, as both founders Richu Jose and Subhash Sasidharakurup’s LinkedIn accounts indicate that they joined the American giant by January 2020. In addition, Shanoop Sivadas, a company’s director, has also joined Amazon. At the same time, according to regulatory filings, two other US-based members, Dileep Elipe Jacob and Vinci George Mathews, left the Watasale board in December 2021.

According to TechCrunch, it is unknown whether the employees are developing technology for cashierless stores in the US, UK, or India. Still, they were reportedly given a choice to join Amazon. If the latter, there are no clear plans for opening new Amazon Go locations throughout the country.

Amazon has built Just Walk Out teams in Chennai, Hyderabad, and Delhi to focus solely on Amazon Go operations. TechCrunch also stated that following the acquisition of Watasale, the company added jobs by 100.

Bank of India buys over 5.5% stake in ONDC

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September 28, 2022

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State-owned Bank of India has acquired over 5.5 per cent stake in Open Network for Digital Commerce (ONDC) for Rs 10 crore, the lender said on Tuesday. On September 27, 2022, the bank invested in the capacity of promoter shareholder of ONDC, an amount of Rs 10 crore in ONDC, under the private placement route, Bank of India said in a regulatory filing.

According to the bank, as of September 27, 2022, its shareholding in the company will be 5.56 per cent of ONDC’s total shareholding.

Absolute numbers show that it has acquired 100,000 equity shares in the upcoming digital commerce company, which was incorporated in December 2021, for Rs 100 each.

Some other banks have acquired stakes in ONDC.

The objective of ONDC is to promote open networks for all facets of the exchange of goods and services across digital or electronic networks in the country.

The framework is expected to increase the accessibility and inclusiveness of e-commerce for both consumers and sellers.

New York Life Insurance to invest ₹196-cr in a commercial project of Max Estates in Noida

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September 28, 2022

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New York Life Insurance Co, the US-based mutual life insurance company, has proposed investing Rs 196 crore for a 49% equity stake in Max Estates’ SPV commercial project in Noida.

In August, Max Estates, the real estate division of the Max group, paid Rs 220 crore to Axis Bank for a 4-acre plot of land in Sector129, Noida.

These land parcels are close to Max Square, an office building now built by Max Estates and New York Life Insurance Company.

It will be able to build a 6.6-acre office-led mixed land use campus owing to the acquisition. This complex will have a total development area of 1.5–2.0 million sq ft, including Max Square (0.7 million sq ft).

“New York Life Insurance Company has a long-standing relationship with Max Group and Max Estates and has been a valued partner with us through our journey. This transaction will enable Max Estates to expand its CRE portfolio while achieving its aspiration of becoming a leading real estate player in the Delhi NCR region,” said Sahil Vachani, MD & CEO of MaxVIL.

The project’s final delivery will be handled by Max Estates, who will also be entitled to a development fee.

“This will not only provide prospective tenants of Max Square an option to expand, but also enable access to an integrated mixed-use campus that will be unique to this micro market. The development will have direct access to Noida-Greater Noida Expressway, offering excellent connectivity to and from Noida, Delhi and broader Delhi NCR via both road and metro,” the company said.

Due to the acquisition of two land parcels in Noida for residential development, Max Estates expects to scale up the size of its current real estate business development portfolio by FY23.

Max Estates began its residential development journey by purchasing a 10-acre land parcel in Sector 128 of the Noida Expressway by acquiring 100% of Accord Hotels and Resorts Private Limited, which owns this land as its asset.

The estimated saleable area of this residential-led mixed-use project is one million sq ft.

The project would be developed as a boutique luxury residential community with potential revenue of more than Rs 1,300 crore. This will serve the high-end residential market and promises to improve quality of life by putting our LiveWell Philosophy into reality.

The first phase is expected to launch in the first half of the following year and be completed three years after that.

Max Estates wants to buy and build 1 million sq ft of premium residences and office space for businesses every year.

