Ecom Express is trailing its growth-hungry competitors; New Age stocks continue to decline

Ecom Express was, until recently, the second largest junior logistics company in India in terms of daily order volumes, trailing Pune-based Xpressbees for a few months now. Several experts we spoke with said the company lags behind its competitors for a number of reasons, but primarily its refusal to diversify beyond e-commerce orders and its insistence on sacrificing growth for profits.

Also in this message:
■ Analysts advise caution as new stocks continue to decline
■ Technology stagnation worldwide may affect IIT placements
■ The meteoric rise of technical function switches appears to be over


Why Ecom Express is trailing its Game of Thrones competitors in the logistics industry

Ecom Express is not your new average company, striving for growth whatever the cost.

In fact, the third-party e-commerce logistics player, which has long held the number two position in its category, has now been pushed to number three, several industry sources have told us.

Despite this, the company continues to focus solely on e-commerce orders. Meanwhile, its competitors were casting a wider network and consolidating their market share.

For Ecom Express, the goal is sustainable profitability rather than the pursuit of volumes. But this approach may not be enough, given the many challenges the company faces in a sector that has become a veritable battlefield.

Icom Express Variation

Scroll order changes: A top-notch change has occurred in the third-party e-commerce logistics industry.

Pune-based Xpressbees has outperformed Gurugram-based Ecom Express in daily order volumes for a few months now, particularly in the first quarter of this financial year, according to multiple sources familiar with the numbers. Xpressbees is expanding its operations and adding core e-commerce delivery offerings.

Challenges: Ecom Express is facing its own set of challenges, after it delayed plans for an initial public offering and sought to raise cash amid a slowdown in big deals.

Singapore’s Shopee’s sudden exit from India in March was another big blow to Ecom Express, our sources said, as it handled most volumes for the e-commerce company in Southeast Asia.

Ecomm profit

Why lose ground: According to several industry executives and analysts we spoke with, a lack of diversification outside of e-commerce and a pursuit of profitability rather than volumes could be the reason why Ecom Express fell below Xpessbees in daily shipments.

“The company is not as aggressive as Delhivery and Xpressbees on the ground in terms of attracting business,” said one person who has worked across several e-commerce logistics companies.

The company also faced stiff competition from competitors for technology solutions. Ecom Express is seen as being slightly behind Delhivery and Xpressbees in terms of technology.


Analysts advise caution as new stocks continue to drop

startup posts

The rout deepened in India’s modern business on Tuesday, led by a sharp drop in One97 Communications, parent company Paytm, and FSN E-Commerce Ventures, owner of Nykaa.

Analysts said that large funds continued to dump their stakes in some of these companies, pointing to more pain ahead, and they warned retail investors not to purge these shares at this point.

Defeat Tuesday: Paytm fell almost 12% to touch fresh lows of 474.30 rupees apiece before closing the day at 475.55 rupees on the New York Stock Exchange. Stocks opened lower and selling intensified after analysts at Macquarie said the entry of Reliance Jio’s financial services arm could pose a real threat to fintech firms and other non-bank lenders.

This trajectory brought Paytm’s market capitalization down to less than $4 billion — the valuation at which it raised funds from Alibaba and Ant Financial in 2015.

Reliance Industries said last month it was creating a financial services unit to focus on the consumer business. Jio Financial Services will be separated and listed as a separate entity.

Lock Expiration Blues: On November 15, the one-year hold on about 86% of Paytm’s outstanding shares expired. Then, one of its early investors – SoftBank Group – sold 29 million shares through a syndicated deal on Thursday for around 1,631 crores or 555.67 rupees each.

Shares of other listed New Age companies were also hit after the end of the holding periods. Nykaa stock fell 4.66% after Lighthouse India sold Nykaa shares worth Rs 355 crore via a block deal on Tuesday. TPG Capital sold shares worth Rs 1,000 crore last week, as did NRI investor Mala Gopal Gaonkar.

Also read | Arvind Agarwal, Chief Financial Officer of Nika, resigns


E-commerce index ET

We’ve launched three indicators—E-commerce ET, profitable e-commerce ET, and unprofitable e-commerce ET—to track the performance of recently listed technology companies. Here’s how they’ve fared so far.

