Minister of State (MoS) for Electronics and Information Technology Jitin Prasada has informed the Parliament that the Centre has constituted an advisory group to formulate a framework to regulate artificial intelligence (AI) in the country.

Responding to a question from Telugu Desam Party members of Parliament (MPs) Lavu Sri Krishna Devarayulu and GM Harish Balayogi, the MoS said that the panel has been tasked with building a framework to promote innovation while curbing the misuse of AI technologies. 

He further added that the group comprises government officials, industry leaders, academicians and other stakeholders. 

“The government has constituted an advisory group for India-specific regulatory AI framework… Its  mandate  is  to  promote  innovation  and  ensure  adequate  guardrails  to  protect  common  citizens against the possible misuse and user harms. Specifically, the terms of reference of the advisory group includes creating contextualised ethical guidelines which are adaptable in India and promote development of trustworthy, fair, and inclusive AI,” added Prasada.

In response to a separate question, MoS (independent charge) in the Ministry of Skill Development and Entrepreneurship Jayant Chaudhary said that 2,914 individuals have so far been trained in AI-related courses under Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0 till June 30.

MoS Chaudhary also said that an additional 8,909 applicants are undergoing training in various AI courses under the scheme as of June 30. He added that over 1.27 Lakh individuals have been trained in various AI-related courses on the FutureSkills Prime platform, which aims to reskill and upskill IT professionals in 10 emerging areas of technologies.

The comments come at a time when AI mania has gripped the world, which has spawned the rise of multiple startups in the space. This has led to a sharp rise in demand for talent pool catering to the domain and the upskilling programme aims to address that. 

Cognisant of this, tech giant Google announced a partnership with MeitY Startup Hub last month to upskill 10,000 homegrown startups in artificial intelligence. Infosys cofounder and chairman Nandan Nilekani last month also said that the IT major has trained more than 2.5 Lakh employees in GenAI technologies. 

Meanwhile, the growing penetration of generative AI (GenAI) has raised questions about issues related with the technology such as misuse, deepfakes and misinformation. In a bid to crack the whip on this, the Centre, earlier this year, issued an advisory that directed platforms to label undertrial AI models and ensure that no unlawful content is hosted on their sites. 

Notably, industry veterans including SaaS unicorn Zoho’s cofounder Sridhar Vembu have in the past also called for building appropriate safeguards before adopting new technologies.

The post Advisory Group Constituted To Build AI Regulatory Framework: Govt appeared first on Inc42 Media.

It started with a tweet on July 8, 2024, when Ola founder and CEO Bhavish Aggarwal announced the launch of Ola Maps for developers. The CEO also officially announced that Ola Cabs was moving away from Google Maps, the company’s mapping partner until then. 

Incidentally, this came on the heels of Aggarwal’s tussle with Microsoft-owned LinkedIn and the company migrating away from Microsoft’s cloud solution Azure. So the move from Google to Ola Maps naturally attracted a lot of attention on social media. 

Since then, Ola Maps has been in the news for various reasons. 

For one, Aggarwal claimed that Google Maps reduced prices for certain core APIs by up to 70% in response to the Ola Maps launch.

But Developers that use the Google Maps API told Inc42 that Google had already announced a price reduction a few months before Aggarwal tweeted about Ola Maps. “We knew about it for at least a month before the announcement. Google, being a big company, likely planned it further in advance,” said the founder of a route planning and optimisation startup.

Then, Ola was hit by a legal notice from listed mapping major MapmyIndia for alleged data theft and reverse engineering Ola Maps by duplicating MapmyIndia APIs. Soon after, Aggarwal dismissed this notice as being opportunistic. 

But out of nowhere, India’s mapping services space has become a hotbed of competition, controversy and allegations. Ola and Aggarwal are at the centre of this frenzy, and the CEO is supremely confident that Ola Maps will be the next big thing from the house of Ola.  

Sources told Inc42 that the CEO is keen on spinning off Ola Maps as a separate entity and Aggarwal has eyes on creating yet another unicorn, after taking Ola, Ola Electric and most recently Krutrim to the $1 Bn valuation club. 

“A spin-off is on the cards[A few years down the line]; however, at present, the company needs a lot of nurturing from the Ola ecosystem. Once the product nears maturity and the brand achieves a sizable clientele outside the ecosystem, it will be something to look into,” a senior employee working on the platform told Inc42. 

But does Ola Maps even have a shot in this market, where the incumbents have decades of expertise and experience? 

