Increasing Returns to Scale – Louth Online http://louthonline.com/ Sun, 26 Sep 2021 02:27:50 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://louthonline.com/wp-content/uploads/2021/03/louthonline-icon-70x70.png Increasing Returns to Scale – Louth Online http://louthonline.com/ 32 32 Price cannibalization threatens PV growth – pv magazine Australia http://louthonline.com/price-cannibalization-threatens-pv-growth-pv-magazine-australia/ http://louthonline.com/price-cannibalization-threatens-pv-growth-pv-magazine-australia/#respond Sat, 25 Sep 2021 22:00:43 +0000 http://louthonline.com/price-cannibalization-threatens-pv-growth-pv-magazine-australia/

From pv magazine 09/2021

Significant market price fluctuations and risks will threaten investor appetite, which could hamper long-term large-scale deployment of solar energy. This has already been seen in California, with Karen Edson’s famous “duck curve” in 2012 showing the disconnect between production and demand. Already, the increase in renewable energy penetration in the state, up to 26% of the energy market, has resulted in yields falling by around 30%.

Jenny Chase, head of solar energy at BloombergNEF, believes this is an important issue for all markets experiencing rapid solar penetration and a threat to a solar future without subsidies. “Large-scale solar generation lowers electricity prices, which can reach zero or even negative points during sunny periods,” Chase said. “It’s not an imaginary problem, and it’s not a market design problem – the only way to solve this problem is to shift demand.”

Michele Scolaro, senior analyst at Aurora Energy Research, agrees that price cannibalization is a risk for developers of non-subsidy solar projects. “Due to its nature, price cannibalization first hit markets where the business case for merchant projects was stronger, as solar PV penetration increased and eroded income captured by assets,” he said. declared Scolaro to pv magazine.

APP mitigation

One obvious solution is power purchase agreements (PPAs). Under these contracts, the price risk is partly transferred to the buyer, thus facilitating the financing of the project. For renewable energy developers like BayWa re, most of the corporate PPAs they undertake are subsidy free, which means the company is exposed to market fluctuations.

Benedikt Ortmann, global head of solar projects at BayWa re, said the reduction and negative prices are concerns. However, he pointed out that normal market fluctuations depend on so many variables at any given time across the electricity market as a whole. The reality is that solar developers are “the generators producing the cheapest source of electricity.” Ortmann added that there are already measures to counter these market challenges.

LevelTen Energy produces the P25 Index, a quarterly PPA price update. It showed that Spain was the fastest growing market in Europe in the second quarter of this year, succeeding Italy in the first quarter. One in three offers on its marketplace concerned Spanish projects. A change in the average PPA price sparked the latest cannibalization discussion. In the second quarter of 2021, renewable PPA prices for Europe remained broadly stable, as in previous quarters, but the Spanish supply prices of P25 solar PPAs fell 10.3% to 30.50 € / MWh (AU $ 50 / MWh).

The reasons for the fall in prices for Spanish projects range from the obvious, including an abundance of resources during midday hours, to a mature industry with a strong pipeline, as well as competition. Luis López-Polín, senior director of business development at LevelTen Energy, said another factor is that an increasing number of companies are using the competitiveness of the Spanish markets to obtain a pan-European PPA on favorable terms.

Chase agrees that project life PPAs provide a different experience to the spot market, but cautions that buyers are increasingly aware of the potential price differential and are considering short-term contracts at around € 35 / MWh. (AU $ 56 / MWh). “You have to be really optimistic about the residual value of the investment,” she said.

It’s not all bad news, however. For example, prices for the Danish supply of PPA solar P25 increased by more than 14% in the second quarter. “Investors in commercial solar power may see this as a near-term concern today,” said Harald Överholm, CEO of Nordic supplier PPA Alight. “We don’t see this as a major issue for investors in Northern Europe, and not for contract solar construction which accounts for the bulk of solar deployment in these markets. “

Georgios Gkiaouris, regional director of the European Bank for Reconstruction and Development, said that while price cannibalization is not yet seen in the EBRD region, the bank expects to see if the price of electricity continues to be fixed by marginal cost. “We expect the catch price to be lower than the average wholesale price,” he said. “Our projects have a lifespan of 20 to 25 years, so we already take that into account.

Like other risks, however, price cannibalization can be fought. “It is important for developers to quantify this risk,” said Scolaro. “Price cannibalization will have an impact on markets… depending on factors such as solar PV penetration, market size, interconnection with neighboring markets, etc.

The likelihood of reduction and negative pricing is already built into the project cash flow estimates. Mike Bammel, managing director of JLL Valuation Advisory, said all investors want the highest price for the lowest risk. If Bammel admits to having seen a drop in yield on solar, he hesitates to make a concrete figure. He stressed the need to take a longer-term perspective, especially with regard to the growing pressure on the US market due to carbon and ESG concerns from investors keen to protect or improve their climate position.

Sector coupling

Dan Bates, CEO of clean energy provider Rebel Energy, said solar should be seen as part of a bigger whole. He says: “Solar is part of a larger whole – the question is how it combines with wind, batteries, electric vehicles, etc. “, He noted.

The next solution to the cannibalization problem is revenue stacking, with storage being a key differentiator. “Cannibalization will happen, and its effect will stay with us. Therefore, looking to the future, we need to channel investments into innovative technologies designed to provide flexibility measures, ”said Merce Labordona, senior policy analyst at SolarPowerEurope. “We need to maximize sector coupling, adopt the right mechanisms to encourage renewable energy production to respond to market signals for flexibility and provide incentives for end users to absorb the excess supply. “

A smart grid with storage can enable the movement and aggregation of demand, while the sector coupling of combined projects of desalination, water treatment, agriculture, local deliveries with electric vehicles, etc. could be transformational.

Ortmann is clear in his belief that the market will respond to quality over time. In terms of environmental impact, sustainability and price, he thinks solar still beats the alternatives. While batteries represent a larger investment for solar projects, BayWa re, for example, is already applying for battery permits from its factories, even though they do not plan to integrate storage immediately.

Gkiaouris said that in many markets integration should focus on connectors, system balance, and rule synchronization. However, to combat cannibalization, the market needs to see new business models and explorations of how solar power plants can be remunerated, based on storage, carbon costs, and potential changes in system pricing. .

