India Roundup: Amazon has allegedly bribed govt officials, and other news (updated)

Update (Sept 20, 7:30 p.m.): Added news about Amazon and Design Cafe

Sony to pour US$200 million into its new India-focused VC arm

• Tokyo-based Sony is setting up an India-focused venture capital arm that will co-invest in startups, The Economic Times reported, citing sources familiar with the matter. The VC arm will team up with celebrities like film stars and sports personalities to make investments.
• Sony will pour US$200 million into its new VC unit, which will aim to use Sony’s celebrity networks in India to create a pool of investments that could have long-term “strategic value” for the parent company.
• The VC arm will be led by Vijay Singh, a former Fox Star Studios CEO, who was instrumental in building the studio’s presence in the country.

Online automobile marketplace Droom to raise US$136 million in IPO next year

• Droom is likely to file draft papers for its initial public offering (IPO) in the next couple of months and launch it in early 2022, according to a Mint report that cited two people familiar with the matter.
• The online automobile marketplace is looking to raise about 10 billion rupees (US$135.6 million) via a mix of primary and secondary share sales.
• The company has reportedly hired JM Financial and ICICI Securities as underwriters for the public listing. The listing plans come amid a rush to go public among Indian startups looking to tap a record stock market rally. (Read: The leading Asian tech players eyeing an IPO in 2021 [Updated])

Amazon’s lawyers under fire for allegedly bribing Indian government officials

• Amazon has initiated an investigation into the conduct of its legal representatives in India, The Morning Context reported, citing three people with knowledge of the matter. A whistleblower has reportedly alleged that one or more of the company’s representatives had bribed government officials.
• Rahul Sundaram, senior corporate counsel for Amazon, has been sent on leave, the report noted. Amazon is investigating whether legal fees financed by the company were used for bribing government officials.
• The development also comes as Amazon and Indian rival Flipkart face an antitrust investigation by the government. The country’s apex court said it expects the two to “voluntarily” participate in the probes.

Online interior design startup Design Cafe bags $25m in series B money

• Design Cafe, an online interior design startup, has raised US$25 million as part of its extended series B round led by WestBridge Capital, Entrackr reported. Sixth Sense Ventures, Fireside Ventures, and a few family offices also took part in the round.
• The company has been reportedly valued at about US$50 million after the latest investment, which it will be use to expand into 10 new Indian cities.
• Design Cafe said it is close to breaking even and is targeting a gross annual order booking run rate of 6 billion rupees to 7 billion rupees (US$81.5 million to US$95 million) within the next two years.

Currency converted from Indian rupees to US dollar: US$1 = 73.71 rupees.