Walmart wants to on-board Indian sellers to sell products online in Canada

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September 27, 2022

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US retail giant Walmart announced on Tuesday that it has reached out to Indian sellers to join its marketplace in Canada before the country’s winter holiday season starts.

By 2027, the company hopes to achieve its ambitious target of 10 billion USD in annual Indian exports.

Walmart, one of the biggest online retailers and the country’s fastest-growing marketplace platforms, runs over 400 stores in Canada.

“Walmart held a day-long Global Seller Summit in Delhi on September 27 to help Indian companies leverage Walmart’s e-commerce marketplace to grow in the US and Canada. Over 500 Indian manufacturers, brands and sellers attended to hear from local and global Walmart experts, logistics and fintech service providers, and Indian companies that are already thriving on Walmart Marketplace,” the company said in a statement.

Walmart started onboarding Indian sellers to its US marketplace in January.

The winter holiday season in North America is retail’s busiest time of the year.

The statement said that Walmart data shows that customers start researching their holiday buys in October, with steady sales throughout November and December.

“We are focused on building long-term relationships with even more Indian companies. Helping sellers build their business in the US and establish themselves in Canada with Walmart Marketplace underscores our confidence in the potential of these markets for Indian sellers as we work towards building our exports from India to USD 10 billion a year by 2027,” Walmart, Global Sourcing, Emerging Markets and Business Development, Vice President Michelle Mi said.

Walmart said it is preparing to help Indian sellers take advantage of the key shopping season with tools like Walmart Fulfillment Services (for fast and easy shipping) and Walmart Connect (for targeted seasonal promotions).

In widely searched categories like home, apparel, leather accessories, and beauty and personal care, the retail giant sees exceptional potential for Indian vendors.

“Indian companies are leveraging the Walmart Marketplace for D2C export success. Walmart is seeing top suppliers like Welspun adding D2C sales to their business, as well as exciting new digital-first brands such as Rage Coffee and Mensa Brands coming on board the platform to grow in overseas markets,” the statement said.

Freecharge joins with Cashfree Payments; offers’ buy now, pay later’

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September 27, 2022

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Digital payments and financial services platform Freecharge has partnered with Cashfree Payments, a payments and API banking solutions company, to facilitate the ‘Buy Now, Pay Later’ feature for customers at no additional cost. According to a press statement, the partnership is expected to give customers more financing options while benefiting merchants.

“The partnership has the potential to accelerate customer adoption by leveraging Freecharge’s large user base. The BNPL solution’s integration will also help Cashfree Payments’ merchants boost sales and turn one-time customers into loyal customers,” the statement said.

According to the statement, “Pay Later” offers clients a secure payment option without requiring them to provide net banking statements or save their credit card information on merchant websites.

“The need for quick and hassle-free payment services has further increased users’ demand for BNPL products due to the convenience it offers with a short term credit line. The collaboration between Freecharge and Cashfree Payments aims to facilitate a favourable environment for financial inclusion, particularly for users who do not have easy access to organised credit,” said Siddharth Mehta, CEO of Freecharge.

“We are glad to add Freecharge to our BNPL stack. For customers, it means availability of easy credit at no extra cost thereby making purchases more affordable,” said Reeju Datta, co-founder of Cashfree Payments.

Central government commits Rs 7,385 Cr for startup funds

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September 27, 2022

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The Fund of Funds for Startups (FFS), an initiative of the central government to provide funding opportunities for Indian startups, has invested a total of Rs 7,385 crore over the past six years. As a part of the Startup India project, it was introduced in 2016.

A press release on PIB revealed that this money was invested in 88 alternate investment funds. Since their launch, these AIFs’ investments have risen by a compound annual growth rate of 21%, putting them nearly three-fourths of the way toward their target of Rs 10,000 crore by FY 2025.

“FFS has been playing a monumental role in mobilizing domestic capital in Indian startup ecosystem,” the commerce and industry ministry said in a statement.