This is increasingly important as the question of cost and value is reassessed in many sectors, beyond the potential impact of carbon. The New York State Energy Research and Development Authority, for example, already has policies in place to factor social benefits such as air quality into pricing. This will play out in the utility market, rather than the wholesale market, and will become increasingly important as solar power grows in the United States. The Federal Energy Information Administration’s long-term plan is 45 GW of solar power, at about 50% of new capacity additions. Maintaining the Local Generation Tax Credit (PTC) will also benefit long-term stable solar growth in the United States.

Regulatory risk plays a big role in the solar market and the biggest danger is a change in thought leadership. “Usually there is a call to action, although it may be difficult how the powers that be implementing the necessary changes,” Bammel said. He adds that regulatory risk is just one of many market risks, with new or renewed government support in regions that need to make more climate ambitions a positive consideration on the rise.

While there are reasonable concerns about cannibalization, Ortmann said, these are the challenges that come with a more mature market. Identifying and managing market risks is a positive and necessary step. The price of carbon is already playing an important role in the growth of solar PPAs and the days of the separate sale of green certificates and electricity seem a distant memory.

No matter what happens, the focus is so much on decarbonization that LevelTen’s López-Polín believes governments and industry will find a way to continue the deployment. He added that we envision a fundamental shift in market dynamics – corporate PPAs are signed due to long-term sustainability goals and it is still not clear whether cannibalization will have a major impact or not.

Chase, meanwhile, warned that investors today must be optimistic about financing solar power: “We all have to be optimistic to have a future.”

Author: Felicia Jackson


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A new objective for the start-up investment http://louthonline.com/a-new-objective-for-the-start-up-investment/ http://louthonline.com/a-new-objective-for-the-start-up-investment/#respond Sat, 25 Sep 2021 01:49:29 +0000 http://louthonline.com/a-new-objective-for-the-start-up-investment/

IN the space of technological startups, where the emphasis has been largely on the development of technological solutions to fill the gaps in the market, the consideration of environmental, social and governance (ESG) issues is still somewhat of a priority. novelty.

Startups typically start on a small scale and start up until they’ve gained some traction and secured funding, which then gives them the space to expand their reach and, perhaps, look into ESG. .

But with investors increasingly determined to invest and build more responsible and purposeful businesses, the ESG journey could start much sooner for startups – which is working well for 500 Global Managing Partner Khailee Ng.

“Because 500 Global has seen how quickly many of our more than 2,500 start-up investments in 77 countries grow into big tech giants, we’ve decided to take a more proactive role by integrating our next 2,500 investments into their ESG journey.

“Today, American and Southeast Asian startups must have ESG policies in place in order to receive our investment.

“It’s a requirement. We believe that one day every startup pitch deck and business plan will have an ESG page. Startups might as well start now,” says Ng.

The venture capital firm’s (VC) portfolio today includes 35 unicorns – a company valued at over US $ 1 billion (RM 4.19 billion) – including Grab, Canva, Carsome and Carousell.

Ng notes that the VC is not alone in this movement. Although ESG is not a requirement of the majority of its $ 1.8 billion (RM 7.54 billion) in assets under management, many of its institutional investors are starting to encourage ESG by allocating their capital. to startups that have such practices.

Notably, there is a growing trend for institutional investors to relax their influence in ESG adoption, which encourages VCs to install ESG in their startups. This, according to Ng, would mean that VCs can be a powerful collective driver of widespread ESG adoption.

Locally, Malaysia Venture Capital Management (Mavcap) is also looking into this area as an investor.

“Given the renewed global push towards ESG standards as well as the growing global awareness of the urgent need to tackle climate change, there is indeed great potential in sustainable investing and this is expected to continue to grow. “, he indicates.

However, Ng stresses that it is important not to confuse ESG with sustainable investing or impact investing.

“They can be very different. For example, any company can and should integrate ESG policies. Some may express their ESG as “doing no harm”, while others may proactively regenerate the environment.

“ESG makes it easy to read and assess a company to see how aligned it is with your values. The ESG makes it easy to read whether they are indeed “durable” or “durable enough” according to the criteria of the investor, ”he explains.

It also addresses the misconception that sustainable businesses have a lower or longer return on investment (ROI).

“Our data shows that the opposite may be true.

“Our investments in the best performing seeds continue to generate returns on investment in the order of 10X, or 2,000X in less than 10 years. And, they are inspiring examples of sustainable development.

He cites several 500-backed tech giants such as Canva and Grab as examples.

“Canva is a mobile app that makes it easy for anyone to create digital designs. No paper is used, trees cut or environments damaged. Canva is worth $ 40 billion (RM 167.54 billion). The founders pledged to donate 30% of their shares to create a non-profit Canva foundation, eclipsing Australia’s largest foundation by three. “Grab is also worth almost US $ 40 billion (RM 167.54 billion). Their “Grab for Good” actions and policies explain how they approach sustainability at scale within their business, as well as in the communities they serve.

“We can also look at Bukalapak, the largest initial public offering in Indonesian history and how it is improving rural economies,” he explains.

The best ROIs, he adds, can generate the best ROIs for the company. And that should be the goal of the savvy investor.

“Each startup to which our investment has been proposed has also agreed to begin their ESG journey. Not a single startup has refused it.

“This included several Malaysian startups, as well as startups from the rest of the world. They receive role models, webinars, and tips.

“Together we are taking small steps as a tech industry, but we are very encouraged by the welcome.”


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Hit the raw rally with these 3 promising upstream companies – September 24, 2021 http://louthonline.com/hit-the-raw-rally-with-these-3-promising-upstream-companies-september-24-2021/ http://louthonline.com/hit-the-raw-rally-with-these-3-promising-upstream-companies-september-24-2021/#respond Fri, 24 Sep 2021 13:00:46 +0000 http://louthonline.com/hit-the-raw-rally-with-these-3-promising-upstream-companies-september-24-2021/

The business environment for exploration and production activities has improved significantly compared to last year, when the coronavirus pandemic hit the energy market hard. The price of oil jumped, brightening the outlook for upstream energy players.

Soaring oil prices

The price of West Texas Intermediate (WTI) crude is once again approaching the $ 75 per barrel mark, signaling a substantial improvement from negative territory reached last April. Improving demand for fuel, as coronavirus vaccines are rolled out on a large scale, is primarily contributing to the rise in crude prices.

Lower crude inventories are also supporting the rise in crude prices. According to the U.S. Energy Information Administration (EIA), crude oil inventories for the week ending September 17 were recorded at 414 million barrels, marking the lowest level since October 2018.