Ola Maps Joins India’s Digital Mapping Frenzy

For the past 18 months, Ola Maps has been developed by Ola Cabs’ parent company ANI Technologies, building on the 2021 acquisition of Pune-based startup GeoSpoc. 

Unlike Ola Krutrim and Ola Electric, which were independent entities from inception and shared the Ola brand name and the company’s resources, Ola Maps is currently part of Ola Cabs’ parent company ANI Technologies.

This is why there is some speculation about Ola spinning off Ola Maps into a separate entity and offering it to developers and other product startups as an API-based service. Aggarwal on X mentioned that Ola Cabs has been spending around INR 100 Cr on third-party mapping services.

It will be interesting to see how Ola differentiates itself from the host of players that make up the mapping market. Although Google Maps and MapmyIndia are the two most dominant players, there are others such as Apple Maps, Dutch giant HERE Technologies, TomTom, MapBox, OpenStreetMaps among others. 

The digital maps and location intelligence services market consists of digital maps services, navigation solutions and telematics for business as well as consumer applications. And most of these companies have products that cater to both B2B and B2C or either of these verticals.  

The opportunity in the digital mapping space is very large. For instance, MapmyIndia’s operating revenue nearly doubled in the past two fiscal years from INR 200 Cr in FY22 to INR 379.4 Cr in FY24.

It is hard to estimate how much Google Maps is earning from India, as the tech giant does not disclose numbers for Google Maps nor its business in India. We do know that most service providers that operate at scale rely on Google Maps.

Swiggy and Zomato, for instance, would be contributing significantly to Google Maps revenue in India, given the millions of orders these platforms process daily for food delivery and quick commerce. Uber India too is a major customer for Google Maps, and Google Maps is pre-installed on millions of Android devices. 

It is hard to fight dominance of this scale, but MapmyIndia has looked to do that through customer acquisition and leading an antitrust battle with Google Maps, as we have written about in the past. 

For context, Google Maps entered the Indian market in 2007, a decade after MapmyIndia’s first product. Last year, MapmyIndia CEO Rohan Verma told Inc42 that MapmyIndia offers a superior product thanks to speed limit indicators, pothole indicators, 3D junction view (for exits and flyovers), several of which are still missing from Google Maps.

However, dethroning Google is no easy task, particularly because of its extensive tech industry network, deep pockets and Android’s dominance in the smartphone market due to which most Android devices come preloaded with Google Maps. 

For MapMyIndia and other majors in the space, it’s the B2B market which includes ride-hailing services, automobile, enterprise solutions, and delivery services that’s been the key addressable market.  

MapMyIndia claims to have captured over 80% of the connected vehicle market, where its apps and devices are installed on-board by the OEM. It also claims to be working with distribution companies, particularly in the food and beverages space. 

So the question is where can Ola even compete in such a market, where two large players already have deep roots. 

Ola’s Maps Journey From 2021

Ola’s journey into the mapping world began after the Indian government changed the guidelines for geospatial data in early 2021. The guidelines restricted foreign companies to a 1-metre accuracy and mandated the use of APIs for such companies from authorised domestic licensees. No such restrictions are applicable for Indian companies. 

The 2021 Guidelines liberalised the entire approach to how an entity could collect the mapping data. Before, it was heavily guarded. And, one needed to have a license and approval from the Indian government to enter the mapping data / streetview data collection.

“This was a major reason why Google could not be directly involved in mapping data collection in India before 2021. Instead, it has had to partner with entities such as Tech Mahindra to collect data for mapping solutions,” a former India-based Google Maps developer told Inc42. 

It was in this India-first milieu that Aggarwal set the roadmap for Ola Maps after the GeoSpoc acquisition. 

Aggarwal’s thesis was that domestic map solutions are critical to democratise access to digital services for all Indians, especially outside the metros. 

He also said that multimodal transportation options such as drones, autonomous vehicles or other new-ge connected vehicles will require more detailed geospatial data, including high-definition and three-dimensional (3D) maps. 

In its first Maps blog, Ola claimed that existing maps do not address challenges such as inaccuracy, inconsistency, varying street names, frequent changes in road networks, non-standardised streets, potholes, and road quality issues. 

Some of these problems are incidentally also MapmyIndia’s USP as Verma told us in January last year. 

