VCs want Sidbi to ease sops criteria
The news
A lobby representing private equity firms and venture capitalists has requested state-run Small Industries Development Bank of India (Sidbi) to ease the qualifying criteria for its recently announced Covid-19 Startup Assistance Scheme (CSAS).
The purpose
The was launched by Sidbi as an interim arrangement to provide working capital financing from its balance sheet to startups over the next 45-60 days.
What VCs proposed
High and dry
The scheme, which intends to helps startups whose cash flow and liquidity has been adversely impacted by the Covid-19 pandemic, may fall flat as most startups won’t be eligible to avail the benefits. Read more.
Swiggy, Zomato settle for smaller cheques
Food delivery firms have accepted smaller cheques of $5-$10 million from a pool of investors to beef up cash reserves, as they continue to fight a bruising battle for market share in the online food delivery business.
Why raise funds now?
The capital infusion comes at a time when the coronavirus outbreak has significantly dented order volumes. Online food delivery orders for Zomato and Swiggy have dropped 70% to under 1 million a day, as customers step back and top restaurants shut shop amid a lockdown induced by the Covid-19 virus outbreak.
How much did they raise?
Swiggy said it had raised an additional $43 million from Ark Impact, Korea Investment Partners, Samsung Ventures and Mirae Asset Capital Markets, thereby closing its latest $156 million funding round led by existing investor South African internet giant Naspers.
Zomato said in regulatory filings last Friday that it had raised $5 million from Pacific Horizon Investment Trust, a fund managed by British investment manager Baillie Gifford. Read more.
Freelancers wait longer to get paychecks
The news
Freelancers are facing payment delays in view of the Covid-19 outbreak induced lockdown.
Why is it important?
While domestic payments have been delayed to 24 days from an average 19 days earlier, international payments are taking double the time than usual, a study by Bengaluru-based invoices and payment system for freelancers showed. Refrens surveyed 11,000 freelancers working in consultancy roles, graphics, software developers, designers and content creators, among others.
In Numbers:
- Domestic payments have been delayed to 24 days from around 19 days at the end of February.
- Payments from overseas are taking 28 days, from 13 days earlier.
- New freelancing assignments drop by almost 60% as of the last week of March.
- Earlier, only 12% of invoices used to be paid in instalments but that increased to up to 41%. Read more.
Hirings fall 18% in March
The news
Hirings in India fell 18% year-on-year in March, according to the Naukri JobSpeak Index, a monthly indicator which records recruitment activity.
Which sector fared the worst?
Hotels, restaurants, tour operators and airlines saw the biggest decline in hiring at 56% last month as the country imposed a nationwide lockdown and airlines suspended flights. This was followed by the retail industry where hirings tumbled by half. Recruitment in the auto and auto ancillary industry dropped 38%.
In Numbers:
- The dip was led by metros as Delhi witnessed a 26% decline, followed by Chennai and Hyderabad at 24% and 18%, respectively.
- The senior experience band—with over 13 years of experience—witnessed the sharpest decline at 29%.
- The entry-level experience band (0-7 years) saw a 16% contraction.
- Middle management roles with an experience band of 8-10 years fell 20%. Read more.
Online pharmacies operate at sub-optimal capacity
The news
Online pharmacies, including 1MG, Medlife and NetMeds, are operating at 50-70% of their capacity, as they continue to face issues related to intercity movement of goods and staff shortage, two weeks into the ongoing 21-day nationwide lockdown.
Why it matters: With an increase in consumer demand, there is a scarcity of medicines ordered online. According to community platform LocalCircles, consumers were facing delayed and cancelled orders for medicines from online platforms despite deliveries of essentials being encouraged. Read more.
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