With the return of refiners to operations after being affected by Hurricane Ida, and with the resumption of economic and social activities, the demand for oil may increase further. There will not be enough raw material supply to meet this demand for fuel, as drilling activity has slowed down, with upstream players focusing primarily on shareholder returns rather than increasing production. . Thus, improving fuel demand in a tight supply environment will continue to maintain the favorable crude price scenario for exploration and production companies operating in the prolific resources of the United States.

3 actions in the spotlight

Since picking the right companies with promising upstream trades from the stock universe is not an easy task, we use our proprietary Stock Screener to reduce three potential names to zero. All stocks have a Zacks rank 1 (strong buy). You can see The full list of today’s Zacks # 1 Rank stocks here.

Magnolia Oil and Gas Company (MGY Free Report) has a strong footprint at the heart of the low-risk and prolific Eagle Ford Shale and Austin Chalk formations. The company has set a production forecast for 2021, suggesting year-over-year growth of 6% to 9%. Thus, the increase in production in a context of favorable oil prices will improve the results of the upstream actor. Due to the positives, the company has gained 144.8% so far this year and is expected to grow further.

Whiting Petroleum Corporation (CMU Free Report), with its footprint in the prolific Bakken / Three Forks resource area in the Williston Basin, is among the largest upstream energy companies in the United States. The company has revised upwards its oil production forecast for 2021. Thus, increasing production in a context of rising oil prices will improve its results. The main exploration and production company, which has gained 126% so far this year, is expected to continue to grow.

Based in Dallas, Texas, Matador Resource Company (MTDR Free Report) has a strong footprint in the liquid-rich areas of Wolfcamp and Bone Spring in the Delaware Basin. The company increased production in the basin and produced record volumes of daily oil equivalent barrels from Delaware during the last quarter of June. By the end of this year, the company is expected to have 34 rough mined wells underway in the Delaware Basin.

Shares of this major upstream energy player have gained 183.4% so far this year, as the company expects its oil production to increase this year amid rising crude prices.


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Immuno-Oncology Market To See Feather Wrinkling At 12% CAGR Between 2020 http://louthonline.com/immuno-oncology-market-to-see-feather-wrinkling-at-12-cagr-between-2020/ http://louthonline.com/immuno-oncology-market-to-see-feather-wrinkling-at-12-cagr-between-2020/#respond Thu, 23 Sep 2021 20:29:00 +0000 http://louthonline.com/immuno-oncology-market-to-see-feather-wrinkling-at-12-cagr-between-2020/

The Immuno-oncology market will attend a 12% CAGR, reaching $ XX million between 2020. With medical IoT involving the use of portable monitors, devices and various integrated applications regarding healthcare needs, the healthcare vertical industry is expected to reach new heights over the coming period. This is what the health care vertical would be in the next 10 years.

Immuno-oncology therapy has shown excellent results in various clinical trials and in patients treated with immuno-oncology therapy. Immuno-oncology therapies can take advantage of patients’ immune systems and reprogram them to attack cancer cells, providing a safe and effective alternative.

There has been a growing demand for immuno-oncology therapy because several traditional methods used in cancer treatment such as chemotherapy, radiation therapy and surgery etc. carry a risk of side effects and have limited effectiveness because they tend to harm healthy cells present in the vicinity of the tumor microenvironment.

Planning for the future? Get access to a sample report on the Immuno-Oncology Market! https://www.persistencemarketresearch.com/samples/11329

Company Profiles

  • Amgen, Inc.
  • AstraZeneca Plc
  • Bristol-Myers Squibb Company
  • Hoffmann-La Roche Ltée.
  • Merck & Co., Inc.
  • Novartis AG
  • Pfizer Inc.

Global sales of products used in immuno-oncology therapy are expected to reach around US $ 10 billion in revenue by the end of 2019, new research study from Persistence Market Research (PMR) reveals.

According to the report, the immuno-oncology market is expected to grow approximately 12% year-over-year by the end of 2020, primarily influenced by recent advancements in the immuno-oncology market. Immune checkpoint inhibitors are the most widely used immuno-oncology therapy for the treatment of lung cancer and account for approximately 88% of the immuno-oncology market.

Increase clinical developments to stimulate demand for immuno-oncology therapy

Currently, the number of ongoing studies on the clinical development of immuno-oncology therapy is almost evenly distributed between the early and late phases.

However, the number of early phase studies in immuno-oncology is increasing rapidly. The strong emphasis on identifying new pathways for immune regulation in tumors is driving the development of NMEs (new molecular entities), which are making their way into clinics.

High attrition rates during clinical development mean that fewer candidates enter later stages of development. The companies are also seeking regulatory approvals for combination therapies with existing immuno-oncology drugs as well as for multiple indications, resulting in a large number of programs in the early stages of development. This is leading to the overall growth of the Immuno-Oncology market globally.

How about revitalizing the strategy-driven funnel to stay ahead in the immuno-oncology market? https://www.persistencemarketresearch.com/methodology/11329

Partnerships and collaborations to strengthen technical expertise

Companies are looking for licensing agreements, partnerships and collaborations to strengthen their technical expertise and expand their product portfolios. In order to stay competitive, Immuno-Oncology market players are trying to identify and collaborate with small companies operating in Immuno-Oncology market to grow their business globally.

This strategy of market players is expected to fuel the growth of the Immuno-Oncology market during the forecast period.

Combination Therapies Versus Monotherapy To Drive Growth In Immuno-Oncology Market

Combination strategies using immunotherapy with radio, targeted antibodies, chemo, cryotherapy or with other immuno-oncologic therapies are likely to broaden the potential indications of various drugs. These combination therapies are believed to dramatically improve patient survival rates, as shown by limited clinical data compared to monotherapy.

Various companies have identified that multiple pathways are affected in tumor regulation, therefore seek to use combination therapy as a more effective method. These combination therapies are expected to contribute to the growth of the immuno-oncology market.

Thinking of introducing an offbeat product / technology to the immuno-oncology market? Go to “Buy Now” for our Immunoecology Market Report! https://www.persistencemarketresearch.com/checkout/11329

Immune Resistance Mechanisms Limiting Market Growth

It is desirable to maintain the prolonged effects of immuno-oncology therapies because there is a great possibility of developing immune resistance, which can degrade the duration of effectiveness of the drug. In addition, it is hardly feasible to develop a single therapy that works equally well in all types of patient populations.

Whereas different pathways are affected in different patients, resulting in limited efficacy for some patients whose immune system is regulated differently. According to PMR’s analysis, this is hindering the growth of the immuno-oncology market.

