Uber Leaves Zomato And Records Over $700 Million In Losses
The struggling Zomato brand takes another punch as Uber sells almost 8% stake in the food delivery company.
Uber wanted to take on the Indian market but failed to compete with local brands like Zomato and Swiggy. Uber decided to take on a deal with Zomato, which netted them a 9.99% stake in the Indian company.
The story doesn’t end happily. Zomato, India’s largest food delivery company, has been struggling in the last year. Zomato shares tumbled to an all-time low in the previous week after the end of the lock-in period for investors that purchased shares before the initial public offering.
The Uber sale doesn’t come as a surprise. The American delivery giant reported a net loss of $2.6 billion for Q2 of 2022. The Zomato sale netted them around $390 million, which won’t take care of the Q2 loss. The Zomato investment cost Uber more than $700 in 2022 alone.
This move became the largest exit of an institutional investor for the Indian firm.
It’s worth noting that the reports come from an anonymous source, and the sale hasn’t yet been publicly announced. But it’s fair to assume the deal has been made since mainstream media is picking up the story.
We’ll keep monitoring to see how the food delivery market responds to recent events.
Y Combinator Reduced The Number Of Startups In The Summer Program
The startup accelerator Y Combinator cuts the number of startups it is funding and training this summer by around 50% compared to the winter program.
Y Combinator is a Silicon Valley-based startup accelerator that helps startups fine-tune their pitches and increase the chances of finding venture capitalists willing to invest in their business ideas.
The startup accelerator is trimming down the summer program as venture capital is disappearing during the economic slowdown. They slashed the summer startup batch by 40% compared to the winter program.
They will work with almost 250 startups in the summer program, which is a lot less than the 414 startups they had in the winter class.
Lindsey Ams, the head of communications at Y Combinator, said that the batch is still relatively large compared to the last five years of batches.
“The S22 batch is significantly smaller than our most recent batches. This was intentional,”
according to the company.
Y Combinator sent an internal mail to its founders stating that you can often pick up significant market share in an economic downturn by just staying alive.
Several large investment firms have sent messages to their portfolio companies and startups on how to survive the economic crisis.
We’re definitely headed into interesting years for startups and venture capitalists.
The Safety Of The Crypto Market Remains Questionable
Nomad is a tool that lets users swap crypto tokens from one blockchain to another. The startup took a massive hit as it got attacked by hackers.
The reports state that hackers managed to take almost $200 million in cryptocurrency from Nomad.
“We are aware of the incident involving the Nomad token bridge,”
the startup said.
“We are currently investigating and will provide updates when we have them.”
The platform markets itself as a “secure cross-chain massaging” service. It’s still not entirely sure how the attack happened and if the startup has the means to reimburse users who lost their tokens in the attack.
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The Rise of Fractional Real Estate Investments In Europe
With the rise in real estate prices, investing in housing projects and commercial real estate became almost impossible for regular investors.
Fractional real estate investments mean that you can purchase a small share of the real estate and get returns if the real estate grows in value.
While the model proved successful in the US, it’s still in its infancy in Europe. But, we’ve seen serious growth in funding rounds for fractional Europen real estate startups recently.
Real estate seems to be gaining traction as an investment option as other markets struggle.
Gaming-Inspired Cookie For Sweethtooth Gamers
“For decades, both Keebler and Nintendo have been at the center of countless family memories,”
said Alicia Mosley, vice president of marketing at Keebler.
“And, through the Mario Kart Fudge Stripes Rocky Road cookies, we’re hoping to ‘power up’ the Elfin magic that happens when families come together.”
The cookies will be exclusively available at Walmart. They are expected to be available nationwide by mid-September.
Are you going to give them a try?
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Ultraviolet Light Air Purification Startup Raises $2.3 Million
Violett is a Seattle-based startup that develops hospital-grade air purification units. The company was founded in 2020. Its product protects against COVID-19 particles, according to the company.
“People are now realizing COVID-19 is something we may be living with forever in some capacity, and passive air disinfection solutions might be a required step to get back to a sense of normalcy we all want,”
said CEO Branden Doyle.
Violett plans to scale manufacturing operations and seek more opportunities with the new funding round. They also plan on developing a mobile app, building nanotechnology odor removal, and expanding the now 7-person team.