G20 Brisbane: 3 Big Decisions Made At Economic Conference
Making The Global Economy More Resilient
A decision has been made on a range of measures that will help make the global economy more resilient to future shocks—like the recent global recession—and protect both business and consumer interests. To protect again these shocks, the G20 decided to endorse measures that would “strengthen financial institutions, protect taxpayers from having to fund bailouts if ‘too big to fail’ financial institutions run into difficulty, address shadow banking risks, and make derivative markets safer.”
Some of the elements in the policy framework will need to be finalised, but from now on the G20 financial regulation agenda will focus now on implementation, supervision and monitoring the effects of the reforms.
Sydney will now be home to a Global Infrastructure hub, which will assist increasing global investment in infrastructure by facilitating better information sharing and collaboration between the private sector, governments, development banks and international organisations.
According to the B20, a hub like this could help access close to $2 trillion in global infrastructure capacity to 2030, if the private sector is heavily involved in the process. The Hub will help construction globally by helping countries “improve their general investment climates, reduce barriers to investment, grow their project pipelines and help match investors with projects.”
Fairness In The Global Tax System
The G20 is committed to delivering a plan to address tax avoidance called the Base Erosion and Profit Shifting (BEPS) Action Plan. G20 and OECD members—which represent 44 countries and 90 percent of the world economy—are committed to the reforms.
The goals of this plan include:
- ensuring SMBs do not carry unfair tax burdens
- countries receive the taxes they are due, and
- a new global transparency standard
Australia in particular will be assisting the Philippines to implement the automatic exchange of tax information as part of the fight against tax cheats. The g20 recognises collaboration by tax authorizes is key to enforcing compliance.
Timeline: India takes unicorn leap with six in five days
We chart an historic week in India’s tech industry, where in just five days, between 5-9 April 2021, the country achieved six new unicorns, bringing India’s total to 10 in 2021 to date, an immense unicorn leap from just seven in 2020 and six in 2019.
April 5: Meesho
India’s first social commerce unicorn, Meesho raised US$300m from SoftBank, Facebook and Shunwei Capital, giving the Bangalore-based startup a US$2.1bn valuation, a threefold jump from its previous funding round in 2019. Founded in 2015 by two IIT-Delhi graduates, Meesho connects producers and resellers, helping small businesses sell through social media. It has 45m customers and has enabled 13m entrepreneurs to start their online businesses with no investment.
April 6: CRED
Founded just over two years ago, Bangalore-based credit card repayment app CRED raised US$215m from Falcon Edge Capital and Coatue, nearly trebling its valuation to US$2.2bn from its January US$80m round. Allowing customers to pay off their credit card debt while earning CRED coins which they cash in for rewards, CRED has grown rapidly during COVID-19, doubling its customer base to nearly 6 million in a year.
April 7: API Holdings / Groww
The first epharmacy startup to gain unicorn status, PharmEasy (API Holdings), which has digitised 60,000 brick and mortar pharmacies and 400 doctors across India, raised US$350m in a round led by Prosus Ventures. Founded by four former Flipkart employees as a way of making investing simple, investment platform Groww became India’s second-youngest fintech unicorn, raising US$83m in Series D funding led by Tiger Global, quadrupling its previous round in September.
April 8: ShareChat
New Delhi-grown social media startup ShareChat, founded in 2016 by Mohalla Tech raised US$502m from Lightspeed Ventures, Tiger Global, Twitter and Snap taking its raised total over six rounds to US$766m and pushing its valuation to US$2.1bn. The funding will be used to grow its user base and short video platform Moj, which launched in 2020 following TikTok’s ban in India. The regional language startup claims 280m users.
April 9: Gupshup
AI-led conversational message startup joined the unicorn club after raising US$100m from Tiger Global giving it a ten-fold valuation of US$1.4bn. The smart messaging platform, which has seen accelerated growth during the pandemic, was founded in Bangalore in 2005 by serial entrepreneur Beerud Sheth, whose online freelancing platform Elance is now listed. Gupshup’s API enables 100,000+ businesses to build messaging and conversation experiences across 30+ communication channels.