Access related reports:

Autologous Matrix Induced Chondrogenesis Market:

The Global Autologous Matrix Induced Chondrogenesis Market the value in 2016 is estimated at US $ 96.11 million and is expected to increase to US $ 186.4 million by the end of 2024.

Surgical Imaging Market:

According to the Persistence Market Research (PMR) report, the surgical imaging market is expected to experience moderate growth throughout the forecast period 2017-2026. The market is expected to grow at 4.4% CAGR. By the end of 2026, the global surgical imaging market is expected to reach $ 1,384.5 million in revenue.

Gastrointestinal Infection Testing Market:

According to the latest report released by the company, the global market gastrointestinal infection testing market is expected to be over US $ 490.2 million, in terms of value, by the end of 2026. The report further predicts that the gastrointestinal infection testing market will grow at a CAGR of 5.1% until 2026.

Autologous Conditioned Plasma Therapy Market:

Persistence Market Research predicts that, Autologous Conditioned Plasma Therapy Market will exhibit an impressive CAGR of 11% over the forecast period (2020-2030), valued at around US $ 1.2 Bn by the end of 2030.

About Us:

Persistence Market Research is here to provide businesses with a one stop solution to improve customer experience. It is committed to gathering the appropriate feedback after going through personalized interactions with customers to add value to the customer experience by acting as the “missing” link between “customer relationships” and “business results”. “. The best possible returns are guaranteed there.

Contact us:

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Website – https://www.persistencemarketresearch.com


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How AirBaltic is preparing for next summer – AirlineGeeks.com http://louthonline.com/how-airbaltic-is-preparing-for-next-summer-airlinegeeks-com/ http://louthonline.com/how-airbaltic-is-preparing-for-next-summer-airlinegeeks-com/#respond Wed, 22 Sep 2021 09:59:00 +0000 http://louthonline.com/how-airbaltic-is-preparing-for-next-summer-airlinegeeks-com/

How AirBaltic is preparing for next summer

The long and continuing circumstances and challenges of the Covid-19 pandemic are evolving and continuing to be pervasive as new scientific developments emerge. At the same time, the airline industry has strived to be constantly responsive and alert, adapting to overcome the obstacles of the dilemma. Demand for passenger travel continues to experience highs and lows, gradually increasing as travel restrictions are relaxed and more borders reopen.

While some travel security protocols remain in place, higher passenger load factors have encouraged several major airlines like airBaltic to hire more staff to deal with the increase in advance, as well as adding new flight frequencies while expanding its fleet in favor of more efficient aircraft.

Currently, 320 new crew members, including 120 pilots and 200 flight attendants, are expected to join us ahead of the summer holiday and pleasure travel season of 2022. The Latvian national airline plans to welcome to again the former pilots who were released from duty at the height of the Covid-19 predicament last year as well as the graduates of the airline’s pilot academy.

“We are delighted to see an increasing demand for travel and have launched several new destinations this year. As immunization coverage increases globally and travel restrictions ease, we stand ready to resize our flight operations. This is why we have made the decision to rehire our former employees and add new members to our team for the next summer season, ”said Martin Gauss, CEO of airBaltic.

Meanwhile, as the airline’s workforce returns and increases for its flight operations, the carrier intends to expand its fleet of Airbus A220-300s by the end of next year after having recently received its 31st aircraft, which was the sixth of the carrier’s seven deliveries expected this year. . The Riga-based carrier only operates this variant of the aircraft after strategically planning and deciding to phase out its older and less efficient Boeing 737s in 2019 and 2020.

Gauss added: “In 2022, we also plan to receive eight additional new Airbus A220-300s. By hiring additional aircrew now, we will continue our preparations to perform flights with a fleet of 40 aircraft that we expect to have by the end of 2022. “

Throughout the Covid-19 conundrum, airBaltic maintained its flight operations, which potentially played an important role in staying afloat and preserving its network of routes. In mid-September, the carrier announced that its current route network exceeded its 2019 offering. The airline currently serves nearly 90 routes from its hubs in Riga, Latvia; Tallinn, Estonia and Vilnius, Lithuania.

“AirBaltic connects the Baltic region with more than 30 different countries. Through a strong codeshare network of 24 different partners, many of which offer global connectivity, airBaltic passengers can easily reach many parts of the world, ”said Gauss, a philosophy accurately described by the carrier’s strategy. and the decision to receive more planes, pump hundreds of additional seats and strengthen its workforce.

Obviously, airBaltic is preparing to have a bigger presence across Europe and to be attentive to the current trends within the aviation industry. There is no doubt that passengers are also eager to travel next year and that crew members are needed to make the flights. However, it is imperative that airBaltic is aware of the new costs and smoothly reintegrates personnel and aircraft into operations.

  • Benjamin has had a love for aviation from a young age, growing up in Tampa with a strong interest in and playing with aircraft models. When he moved to the Washington, DC area, Benjamin was involved in aviation photography for a few years at Gravelly Point and Dulles Airport, before devoting himself to spotting planes only when traveling at other airports. He is a frequent traveler of the world, having been able to reach 32 countries, eager to explore and understand more cultures soon. Currently, Benjamin is studying Air Transportation Management at Arizona State University. He hopes to enter the airline industry to improve the passenger experience and loyalty programs while keeping abreast of the integration of technology at airports.

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Mirakl Announces $ 555 Million Series E Funding to Drive Accelerated Growth of Leading Global Companies Through Online Marketplace http://louthonline.com/mirakl-announces-555-million-series-e-funding-to-drive-accelerated-growth-of-leading-global-companies-through-online-marketplace/ http://louthonline.com/mirakl-announces-555-million-series-e-funding-to-drive-accelerated-growth-of-leading-global-companies-through-online-marketplace/#respond Tue, 21 Sep 2021 17:12:00 +0000 http://louthonline.com/mirakl-announces-555-million-series-e-funding-to-drive-accelerated-growth-of-leading-global-companies-through-online-marketplace/

With a valuation exceeding $ 3.5 billion, New Funding Extends Mirakl’s Leadership in Enterprise Markets Category Amid Explosive Growth of E-Commerce and Platform Business Model

PARIS and BOSTON, September 21, 2021 / PRNewswire / – Mirakl, the industry’s first and most advanced enterprise marketplace SaaS platform, today announced that the company has grown $ 555 million in a Series E funding round led by Silver Lake, with participation from long-term investors 83North, Elaia Partners, Felix Capital and Permira. The new financing brings the valuation of the company to more than $ 3.5 billion.

