Restaurant software provider Toast is planning to go public this year at a valuation of $20B, up from its $5B valuation last year. Though the company announced in March that it was laying off about 50% of its staff due to an 80% revenue reduction, its sales started to rebound in mid-2020 as more restaurants began to offer takeout and online delivery.

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• The companies software includes marketing, inventory control, payments processing, and online delivery management. 
• Toast’s loan service Toast Capital provides funding for restaurants from $5,000-$50,000.
• The company has raised $900M in funding from backers, including Bessemer Venture Partners, Tiger Global Management, and T.Rowe Price.
• Toast’s valuation has increased from $2.7B in 2019 to $20B in 2021 due to the surge in online orders.

Kohl’s shares increased by more than 8% as a group of investors announced that it had nominated nine directors to the board. However, the company said that it had rejected the bid, as it would disrupt its revamping momentum.

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• The investor group also wanted to cut executive compensation, slash inventory levels, and possibly sell non-core real estate. The real estate sale is estimated to be $7-$8B in worth.
• Kohl’s revenue decreased by 25% in 2020 to $9.8B, and it reported a loss of $506M, compared to its profit of $426M in 2019. However, CNBC noted that the retailer performed better than some of its peers, including J.C. Penney (lost $1.3B in the first ten months of 2020) and Macy’s, whose profit reduced by half in 2020 to $564M.
• This year, the retailer launched new initiatives, including setting up an Amazon's return service in Kohl stores and opening Sephora beauty shops in 850 stores.
• The activist investor group includes Macellum Advisors, Ancora Holdings, and Legion Partners Asset Management. These investors together replaced five board of directors in Bed Bath and Beyond in 2019. 

India’s Supreme Court issued a temporary halt on retailer Future Group's $3.4B sale to Reliance Industries, effectively handing Amazon a win as the case continues. Monday's verdict bars a final ruling from a tribunal until the high court hears Amazon's objections to the retail sale.

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• Amazon is seeking to block Future Group from selling its retail assets to Indian conglomerate Reliance.
• Reliance purchased Future Retail for $3.4B in August. In 2019, Amazon acquired a 49% stake in Future Group, which owns a small stake in Future Retail. This gave Amazon a 3.58% stake in Future Retail.
• Amazon claims Future Group violated a partnership contract. Following a lower court ruling that didn't side in its favor, Amazon has taken this case to the Indian Supreme Court in an attempt to block the deal; the company claims it will face “irreparable harm” if the acquisition moves forward.
• On Monday, the Indian Supreme Court ruled that the National Company Law Tribunal, which must sign off on the deal, cannot “sanction” the acquisition until it fully hears the case in March. The court also asked for written statements from Future Retail.

This story first appeared in Inside Amazon. You can read the full issue here.

A study conducted by Facebook in association with Small Business Roundtable found that 25% of small businesses had closed by December 2020. In comparison, 31% of small businesses were closed in April 2020.

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• The retail business accounted for the highest percentage of sales through digital channels compared to other sectors. Also, the percentage of retail businesses selling online increased from 79% before the pandemic to 97% in December. The number of businesses not making sales through digital channels reached 13% in December, down from 35% in April 2020.
• In terms of supply chain challenges, 42% of businesses cited limited supply as a challenge, with delayed shipment also at 42%. Foreign supplier delays were reported by only 11% of small businesses.
• About 39% of food and accommodation businesses and 32% of retail businesses mentioned that they anticipate cash flow problems in the future. In December, 37% of businesses applied for external sources of capital, indicating the need to mitigate the effects of the pandemic.

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