Business & Finance - Current Affairs for April, 2016

Swedish music streaming giant Spotify on 27th April announced the acquisition of CrowdAlbum, a US-based company that created a platform for sharing online photos and videos.

• “CrowdAlbum aggregates photos and videos from artists' performances" and "helps them (artists) to identify and connect with their most passionate fans," Spotify said in a statement.

RBI for the first time has proposed rules for peer to peer lending to regulate the growing sector with numerous measures. This includes a minimum capital of INR 20 million and prohibition from promising extraordinary returns.

• RBI also proposed that those defined as companies should be able to engage in peer to peer lending and firms may be categorised in the growing sector as NBFC in this sector
• Peer-to-peer lending has grown in many countries including India where only a limited portion of the population can access bank finance.

The partnership aims to develop a software platform that will allow customers to collect, evaluate and utilize data for improving their own processes. Germany-based KUKA will work to extend the connection of machines with the Cloud by establishing an Industry 4.0 Cloud Platform. These software and services will be developed by a new subsidiary of Kuka, connyun.

Alphabet Google Unit, Ford Motor Co and Volvo Cars as well as 2 ride sharing companies have formed a coalition to urge federal action on self driving cars

• Coalition includes Uber and Lyft
• The aim is to work with law makers and public as well as regulators for promoting benefits of self driving vehicles

Snapdeal has made it mandatory for logistics partners to integrate with the technology platform. E-commerce firm has invested USD 300 million or INR 2000 crore in logistics tech in the remaining two years. It is linked to plug and play online platform for facilitating integration and cutting down reliance on manual procedures.

• Meanwhile rival company Flipkart is expected to spin off logistics vertical E-Kart into a separate vertical
• Close to 100 million USD or INR 667 crore has been invested by it.

Finance Ministry has approved 8.7 percent interest on PF deposits for close to 5 crore subscribers of retirement body EPFO lower than 8.8 percent decided by the Central Board of Trustees. EPFO’s apex decision making body at this meeting has proposed an interim rate of interest at 8.8 percent to be credited to accounts of EPF subscribers for 2015-2016. Ministry of Finance has ratified interest rate of 8.7 percent marking the first time that Finance Ministry has not given concurrence to rate of interest on EPF as decided by CBT led by labour minister.

• EPFO has provided 8.75 percent rate of interest in 2013-2014 and 2014-2015. This was higher than 8.5 percent in 2012 and 8.25 percent in 2011
• Revision will be in keeping with the economic trends in the country

The RBL Bank on 19th April 2016 became the first private sector bank in India to open dedicated branch for start-ups.

• The dedicated branch was inaugurated at Koramangala, Bengaluru by Nandan Nilekani, noted entrepreneur and former chairman of Unique Identification Authority of India (UIDAI).
• The move came following the launch of first branch dedicated of the State Bank of India in January 2016 to serve the needs of start-ups in Bengaluru.

Mobile apps, mobile app designs and mobile back end services to increase business process efficiency and security solutions will be jointly launched by Cognizant and Kony

• The two will work together to develop new cross platform mobile applications for industries such as banking, healthcare, retail, government and manufacturing
• They will also develop horizontal mobile applications which can be used by sales and field services, workflow and human resources organisations

This is a unit of BK Birla Group firm Kesoram Industries. With the acquisition of Cavendish Industries, the group has strengthened its position in the bus and truck radial segment. CMD Raghupati Singhania said the acquisition will enhance productivity.

2 senior executives from ride hailing app Ola have resigned- Pradeep Dodle, head of cabs category management has quit the company while Harsha Kumar, associate vice president of products is serving her notice period.

RBI launched UPI or Unified Payment Interface to make money transfers easier and hassle free. UPI is a payment system that will allow users to make money transfers using mobile phones. UPI networks all banks together and makes it possible for customers to make transactions using a single app.

This is the first buyout of an internet store. Kishore Biyani led Future Group has just purchased online furniture store FabFurnish.com paying between INR 15 to 20 crore in cash and more so for the brand FabFurnish, two people aware of the development said.

• FabFurnish’s management and employees are likely to join Future Group
• Fab Furnish is a Gurgaon based firm founded in 2012
• Its founders include Vikram Chopra, Vaibhav Aggarwal and Mehul Agrawal.

Mining conglomerate Vedanta said its subsidiary Talwandi Sabo Power (TSPL) has set the Guinness World Record for planting 2,08,751 saplings at a single location in less than an hour. The mass plantation drive was organised in Mansa (Punjab) on October 30, 2015.

Vedanta is a LSE listed company.

e-Commerce giant Flipkart on April 1, 2016 announced the acquisition of payments start up PhonePe Internet Pvt. Ltd. Startup was launched in December 2015 by former Flipkart executive Sameer Nigam along with Rahul Chari and Burzin Engineer Phone Pe will function as an independent business unit and details of the transaction were not disclosed Product is based on Unified Payments Interface, a new process in electronic funds transfer launched by NPCI.

Indian mining giant Adani moved one step closer to realise the USD 21.7 billion coal mine in Australia after three mining leases were granted for the controversy hit project. Stringent conditions will protect the environment, landholders and traditional owners interest and Great Barrier Reef. Over 200 conditions apply to the project which will be the largest coal mine in Australia.

Taiwanese company Foxconn has signed a deal to take control of Japanese display maker Sharp Corp. At a press conference associated with the signing of the USD 3.5 billion deal, Foxconn CEO has indicated that Sharp will become profitable soon. Sharp’s proprietary known how for mass production of IGZO or Indium Gallium Zinc Oxide, display technology superior to OLED or Organic Light Emitting Diode Technology used in products like Apple’s iPad.

• Foxconn was formally known as Hon Hai precision industry co before this.
• It took 2/3rd stake in Sharp at a big discount from the original offer this week.