Recent fundings raised by Indian Startups In August 2021

Vishvas Nandwani
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Recent fundings raised by Indian Startups In August 2021
  • Chaipoint:

Chaipoint has raised $ 20 million in its new round of fundings. The funding was done by Paragon Partners, a mid-segment private equity investor, while existing investors, including Eight Roads (Fidelity’s India PE arm), Saama Capital and DSG also participated in the round.

The company aims to utilize the funds to grow the number of automated hot beverage dispensing machine. The company also aims to invest heavily in its delivery units which has been growing enormously with the help of Swiggy and Zomato.

  •  Breathe Well-being:

Breathe well being is a company that helps people prevent and manage type-2 diabetes in the country. It has raised $5.5 million in Series A led by Accel. The round saw participation from marquee investors like General Catalyst and Scott Shleifer, Global MD, Tiger Global.

“Our mission is to help 1 million Indians reverse Type 2 Diabetes by 2025. We are focusing on enhancing patient experience by scaling our technology platform, strengthening medical & coaching academy, community protocols and game design. This fundraise will also help us ramp up our hiring and marketing efforts. We will be aggressively hiring not only for core operations but across the board,” said Rohan Verma, co-founder & CEO, Breathe Well-being.

  • Bewakoof

Bewakoof is a fashion clothing D2C company (Direct to consumer) which has raised 60 Crores in pre Series B funding with this the company has raised around 170 Crores till date. It aims to increase it sales to around 2000 crores till 2025.

  • Khatabook

Khatabook, a leading fintech start-up, has closed a $100 million Series C funding round, with a valuation now close to $600 million. The round was led by US-based VC firms Tribe Capital and Moore Strategic Ventures (MSV). The startup is also buying back $10 million worth of ESOPs (employee stock ownership plan) to acknowledge and reward employees, ex-employees, and early investors who contributed to the company’s growth. Eligible employees will be able to sell as much as 30 per cent of their vested options. Khatabook has also expanded its ESOP pool to $50 million.

  • NOTO

Actor John Abraham and a clutch of venture capital (VC) funds have invested Rs 4 crore in NOTO, the low-calorie and high-protein icecream brand. The VC funds, who have invested alongside the actor in the pre-Series A round, include Titan Capital, Rockstud Capital, and WEH Ventures, an official statement said adding that some angel investors also participated. Founded by the couple Varun and Ashni Sheth in 2018, the brand will invest the money raised in geographical expansion, product development and hiring talent, the statement said.

  • Smallcase

Smallcase, a leading capital markets-focused fintech company, has raised $40 million in a Series C round led by Faering Capital. The round also saw participation from new investors Amazon Smbhav Venture Fund (ASVF) and Premji Invest, apart from existing investors including Sequoia Capital India, Blume Ventures, Beenext, DSP Group, Arkam Ventures, WEH Ventures, HDFC Bank Group and Utpal Sheth (CEO, Rare Enterprises). The round brings the total capital raised by smallcase to over $60 million.

RSA Consultants is a team of Chartered Accountants and other Professionals, rendering services in the field of Income Tax, GST, Indirect Tax, International Taxation, Corporate Law Advisory, Accounts & Assurances and Consultancy related to Startup & Entrepreneurship since 2011.

Our team can help your Startup to make application under the SISFS. Kindly get in touch with us via WhatsApp at 9723400220

Things you need to keep in mind before listing your business on e-commerce websites:

Vishvas Nandwani
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Things you need to keep in mind before listing your business on e-commerce websites:
  1. Charges

There are generally 3 types of charges which e-commerce operators like Amazon, Flipkart and other e-commerce operator charge:

  • Listing Commission: Whenever you list a product the e-commerce operator will charge you a listing commission based on the selling price of your product. This commission depends on the type of your product. It may range from 5-25%. There have been various new sites which don’t charge this type of commission like meeshow and udaan.
  • Closing Fee: This is levied flat on the order placed. It is generally between the range of Rs 25-50.
  • Delivery Charges: This is no surprise that you will need to bear the delivery charges of your product. It differs in price from local sale, intra state sale and national sales.

