Infosys warns against moonlighting; Amazon Wholesale revenue up 26%

After Swiggy said in early August that it would let employees take assignments from other companies to supplement their income, a number of IT services companies took a stand on “moonlighting”. Wipro Chairman Rishad Premji called it “outright cheating”, while Tech Mahindra CEO CP Gurnani said his company would probably allow it. Now Infosys has told its employees that moonlighting violates its policies and they could be fired for it.

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Also in this letter:
Amazon India’s wholesale unit revenue jumps 26%, losses widen
■ PharmEasy in talks to raise up to $300m, valuation could be halved
■ Sebi has nothing to do with suggesting IPO prices for new-era companies: Chief


Infosys says moonlighting employees could be fired

undeclared work or dual employment

Infosys has reminded its employees that moonlighting — taking on duplicate jobs — is in violation of its code of conduct for employees.

The development comes weeks after Wipro Chairman Rishad Premji publicly expressed his views on moonlighting, calling it “outright cheating”.

Driving the news: Violation of clauses limiting double employment could result in disciplinary action and also dismissal, India’s second-largest IT company said in an email to employees titled “No Double Lives” on September 12.

Employees at executive and senior consultant levels have not received the mail, a source told us.

The letter also cited the clause in employees’ appointment letters that prevents them from taking full-time or part-time employment with any other organization without Infosys’ prior consent.

P/T trend: Moonlighting is not a new phenomenon, but India’s preferred mode of working remotely has helped employees embrace the option in greater numbers.

Over the past 12 months, IT talent intelligence and consulting firm Han Digital has seen about three or four full-time employees in every 100 working side-by-side.

Read also | Moonlight or not? The question that is making the buzz among Indian techies

Differing views: Early August, start of food delivery Swiggy has introduced a moonlighting policy to enable its employees to undertake additional projects after working hours and earn extra money.

Later that month, we reported that senior executives at IT giants TCS and Tech Mahindra had taken opposing positions on the moonlighting policies of some tech companies. While Tech Mahindra CEO CP Gurnami claimed it was “not rampant” and the company could allow it, TCS COO N Ganapathy Subramaniam said he was an “ethical problem”.


Amazon India’s wholesale unit revenue jumps 26%, losses widen

Amazon

Amazon India’s wholesale unit – Amazon Wholesale – reported revenue of Rs 4,592 crore in FY22, a 26% jump from Rs 3,618 crore one year ago. It posted a net loss of over Rs 480 crore compared to just over Rs 161 crore a year ago, according to the latest regulatory filings from business intelligence platform Tofler.

Amazon Wholesale operating revenue fell 70% in FY20 compared to FY19.

Catch up fast: The latest figures come a day after Amazon India announced that its market unit’s revenue increased and losses declined in fiscal 22. Amazon Seller Services, which operates the Amazon India marketplace, reported a 32% increase in overall revenue to Rs 21,633 crore on a stand-alone basis from Rs 16,378 crore a year ago.

Key professions: The wholesale arm is a key unit of the US retailer’s business in India, although it has scaled back operations following tougher foreign direct investment (FDI) standards for e-commerce businesses owned by foreign companies.

The wholesale unit sells goods and services to vendors and distributors in bulk.

There is more: Amazon Retail India, a separate unit formed by Amazon to retail groceries here, also released its audited financial statements for FY22. Operating revenue rose 7% to Rs 1,710 crore in the period under review from Rs 1,585 crore in FY21. Its losses increased by more than 22% to almost Rs 794 crore in FY22 from Rs 650 crore during the previous fiscal year.

Amazon

Mixed report: Amazon’s results come after a report by research firm Bernstein said India’s business performance was “decidedly mixed” despite the US e-commerce giant investing more than $6.5 billions of dollars in the country over the past nine years.

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PharmEasy in talks to raise up to $300m, valuation could be cut in half

PHARMACY STARTUP

General Atlantic, Canadian fund CPP Investments, Abu Dhabi ADIA public funds are evaluating a $200-300 million investment in API Holdings, the parent company of PharmEasy, multiple sources told us.

Yes, but: The valuation of India’s largest online pharmacy has dropped drastically, so the investment could be at a significant discount. Pharmeasy is expected to be valued between $2.5 billion and $2.75 billion, well below the $5.4 billion valuation in its pre-IPO round in October 2021.

Furthermore, the talks are ongoing and there is no guarantee that they will result in an agreement, the sources warned.

Details: In addition to new investors, existing investors TPG Growth, Prosus Ventures and Temasek will invest approximately $70-100 million in this round through a convertible instrument, but new investors will set the valuation and pricing.

Prosus Ventures (formerly Naspers Ventures) is the startup’s largest shareholder with a 12% stake. Singapore-based Temasek owns 11%, while TPG Growth owns 6.6% and Evermed Holdings 6%. No less than 43 investors hold around 70% of the company.


Sebi has nothing to do with suggesting IPO prices for new-era companies, chief says

Madhabi Puri Bouch

Sebi Chairman Madhabi Puri Buch said on Tuesday that the capital markets regulator had nothing to do with suggesting the price of initial sales of shares of new-era companies.

Yes, but: She added that the companies needed to disclose more about how valuations changed between pre-IPO placements and the asking price on the show.

“Much has been said about pricing IPOs of tech companies at what price you choose to go public is your business, we have nothing to suggest otherwise,” Buch said at the annual Markets Summit. of capital organized by the industry lobby Fici. .

Catch up fast: There have been concerns that retail investors are being seduced by the lofty valuations sought by new era companies. The share price of payment platform Paytm, for example, crashed to a third of the IPO’s issue price within weeks of listing.

When asked what can be done to prevent such experiments, Buch parried the question, saying investment bankers should answer it.


Most Twitter shareholders vote in favor of selling to Musk: report

Elon Musk TWITTER

A majority of Twitter shareholders voted in favor of the $44 billion sale of the social media company to Elon Musk, people familiar with the tally told Reuters.

The deadline for the shareholder vote on the deal is Tuesday, but enough investors had voted by Monday evening to make the outcome certain, the sources said.

Read also | Twitter whistleblower payment is another reason to back out of deal: Elon Musk

Shareholders were expected to vote in favor after a downturn in the stock market made Musk’s $54.20 per share deal for Twitter, which was signed in April, look expensive in the environment current. Twitter shares are now hovering around $41.

Catch up fast: Musk told Twitter he would not pursue the acquisition, arguing that he had been misled by the spam accounts on the platform and had not been informed of a deal reached by the company with one of its main executives. The two sides are due to face off in court next month.

On Monday, Twitter said payments made to a whistleblower did not breach any of the terms of his sale to Musk, after the world’s richest man tried again to call off the deal.

Today’s ETtech Top 5 newsletter was curated by Zaheer Merchant in Mumbai. Graphics and illustrations by Rahul Awasthi.

Sallie R. Loera