But Ola Maps does offer a big upside for Aggarwal and Ola’s many verticals:

1. Cutting Costs: The company will no longer have to spend INR 100 Cr on mapping APIs and SDKs 
2. New Revenue Stream: The in-house mapping solutions is a new revenue stream for Ola 
3. Data Ownership: Ola Maps allows the company to have complete control over user location data, which feeds into other Ola businesses such as ride-hailing, Ola Electric as well as any other verticals launched by the company, including Ola’s recent push into food delivery with ONDC

Of course, competition is beneficial for the entire ecosystem, since this will create a race to offer more features at better prices. 

But building a mapping platform is no easy task. During an interaction with Inc42, a few weeks back, MapmyIndia CEO Verma said, “It is a huge infrastructural task to create a solid foundation of accurate maps based on ground reality for a large country like India (3.2+ Mn sq km to 6.6 Mn sq km!), and then an even more herculean task to maintain and keep the maps updated as the landscape changes.”

According to him, it is very hard to firstly build and maintain maps, and secondly make it into a viable business. “Many players have tried and failed after a few years,” Verma said. 

Ola Maps, which first appeared on the company’s EVs and inside Ola Cabs, is now being offered to developers.

For a moment, let’s put aside the controversy around MapmyIndia’s legal notice to Ola and see how the latter claims to have built Ola Maps.  

As per the company’s statements, it acquired data from Open Street Maps under a licence agreement, as well and from government sources, while also deploying sensors in some Ola Cabs and across the data operations fleet such as cameras, radar, and LiDAR. 

By processing this data, Ola said it developed a suite of APIs and SDKs for B2B use cases. Ola claimed that its maps platform ingested more than 5 Mn messages per second from various sensors and telemetry sources. The petabytes of data is collated, normalised, anonymised, and stored in a data lakehouse. Data streams from various sources are further divided into pipelines to collect relevant data for training AI models, analytics, and data ops for maps. 

The final output is stored in map databases for tiles, places, and routes systems. Ola Electric, meanwhile, has shelved its electric project which was unveiled in 2022, so for now, Ola will instead be relying on its EV two-wheelers and its fleet of cabs for further data collection. 

Suvonil Chatterjee, the chief technology and product officer of Ola Electric, said in a tweet that AI is at the heart of Ola Maps. The company leverages natural language processing for contextual searches, real-time traffic prediction, dynamic routing algorithms, and automated map updates, Chatterjee said. 

What Ola Can Learn From Apple Maps

While the Indian ecosystem has largely applauded the launch, some maps users pointed out bugs and shortcomings such as Ola’s reliance on Google Autocomplete API, routing issues and even about Ola using SDKs from other mapping solutions such as MapBox.

“The APIs offered by Google Maps are simply much more extensive, but the start by Ola Maps is promising. However, with Ola Maps currently being constrained to the Ola ecosystem, most issues are still not public as drivers rarely report them,” according to a founder of location-based services startup.

Moreover, some APIs are difficult to build in terms of accuracy and seamlessness and require multiple datasets to work together. Take for instance, Google Maps’ Places APIs. Industry insiders believe this is especially difficult to develop, because Google relies on high-quality data from Search and other products. This is partly why Google’s Maps APIs are so feature-rich. 

In fact, mapping platforms have transformed into super apps / super platforms incorporating a slew of vertical requirements. Users can directly reserve a table using Google Maps or seek appointments with a doctor or make inquiries about what products a nearby kirana store has in stock. 

MapmyIndia’s consumer app Mappls has partnered with ONDC to incorporate some of these features and more into its products, and the company has also tied up with wearables maker boAt to introduce some features for smartwatches, a category where devices running Google Maps and Apple Maps are typically more expensive than boAt’s smartwatches. 

Apple Maps has also built such features into its APIs but not all of these are available in India. In the US, where Apple is in a much more dominant position, these APIs are more feature-rich. 

What these feature-rich mapping solutions tell us is that mapping apps are no longer just about directions or finding the fastest route between two points. Maps apps are moving towards super apps in some ways. 

Apple’s example is most apt for Ola. Apple Maps was heavily criticised at launch in 2012 for having poor accuracy and mislabelled information. It took the company more than a decade to come close to Google in terms of service quality and features. 

It wasn’t easy for Apple, but having a revenue-generating machine such as the iPhone did help in staying the course. Does Ola have the tenacity that Apple showed? 

For Ola to directly take on Google Maps or Apple Maps, it is critical to add some of these consumer-friendly features, since they can have a snowball effect and bring more B2B customers  on board as well. For Ola Maps, the arduous task begins now. 