Besides this there are also some optional charges which depends on the discrete of the seller like:

  • Advertisement Charges: If you need to promote your product on amazon you will need to bear the advertisement charges. Due to this there is a case ongoing in the High Court of Karnataka to read more about this please click on the following link:
Is giving a discount and having exclusive partnerships with dealers fair and legal practice in India?
  • Pick and pack charges: As a seller it generally depends on you if you want to use this service or not. Bit on many websites like amazon and flipkart. If, you don’t opt for amazon delivery services you will be able to sell your products only within the limits of your own city.
  • Return Policies:

The return policies of the e-commerce websites today are mostly favorable towards the buyers. The sellers have to bear the cost of returns if the buyer does not like the products or if the product hets damaged in the warehouse or in transit.

  • Favorable to manufacturers

The cost associated with online e-commerces can only be borne and sustained by manufacturers who want to sell their products directly to the consumers. It is because of high mark-up costs that they will apply to their products and can still offer discounts to the customers.

  •  Send products to the warehouse:

Many e-commerce companies have started their own warehouses where they can store the products of the sellers and give faster delivery services to the buyers. It is also to be noted that your inventory will get block during this process.

  • Higher Profits:

It is really true that only sky is the limit for sellers on e-commerce websites. There are really many wholesalers and manufacturers who are reaping the benefits of these platforms. They are maximizing their sales by setting correct price ranges, handling their inventory properly.  

In a nutshell it can be said that the online business in India will expand in the future but sellers need to keep in mid the above following points and do proper costing and inventory holdings in order to make their businesses profitable.

Why do countries want to host the Olympics?

Vishvas Nandwani
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Why do countries want to host the Olympics?

Hosting the Olympics is considered to be prestigious for developed nations. The Olympics create a high constrain on the economy, So the question arises why do countries want to bid to host the Olympics? For 2016 Olympics, Japan just spend $ 150 million for only submitting the bid even it was unsuccessful and finally got the bid of $ 75 million for 2020 Olympics. Their bid is worth over $ 7 Billion.

How countries need to plan the Olympics?

The delayed Tokyo 2020 Summer Games were already the most expensive Olympics in history, running at 200% over budget on Sep. 7, 2020 though not scheduled to begin until July 2021. Tokyo forecast $7.3 billion in their 2013 bid, but the actual cost is estimated to be $15.84 billion as of Sep. 2020, with costs continuing to rise. A Jan. 2021 study found that losing foreign spectators due to COVID-19 restrictions could cost Japan as much as $23 billion.

Reasons to host the Olympics

One of the reason why countries want to host the Olympics is because it boosts tourism there have been various instances in which the countries have been left with operating surpluses from tourism and broadcasting fees. The recent example is of 2018 Winter games in which South Korea was left with a surplus of $ 55 million which was used to boost the sports facilities in the school. Another great example is of 1984 Summer Olympics in Los Angeles which gave the city around $ 500 million in surplus due to boost in tourism and bradcating rights.

But if badly organized and if the country and the city does not have the infrastructure to host the Olypiucs it can be a bloodbath of money for the country. For 1976, Montral Olympics Canada have to spend $ 17 million to maintain their prestigious Olympics stadium built for the purpose of hosting Olympics. It took over 30 years to run down that costs. Another bad example is of Russia, Sochi hosting thw winter Olympics in 2014.

Many Olympic venues worldwide sit empty, rusted, overgrown with weeds, covered with graffiti, and filled with polluted water. The $78 million Olympic Stadium in PyeongChang for the 2018 Winter Games was set for demolition before the 2018 Games even began. Sydney’s 2000 Olympic Stadium will be demolished in 2019 in favor of a smaller, more useful venue.

Bejing’s 2008 Bird’s Nest Olympic Stadium costs the city $11 million a year to maintain, and the stadium that seats 91,000 mostly sits unused. In Rio de Janeiro, the $700 million athletes village for the 2016 Games was turned into luxury apartments that are now “shuttered” and the Olympic Park is “basically vacant” after failing to attract a buyer. 

The next reason of hosting the Olympics is because it creates a sense of national pride when South korea won the bid for 2018 Winter Olympics the whole city came out on the streets to celebrate. Moorad Choudhry, MBA, PhD, Treasurer of the Corporate Banking Division of the Royal Bank of Scotland, stated, “A genuine feel-good factor [of hosting the Olympics] can be very positive for the economy, not just in terms of higher spending but also in productivity at work, which in turn boosts output.”

