Apr 10, 2017

Flipkart raises $1.4 billion, as merger talks swirl

Flipkart, an Indian e-commerce giant, confirmed that it has raised $1.4 billion in new venture capital funding at an $11.6 billion post-money valuation. New investors include eBay, Microsoft and Tencent.

Deep discounts: Flipkart was valued at around $15 billion in mid-2015, while Snapdeal once was valued at around $6.5 billion.
Bottom line, via the FT: "While the Indian e-commerce market is forecast to grow sharply, Snapdeal, Flipkart and Amazon India have recorded losses as they invest heavily on marketing and logistics in an effort to gain scale. In the year to March 2016, the latest period for which regulatory filings are available, Flipkart, Snapdeal and Amazon India made an aggregate net loss of $1.4 billion."

Why it matters: This news comes amidst what could be major consolidation in the Indian e-commerce sector, with multiple reports saying that Flipkart is in talks to purchase smaller rival Snapdeal from shareholders like SoftBank for around $1 billion. It appears that SoftBank is driving that M&A train, despite holding just a 35% stake in Snapdeal, per a weekend memo from Snapdeal management to employees.

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Axios

China tries to contain coronavirus, as Apple warns of earnings impact

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's NHC; Note: China refers to mainland China and the Diamond Princess is the cruise ship offshore Yokohama, Japan. Map: Danielle Alberti/Axios

As China pushes to contain the spread of the novel coronavirus — placing around 780 million people under travel restrictions, per CNN — the economic repercussions continue to be felt globally as companies like Apple warn of the impact from the lack of manufacturing and consumer demand in China.

The big picture: COVID-19 has now killed at least 1,775 people and infected more than 70,000 others, mostly in mainland China. There are some signs that new cases are growing at a slower rate now, although the World Health Organization said Monday it's "too early to tell" if this will continue.

Go deeperUpdated 1 hour ago - Health

Ina Fried

Apple will miss quarterly earnings estimates due to coronavirus

Apple CEO Tim Cook

Apple issued a rare earnings warning on Monday, saying it would not meet quarterly revenue expectations due to the impact of the coronavirus, which will limit iPhone production and limit product demand in China.

Why it matters: Lots of companies rely on China for production, but unlike most U.S. tech companies, Apple also gets a significant chunk of its revenue from sales in China.

Go deeper2 hours ago - Technology

Orion Rummler

America's dwindling executions

The Trump administration wants to reboot federal executions, pointing to a 16-year lapse, but Pew Research reports the government has only executed three people since 1963.

The big picture: Nearly all executions in the U.S. are done by states. Even those have been steadily dropping for two decades, per the Bureau of Justice Statistics (BJS) — marking a downward trend for all executions in the country.

Go deeper4 hours ago - Politics & Policy