Ola Maps might well find itself in the unicorn club if Aggarwal decides to spin it off, but that will still be a valuation game. Dethroning Google, MapmyIndia and even Apple Maps won’t be as simple as going from point A to point B.

[Edited by Nikhil Subramaniam]

The post A Long Road For Ola Maps: Can Bhavish Aggarwal Dethrone Google Maps, MapmyIndia? appeared first on Inc42 Media.

Electronic waste and battery recycling startup Attero has marked its foray into the direct to consumer (D2C) space with the roll out of an integrated e-waste consumer take-back platform called Selsmart.

With this platform, the company aims to transform the e-waste recycling landscape and combat India’s growing e-waste crisis, which is projected to reach 14 Mn tonnes by 2030, it said in a statement.

Selsmart will enable consumers to schedule doorstep pickups of used electronic gadgets and appliances, and receive fair market equivalent prices in return.

The company also said that this platform will provide full data security with top-of-the-line data wiping, degaussing and physical destruction processes. Besides, Selsmart will facilitate disposal of e-waste through Attero’s recycling processes.

Founded in 2008 by Nitin Gupta and Rohan Gupta, Attero offers recycling of the electrical and electronic devices. As one of the leading e-waste recyclers, the company claims to process 144,000 metric tonnes of e-waste annually at its Roorkee plant and plans to expand it to 415,000 metric tonnes in next five years.

The company counts Kalaari Capital, Granite Hill Capital, IFC and Forum Synergies among its investors.

Nitin Gupta, cofounder and chief executive said, “Selsmart addresses the significant gap in household electronics disposal. We are aiming to establish Selsmart as India’s largest consumer take-back platform and are forging partnerships with leading brands and OEMs to incorporate circularity & sustainability into their business models.”

This development comes on the back of the boom in India’s D2C market, which is likely to reach a size of $100 Bn by 2025. The growth is contributed by the pandemic, higher internet penetration, growth of digital infrastructure and cost of living that have shored up the D2C brands.

Most manufacturing and electric vehicle companies depend highly on lithium-ion batteries for their production.

Banking on the rise of battery usage, Gupta claimed that the company is cash flow positive and growing exponentially, in September 2023. Attero claims to have clocked revenues to the tune of INR 300 Cr in FY23.

With the new label introduced in the market, the Noida-based company now looks to achieve an annual recurring revenue (ARR) of INR 100 Cr, by collecting 14,000 metric tonnes of e-waste. By the third year, Attero is forecasting to make INR 1,000 Cr in annual recurring revenue, with 140,000 metric tonnes of e-waste collected.

Startup nurturing platform India Accelerator has floated a new vertical to back businesses operating in the cleantech sector, by writing a cheque of INR 1.5 Cr to each startup via its Finvolve Accelerator Fund. Besides, it will also allocate INR 4.1 Cr to each startup through the Finvolve Seed Fund to support growing startups looking for expansion.

The post Attero Enters D2C Space With E-Waste Consumer Take-Back Platform Selsmart appeared first on Inc42 Media.

Fintech unicorn BharatPe has secured a debt funding of INR 85 Cr (around $10.1 Mn ) from Trifecta Venture and InnoVen Capital through issuance of non-convertible debentures (NCDs).

The company’s board issued 500 Series E1 secured, unlisted, unrated and redeemable debentures with a face value of INR 10 Lakh each and 3500 Series F1 debentures at a face value of INR 1 Lakh each to raise INR 85 Cr, as per regulatory filings.

At INR 50 Cr, Trifecta Venture led the debt funding round while InnoVen Capital invested the remaining INR 35 Cr.

Entrackr reported the development first.

Notably, this is the second instance where BharatPe has raised debt funding this year. In January, the Peak XV-backed startup secured $100 Mn in debt from InnoVen Capital and Credit Saison.

At the time, it was reported that InnoVen Capital was looking to invest $60Mn-$70 Mn in BharatPe.

The latest INR 35 Cr debt infusion by Innoven Capital appears to be part of that deal.

It was also reported earlier that Nalin Negi has been promoted as the CEO of BharatPe. Negi was appointed as interim CEO and CFO of the company following Sameer Sohail’s exit in January 2023.

Recently, BharatPe ended its five-year long legal dispute with PhonePe over the use of the trademark with the suffix ‘Pe’ in their brand names. 