The Olympics also mean that a lot of people need to be shifted from their home to build the Olympics village. This has been eveident in Rio De Janeiro where moe than 100,000 people were forced to move out of their houses.

Cabinet approves various amendments in LLP Act ,2008

Sourabh Agarwal
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Cabinet approves various amendments in LLP Act ,2008

With the motive of facilitating greater ease of business in India, the government on Wednesday i.e. 28.07.2021 approved certain amendments in the LLP Act, 2008 vide LLP(amendment) Bill, 2021 thereby decriminalizing certain provisions and introducing two different types of LLP viz. Small Limited Liability Partnership and Startup Limited Liability Partnership and making various other amendments.

Objective of the government for the proposed amendment in the LLP Act,2008  

“In view of the constant endeavor of the Central Government to facilitate greater ease of living to law abiding corporates and to decriminalize certain provisions of the Act, it has become necessary to amend certain provisions of the Act. Hence the Bill, namely, the Limited Liability Partnership (Amendment) Bill, 2021 is  proposed to be enacted.”

Various Amendments proposed in the Limited Liability Partnership (Amendment) Bill, 2021

The Limited Liability Partnership (Amendment) Bill, 2021, inter alia, provides for the following, namely:—

(i) to introduce the concept of “small limited liability partnership” in line with the concept of “small company” under the Companies Act, 2013;

(ii) to amend certain sections of the Act so as to convert offences into civil defaults and to convert the nature of punishment provided in the said sections from fines to monetary penalties;

(iii) to insert a new section 34A so as to empower the Central Government to prescribe the “Accounting Standards” or “Auditing Standards” for a class or classes of limited liability partnerships;

(iv) To amend section 39 of the Act relating to “compounding of offences” so as to authorise the Regional Director to compound any offence under this Act which is punishable with fine only;

(v) To insert a new section 67A empowering the Central Government to establish or designate as many “Special Courts” as may be necessary for the purpose of providing speedy trial of offences under the Act;

(vi) To amend section 72 of the Act so as to provide more clarity in the provisions when any person aggrieved by an order of “Tribunal” prefers an appeal to the “Appellate Tribunal”;

(vii) to insert a new section 76A so as to provide that the Central Government may appoint as many officers as Adjudicating Officers as it thinks necessary for the purpose of adjudicating penalties under the Act.

The following definition is proposed for Small Limited Liability Partnership

(ta) “small limited liability partnership” means a limited liability partnership—

  • the contribution of which, does not exceed twenty-five lakh rupees or such higher amount, not exceeding five crore rupees, as may be prescribed; and
  • the turnover of which, as per the Statement of Accounts and Solvency for the immediately preceding financial year, does not exceed forty lakh rupees or such higher amount, not exceeding fifty crore rupees, as may be prescribed; or
  • which meets such other requirements as may be prescribed,

 and fulfils such terms and conditions as may be prescribed;’

The Government has also proposed a new from of LLP which is to reckoned as ‘Startup LLPs’ definition of which is proposed as below:-

Start-up limited liability partnership” means a limited liability partnership incorporated
under this Act and recognised as such in accordance with the notifications
issued by the Central Government from time to time.

*A lot of changes are being made in the Companies Act, decriminalizing many sections and improving ease of doing business for companies. A similar treatment had to be given for LLPs,” Union finance minister Nirmala Sitharaman said while addressing a press conference.

“With the Limited Liability Partnership Amendment Bill, we will have only 22 penal provisions, 7 compoundable offences and 3 non-compoundable offences,” she said, adding 12 offences will be decriminalised for LLPs and three sections will be omitted.

Finance Minister Nirmala Sitharaman also said the amendments would bring an equal playing field for LLPs, compared to large companies which come under the Companies Act, as LLPs are becoming popular among startups. Earlier, LLPs did not have the benefit of either simplified regulation or ease of practice under proprietorship, she pointed out.*

*Source: Hindustan Times

Central Government Employees to enjoy a hike in Dearness Allowance from 17% to 28%

Tithi Shah
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Central Government Employees to enjoy a hike in Dearness Allowance from 17% to 28%

“The President is pleased to decide that the Dearness allowance payable to Central Government employees & dearness relief to pensioners shall be enhanced from the existing rate of 17% to 28% of the basic pay with effect from 1st July, 2021” said the recent Memorandum of  Ministry Of Finance, thereby increasing the rate by 11%.