Mirakl (PRNewsfoto / Mirakl)

Mirakl’s valuation has more than doubled since its $ 300 million The Series D round of funding announced on September 22, 2020 and led by the Permira Growth Fund. The company is poised to accelerate its rapid growth through the continued adoption of its flagship enterprise market platform that is already fueling billions of gross goods value (GMV) and delivering speed, scalability and agility to over 300 of the world’s biggest brands, including ABB, Accor, Airbus Helicopters, Carrefour, Express, Leroy Merlin, The Kroger Co. and Toyota Material Handling.

Large companies across all industries continue to transform their businesses and digitize rapidly in response to growing pressures from growing customer demand, falling margins, and competition from digital giants and digital natives. The result has been a sharp acceleration in the adoption of platforms and e-commerce. According to McKinsey, e-commerce penetration in the United States has seen 10 years of growth in the first three months of 2020. A disproportionate share of that growth has gone to corporate marketplaces: During the fourth quarter of 2020, marketplaces have grown by more than double the overall rate of e-commerce. This growth has proven resilient, with Mirakl recording 90% year-over-year growth in bookings value in the first half of 2021.

This funding will allow Mirakl to strengthen its clear leadership in corporate marketplaces, continue to invest significantly in its technology, expertise and partner ecosystem, and develop its teams to help respond to the need. accelerated adoption of the marketplace model.

Areas targeted for investment include:

  • Hiring 350 engineers, bringing the Mirakl Labs team to 500, by 2023 to extend the end-to-end capabilities, scalability and security of its core technology from the Mirakl Marketplace platform, with a special focus on expanding AI, automation and features that enable new complementary business models, including the expansion of dropshipping

  • Doubling the size of its leading customer success organization with top talent from elite market operators and industry leaders to support customers from business case to marketplace at scale

  • Rapidly increase the size of Mirakl Connect, the largest ecosystem of high-quality, market-ready vendors, enabling any leading company to accelerate its launch and expand its assortment faster for the benefit of its customers

  • Continue to expand its geographic reach, with the dual objective of developing its Paris and Boston headquarters and increase its presence in the main markets of the EMEA region, the Americas and Asia Pacific

  • Evaluate and pursue business development opportunities, including compelling acquisition opportunities, in the service of ever greater market success for clients

“The world has irreversibly turned to e-commerce, and the enterprise market model has clearly emerged as the only solution that will allow businesses to survive in a competitive global sales environment,” said Adrien Nussenbaum, co-CEO and co-founder of Mirakl. “Mirakl has clearly proven that it offers the most advanced, flexible and scalable platform for businesses to win against their competitors and take advantage of the growth offered by the free market economy. This investment will allow us to seize new growth opportunities as we work to bring our company’s market vision to new customers, regions and industries. “

As the needs of buyers have changed dramatically over the past 18 months, businesses across industries have been forced to keep pace with supply chain disruptions, product shortages and unpredictable buyer behavior. Mirakl’s customers were well positioned to succeed in this environment, as the scale and flexibility of marketplaces powered by Mirakl allowed them to rapidly expand product assortments and meet increased demand without the burden of inventory. clean. With businesses struggling to keep pace with the acceleration of e-commerce, the enterprise market has become imperative for sustainable business transformation.

“When we founded Mirakl, it was with the belief that the world was heading into an era of customer centricity, which would shatter traditional business models and force leaders to transform to offer their customers more choice, more of services and the ability to buy anytime. they wanted and where they wanted. It was an ambitious vision, and we took bold steps to pursue it, always in partnership with our customers, “said Philippe Corrot, CEO and co-founder of Mirakl. “With this investment, Mirakl is better equipped than ever to support customers every step of the way in their transformation journey, with cutting-edge technology, expertise and ecosystem, so they can win in this challenging new business landscape. . “

“For more than two decades, Silver Lake has successfully identified and supported many of the world’s most disruptive tech and technology companies, and we are delighted to partner with Mirakl as it enters its next phase of growth,” said declared Christian lucas, Managing Director and Co-Head of Silver Lake EMEA. “It’s an extraordinary time for e-commerce, and we see Mirakl as a generational company with a unique and compelling opportunity to capitalize on this momentum. at the heart of what we do, and we feel privileged and look forward to working with Philippe, Adrien and the entire Mirakl team to extend the company’s global leadership position at this pivotal time. “

“Mirakl’s exceptional growth over the past year has strengthened its status as the clear market leader in the Enterprise Markets category,” said Alexandre Margoline, partner and head of France in Permira. “As an existing investor, Permira is delighted to significantly increase its investment in Mirakl and continue to support Philippe, Adrien and the entire Mirakl team as they advance the company’s growth ambition. “

The latest market insights and views can be found on the Mirakl Blog. For more business developments and updates, follow Mirakl on LinkedIn, Twitter, and Youtube.

About Mirakl
Mirakl offers the industry’s first and most advanced enterprise market SaaS platform. With Mirakl, organizations in the B2B and B2C industries can launch markets faster, grow and operate with confidence, as they exceed increasing customer expectations. Platforms are the new competitive advantage of e-commerce, and the world’s most trusted brands choose Mirakl for its complete solution of technology, expertise and the Mirakl Connect ecosystem to unleash the power of the platform’s business model. shape for them. As a result, companies like ABB, Astore by AccorHotels, Best Buy Canada, Carrefour, Catch Group, Changi Airport, Darty, The Kroger Co., Leroy Merlin, Maisons du Monde, Metro and Toyota Material Handling are gaining speed, scale and agility to establish themselves in the changing landscape of electronic commerce. For more information, visit www.mirakl.com.

About Silver Lake
Silver Lake is a global technology investment firm, with more than $ 88 billion in combined assets under management and in committed capital and a team of professionals based in North America, Europe and Asia. The companies in the Silver Lake portfolio collectively generate more than $ 221 billion annual turnover and employs more than 526,000 people worldwide. For more information on Silver Lake and its portfolio, please visit http://www.silverlake.com.

Cision

Cision

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Evergrande’s problems weigh on global markets http://louthonline.com/evergrandes-problems-weigh-on-global-markets/ http://louthonline.com/evergrandes-problems-weigh-on-global-markets/#respond Tue, 21 Sep 2021 04:00:53 +0000 http://louthonline.com/evergrandes-problems-weigh-on-global-markets/

This is an audio transcript of the FT News Briefing podcast episode: Evergrande’s problems weigh on global markets

Marc Filippino
Hello from the Financial Times. Today is Tuesday, September 21, and this is your FT News Briefing.

