Indian Startup News Ep 1: ZOMATO ACQUIRES UBER EATS, RELIANCE JIO UPI, PHONEPE ATMS, AND MORE

Summary

In this episode of 'Backstage with Millionaires,' Caleb discusses the latest startup news from India, including UberEats' acquisition by Zomato, Amazon India's EV initiative, and Reliance Jio's entry into mobile payments. The episode also covers innovative services like PhonePe's neighborhood ATMs, the rise of clean-tech company Renew Power, and significant funding rounds for startups like Bounce and Park+. Caleb highlights key trends in India's evolving tech and green sectors, showcasing major developments in the country's startup ecosystem.

Takeaways

• 😀 UberEats has been acquired by Zomato, ending its competition with Zomato and Swiggy in the Indian food delivery market.
• 😀 UberEats will redirect users to Zomato in the coming months, and UberEats becomes a 10% shareholder in Zomato.
• 😀 Amazon India plans to add 10,000 electric vehicles to its delivery fleet by 2025 as part of its larger goal to reach carbon neutrality by 2040.
• 😀 The Indian government is supporting electric vehicle adoption with the Fame 2 scheme, providing incentives and charging infrastructure.
• 😀 Jio has launched a UPI-based mobile payment solution exclusively for its subscribers, potentially disrupting the dominant players in India’s mobile payment market.
• 😀 PhonePe is testing a service in Delhi NCR that allows small neighborhood shops to act as ATMs, enabling users to withdraw cash using their phone and PhonePe app.
• 😀 RenewPower, a clean-tech startup, has raised $450 million in debt funding, bringing its total raised to $2.7 billion to date.
• 😀 Bounce, a bike rental startup, raised $105 million in its Series D round, bringing its valuation to $500 million, and is expanding its scooter fleet across India.
• 😀 Zoomcar raised $30 million as part of a $100 million Series D round, planning to expand its fleet of self-drive vehicles from 9,000 to 100,000.
• 😀 Park+, a smart parking solutions startup, raised $11 million in funding and aims to provide users with real-time information on available parking spaces through its app.

Q & A

What significant event regarding Uber Eats happened in India in January 2020?

Uber Eats was acquired by Zomato in January 2020. As part of the deal, Uber Eats became a 10% shareholder in Zomato and walked away with $350 million. Zomato also expected to gain about 80% of Uber Eats' customers in the following months.

Why did Uber Eats struggle in the Indian market?

Uber Eats entered the Indian market in 2017, but by then, Zomato and Swiggy were already well-established and had strong customer bases. As a result, Uber Eats couldn't compete effectively and continued to lose money over the years, leading to its eventual exit.

What environmental initiative did Amazon India announce in 2020?

Amazon India pledged to add 10,000 electric vehicles (EVs) to its delivery fleet by 2025. This is part of Amazon's larger plan to deploy 100,000 electric vehicles worldwide by 2030 and become carbon neutral by 2040.

How is the Indian government supporting the adoption of electric vehicles?

The Indian government is supporting the adoption of EVs through a program called FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles), which incentivizes manufacturers to produce more EVs and sets up charging stations across the country.

What new mobile payment service did Reliance Jio launch in India?

Reliance Jio launched a UPI-based mobile payment solution for its subscribers. The service, which is in beta, requires users to set up a Jio-specific virtual payment address (VPA) to make UPI payments.

How does PhonePe's new initiative aim to improve ATM access in India?

PhonePe is testing a service where local neighborhood shops in Delhi NCR act as mini-ATMs. Customers can use PhonePe to send digital money to these shops, and in exchange, the shop provides them with cash. This initiative is intended to address the scarcity and malfunctioning of traditional ATMs.

What funding did ReNew Power raise in 2020 and for what purpose?

ReNew Power raised $450 million through dollar bonds. The funds will be used to refinance its existing debts and support working capital requirements. This is part of the company’s ongoing efforts to expand its clean energy operations.

What is Bounce and how does it operate?

Bounce is a bike rental startup in India. It allows users to rent scooters in about three dozen cities across the country. Using the Bounce app, users can unlock a scooter with a one-time passcode (OTP) and use it for short-term rides, leaving it anywhere once done, without the need for docking stations.

What is the goal of Zoomcar’s Series D funding round?

Zoomcar raised $30 million as part of its $100 million Series D funding round. The company plans to expand its fleet of self-drive vehicles from 9,000 to 100,000 and offer longer-term rentals (between 6 and 36 months).

What is Park+ and what problem does it aim to solve?

Park+ is a smart parking solutions startup that raised $11 million in funding. It aims to solve the problem of finding and using parking spots in cities by offering an app that shows available parking spaces and allows users to pay for parking digitally.