The Ministry of Finance had put on hold an increment in dearness allowance (DA) till June 30, 2021, due to the COVID-19 pandemic in April last year. The rate of DA from January 1, 2020, to June 30, 2021, shall remain 17 per cent.

The decision is expected to cost the government approximately ₹ 34,400 crore and impact around 48,34,000 central government employees and 65,26,000 pensioners” said Anurag Thakur, the minister of sports, youth affairs and minister of information and broadcasting in a press briefing while making the announcement.

What is dearness allowance?

Dearness Allowance is paid by the government to its employees as well as a pensioner to offset the impact of inflation. The effective salary of government employees requires constant enhancement to help them cope up with the increasing prices. Dear Allowance/Dearness Relief is revised twice a year from January 1 and July 1.

Illustration on Dearness Allowance

The present rate at which the government employees are getting DA is 17%. For example, if a government employee’s basic salary is ₹20,000, the DA is ₹3400 (at 17%). With 28%, the dearness allowance will be 5,600 in a month. This calculation will be applicable from July 1.

Impact of hike in Dearness Allowance

The impact of increase in the dearness allowance on the economy will depend on whether and to what extent employees actually spend money. On a general front, an increase in dearness allowance essentially increases the money that employees bring home . If the employees choose to spend all this additional money they get, it will have a positive impact on the dropping consumption demand due to the pandemic . However, if they choose to save this money instead of spending the same and keep it in their bank accounts, it will help the economy by bolstering the flow of funds to the banking system.

Complete guidance to new e-form CSR-1

Priya kejriwal
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Complete guidance to new e-form CSR-1

Are you a social organisation and seeking CSR Funding? Then it is mandatory for you to get registered with MCA by filing Form CSR-1 as soon as possible.

Ministry of Corporate Affairs has launched CSR-1 form on their website w.e.f. 1st April 2021. E-form CSR-1 is required to be filed pursuant to Section 135 of the Companies Act, 2013 and Rule 4 (1) and (2) of the Companies (Corporate Social Responsibility Policy) Rules, 2014.

Form CSR-1 is a registration form for getting CSR funding by implementing agencies from the corporates. The Form CSR-1 is termed as Form for “Registration of Entities for undertaking CSR Activities”.

The Form mainly consists of two parts, first part is relating to the information about the entity who intends to undertake CSR activities. Second part of Form CSR-1 is certification by practicing professional.

If any implementing agency fails to file CSR-1, they shall not be eligible to continue as the Implementing agency.

On successful submission of Form CSR-1, a unique CSR Registration Number shall be generated by system automatically to applying organization

Five types of entities covered for registration in Form CSR -1 :

1) Company established under Section 8 of the Companies Act, 2013 with Section 12A and Section 80G registrations under the Income Tax Act, 1961.

2) Registered Public Trust with Section 12A and Section 80G registrations under the Income Tax Act, 1961.

3) Company established under Section 8 of the Companies Act, 2013 or Registered Trust or Registered Society established by the Central Government or State Government.

4) Registered Society with Section 12A and Section 80G registrations under the Income Tax Act, 1961.

5) Entity established under an Act of Parliament or State Legislature.

These companies/entities are required to mandatorily register themselves with the central government for undertaking any CSR activity by filing the e-form CSR-1 with the Registrar.

Procedure to Download Form CSR-1

-The procedure to download Form CSR-1 from the MCA website is as follows:

-The applicant needs to access the official webpage of the Ministry of Corporate Office (MCA) and Click on Forms & Downloads on the top of the webpage.

-Scroll down the page till the topic ‘Incorporation services’ is reached. Click on the “Registration of Entities for undertaking CSR activities Form CSR-1” Download the e-Form with or without Instruction. This will be downloaded in zip file format. Unzip it and extract the relevant pdf files.