[MUSIC PLAYING]

The financial crisis of Chinese real estate developer Evergrande worries investors. We will see if the impending collapse remains contained. Additionally, we’ll learn how foreign investors are supporting the US Treasury market, why Royal Dutch Shell is selling much of its fossil fuel related business, and how Coinbase bowed to pressure from US securities regulators. I’m Marc Filippino, and here is the news you need to start your day.

[MUSIC PLAYING]

Global stock markets seem very nervous about Chinese real estate developer Evergrande. Yesterday, the S&P 500 and the Nasdaq were both down about 2%. Things were not going much better in Europe. Today, Evergrande is the most indebted real estate developer in the world, and all of that debt is coming home. Investors are increasingly worried that the company will default and trigger a domino effect in global financial markets. This is Katie Martin from FT.

Katie Martin
You can compare it to the scale of all the crises that have been globally significant and systemic to the entire financial ecosystem. You can compare it to things like Lehman Brothers. You can compare it to things like the Greek crisis. You can compare it to the subprime mortgage crisis in the United States. But what was different about these crises was that they had few connections, few roots in the global banking system. And that is what means that a crisis that occurs in one place can have a very serious impact elsewhere. And in this case, the bet so far has been that this won’t happen in the case of Evergrande, and chances are it’s still the right analysis, chances are that the right analysis is always China’s central bank, the People’s Bank of China, will step in to (inaudible) take further steps to mitigate the impact of this horrific dismantling of Evergrande on the rest of the Chinese economy, on the rest of the Chinese real estate sector.

Marc Filippino
Katie, are there other ways that an Evergrande default or a crisis in the Chinese real estate market could really affect global markets?

Katie Martin
So, for example, the Chinese real estate sector is a huge consumer of commodities, and so if there is a really severe setback in the whole Chinese real estate sector, it means that there will be less demand for things. like steel and copper. Could this affect minors elsewhere? Could it affect lots of different businesses elsewhere? This is what is starting to eat into the rest of the system. The big question is: is this the start of something really huge and horrible or is it still a crisis contained in China? You know, it’s probably just a little time to take a break. It’s a loss of momentum. It is a setback. It’s not, you know, a full-blown crisis. It’s not the sort of thing we saw in March 2020. So if there is a way for Evergrande to have a major international bank dismantled, I haven’t heard it yet.

Marc Filippino
Katie Martin is the FT’s Markets Editor.

[MUSIC PLAYING]

Investors are also keeping an eye on the Federal Reserve. This week, senior U.S. central bank officials will meet and investors are looking for clues as to when they will start scaling back the pandemic bond buying program. This move could lead to lower prices for government bonds given the loss of demand. But the FT’s Kate Duguid reports that there is a strong demand for US Treasuries from elsewhere.

Kate Duguid
So we see that a lot of that demand comes from China and Japan. These two countries are already the two biggest holders, foreign holders of US debt, but demand has increased.

Marc Filippino
Yeah, why is that?

Kate Duguid
So the first thing is that the US Treasury market is the safest and most liquid market in the world. So there’s always, you know, a great demand for American debt. But it is also true that yields on US debt are currently higher. And so we saw the demand from all over the world, but in particular from China and Japan, which still have some demand for US debt that is increasing in order to maximize their returns on the safest debt possible. It is also true that growth expectations in the United States are slightly higher than in some other G10 countries. And so, higher economic expectations also lead to higher yields on public debt. And so there is also a demand from foreign investors for this reason.

Marc Filippino
So what does it mean for the bond markets, Kate, if Treasury prices and yields remain stable?

Kate Duguid
What this could mean in the longer term is that when the Fed begins to ease monetary policy in the era of the pandemic, that demand could prove to be a counterweight. So, generally, when the Fed withdraws its support, yields rise. It’s true, that there is a huge supply, that the Fed is not buying so many assets. Thus, there are many assets available to normal investors, which would generally result in lower prices and higher returns. But since the demand is so high, we might not see these effects. Yields may remain low, prices may remain high. It also means that yields on US government debt will remain somewhat limited.

Marc Filippino
Kate Duguid is the FT’s capital markets correspondent in the United States.

[MUSIC PLAYING]

Royal Dutch Shell takes another step in its move away from fossil fuels. Yesterday Shell agreed to sell its business in an oil drilling region in the United States known as the Permian Basin. Rival ConocoPhillips will buy the operations for nine and a half billion dollars in cash. The region lies in West Texas and Southeast New Mexico, and it is the largest oil field in the United States. In May, a Dutch court ordered Shell to reduce its net carbon pollution. Shell said $ 7 billion from the sale would go to shareholders and the rest would be used to pay off debt.

[MUSIC PLAYING]

Financial regulators around the world are grappling with cryptocurrency companies. The main US regulator, the Securities and Exchange Commission, has taken a tough stance and, in one case, threatened to sue the country’s largest cryptocurrency exchange called Coinbase if Coinbase goes ahead with its plan to launch. a loan product. Regulators considered it to be an unregistered title. Now Coinbase has backed off. Hannah Murphy of the FT calls the move a symbolic loss for Coinbase.

Hannah murphy
Looks like they went to the SEC first, then the SEC said, no we don’t want you to do that. At that point, they decided to go ahead anyway. And then that’s later the SEC said, you know, we’re going to sue you if you keep moving forward. So it looks like they received not one but two warnings and eventually went to lawyers, one would imagine, and decided that the best way forward is to take a step back. There is another side to this, which is that state regulators are suing some of their peers in the crypto space. So, on Friday, Celsius, which also offers interest-bearing crypto lending products, was ordered by the state of New Jersey to stop ordering these products, and BlockFi, another lending platform. , also has similar actions carried out by the three states. So it seems to be some sort of regulatory boost around these particular loan products.

Marc Filippino
So, Hannah, what does Coinbase’s decision mean for other cryptocurrency companies?

Hannah murphy
So I think it will apply to other crypto lenders or cryptocurrency exchanges, who also offer these lending products. It could be a chill in the industry. Those who are offering existing products or considering offering existing products will have to re-evaluate, you know, are we continuing to do that? What are the next steps we should take? It’s important to remember that the SEC didn’t say you can’t do this at all. The SEC told Coinbase, you know, if you were to do that, you would have to register with us. Now, that kind of involves more disclosures, a lot of paperwork, more bureaucracy. So it’s understandable why the particularly smaller and more innovative players in the space don’t necessarily want to do this, but it’s still an option for Coinbase.

Marc Filippino
She is FT technical correspondent Hannah Murphy.

