Uber to sell it's stake in Zomato📊, Vedantu lays off 100 more🎓, Foxconn expands🏭

Uber likely to sell its 7.8% stake in Zomato, Vedantu lays off another 100 employees, Foxconn expands its TN factory, Funding Deals and more.

Rise & Shine ☀

Aug 03, 2022

Good Morning,

Start your day, the smart way!

1 Mail | 2 Minutes | 3 Stories

Uber Technologies likely to sell 7.8% stake in Zomato through block deal📊

Uber is likely to sell its 7.8% stake in Zomato through a block deal on Wednesday to raise up to Rs 3,300 crore ($420 million), according to a term sheet issued by BofA Securities.

In January 2020, Zomato acquired Uber Eats' India operations in a non-cash deal, following which Uber received a 9.19% stake in the restaurant discovery platform. As of June 30, Uber held a 7.78% stake in Zomato.

The sale has been fixed at Rs 48-Rs 54 apiece, a discount of 2.8-13.6% to Tuesday’s closing price of Rs 55.55 on the National Stock Exchange. At the lower end of the price band, the sale could fetch Rs 2,939 crore or $373 million.

Zomato’s shares surged about 20% on Tuesday to close at Rs 55.55 on the NSE. The stock jumped almost 37% from a low of around Rs 40 on July 27.

Vedantu lays off another 100 employees after sacking 624 in May🎓

Vedantu laid off another 100 full-time employees from its sales teams last month as a part of a restructuring exercise.

This is the third round of layoffs at the Bengaluru edtech unicorn, which sacked around 624 full-time and contractual employees in two batches in May.

Cofounder and chief executive Vamsi Krishna had blamed global macro-headwinds and impending recession fears as major reasons for the layoffs.

With offline learning opening up, Indian edtech firms have also found themselves in a tricky spot as demand for online education weakens. Several Indian edtech majors such as Byju’s and Unacademy have taken the fight offline as they continue to jostle for market share with traditional tutoring firms.

Hot Shorts⚡

Customer engagement and retention platform WebEngage raised $20 million as part of a round led by Singularity Growth Opportunities Fund and SWC Global.
Rewards and loyalty startup Twid has raised $12 million as part of its Series A round led by Rakuten Capital.
River, a Bengaluru-based electric scooter startup, said it has raised $11 million in a funding round led by Toyota Ventures and American entrepreneur Chris Sacca's Lowercarbon Capital.
Voiz, a Bangalore-based marketplace for gig-work professionals, raised $2 million in funding led by Omidyar Network.
Ronnie Screwvala-led edtech upGrad acquired Exampur, a test-prep provider for government jobs, for an undisclosed sum.

Funding Deals - Explained

Foxconn expands its TN factory as Apple’s India business grows🏭

Top Apple inc supplier Foxconn will soon put into commercial production another phone manufacturing unit within its Foxconn Hon Hai Tech India facility close to Chennai.

This comes amid strong India sales for Apple and high localisation for its high-end smartphones range not only in the country but also in other developing Asia-Pacific markets.

An official aware of Foxconn’s Tamil Nadu investment plans said the new facility comes under expansions previously announced as part of its commitment during investor summits by the state earlier.

The expansion of its Apple phone-making capacity would also aid the smartphone brand go deeper into the Indian market at a time when the regional business has been growing at a scorching pace.