Wednesday, August 29, 2012

UrbanTouch.com acquired and HCL Infosystems might be sold to Lenovo!


Date - 27 August 2012
Time - 11:20 pm

Alert from Google stating "FashionandYou.com acquires UrbanTouch in cash and stock deal" 

Date - 28 August 2012
Time - 11:00am

Alert from Google stating "...computer maker Lenovo is in talks to buy out promoter stake in the company" ....

Having worked for both the companies , I found myself with sudden rush of thoughts which made me compare the 2 seemingly odd entities -



1. Both sold to their competitions. HCL Infosystems V/s Lenovo in the Computer hardware and peripherals industry | UrbanTouch.com V/s FashinAndYou.com in the e-commerce space.

2. While HCL Infosystems seems to be on a loss as it failed to align itself with consumer shift from desktops / laptops to tablets , UrbanTouch.com needed to align itself with consumer delight - flash sale model and needs cash to sustain in the dog-eat-dog eCommerce business.

3. Both desperately needed funds to keep the business going - eCommerce is a huge eye-ball catching and attention seeking industry right now and for scaling up - big investments are needed. UrbanTouch had only Rs 20 Cr invested and for going to mass, it needed much more. HCL Infosystems barely made 2 Cr in profits in last quarter. For a company of its size and stature, 2 Cr seems pretty inadequate!

4. Both companies had great service and outeach in the market - Look at UrbanTouch Facebook page will reveal the relationship of its customers with its service and reach of HCL Infosystems in India (With over 9000 towns, more than 7000 employees and more than 93000 outlets)  (Source)


Update - HCL Infosystems have clarified that it is not up for sale. But, still the post symbolizes the emotions more than the actual facts :)

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