ET Ecommerce Tracker

Worldwide technology stagnation may affect IIT placements

IIT jobs

Indian Institutes of Technology (IITs) are likely to feel the heat of the global tech slowdown, although they will be more isolated than many other engineering colleges.

Offers may drop: As Big Tech downsizes and the IT services sector pulls hiring, sources at IIT told us they were expecting a decrease in the number of big-ticket international shows and IT staff on campus during final placements.

This follows a record recruitment season for IIT’s batch of 2022 – spurred by pandemic-led digitization and post-Covid recruitment revival – with an unprecedented number of Crore Plus packages, international placements and other job offers.

Final placements in the old IITs begin on December 1st.

quotes: “We are a little worried, although the overall situation is definitely better than the year of Covid. There is a slight decrease in the number of companies that have applied so far,” said Satyan Sobia, professor and employment consultant at IIT-Madras.

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The meteoric rise of tech job-changers appears to be over

increase in salary

The party is almost over for tech workers in India, who received more than 100% increases in switching jobs just a year ago, staffing providers said, although switching jobs still brings salary increases of between 30 and 35%. .

They tell us that macroeconomic pressures coupled with successive layoffs and a looming global recession have hampered the race for tech talent in the country.

In numbers: This trend is validated by data shared with us exclusively by staffing and staffing firm CIEL HR Services, which identified increases distributed for job switching across 62 medium-sized large IT companies in the past five months.

The survey showed that average increases in new jobs fell from 54% in July and August 2022 to 45% in September and 37% in October. It is now settled at 35% and is likely to drop further, said Aditya Mishra, CEO of CIEL HR Services.

just chill: According to experts, in 2021, or the year of the “big quit”, candidates were offered significant salary increases, sometimes over 100%, when changing jobs. Then, the tech talent had multiple offers on hand and they were the ones to decide, as we previously reported.


Govt board remains divided by GST for online gaming

GST online games

The Group of Ministers (GoM), which was set up to decide on the Goods and Services Tax (GST) on online gaming, horse racing and casinos, was unable to reach a consensus on the matter on Tuesday.

divider: While most GoM members backed a uniform 28% GST on online gaming, the finance ministers of Uttar Pradesh and West Bengal said “games of skill” and “games of chance” should be treated differently, people with first-hand knowledge of the deliberations Tell us.

GoM also remained divided on whether to tax gross gaming revenue (GGR) or gross gaming revenue.

The Moroccan government met virtually on Tuesday to finalize its report, which is likely to include recommendations from the legal committee and comments from dissenting members. The GST Council is likely to meet this weekend.

Fast catch up: In its previous report, submitted to the board in June, GoM proposed a 28% tax on the full value of consideration, including contest entry fees, paid by a player, without distinction as between games of skill and games. by accident.

But at the request of Goa, the council asked the Moroccan government to reconsider its report and examine the possibility of treating games of skill and games of chance differently.


Other top news for our correspondents

SaaS

SaaS companies rely on core business to weather the storm of the US market: The entrepreneurs said India-based SaaS companies are looking to weather macroeconomic headwinds by spending prudently and focusing more on the core business as the US recession hits one of the country’s newest tech ecosystems in the form of slower business growth.

Schneider Electric makes India a hub for AI: Schneider Electric said it will make India the AI ​​hub for its global business as it looks to consolidate and drive its AI-driven solutions from a single hub. About 40% of his team is currently in India, said Peter Wekesser, chief digital officer at Schneider Electric, and that number will only increase over time.

AWS Launches Second Infrastructure Region in Hyderabad: Amazon Web Services (AWS) on Tuesday launched its second AWS infrastructure region in Hyderabad, naming it the AWS Asia Pacific (Hyderabad) region. AWS plans to invest about $4.4 billion (Rs. 36,300 crores) in India by 2030 through this new region, including capital expenditures on data center construction, ongoing facility operating expenses and utility costs, and purchases of goods and services from regional companies.


The global picks we read

■ Indian tech companies should think twice about layoffs (rest of the world)
■ Meta Quest Pro review: Get Me Out of Here (The Verge)
■ What to Expect as FTX Launches First Crypto Chapter 11 in Court (WSJ)

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