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After $140 billion wipeout, China’s two largest companies bid for comeback

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China’s two largest companies have lost a combined $140 billion in market value since the escalation of the trade war in May. As Alibaba Group Holding Ltd. and Tencent Holdings Ltd. report earnings this week back-to-back, they’ll try to show the punishment is overdone.

The brutal market selloff began three months ago as Donald Trump’s administration slapped restrictions on Chinese national champion Huawei Technologies Co., drawing the ire of Beijing. The Hong Kong benchmark has slid more than 10%, with the two giants dropping by similar amounts.

Yet Alibaba and Tencent’s businesses are largely domestic, having little to do with the US or trade. Tencent is back on track after a horrendous 2018, with revenue growth projected to rebound to 27% in the June quarter thanks to hits like Peacekeeper Elite and durable titles like Honour of Kings. Alibaba, coming off a record June online promotional blitz, is expected to report revenue growth of 38%.

‘Despite growth concerns, a few China internet companies have performed quite well recently, especially in e-commerce and gaming,’ said Jerry Liu, a Hong Kong-based analyst at UBS.

Alibaba, in particular, needs a strong quarter when it reports on Thursday. The e-commerce giant is weighing a secondary listing in Hong Kong that could raise as much as $20 billion, though the target is in flux. Shares are down by about 12% over the last year, while its price to earnings ratio, based on financial estimates for the next 12 months, is about 24, compared with Amazon’s roughly 70.

Raising capital could help replenish ammunition for the e-commerce giant, currently engaged in a cash burning battle for on-demand and food delivery services with Meituan. It’s one of the areas where Alibaba is struggling. Alibaba’s Ele.me’s market share may have lost another 2 percentage points in food delivery to 36% in the second quarter compared with three months ago, according to David Dai, a Hong Kong-based Bernstein analyst.

The worst seems to be behind for Tencent, which reports on Wednesday. After a year of not being able to monetize its most popular gaming genre, the social media giant has finally won regulatory approval to make money from its latest title, Peacekeeper Elite. The new battle royale game, where players engage in a fight to the death, has been toned down in violence to appease government concerns.

That said, regulator approval rates for games have slowed down. Monthly approval rates have fallen from more than 200 games a month in the first quarter to less than 50 games per month in the second quarter, according to government website data.

Apart from gaming, Tencent is expanding its services on WeChat — the instant messaging app with 1 billion users. It is attracting more users to its mini programs, lite apps that allows users access to services from other companies, including ride-hailing, food delivery, bike sharing and ordering food at restaurants.

The company is fending off ByteDance Ltd., parent of the popular short video services Douyin and TikTok. Tencent had six out of the top 10 apps in China in terms of time spent in June, according to research by QuestMobile and Nomura. Tencent’s WeChat alone accounted for 20% time spent share among Chinese mobile users and its QQ was next with 6.1%, followed by Douyin at 5.8%.

‘Investors have some concerns about macro conditions and trade war, but if you look long term, the fundamentals are more stable,’ said Liu.

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Business

Delhi: Businesses can now remain open 24×7, over 300 applications cleared by L-G

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Photo by Rehan Fazal on Unsplash

From restaurants to transport services and BPOs to online delivery services, all those who apply for exemptions will be allowed to operate 24×7 in Delhi starting next week, with Lieutenant Governor V K Saxena approving the proposal to exempt 314 such places to operate all day long, some of them pending since 2016, officials said.

“The L-G has directed that notification to this effect be issued within seven days. The decision of providing exemption under Sections 14, 15 & 16 of the Delhi Shops & Establishment Act, 1954, is expected to boost employment generation and promote a positive and favorable business environment that is a prerequisite for economic growth. The decision will also provide a fillip to the much desired ‘nightlife’ in the city,” said an official.

