Charting new paths: Zomato’s wealth creation, Myntra’s makeover, NUEs’ innovations roadmaps, & more

Zomato, Myntra, and the digital payments sector have been preparing to head out on new journeys, and not necessarily on paths already taken.
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Several startups and even entire sectors have been preparing to take up new journeys and establish new routes.

As Zomato heads for its historic IPO, its C-suite executives are up for a huge bounty. Myntra’s courting new online brands as it sheds its earlier focus on private labels. And digital payments are up for another transformation as the so-called New Umbrella Entities plan a host of innovations.

That said, the payments industry is going through a painful stretch affected by the pandemic’s harsh second wave. The online grocery delivery sector is faring better thanks to lessons learned from last year’s COVID lockdowns.

Here’s a roundup of news and analysis last week from The CapTable.

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Premium Reads

Zomato's $500M package for its top guns

Zomato’s senior most executives are in for a huge bounty as the food delivery company prepares for its historic IPO. At least five senior management personnel are expected to make in excess of $10 million, and several others over $5 million. With Zomato going public as a professionally run company, the stock awards are also a signal to incoming retail investors that the management team will continue to have skin in the game.

 

Myntra's makeover front and centre of Flipkart's IPO ambitions

Flipkart's crown jewel is changing course again as it deals with new regulations, fast-growing competition and dynamic market realities. Myntra’s leadership wants the company to be a purely data-focused ecommerce organization. As part of this new strategy, India’s leading online fashion retailer is reducing dependency on its private labels such as Dressberry and Mast & Harbour, clearing the shelves for a curated selection of newer brands.

 

Blockchain, instant settlements, and a brand new UPI on NUE roadmaps

India’s heading for another transformation in digital payments, with so-called New Umbrella Entities expected to usher in new versions of UPI, blockchain-based settlement systems for digital currencies and remittances, and more efficient mechanisms for business transactions. But for NUEs to be profitable, India’s digital payments market needs to expand from 150 million monthly active users now to 500 million.

 

The Crux [Crisp and incisive analysis on the developments that matter]

For payments industry, a long winter

With the country ravaged by the pandemic’s second wave, digital payments across categories have slumped by 15-25 percent. With many states implementing tougher lockdowns, the impact on the payments industry is expected to be as bad as during last year’s lockdowns, if not worse.

BigBasket, Swiggy, HUL—all step up to make grocery deliveries smoother

From BigBasket, Swiggy, and Amazon to HUL and ITC, the entire ecosystem has emerged from last year’s unprecedented lockdowns with a better grip on supplies, processes and safety protocols for their frontline staff. Grocery delivery platforms are able to generate smarter demand projections and have improved their distribution and supply chain networks.

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Edited by Teja Lele Desai