-Open the pdf file named ‘Form_CSR-1’. This is Form CSR-1 for the registration of entities for undertaking CSR activities.

Form CSR-1 need to be digitally signed by following persons:

a) Any one of the Directors of Section 8 Company

b) Any one of trustees of Registered Trust

c) By Chairperson/Secretary in case of Registered Society

d) Authorized Signatory in case of entity established under an Act of Parliament or State Legislature.

e) A Practising Professional like Chartered Accountant in Practice or a Cost Accountant in Practice or Company Secretary in Practice

Documents Required for CSR-1 Registration

The documents required to upload for CSR-1 Registration is as follows:

-Copy of the registration certificate

-Copy of the PAN of the NGO with Form CSR-1

-DIN/PAN of the Director, Trustee, Secretary, etc. of the organization

-Copy of the Resolution authorizing the person by the entity with Resolution number and date of the resolution

-DSC of the person

Mandatory Attachments:

Section-8: Certificate of Incorporation and PAN of Company

Trust- Certificate of Registration and PAN of Trust

Society- Certificate of Registration and PAN of Trust

Certification of E-form:

This from should be certified by following:

Section-8: To be digitally signed by one director.

Trust- To be digitally signed by one of the Trustee/ CEO

Society- To be digitally signed by Chairperson/ CEO/ Secretary

NOTE: After approval of this form, an acknowledgement shall be sent to the email id of entity on which OTP has received earlier. Further, a approval letter with unique registration number shall also be sent to the email of the entity

To conclude, the intention behind the Form CSR-1 seems to streamline, monitor and control the process of Corporate Social Responsibilities activates of corporate in a better and transparent manner thereby protecting society at large. The benefits of CSR (Corporate Social Responsibility) shall flow smoothly to larger section of society thereby achieving the very Objective of Corporate Social Responsibility of the Government.

All you need to know about Sovereign Gold Bonds Scheme – a substitute for investment in physical gold

Sourabh Agarwal
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All you need to know about Sovereign Gold Bonds Scheme – a substitute for investment in physical gold

What is Sovereign Gold Bonds? Is investing in Sovereign Gold Bonds better than investing gold? Is it a good investment options for Middle class Citizens?, and many other questions arise whenever any body talks about investing in new assets or specifically the Sovereign Gold Bonds. So here is this article answering  these questions.

What is Sovereign Gold Bonds (hereinafter SGBs)?

SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.

Who are eligible for Investment in Sovereign Gold Bonds?

Persons resident in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities and charitable institutions. Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.

Even the minors can make application for investment in Sovereign Gold Bonds i.e. SGBs but the application on behalf of the minor has to be made by his/her guardian.

Minimum Investment, Denomination and Pricing:-

The SGBs are issued in the denominations of one gram gold or multiples thereof and the minimum limit of subscription for bonds shall be one gram and maximum limit of subscription per fiscal year shall be of 4 kgs for Individuals and HUFs and 20Kgs for trusts and similar entities notified by the Government time to time

The nominal value of Gold Bomds shall be in Indian rupees fixed on the basis of simple average of closing price of gold of 999 purity, published by the Indian Bullion and Jewellers Assosciation Limited for the last three working days of the week preeceding the subscription period.

Note:- The issue price of the gold Bonds will be 50 per gram less than the nominal value for those investors applying online and payment against the application is made through digital mode.

Process of application

The application form will be provided by the issuing banks/SHCIL offices/designated Post Offices/agents. It can also be downloaded from the RBI’s website. Banks may also provide online application facility.

Any person desirous of subscribing to the Gold Bonds shall apply to any receiving office in Form ‘A’ or in any other form as near as thereto, stating clearly the grams of gold, full name and address of the applicants.

Every application shall be accompanied by the PAN number of the applicant issued by the ITD.

When to Invest in Sovereign Gold Bonds?

The Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds. The Sovereign Gold Bonds will be issued in six tranches from May 2021 to September 2021 as per the calendar specified below:

Sr. No. Tranche Date of Subscription Date of Issuance
1. 2021-22 Series I May 17–21, 2021 May 25, 2021
2. 2021-22 Series II May 24–28, 2021 June 01, 2021
3. 2021-22 Series III May 31-June 04, 2021 June 08, 2021
4. 2021-22 Series IV July 12-16, 2021 July 20, 2021
5. 2021-22 Series V August 09-13, 2021 August 17, 2021
6. 2021-22 Series VI August 30-September 03, 2021 September 07, 2021

Interest rate and how it will be paid?