Earlier this year, BharatPe rolled out an ‘all-in-one’ payment device ‘BharatPe One’ that integrates point-of-sale (PoS), QR code scanner, and speaker.

BharatPe widened its net loss to INR 926.9 Cr in the financial year 2022-23 (FY23), up 12% from INR 828.6 Cr in FY21. 

Revenue from operations jumped 125% to INR 1,028.9 Cr in FY23 from INR 456.8 Cr in the preceding fiscal.

The post BharatPe Raises INR 85 Cr Debt From Trifecta And InnoVen appeared first on Inc42 Media.

SEBI chairperson Madhabi Puri Buch has said that the markets regulator will ensure adequate oversight to prevent a “Paytm-type contamination”.

“We will not allow a Paytm-type of contamination in our market. We all saw what happened in Paytm. Now, because in the banking system, there is no KRA (KYC Registration Agency) type system. So, the problem of Paytm stays in Paytm. It doesn’t contaminate other banks,” Buch said.

It is pertinent to note that SEBI mandates uniform KYC by all SEBI-registered intermediaries. KRAs provide for centralised storage/ digitisation of the KYC records in the securities market.

“But if we allow Paytm to come into our system with no KRA, and it contaminates the whole system, how can we allow that? We will always have our KRA sitting in the middle to make sure things are validated, otherwise you can have one mischievous player come in and contaminate the whole system. We will not allow that,” the SEBI chairperson added.

Buch’s sharp criticism of Paytm came in the backdrop of the Reserve Bank of India’s crackdown on Paytm Payments Bank Ltd (PPBL) for flouting KYC norms and non-compliance with rules. The central bank ordered a number of restrictions on PPBL, including barring it from taking deposits or credit transactions or top ups in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards.

At the time, a number of reports said that the RBI took the action against Paytm due to lapses in its KYC processes.

However, Paytm’s troubles didn’t end with the RBI’s actions. In March, the Financial Intelligence Unit-India (FIU-IND) also slapped PPBL with a fine of INR 5.49 Cr for skirting anti-money laundering laws.

According to the finance ministry, PPBL allowed some entities to route illegal activities’ proceeds through its accounts.

Besides, Paytm has also been under SEBI’s scrutiny. It received a show cause notice from market regulator SEBI in relation to the 2.1 Cr employee stock options (ESOP) granted to the company’s founder and CEO Vijay Shekhar Sharma in the fiscal year ended March 2022 (FY22).

Earlier this month, Paytm also got an administrative warning letter from SEBI over related party transactions with PPBL in FY22, which were conducted without due approval of either the audit committee or the shareholders.

The post Won’t Allow ‘Paytm-Type Contamination’ In Market: SEBI Chief appeared first on Inc42 Media.

Just a few days after launching a data tool for its restaurant partners to gauge their marketing performance against peers, foodtech major Swiggy has now rolled out another suite to facilitate eateries with influencer and social media marketing solutions.

The IPO-bound company’s new marketing solution suite will help its restaurant partners collaborate with a network of influencers to promote their services as well as assist them in putting up advertisements on social media platforms like Instagram and Facebook and sending push notifications for WhatsApp customers, it said in a statement.

Swiggy’s latest move is a part of its efforts to boost online presence of restaurants and deepen their customer engagement by driving more traffic to menu pages on the foodtech’s app.

“Our new set of marketing services helps brands grow their customer base by combining the reach and engagement of channels like influencer marketing, social media and WhatsApp and the ability to acquire new users through the Swiggy platform,” said Swiggy’s assistant vice president Ajit Panigarhi.

Swiggy has been on an experiment spree lately with its restaurant centric growth solutions.

Last month, the company rolled out ‘Staffing Support’, an initiative to assist its restaurant partners with staff recruitment.  

In April, the foodtech major launched ‘Smart Links’ to enable restaurants to redirect customers straight from social media posts and advertisements to their menu pages on the food delivery app.

Apart from expanding solutions for its restaurant partners, the company has also been undergoing some other major changes.

For instance, recently, Swiggy reportedly hiked its platform fee to INR 6 per order in its key markets, including Delhi and Bengaluru.

Not just this, Swiggy’s early backers including Prosus, Accel and Elevation Capital are reportedly selling shares and partly diluting their stakes in the food tech company.

All this comes at the heart of Swiggy’s upcoming IPO worth INR 10,414.1 Cr ($1.2 Bn), for which the company received a nod from its shareholders in April. 

