Also in this letter:
Gameskraft receives Rs 21,000 crore tax notice for alleged GST evasion
■ India’s push for a local navigation system rattles smartphone giants
Flipkart faces user anger over canceled iPhone 13 orders
Mahindra Logistics buys B2B express business from Rivigo for Rs 225 crore
Mahindra Logistics (MLL) has acquired the B2B express business of logistics start-up Rivigo, the two entities announced on Monday.
Details: Mahindra Logistics will acquire the business through a Business Transfer Agreement (BTA), including its customers, team, assets, technology platform and brand.
Rivigo will retain ownership of its truck fleet and full truckload (FTL) rights.
The acquisition is expected to augment Mahindra Logistics’ existing B2B express business through the use of Rivigo’s network, technology and process capabilities.
Unicorn in trouble: We reported in August that Rivigo — which became a unicorn in 2019 — had held talks with e-commerce marketplace Flipkart and omnichannel baby products retailer FirstCry for a potential sale. The logistics tech unicorn was struggling to raise new funds as investors grew jittery amid the ongoing economic downturn.
“The company is not in very good health. It has changed its business model in the past from aggregator to big asset and truck ownership to being asset light again… its fleet size dropped significantly from 3,000,” sources told us at the time.
“Rivigo has its roots in the truckload relay business. Over the years, we have built a strong brand in PTL/express services with pan-India network and high quality technology and service infrastructure. We believe that customers and employees in our PTL business will greatly benefit from being part of a high-quality, end-to-end supply chain services company like Mahindra Logistics,” said Deepak Garg, CEO of Rivigo Services Private. Limited.
Consolidation: In February, Mahindra Logistics announced that it had acquired 60% of ZipZap Logistics, a last mile logistics service provider which operates under the Whizzard brand, for Rs 71.73 crore. He also said he would buy out the remaining stake later and turn it into a wholly owned subsidiary.
Gameskraft Receives Rs 21,000 Crore Tax Notice for Alleged GST Evasion
GST Intelligence’s senior management served a show cause notice on Gameskraft Technology, a Bengaluru-based online gaming company, demanding Rs 21,000 crore in taxes, interest and penalties, the company said in a High Court submission. from Karnataka.
The court suspended the notice and will hear the case after the Dussehra vacation.
Catch up fast: Last December, GST authorities raided the company’s premises and seized its assets and bank accounts, alleging that it had evaded Rs 460 crore in taxes. The company appealed against the formal notice and seizure of its property and bank accounts.
Authorities have now issued a new show cause notice, the company said, seeking court intervention.
The GST was calculated at the rate of 28%.
Answer: “We are confident that we will be able to respond to this advice to the full satisfaction of the authorities since they have sought to apply a 28% tax applicable to games of chance and lotteries, instead of the 18% applicable to online platforms of skill games,” a Gameskraft spokesperson said, adding that the company had paid its GST and income taxes in accordance with standard industry practices.
The company also told the court that the notice was issued by an officer who lacked jurisdiction.
Online game rules: On September 21, we reported, citing sources, that online gaming startup WinZo was against joining a self-regulatory body (SRO) for online gaming businesses. The development came amid government efforts to draft rules for online gambling companies.
WinZo had written to Minister of State for Electronics and Computers Rajeev Chandrashekhar in June, expressing his views on the self-regulatory structure, the sources said. Other gaming companies also had internal differences over the issue and there was consensus that an SRO might not be enough for the industry, the company added.
India is pushing tech giants to make smartphones compatible with its local navigation system within months, worrying Samsung, Xiaomi and Apple, who fear high costs and disruption as the move requires hardware changes, reported Reuters, citing both industry sources and government acts.
Catch up fast: In line with Prime Minister Narendra Modi’s desire for autonomy, India has over the years expanded the use of its regional satellite navigation system called NavIC (Navigation with Indian Constellation).
The Indian government wants to reduce reliance on foreign systems, including the widely used US Global Positioning System (GPS). He indicated that NavIC provides more accurate indoor navigation and that its use would benefit the economy.
China, the European Union, Japan and Russia have their own global or regional navigation systems to rival GPS.
Driving the news: Operational since 2018, adoption of NavIC is minimal. It is mandatory in public vehicle location trackers, for example.
But government and space officials want to expand its use, and this year pushed the smartphone giants to make hardware changes to support NavIC, in addition to GPS, in new phones they will sell from January 2023.
Repel: In private meetings in August and September, representatives from Apple, Xiaomi, Samsung and others pushed back, citing concerns that making phones NavIC-compliant would lead to higher research and production costs.
The changes would also require more testing permissions, which – with a Jan. 1 deadline – would disrupt businesses and planned launches, according to the Reuters report.
Read also | Explanation: NavIC, the Indian alternative to GPS
Flipkart faces customer anger over canceled iPhone 13 orders
Flipkart, which sold the iPhone 13 for around Rs 58,000 in its ongoing Big Billion Days sale, is facing a barrage of criticism on social media from users who claim their iPhone orders iPhone 13 were abruptly canceled and their refunds were taking unusually long.
Several social media users speculated that the cancellations were due to a shortage of units amid high demand for the year-old iPhone.
Anger: “I booked the iPhone 13 during the Big Billion Day sale and was eagerly awaiting delivery. Product was canceled by seller/Flipkart with no explanation. Pathetic experience,” the Twitter user said Pulkit Jain.
One user said his iPhone 13 order was canceled 20 hours after placing it, while another said his was canceled after the app told him it was ready to go. delivered.
Festive sales at a flyer: We reported on Monday morning that e-commerce holiday season sales, which kicked off on Friday, saw an overall volume growth of 28% – excluding smartphones – in the first two days compared to last year, according to data from the e-commerce activation company Unicommerce.
Apple starts manufacturing iPhone 14 in India
Apple started manufacturing the iPhone 14 in India at Foxconn’s factory in Sriperumbudur, on the outskirts of Chennai.
Customers will be able to buy the Indian-made iPhone 14 – launched earlier this month – in the coming days as the company plans to gradually ramp up production, sources tell us.
The company has seen huge demand for the latest iPhones, with a waiting period of four to five weeks.
Progress: Apple started manufacturing iPhones in India in 2017 with the iPhone SE. and manufactures since iPhone 12 and iPhone 13 locally. However, it continues to import all Pro models.
Loss of China: According to a report by JP Morgan, Apple is expected to transfer around 5% of iPhone 14 production to India from the end of 2022 and to reach 25% by 2025. It is also expected that around 25% of all products Apple will be manufactured outside of China by 2025. , from just 5% currently.
Today’s ETtech Top 5 newsletter was curated by Zaheer Merchant in Mumbai and Gaurab Dasgupta in New Delhi. Graphics and illustrations by Rahul Awasthi.