The Bonds bear interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investor and the last interest will be payable on maturity along with the principal.

On redemption:-

On maturity, the Gold Bonds shall be redeemed in Indian Rupees and the redemption price shall be based on simple average of closing price of gold of 999 purity of previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited. Both interest and redemption proceeds will be credited to the bank account furnished by the customer at the time of buying the bond.

Procedures involved during redemption.

  • The investor will be advised one month before maturity regarding the ensuing maturity of the bond.
  • On the date of maturity, the maturity proceeds will be credited to the bank account as per the details on record.
  • In case there are changes in any details, such as, account number, email ids, then the investor must intimate the bank/SHCIL/PO promptly.

Can the bonds be issued in demat form?

Yes. The bonds can be held in demat account. A specific request for the same must be made in the application form itself. Till the process of dematerialization is completed, the bonds will be held in RBI’s books. The facility for conversion to demat will also be available subsequent to allotment of the bond.

Can we trade these bonds?

The bonds are tradable from a date to be notified by RBI. (It may be noted that only bonds held in de-mat form with depositories can be traded in stock exchanges). The bonds can also be sold and transferred as per provisions of Government Securities Act, 2006. Partial transfer of bonds is also possible.

Is premature redemption allowed?

Though the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after fifth year from the date of issue on coupon payment dates. The bond will be tradable on Exchanges, if held in demat form. It can also be transferred to any other eligible investor.

How to exit the investment?

In case of premature redemption, investors can approach the concerned bank/SHCIL offices/Post Office/agent thirty days before the coupon payment date. Request for premature redemption can only be entertained if the investor approaches the concerned bank/post office at least one day before the coupon payment date. The proceeds will be credited to the customer’s bank account provided at the time of applying for the bond.

Can these securities be used as collateral for loans?

Yes, these securities are eligible to be used as collateral for loans from banks, financial Institutions and Non-Banking Financial Companies (NBFC). The Loan to Value ratio will be the same as applicable to ordinary gold loan prescribed by RBI from time to time. Granting loan against SGBs would be subject to decision of the bank/financing agency, and cannot be inferred as a matter of right.

What are the tax implications on i) interest and ii) capital gain?

Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long terms capital gains arising to any person on transfer of bond.

 Is tax deducted at source (TDS) applicable on the bond?

TDS is not applicable on the bond. However, it is the responsibility of the bond holder to comply with the tax laws.

Why should SGB be considered rather than physical gold? What are the benefits?

The quantity of gold for which the investor pays is protected, since he receives the ongoing market price at the time of redemption/ premature redemption. The SGB offers a superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held in the books of the RBI or in demat form eliminating risk of loss of scrip etc.

Is giving a discount and having exclusive partnerships with dealers fair and legal practice in India?

Vishvas Nandwani
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Is giving a discount and having exclusive partnerships with dealers fair and legal practice in India?

Background

Recent judgment of Karnataka High Court to allow Competition Commission of India (CCI) to conduct an inquiry into practices of Amazon and Flipkart have been pronounced. The e-commerce giants had challenged the order of CCI passed under section 26(1) of the Competition Act in January, 2020.

The section states that the competition commission may inquire into any alleged contravention of the competition act if it receives any complaint from any person and if it deems to be necessary.

The commission had received a complaint from Delhi Vyapar Mahasangh (DVM) to enquire into the practices of the e-commerce giants as they alleged that the e-commerce companies are giving preferential treatment to various dealers.

The Karnataka High Court gave an interim stay on the order of CCI. The CCI then challenged the same in Supreme Court in which Supreme Court ordered the Karnataka High to decide on the CCI’s order. Then on 23rd July, 2021. Karnataka high court dismissed the appeal by Amazon and Flipkart by saying that if the e-commerce giants believe everything to be in law then they should don’t be afraid of the inquiry.

What does the law states?