The IPO will include fresh issue of shares worth INR 3,750.1 Cr (about $449 Mn) and an offer-for-sale component worth INR 6,664 Cr (around $799 Mn), as per regulatory filings.  

The post Swiggy Unveils Suite To Facilitate Restaurants With Influencer, Social Media Marketing Solutions appeared first on Inc42 Media.

Mumbai-based trade financing startup Vayana Network is raising $20 Mn (INR 170.8 Cr) in its Series D funding round. 

As per the startup’s filing with the Ministry of Corporate Affairs (MCA), the round is being led by new investor SMBC Asia Rising Fund, which is infusing around INR 62.6 Cr.

The round will also see participation from Jungle Ventures, Chiratae Ventures, International Finance Corporation (IFC), Deep Financial, among others. 

Inc42 has learnt from sources that this is a tranche of the startup’s ongoing Series D funding round. 

Post the allotment, SMBC Asia Rising Fund will hold a 3.25% stake in the startup, while IFC will own 5.66%. 

As per Inc42’s calculations, the startup will be valued at around $240 Mn in this funding round. 

A query mail sent to Vayana Network didn’t elicit any response till the time of publishing this story. The article will be updated on receiving a response.

The latest development comes almost two years after Vayana Network raised INR 140 Cr ($15 Mn) in its Series C funding round. This investment came almost on the heels of the startup raising $38 Mn funding from Chiratae Ventures, CDC Group, and Jungle Ventures.

Founded in 2009 by Ramaswami Iyer, Vayana Network is a B2B trade financial intermediary which connects SMEs and corporates with financial institutions for low-cost access to trade loans.

Vayana Network claims to have enabled finance of over $10 Bn, including over a billion dollar of finance through B2B card flows to over 1.5 lakh MSMEs for over 1,000 supply chains in 25 different sectors. The startup connects over 1,000 corporates and their trade ecosystems to provide digital, convenient, and affordable access to credit for their payables and receivables. 

The startup has a presence across 600 cities and 1,400+ pin codes in India and 20 countries across the globe. It is also a GSP (GST Suvidha Provider) and provides its services to numerous corporates and lakhs of SMEs.  

Overall, it has raised around $57 Mn till date and counts CDC Group, IFC, Jungle Ventures, and PayU among its backers. 

In 2021, Vayana Network received an in-principle approval to set up ITFS (International Trade Finance Services) platform at GIFT City (Gujarat) under the aegis of the International Financial Services Centres Authority (IFSCA).

Vayana Network competes against the likes of Vivriti Capital, Yubi, KreditBee, and FinAGG.

The post Exclusive: Vayana Network To Raise $20 Mn From SMBC Asia Rising Fund, Others appeared first on Inc42 Media.

Paytm’s parent company One97 Communications has rolled out an upgraded soundbox device to facilitate payments by tapping a debit or credit card or scanning a QR code.

The NFC (near field communication) card soundbox would accept digital payments through scanning QR codes from a user’s phone as well as tapping the bank cards, the company said.

Founder and CEO Vijay Shekhar Sharma said the Paytm QR card soundbox is an integration of two devices into one, which eases the process of transaction to both the merchant and customers.

This new card box has the feature of sending voice prompts of the transaction progress in 11 local Indian languages and it has been pilot tested with merchants from food business around various cities in the country including Amritsar, Lucknow, Agra, Delhi, Jaipur, Chennai, Bengaluru, Dehradun, Ahmedabad and Hyderabad.

Sharma also said that this upgraded soundbox device is as affordable as its existing soundbox and available on a monthly rental basis, which starts from INR 150 onwards. The device has the battery capacity of lasting 10 days without having to recharge in between.

However, one of the merchants from Hyderabad, who was a part of the pilot test highlighted the limitation of the device which restricts the card style of payments to tap mode alone. Customers that haven’t activated netbanking will not be able to make payments using their card.

Also, the device currently has the bandwidth of accepting payments of up to INR 5000 per transaction.

At 12:19 PM, shares of Paytm were trading at INR 498.45 apiece on the BSE on Tuesday (July 30), up 1.2% from the previous close.

Earlier in April, the fintech juggernaut launched two new soundboxes to receive UPI and credit card on UPI payments, made completely in India, which were equipped with 4G network connectivity and better sound quality.

Additionally, Paytm said in the webinar that it foresees no impact of lower incentives earmarked by the government in the budget for promoting small ticket digital transactions.