In the past six years, the AIFs include companies with names like Chiratae Ventures, India Quotient, Blume Ventures, IvyCap, Waterbridge, Omnivore, Aavishkaar, JM Financial, and others, have invested Rs 11,206 crore in 720 startups. To minimize dependence on foreign capital, this money has primarily been utilized to invest in seed, early, and growth stage startups.

Of the 88 AIFs, 67 have had the FFS as the anchor investor, contributing to their success. Investments into qualified startups were supposed to be at least twice as much as what the FFS gave to each AIF, but in reality, the funds have been given out closer to 3.7 times as much.

Large unicorns and well-known brands like Dunzo, CureFit, FreshToHome, Jumbotail, Unacademy, Uniphore, Vogo, Zostel, and Zetwerk are just a few of the startups that have received investments. The scheme’s profits will be invested back into the ecosystem.

Drone-tech startup Aarav Unmanned Systems rebrands to Aereo

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September 26, 2022

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Aarav Unmanned Systems, a drone-tech startup, has rebranded itself to Aereo as it transforms into a “Make in India, for the World” mission statement.

The Bengaluru-based startup, founded in 2013, offers businesses in mining, urban planning, large-scale topography mapping, irrigation, infrastructure, and other use cases with end-to-end drone technology-based solutions.

Aereo in India has mapped over 30,000 villages and 45 cities, totaling more than 5.5 million acres. Additionally, 350 stockyards and 500 mines owned by mining, metal, and power companies like Tata Steel, Hindalco, and Coal India have been surveyed.

Vipul Singh, Co-founder and CEO said, “Aereo represents the new energy, new ideas, and the new technology that we have got to offer to the world. Our solutions are proven, delivering impact on large scale applications for governments and enterprises. Aereo embodies our drive to relentlessly innovate even more impactful solutions that cater to more and more applications.”

Developers to intensify hiring by over 50%

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September 26, 2022

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As developers are anticipated to launch more projects on the back of strong sales, industry experts predicted that hiring in the real estate sector will rise by 55–60% year over year this calendar year.

A spike in hiring has been reported by developers, including Godrej Properties, K Raheja Group, DLF, Tatas, and Mahindra. Before the holiday season, many other companies are also reportedly expanding their teams.

“We are focusing on talent development by building in-house capabilities as well as through campus recruitment, reaching out to diverse talent groups, partnerships with hiring consultants, and enhancing focus on flexible work models like work from home and hybrid work,” said Megha Goel, chief human resources officer (CHRO) at Godrej Properties.

According to a survey by the state-owned India Brand Equity Foundation (IBEF), the real estate industry currently contributes 6-7% of the country’s gross domestic product (GDP). Moreover, it creates the second-highest number of jobs in India. Due to the par perks and benefits it claims, students and talent from many backgrounds and professions are drawn to this industry.

“We see a lot of talent from architecture and design to consultation and finance making the shift to real estate,” said Urvi Aradhya, CHRO at K Raheja Corp. “Hiring post Covid has increased, given business recovery and growth,” she said. While construction and planning may be core functional requirements, the sector seeks diverse talent.

“In our endeavour to get the best talent which may not necessarily be found amongst talent with core industry experience, we undertake cross industry hiring which works well for the organisation as well as those who choose a reputed and dynamic work culture,” Aradhya said.

According to Yeshab Giri, chief commercial officer, staffing and Randstad Technologies, at Randstad India, the real estate industry is moving towards a very high growth trajectory. It is expected to reach $1 trillion by 2030.

“As the sector’s contribution to GDP moves to 11-13%, we anticipate hiring to increase by 55-60% YoY in comparison to 2021,” he said. “Moreover, job opportunities for professionals skilled in metaverse, AI (artificial intelligence), ML (machine learning) and AR/VR (augmented/virtual reality) will increase manifold in the next three years due to various government initiatives and surge in demand for property ownerships.”

Randstad expects that real estate firms will provide 10-12% salary hikes and other non-monetary incentives by the end of 2022 as technological developments speed up the hiring of the digitally-literate talent pool.

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