According to section 3(4) of the Competition Act there shall be no agreement in which the dealer has an exclusive sale agreement or exclusive distribution agreement or refusal to deal.

What the petitioner had to say?

The petitioner has alleged that these e-commerce giants have exclusive deals and agreements with suppliers especially with smartphone companies and tech companies ( For eg. One Plus phones are only available on Amazon), these giants use their dominant position to abuse competition in the market.

Secondly, due to search bias the e-commerce giants favor certain seller on others. The idea of the competition act is to eliminate the ant-competitive elements by ensuring that visibility for all sellers should be the same.

Defense by E-Commerce Giants

Amazon and Flipkart before the court argued that these are all only allegations and that there is no agreement with the sellers for the same. CCI have not shown any written and tangible proof why the inquiry must be conducted. If the seller wants to picks any platform on which he wants to sell his product he should be allowed to so the same and it should be his choice if he opts to not sell it on any other platform.

Moreover as the searches are concerned these searches are based on our logarithm which includes the personal traits of the customers including their preferences like price, colour, estimated time to deliver etc. For eg if you will search masks and PPE kits you will get the ones which will deliver it to you the fastest. The online marketplace by design is an instrument to promote competition in the industry.

5 Startups which are helping small ventures grow

Vishvas Nandwani
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5 Startups which are helping small ventures grow

Unfortunately due to covid-19 pandemic there have been many startups which had to be shutdown but here is the list of startups which are helping other businesses grow:

  1. Shiprocket

Sector: Logistics

This Delhi based startup is known for its logistics services to its clients (Direct to Consumers (D2C). Founded in 2011 this startup is known for its user friendly platform which it provides to other small ventures and businesses who are involved in selling their goods all across the globe. It provides services of delivery of goods including pickup options & cash on delivery options for the end users and also provides online payment system.

Shiprocket has been a pioneer in logistics industries mainly for MSMES as it gives best in class experiences for many e-commerce brands. It also claims to offer same day delivery and next day delivery services to e-commerces very soon. Shiprocket has raised $41.3 million in its Series D1 round led by PayPal Ventures, the corporate VC arm of PayPal. With this round, Shiprocket’s total funding brings to $94.3 million. Gillette, Mamaearth, Bira 91, The Beer Cafe, Aakash Institute are some of the notable brands that use Shiprocket’s service. It has integrated with various top delivery partners like Fedex, Delhivery, Bluedart, DHL etc.

Sector: B2B intermediary

Headqurtered in Bangalore udaan provides a network centric B2B platform to traders, wholesalers, retailers, manufacturers, and brands in India onto a single platform. It caters to various industries like  Electronics & Appliances, Clothing & Accessories, Footwear, Food & FMCG, Pharmaceuticals/Medicines, Home & Kitchens, Electricals, Toys, Baby & Sports and more.

Founded by former Flipkart Executives Kumar, Gupta and Amod Malviya five years ago, has a network of 1.7 million retailers, chemists, corner stores and small businesses doing over 4.5 million transactions per month with over 30,000 sellers on its platform. It has added over 1 lakh new businesses in 2020.

Udaan has raised $ 280 million in its latest round of funding at a valuation of $ 3.1 billion and has now an overall funding of $ 1.15 billion.

Sector: Digital Payment

Founded on 2014 by IIT Roorkee alumni, Harshil Mathur and Shashank Kumar razorpay product suite comprises of verticals, along with Payment Gateway, like Payment Links, Payment Pages, Subscriptions, Smart Collect, Route, Razorpay Capital, RazorpayX, Payroll and Thirdwatch.

It has helped all small & large businesses in accepting online payments. Accepting online payment is one of the main feature of doing online businesses and razor pay has made life easier.

Sector: Accounting

Founded in October 2018, Khatabook is the world’s fastest-growing Saas company. Founded by four IIT-Bombay grads, Khatabook is led by Ravish Naresh, Co-founder, and COO at Housing.com, one of India’s most significant property listing websites.

Khatabook is an accounting based startup which allows small businesses do their accounting.

Khatabook enables micro, small and medium merchants to track business transactions safely and securely. It also offers features such as online payment collection through UPI and QR; sending periodic reminders to creditors via messages and report generation.