Sharma has confirmed that the company will maintain overall guidance and aims to achieve the projected profit margins in the remaining quarters, while also denying any impact of lower allocation of incentives to promote small ticket digital transactions on his forecast.

“We remain committed to doing the same (achieve a profitable quarter in this fiscal) because we already said without UPI incentive,” he said.

It is pertinent to note that the Centre slashed the budget allocation for incentivising digital payments in the fiscal year 2024-25 (FY25) by over 42% to INR 1,441 Cr.

The allocation for fintech startups and banks for promoting RuPay debit cards and low-value BHIM-UPI P2M (person-to-merchant) transactions stood at INR 2,485 Cr in FY24, as per the revised estimates.

The post Paytm Launches NFC Card Soundbox To Integrate QR And Card Payments In One Device appeared first on Inc42 Media.

CarDekho’s insurance arm InsuranceDekho has secured composite insurance broking licence from the Insurance Regulatory and Development Authority of India to offer reinsurance service to its clients beyond insurance broking.

“Our goal is to leverage our technological prowess and deep industry expertise to bring enhanced value to our clients and partners. This approach not only improves the insurance landscape but also strengthens our market position,” InsuranceDekho’s founder and chief executive Ankit Agrawal said.

Reinsurance, in simple terms, suggests the risk transfer of an insurer (customer) to another company in order to shrink the possibility of large payouts for a claim.

InsuranceDekho’s licence upgrade follows PB Fintech’s wholly-owned subsidiary PolicyBazaar Insurance Brokers receiving approval to upgrade its licence, allowing its entry into the reinsurance business, in February.

Also, this comes at a time when InsuranceDekho was in the last leg of discussions to acquire a majority stake through share swap in Bengaluru-based wealthtech startup BankSathi, in June.

Founded in 2016 by Agrawal and Ish Babbar, InsuranceDekho is an omnichannel insurance platform providing services such as investment options and tax schemes apart from insurance options. The company claims to have direct integration with 48 insurance companies in India, offering over 630 insurance products for motor, health, life, fire, marine, and more.

InsuranceDekho said in a statement that owning a composite insurance broker licence will enable the company to leverage its technology and data analytics capabilities and strong relations with Indian insurer partners to place reinsurance business at competitive prices.

This approach not only improves the insurance landscape but also strengthens our market position, Agrawal added.

Agrawal told Inc42, “Our long-term goals revolve around enhancing insurance penetration and accessibility throughout India. Our strategic expansion into reinsurance broking aligns seamlessly with this vision. This strategic move will enable us to utilize advanced data analytics and technology to place reinsurance business at competitive prices, thereby bolstering contribution margins and increasing EBITDA margins for InsuranceDekho.”

The Delhi NCR-based company initially revealed its plans of reinsurance initiative in October 2023, while raising $60 Mn (over INR 502.3 Cr) in its ongoing Series B funding round. 

Meanwhile, Bengaluru-based insurtech company Covrzy received direct broking (general) licence from the Insurance Regulatory and Development Authority of India, to operate as a direct insurance broker to offer business insurance solutions, a week ago.

Earlier this month, Aeries Financial Technologies, which runs AI-led fintech startup CASHe, bought Hyderabad-based Centcart Insurance Broking Services, to enter the insurance broking vertical.

InsuranceDekho reported a 29% decline in its net loss to INR 51.5 Cr in the financial year 2022-23 (FY23) from INR 72.2 Cr in FY22, on the back of a strong growth in its business, while its operating revenue doubled to INR 96.4 Cr during the year under review from INR 47.9 Cr in the previous fiscal year.

The post InsuranceDekho Bags Composite Broking Licence, To Offer Reinsurance Services appeared first on Inc42 Media.

The likes of Groww, Zerodha, Angel One and others have seen unprecedented growth in the past couple of years, adding millions of active investors to their platforms. But this good run has seen two separate setbacks this month.

On July 1, SEBI decided to halt the zero-brokerage facility on discount broking platforms such as Zerodha, Groww, Upstox, among others, a move that was largely seen as tackling the massive surge in futures and options trading.

The second setback came via this week’s Union Budget (see highlights from our coverage below.) A hike has been proposed in capital gains tax and securities transaction tax. We’ll delve into why these taxes were hiked, but common sense dictates that retail investors are more likely to think twice about how much they now want to invest.

Together, these two developments threaten to disrupt the investment tech gravy train, and the risk of Jio Financial Services coming in and grabbing the market cannot be underestimated. So what happens to the top two players — Groww and Zerodha?