[MUSIC PLAYING]

And before leaving, a toast to the beer industry going green (sound of the opening of the beer can). And it’s an interesting alliance. Russian aluminum group Rusal is teaming up with US beer giant Budweiser to produce ultra-low carbon beer cans. Rusal will supply Bud with five million aluminum cans that remove carbon dioxide from the smelting process. The cans will be filled at two breweries in the UK that run on renewable electricity. This is only a tiny fraction of all the beer cans that are made. But a senior official at Rusal’s parent company called it the first commercial deployment of near-zero carbon aluminum on a large scale.

You can read more about all of these stories at FT.com. This has been your daily FT News briefing. Make sure to come back tomorrow for the latest business news.

This transcript was generated automatically. If by any chance there is an error, please send the details for correction to: typo@ft.com. We will do our best to make the change as soon as possible.


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Latest coronavirus: New York schools to start weekly Covid tests http://louthonline.com/latest-coronavirus-new-york-schools-to-start-weekly-covid-tests/ http://louthonline.com/latest-coronavirus-new-york-schools-to-start-weekly-covid-tests/#respond Mon, 20 Sep 2021 20:54:42 +0000 http://louthonline.com/latest-coronavirus-new-york-schools-to-start-weekly-covid-tests/

Angry Indians accuse UK of racism and discrimination, after India was excluded from a list of countries from which fully vaccinated people can travel to England without mandatory 10-day home isolation and onerous test requirements.

The UK government announced on Friday it was easing restrictions on travelers who had been fully vaccinated in the US, UK and Europe, as well as Israel, Japan, Australia and a handful of other countries in East Asia and the Gulf.

India, however, has been excluded from the list, meaning fully vaccinated Indians will have to spend 10 days in isolation and undergo expensive tests to get to England.

“UK logic – vaccines change when they reach non-white countries,” tweeted Arvind Gupta, former head of the IT cell of India’s ruling Bharatiya Janata party.

India has administered over 800 million Covid-19 vaccines, providing at least one dose to over 45% of its population and fully immunizing over 15%, including the wealthiest residents of major cities.

Almost 92% of vaccines administered in India have been Covishields, India-made doses of the Oxford / Astrazeneca vaccine widely used in the UK’s own vaccination rollout.

Doses of Covishield are produced by the Serum Insitute, the world’s largest vaccine manufacturer, and have also been exported to many countries, including through the Covax facility supported by the World Health Organization.

Jairam Ramesh, a former senior Indian minister and current member of parliament from the opposition Congress party, wrote on Twitter that the UK’s exclusion of people vaccinated in India “smacks of racism”.

“Absolutely bizarre considering that Covishield was originally developed in the UK and Serum Institute Pune supplied to this country as well,” he wrote.

Shashi Tharoor, former UN Under Secretary-General, author and Congress Party member, said he was stepping down from an upcoming book tour, as well as a debate at Cambridge University Union, in protest. “It is offensive to ask fully vaccinated Indians to self-quarantine,” he wrote on Twitter.

The Indian government has not publicly commented on the UK’s new travel policies. New Delhi had previously complained that other countries did not recognize the effectiveness of its vaccination program.


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What the Covid-19 revealed about hunger http://louthonline.com/what-the-covid-19-revealed-about-hunger/ http://louthonline.com/what-the-covid-19-revealed-about-hunger/#respond Sun, 19 Sep 2021 18:00:00 +0000 http://louthonline.com/what-the-covid-19-revealed-about-hunger/ Children line up for food at a school near Cape Town, South Africa in 2020, during the Covid-19 lockdown. File photo: Reuters In South Africa, many …]]>

Children line up for food at a school near Cape Town, South Africa in 2020, during the Covid-19 lockdown. File photo: Reuters

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Children line up for food at a school near Cape Town, South Africa in 2020, during the Covid-19 lockdown. File photo: Reuters

In South Africa, many people find it difficult to access sufficient amounts of healthy food. Because their diet is high in processed foods, refined starch, sugar and fat, they face a double burden of malnutrition and obesity, or what is known as “hidden hunger”. It is hidden because it does not fit the stereotypical image of hunger created by media coverage of famines. But it’s everywhere.

To be clear, the problem is not a shortage of food. In South Africa, hunger is the result of lack of access. Getting enough calories and adequate nutrients is largely related to income. Beyond the high cost of healthy food, the hidden hunger in the country reflects the limited availability of nutritious products in low income areas, the cost of energy for cooking, food storage and lack of access. to land for household food production.

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The Covid-19 pandemic and the strict measures imposed to contain its spread brought the hidden hunger out of hiding, as many people who had been able to afford just enough food to survive suddenly found themselves without. According to a study, 47% of households in South Africa ran out of money to buy food during the early stages of the initial foreclosure in April 2020. Job losses, crackdown on informal vendors and price increases caused by disruptions to global food and agricultural supply chains have all contributed to a sharp increase in food insecurity. Images of long queues for emergency food aid have publicized the problem. The increase in hunger levels among children in particular was concerning, but not surprisingly, given the abrupt closure of schools and school-based nutrition programs.

The pandemic has also made the consequences of hidden hunger more apparent. Because adequate nutrition is necessary for a healthy immune system, people with food insecurity are more likely to get sick. Additionally, there is a correlation between the severity of Covid-19 and diabetes, a disease associated with poor diet. Data from Cape Town suggests that patients with Covid-19 diabetes were nearly four times more likely to be hospitalized, and more than three times more likely to die from the pandemic, than patients without diabetes.

But while Covid-19 has increased food insecurity and highlighted the consequences of hunger, it has also produced potential solutions to increase access to healthy and affordable food. In the face of disruptions in global supply chains, more localized food systems began to emerge. When the government failed to implement adequate measures to offset the economic repercussions of blockages or the closure of school nutrition programs, civil society groups sought to fill the void. Across South Africa, community action networks have sprung up to fight hunger, with volunteers providing meals and other assistance to other members of the community.

Around Johannesburg, for example, the C19 People’s Coalition sought to connect small farmers, who have lost access to their home markets, with communities in need of food assistance. Unlike most government food packages, which were purchased from large corporations and contained non-perishable items with almost no nutritional value, these vegetable packages sought to support the livelihoods of small farmers while promoting health. vulnerable households.

And yet, the state has an important responsibility in the fight against hidden hunger, especially in South Africa, where the right to food is enshrined in the constitution. And examples from around the world demonstrate what is possible when a committed government works with civil society to tackle food insecurity.

