finance&economics

Deliveroo, an online food delivery company,  on March 31st 2021 went public and  raised £ 1.5bn at a price of  £ 3.90 by offering 384m shares, a combination of new shares and sell-of by its existing investors. On the first day of trading Deliveroo’s shares tanked to  £ 3.31 by seeing 15% depreciation and closed its first day 30% down at  £ 2.73. What Caused the Failure of one of the most anticipated IPOs on London Stock Exchange? For an IPO, the timing to enter market matters a lot and Deliveroo missed that sweet spot, during Feb to March there were many Tech sell offs in the market as Nasdaq hit its lowest level in March not seen since December 2020 and ended the march by 5% down from its 2021 peak. Investor’s tension about gig-workers after Uber’s 70k drivers were classified as employees in UK made them worried that this might be the start and it could push the Deliveroo not to be profitable for more than expected years. The reopening of the economy also pushe...

MasterCard is acquiring Digital Identity Verification Start-Up - Ekata, which identifies people behind transactions in real time with its AI powered and machine learning software, at a price of $850m. With the introduction of Ekata, MasterCard aims to create one stop-shop for businesses, merchants, governments, and Start-Ups to enhance their security of e-commerce transactions, and let merchants increase their revenues and customer retention rate with the seamless e-commerce experience. Market Trends in E-Commerce, Digital Payments and Security Acquisition comes at a time when the global retail e-commerce sales for 2020 are estimated to be around $4.28 trillion, growing by about 28% over 2019 and is expecting strong growth through coming years. Transactions have become more digital but the consumer confidence has taken a hit in 2020 with 4% increase in consumers reporting concerns for digital payments security. Also, on average online merchants had 24% increase in fraud attempts fr...