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Rule 33A: MCA inserts New Rule for allotment of new name to Existing Company

Pratik Jain
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Rule 33A: MCA inserts New Rule for allotment of new name to Existing Company

First Notification

MCA vide notification dated 22nd July, 2021 has commenced the provisions of Section 4 of Companies (Amendment) Act, 2020 which shall come into force from 1st September, 2021.

Section 4 of Companies (Amendment) Act, 2020 states that:

In section 16 of the principal Act,—

(i) in sub-section (1), in clause (b), for the words “period of six months”, the words “period of three months” shall be substituted;

(ii) for sub-section (3), the following sub-section shall be substituted, namely:—

“(3) If a company is in default in complying with any direction given under sub-section (1), the Central Government shall allot a new name to the company in such manner as may be prescribed and the Registrar shall enter the new name in the register of companies in place of the old name and issue a fresh certificate of incorporation with the new name, which the company shall use thereafter:

Provided that nothing in this sub-section shall prevent a company from subsequently changing its name in accordance with the provisions of section 13.”

Second Notification

MCA vide notification dated 22nd July, 2021 has introduced rules further to amend the Companies (Incorporation) Rules, 2014 which shall be called Companies (Incorporation) Fifth Amendment Rules, 2021, it shall come into force from 1st September, 2021.

In the Companies (Incorporation) Rules, 2014, after rule 33, the following rule shall be inserted, namely:-

33A. Allotment of a new name to the existing company under section 16(3) of the Act.

(1) In case a company fails to change its name or new name, as the case may be, in accordance with the direction issued under sub-section (1) of section 16 of the Act within a period of three months from the date of issue of such direction, the letters “ORDNC” (which is an abbreviation of the words “Order of Regional Director Not Complied”), the year of passing of the direction, the serial number and the existing Corporate Identity Number (CIN) of the company shall become the new name of the company without any further act or deed by the company, and the Registrar shall accordingly make entry of the new name in the register of companies and issue a fresh certificate of incorporation in Form No.INC-11C:

Provided that nothing contained in sub-rule (1) shall apply in case e-form INC-24 filed by the company is pending for disposal at the expiry of three months from the date of issue of direction by Regional Director, unless the said e-form is subsequently rejected.

(2) A company whose name has been changed under sub-rule (1) shall at once make necessary compliance with the provisions of section 12 of the Act and the statement, “Order of Regional Director Not Complied (under section 16 of the Companies Act, 2013)” shall be mentioned in brackets below the name of company, wherever its name is printed, affixed or engraved:

Provided that no such statement shall be required to be mentioned in case the company subsequently changes its name in accordance with the provisions of section 13 of the Act.

Extract of Section 16 of Companies Act, 2013 is as follows:

(1) If, through inadvertence or otherwise, a company on its first registration or on its registration by a new name, is registered by a name which,—

(a) in the opinion of the Central Government, is identical with or too nearly resembles the name by which a company in existence had been previously registered, whether under this Act or any previous company law, it may direct the company to change its name and the company shall change its name or new name, as the case may be, within a period of three months from the issue of such direction, after adopting an ordinary resolution for the purpose;

(b) on an application by a registered proprietor of a trade mark that the name is identical with or too nearly resembles to a registered trade mark of such proprietor under the Trade Marks Act, 1999, made to the Central Government within three years of incorporation or registration or change of name of the company, whether under this Act or any previous company law, in the opinion of the Central Government, is identical with or too nearly resembles to an existing trade mark, it may direct the company to change its name and the company shall change its name or new name, as the case may be, within a period of three months from the issue of such direction, after adopting an ordinary resolution for the purpose.

(2) Where a company changes its name or obtains a new name under sub-section (1), it shall within a period of fifteen days from the date of such change, give notice of the change to the Registrar along with the order of the Central Government, who shall carry out necessary changes in the certificate of incorporation and the memorandum.

(3) If a company is in default in complying with any direction given under sub-section (1), the Central Government shall allot a new name to the company in such manner as may be prescribed and the Registrar shall enter the new name in the register of companies in place of the old name and issue a fresh certificate of incorporation with the new name, which the company shall use thereafter:

Provided that nothing in this sub-section shall prevent a company from subsequently changing its name in accordance with the provisions of section 13

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