Nykaa to enter GCC market💄; ShareChat's gifting feature makes $50 Mn🎁; Flipkart spent $1.1 Bn💸

Nykaa forms strategic alliance with Apparel Group, ShareChat’s virtual gifting feature generates $50 M, Flipkart spent $1.1 Bn, Funding Deals and more.

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Oct 07, 2022

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Nykaa forms strategic alliance with Apparel Group to enter GCC market💄

The international subsidiary of Nykaa’s parent entity has entered into a strategic alliance with the Middle Eastern Apparel Group to tap the Gulf Cooperation Council (GCC).

FSN International (a subsidiary of listed entity FSN E-Commerce Ventures) will hold a 55% stake in the new venture and the remaining 45% will be held by the Apparel Group.

The group entity will build multi-brand omnichannel beauty retail operations for Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE) through an entity to be incorporated in the Abu Dhabi Global Market. This is a first-of-its-kind alliance that Nykaa has entered into for a big international foray.

It will be run by a separate management team under a new brand. The ecommerce operations of this brand are expected to launch in the next six months to one year, Nykaa’s CEO and cofounder Falguni Nayar said.

ShareChat’s virtual gifting feature generates $50 million annually🎁

ShareChat’s virtual gifting feature has touched $50 million in annual recurring revenue, and that is set to more than double by year-end.

The local language social media network, owned by Mohalla Tech, has over 180 million monthly active users in the country. It launched the in-app virtual gifting feature in September 2020 as one of the various revenue models that the company aimed to monetize. The feature enables users to send virtual gifts in digital tokens to the hosts or the live audio chat room creators, making them feel valued.

Creators can cash out these virtual gifts - after ShareChat takes a platform cut - and transfer the earnings to their bank accounts.

Hot Shorts⚡

HRtech startup HROne has raised $4 million in a Series A funding round led by Insitor Partners.
Agritech platform Falca has raised over $3 million in Pre-Series A funding round led by Inflection Point Ventures in a combination of debt and equity.
Insurtech startup BimaKavach has raised $2 million in a seed funding round led by WaterBridge Ventures.
Intelligent recruitment automation platform TurboHire has received $2 million in a Pre-Series A funding round led by the Chennai Angels and Pentathlon VC.

Funding Deals

Flipkart spent $1.1 billion from February to July, Walmart filings show💸

Ecommerce firm Flipkart spent $1.1 billion from February 1 to July 31, according to parent company Walmart’s filings with the US Securities and Exchange Commission (SEC).

Of the $3.5 billion cash available globally that is not freely transferable to the US as of July 31, 2022, “approximately $1.1 billion can only be accessed through dividends or intercompany financing arrangements” Walmart said in its report for the July quarter.

Since late last year, Flipkart has made multiple acquisitions and investments and started several new businesses. In November 2021, the company said that it was acquiring healthcare startup Sastasundar for an undisclosed amount. In December, it participated in a $145 million funding round in Ninjacart along with parent Walmart.

In March 2022, Flipkart disclosed a capital infusion of over $800 million into its marketplace business, healthcare, and Myntra. The company has also been marketing its value-commerce business Shopsy in tier-II towns and beyond to take on Meesho.