Source: IndianExpress

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Business

Swiggy Instamart figures, Mumbaikars ordered 570 times more condoms in the last one year

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Customers are also ordering medical-related things through online shopping platforms. In metros like Mumbai, Hyderabad, Delhi, and Bangalore, people are buying goods online in large numbers. People living in metro cities including Bengaluru, Delhi, and Mumbai ordered an average of 6 million eggs in the last year.

These days people are doing online shopping fiercely in the country. Through Grocery Service Platforms, the goods of need are easily reaching people’s homes. From vegetables to medicines, just a few clicks on the smartphone are reaching people’s doorsteps. According to a survey, Swiggy Instamart has provided service to more than 9 million users between June 2021 and June 2022. In metros like Mumbai, Hyderabad, Delhi, and Bangalore, people are buying goods online in large numbers.

Healthcare products orders

Customers are also ordering medical-related things through online shopping platforms. According to a survey, Mumbaikars have ordered 570 times more condoms in the last 12 months. At the same time, in 2021, Instamart received orders for about two million sanitary napkins, menstrual cups, and tampons. Apart from this, a lot of orders have also been received for grocery items.

56 lakh packets of noodles ordered

According to the survey, between April and June last year, there was a 42 percent increase in the demand for ice cream in these metro cities. It was also learned that most of the orders were placed after 10 pm. In metro cities, people have ordered 5.6 million packets of instant noodles. In Hyderabad, users ordered around 27,000 bottles of fresh juice during the summer months.

60 lakh eggs ordered

The demand for eggs has increased manifold in the last two years. People living in metro cities including Bengaluru, Delhi, and Mumbai ordered an average of 6 million eggs in the last year. According to the report, customers from Bangalore and Hyderabad ordered the maximum number of eggs for breakfast. At the same time, people of Mumbai, Jaipur, and Coimbatore have ordered the maximum number of eggs online at the time of dinner.

Demand for dairy products

There has been a huge jump in orders for both tea and coffee. According to the report, there has been an increase of 2,000 percent in its demand. At the same time, 3 crore orders of milk have come for milk. People from Bangalore and Mumbai have placed more orders in the morning. Regular milk, full cream milk and toned milk are the most ordered dairy products.

Ordering fruits and vegetables

Orders for 62,000 tonnes of fruits and vegetables have been received in the last year. With 12,000 orders, Bengaluru tops the list of organic product buyers. At the same time, Hyderabad and Bangalore together have ordered more than 290 tonnes of green chilies in 12 months. Over 2 lakh orders have been received for bathroom cleaners, scrub pads, drain cleaners, and more in the last year.

Source: Aajtak

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Zepto, 10-minute grocery delivery app, raises $100 million

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Only five months subsequent to dispatching, 10-minute basic food item conveyance application Zepto on Tuesday reported it has raised $100 million driven by Y Combinator, taking its valuation to $570 million.

Other than the raise money, Zepto has been developing staggeringly rapidly and is significantly increasing its client base consistently.

In the course of recent months, Zepto has extended past Mumbai by dispatching in Bengaluru, Delhi, Gurgaon, Chennai, Hyderabad, and Pune (Kolkata to follow), the organization said in an assertion.

“Financial backers are reliably deciding to back Zepto due to our top tier execution. This is giving us extraordinary energy – we’re developing at an amazing rate, clients are adoring the item experience, our center unit financial matters are solid, and we have one of the most outstanding startup groups in India today,” said Aadit Palicha, Co-Founder and CEO.

The Series C raising money round saw support from new and existing financial backers, including Glade Brook, Nexus, Breyer Capital, Lachy Groom, Global Founders Capital, Contrary Capital, and that’s just the beginning.

The round came 45 days later the organization reported its $60 million raise money in November.

Conveying food in a short time is a game-changing encounter for clients in the nation, and a few players are presently joining the race.

“We are eager to twofold down and lead this round in Zepto. They initially dispatched with an alternate model, quickly turned to speedy trade in August 2021, and are presently adding 100,000 new clients consistently, 60% of the ladies,” said Anu Hariharan from Y Combinator.

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