The Delhi High Court has ordered Google to suspend the advertising account of HappyEasyGo after it was found violating a 2018 injunction to not bid for search terms related to its competitor MakeMyTrip. It’s a win for intellectual property rights in a country that doesn’t always hold them in the highest regard.
Elsewhere in today’s letter:
- 🚨 Wingreens lands Raw Pressery for a steal
- 💰 Infosys bags $500 million deal from Google
- 🚗 India woos Tesla
Ad and subtract
In a landmark interim ruling, the Delhi High Court has directed search giant Google to suspend an advertising account on its Adwords programme,
The Times of India reported.
The case: In 2018, travel portal MakeMyTrip filed a trademark infringement case against rival HappyEasyGo, asking it to stop bidding for ‘MakeMyTrip’ and related search terms on Google’s Adwords platform to appear at the top of search results. The court granted an injunction in favour of MakeMyTrip and directed HappyEasyGo to not bid on MakeMyTrip-related keywords until further orders.
But in December 2020, MakeMyTrip alleged that HappyEasyGo was once again bidding for the same search terms and filed a contempt petition against the company.
MakeMyTrip has filed a similar case against another rival, EaseMyTrip, as well.
Search terms and IP: MakeMyTrip said its rivals’ bids for search terms such as ‘MakeMyTrip’ meant it had to spend more to advertise on Google, adding that competitive bidding raises the cost per click on Google’s platform by up to three to four times.
What is Google Adwords? It is a pay-per-click online advertising platform in which companies bid for keywords to appear on top of Google’s search results, helping them reach customers when they are looking for specific products and services. The paid-for search results are displayed at the top or bottom of the page and have a small ad icon next to them.
How does it work? It essentially works like an auction, in which an advertiser places a bid in Google’s system to book a particular ad position. But the actual ad position (‘Ad Rank’) is determined by two factors — the highest bid and a quality score determined by Google. This score (from 1 to 10) depends on how well an ad is optimised, the quality of landing page, the company’s expected click-through rate and the relevance of its ad to the searchers.
Wingreens acquires Raw Pressery for a steal
Dips and sauces maker Wingreens Farms has
acquired cold-pressed juices startup Raw Pressery at a valuation of Rs 100 crore to Rs 110 crore. The juice maker has been looking to contain losses and turn its business around for more than a year.
the first to report on the impending deal on January 21.
Why it matters: The deal is at a huge discount on Raw Pressery’s valuation of Rs 500 crore just two years ago, when it last raised Rs 65 crore from existing backers. Raw Pressery has so far raised Rs 150 crore from investors including Sequoia Capital, Saama Capital, DSG Consumer Partners and Alteria Capital.
Consolidation: Shifting consumer tastes globally have prompted beverage firms to find ways of moving away from traditional cold-drinks and high-calorie juices. Two years ago, Coca-Cola Co. acquired a minority stake in Suja Life, an organic, cold-pressed juices brand, while PepsiCo bought Naked Juice Co. more than a decade ago.
Tweet of the Day
A perpetually loss making startup is a charity not a business
— Bhavin Turakhia (@bhavintu) 1614744263000
Infosys wins $500 million deal from Google
Infosys has bagged a nearly
$500 million deal from Google as the software services provider eyes more business from tech giants.
What’s the deal? The scope of the work for Infosys ranges from customer experience and language support to business process requirements and data management. Google, like other large technology companies, works with Indian tech services firms such as HCL Tech, Wipro, Tech Mahindra and GlobalLogic to test and build new software products.
Why it matters: Analysts said this is “one of the largest all-digital deals” in customer experience services. Infosys signed large deals worth $7.1 billion in the quarter that ended in December, the largest three-month deal flow in the company’s history. It included a reported $3.2 billion deal from Daimler to transform its digital operations.
India woos Tesla
ready to offer sops to Tesla to ensure the electric car maker’s production expenses would be less than in China if it promises to make its electric vehicles here, Minister for Road Transport & Highways Nitin Gadkari told Reuters.
“Rather than assembling (the cars) in India they should make the entire product in the country by hiring local vendors. Then we can give higher concessions,” Gadkari said in an interview. “The government will make sure the production cost for Tesla will be the lowest when compared with the world, even China, when they start manufacturing their cars in India. We will assure that.”
First steps in India: Last month we reported that Tesla was closing in on an agreement to make electric vehicles in India, and that the company had picked Karnataka for its first plant.
ETtech Done Deals
■ Outplay, a sales engagement platform targeted at small and medium businesses, has
raised $2 million in funding from Sequoia Capital India’s early-stage accelerator fund Surge.
■ Clairco, a cleantech startup aimed at tackling air pollution, has
landed Rs 4.2 crore from Sanjiv Bajaj, Bajaj Capital Ltd.’s joint chairman and managing director, by way of Anicut Angel Fund, where he is the lead investor.
■ California-based fintech player
Aeldra Financial, which at the beta level has opened over 10,000 US savings bank accounts for Indians over the past three months, is
looking at raising $25 million from existing and new investors as it is entering more geographies.