In Belo Horizonte, a city in Brazil, dubbed “the city that ended hunger,” some of the notable programs include “popular restaurants” that serve thousands of healthy subsidized meals every day, subsidized fruit and vegetable shops. , a food bank that collects waste food and distributes prepared meals to social organizations, and farm stalls to directly connect small producers to urban consumers. These and other programs support the livelihoods of farmers and the health of consumers, while providing economic benefits and strengthening communities.

The upcoming United Nations Food Systems Summit says it will bring together different stakeholders to create more sustainable and equitable food systems, but grassroots movements, academics and civil society groups have criticized the summit for bypassing the United Nations Committee on World Food Security to create a new forum tarnished by undue corporate influence, lack of transparency and irresponsible decision-making. These groups have called for a boycott and are organizing a global counter-mobilization.

The big corporations poised to dominate the UN summit – seed companies, agrochemical producers, food processors and retailers – don’t have real solutions to hunger. Treating food as a commodity to be sold for profit, rather than a basic human right, is precisely what led to the hidden hunger crisis. Surprisingly, South Africa’s largest supermarket chains managed to generate profits in 2020, even as half of the country’s households could not afford to eat. Retailers bragged about their food donations while paying their workers – who have been designated “essential” – some of the lowest wages in the country.

The real solutions to the hidden hunger crisis must come from those most affected: small farmers producing healthy food for their communities and low-income consumers struggling to access adequate food. These voices were sidelined from the United Nations summit, but the solidarity initiatives they created during the pandemic represent the surest foundation on which to build a fairer and more resilient food system.

Brittany Kesselman is a postdoctoral fellow at the Society, Work, and Politics Institute at the University of the Witwatersrand, South Africa.

Copyright: Project Syndicate, 2021

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Transform banking with digital lending http://louthonline.com/transform-banking-with-digital-lending/ http://louthonline.com/transform-banking-with-digital-lending/#respond Sun, 19 Sep 2021 09:09:45 +0000 http://louthonline.com/transform-banking-with-digital-lending/

Strong growth has been observed in the consumer credit sector since the onset of the pandemic. With robust growth in demand across the country and in all income segments, we have seen demand increase in all geographies and demographics. While the Fintech ecosystem has also experienced meteoric rise in the recent past, both have enabled digital lending services to flourish, revolutionizing the way loans are obtained and disbursed. Its growing popularity can also be attributed to, among other things, increased smartphone penetration, flexible credit range and speed of online transactions.

According to a recent Research & Markets report, digital lenders could capture nearly half of the total loan market and disburse $ 350 billion in loans by 2023. This blitzkrieg could make lending the sector with the highest digital penetration in India. Thus, digital lenders are poised to take full advantage of the strong and positive global sentiment investors and consumers have towards fintech.

Read also:

The rise of digitization in credit

The pandemic has accelerated digital lending adoption by at least a few years, if not more. This has enabled the loan to change the perception of consumers by providing convenient service and improving operational efficiency. Streamlined processes, paperless operations, automated decision-making based on workflows, and credit scoring optimized by in-depth analysis can all be used to deliver what customers want. Banks and financial institutions also need to be able to launch new products quickly, in all the channels customers expect, at prices they are willing to pay and where the bank can get the returns they want. need.

Disruption and innovation in trade payments

Real-time payments, already commonplace in many geographies, are gaining ground in India. Point-of-sale credit options and buy-now and late-payment solutions are reinventing lending and improving the point-of-sale experience. Solutions such as Google Pay and QR codes that offer tap or scan to pay options continue to develop. As e-commerce accounts for a larger share of spending (a long-standing trend towards contactless payment has also accelerated), cash is more displaced. Fintech innovations brought BNPL to many companies, which were very dependent on card and cash payments. This means they can improve cash flow, sales, and business growth. Therefore, with the increasing demand for contactless payments, financing or credit at checkout has further increased in India.

Access to untapped audience segments

Today, digital lending offers full financial inclusion by making finance accessible in all walks of life and all geographies. It gave banks the potential to reach the hinterland of the country, through internet penetration and the adoption of smartphones. Banks can rely on intelligent automated tools and analytical data to determine the creditworthiness of the person without a credit score or payment history, etc. This has been one of the greatest benefits of the digitization of financial services, providing accessibility to the underserved population.

Millennial behavior change

2020 saw borrowing for health emergencies and refinancing credit as opposed to older behavior of borrowing to buy durable consumer goods. According to the Experian-Invest India Credit Ecosystem Review, domestic credit growth in India averaged 15.1% from March 2000 to March 2021, mainly driven by retail lending and increasing credit card penetration. The study also finds that the consumer credit market continues to grow at a faster rate than most other major economies around the world, with around 22 million Indians requesting new credit each month. This boom in retail lending in India and its new group of borrowers presents a great opportunity for digital lending players. This has been recognized by banks and fintechs connecting seamlessly with the consumer (e.g. using the vernacular) and using the data to personalize offers for each individual customer. On the other hand, millennials have taken to digital loans in 2020 to meet their emergency fund needs such as medical bills and credit refinancing. This is a trend that we had not seen in previous years. There has also been an increase in demand for home improvement loans after the foreclosure, according to a report from CASHe, a digital lending platform.

Look to the future!

There is no doubt that COVID-19 has had an unprecedented impact on the retail lending industry – across geographies, sectors, customer segments and product categories. While it is still early to assess the large-scale economic impact of the pandemic, its repercussions should be felt in the years to come. Procurement, as well as a collection of loans, were significantly affected, with drawdowns at record levels and asset quality at severely degraded levels. Lenders find themselves in a particularly difficult situation as they face multiple problems such as shrinking profit margins, bad debts and write-offs, and a shortage of cash. After a major collapse in the first two quarters of FY21, the final quarters should bring hope to lenders as the economy slowly shows signs of recovery.

But how can the rapidly evolving digital adoption make a difference? Lenders such as banks, NBFCs and other financial institutions should view this event as a turning point for retail lending in India. They must act quickly to become the lenders of the future. As more customers embrace digital banking and payments, these institutions must embrace digital to be relevant in a changing market. It is extremely important for financial institutions to go back to the drawing board and redefine their strategy and rethink what their organization stands for. They need to innovate at all levels, including their service offerings, channels, operating model and customer service. They must also optimize their spending and invest in the most profitable projects while propelling the organization towards its strategic objectives. Credit organizations now have the opportunity to transform their business models and become modern, resilient and lean organizations, ready to adapt and meet the challenges of the future.

The author, Murali Nair, is president of banking at Zeta. Opinions expressed are personal


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