In brief: Walmart’s $16b takeover of Flipkart gets regulatory nod

Flipkart co-founders Sachin Bansal and Binny Bansal / Photo credit: LetsIntern

Antitrust regulator approves Walmart-Flipkart deal, but issues warning on discounting practices (India). The Competition Commission of India (CCI) has greenlighted Walmart’s US$16 billion takeover of Flipkart despite opposition from local traders over monopoly concerns. The buyout is the world’s biggest ecommerce deal to date and will give Walmart a 77 percent stake in the Indian startup. Flipkart will gain a post-merger valuation of US$21 billion.

However, the CCI also said that Flipkart’s discounting system calls for closer scrutiny – a move that comes amid a new draft policy aimed at tightening restrictions on price cuts offered by online marketplaces. (Livemint)

Other news

New e-wallet lets outbound travelers pay in over 150 currencies without fees (Singapore). Called YouTrip, the digital wallet was launched by smart-card company EZ-Link, in partnership with Mastercard and Hong Kong-based You Technologies Group. The payment scheme also comes with a physical, contactless credit card that can be used in over 30 million Mastercard merchants around the world. (Business Times)

Beijing ratchets up support for tech industry amid US trade tension (China). The government has revamped a major leadership group focused on technological development to offer more growth-boosting measures as its tech ambition sparks backlash overseas. Shares in the country’s top tech companies soared following the announcement. (Reuters)

Online grocery and delivery firm nails US$500 million in latest financing round (China). Dada-JD Daojia raised the proceeds from US retail giant Walmart and Chinese e-tailer JD. The startup was formed in 2016 through the merger of two companies: Dada, a crowdsourcing delivery platform, and Daojia, JD’s online-to-offline service unit. (Reuters)

Ofo to backpedal from yet another market abroad (South Korea). The Chinese bike-sharing startup has been retreating from several of its overseas markets in recent months and is reportedly adding South Korea to its exit list. According to local media, Ofo has begun its layoff process, though it says it remains committed to the Korean market and that “change in staff priorities and positions” is essential to the firm’s path to profitability. (The Korea Herald)

Ele.me denies merger with Alibaba’s Koubei (China). The meal-delivery giant has dismissed rumors that its parent company Alibaba was merging it with Koubei, the tech titan’s life services unit. The rumored takeover is seen as Alibaba’s move to contain Meituan, whose on-demand services extend beyond food delivery to include everything from hotel booking to smartphone repair. (Security Daily) (Link in Chinese)

See: Previous Asia tech news