Let’s find out, after we go through the top stories from our newsroom this week:

• Josh Fizzles Out: VerSe Innovation’s Josh is faltering after failed monetisation models, 80% YoY dip in monthly downloads and 50% decline in monthly active users. Will it drop off like other short video apps?
• The Soothe Story: What’s surprising about women’s hygiene startup Soothe Healthcare entry into the INR 100 Cr revenue club is how it got there despite not playing by the rules of the D2C game. Here’s why

Budget Blues For Groww, Zerodha

Before we get to the impact from SEBI’s changes, let’s see what changes for Groww, Zerodha and others after the Union Budget.

The finance minister proposed increasing the rates of STT from 0.0625% to 0.1% on options and from 0.0125% to 0.02% for futures. Short term gains on certain financial assets will attract a tax of 20%, whereas the long term capital gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5%.

Many have called the budget a deathblow to the rapidly growing investment tech space as retail investors reassess their exposure to taxes.

Industry experts believe that this will largely impact F&O trading, which has seen exponential growth in the past year. As per the latest SEBI’s monthly bulletin, the equity derivatives volumes of the two bourses saw a whopping 71% YoY growth to INR 9,504 Lakh Cr in May 2024.

This growth has coincided with investors flocking to discount broking platforms. Groww now boasts over 10 Mn active investors as of May 2024, with Zerodha trailing at 7.5 Mn and Angel One not far behind at 6.5 Mn.

F&O and intra-day traders contributed to the revenue and user growth (more than 80%) for discount broking platforms such as Zerodha, Groww and Angel One, as per industry sources.

• Zerodha’s operating revenue grew 37% to INR 6,832 Cr in FY23 — fees and commission charges accounted for 84% of this total.
• Groww’s operating revenue more than tripled to INR 1,277.8 Cr in FY23, with the company breaking into profits. A whopping 95.9% of its revenue came from subscriptions and commissions fees in FY23.
• For publicly-listed Angel One, broking fees constituted 65% of the overall revenue in Q1 FY25.

The tax shock is likely to pull back the growth in FY25 to some extent, when combined with the hike in STT.

Zerodha cofounder and CEO Nikhil Kamath tweeted on budget day that the STT increase could increase tax collections by up to 66%, if trading volumes don’t drop. Kamath expects this to go up to INR 2,500 Cr annually from October, based on 2023 volumes.

Though he did not elaborate on how or whether this will affect trading activity, others say the budget has all but ended the frenzy around F&O, intra-day trading.

“Zerodha contributes 20% to the retail trading volumes of stock exchanges in India. Groww’s active user base was more than 11 Mn in June. Broking companies which have the highest market shares will get hit the hardest by these changes,” a Bengaluru-based wealth management app’s founder told Inc42 this week.

SEBI’s Slap

Now let’s step back to early July when SEBI asked MIIs such as broking platforms to levy a uniform exchange fee, irrespective of volume or turnover. They can no longer offer any rebate to traders for bringing in more volume through their platforms.

The regulator pressed ahead with the change as many platforms were nudging retail traders towards F&O trading. This is expected to push up the brokerage costs especially for investors who have become habituated to zero or near-zero fee structures.

Here’s how it used to work: Stock exchanges impose a transaction fee on trades executed on their platform, which they charge to brokers on a monthly basis. This fee constitutes the main revenue stream for any stock exchange such as NSE or BSE. In Q4 FY24, for instance, 74% of NSE’s revenue came from income from transaction fees.

While the exchange applies these transaction fees on a monthly basis, broking platforms charge their clients fees on a daily basis. The difference between the collected fees and the actual fees paid to the exchange is the net margin for the broking platform. Suffice to say, driving traffic on a daily basis is important for these platforms from the point of view of overall profitability.

“A majority of new investors in India prefer discount broking platforms such as Zerodha or Groww or Upstox or Paytm Money because of the zero-brokerage model. But now we have to let go of the zero-brokerage structure and increase brokerage for F&O trades from October 1,” said the cofounder of a Bengaluru-based discount broking platform.

In fact, zero brokerage was a USP, but now it’s gone. In the case of Zerodha, the change is expected to have a 10% impact on revenue, according to CEO Kamath.

The founder quoted above said platforms have lost the incentive to generate huge turnovers as this directly impacts margins at scale. The market making activity will be adversely impacted in the long term. Brokerage fees will also rise in the long run because intermediaries such as depositories and advisories will attempt to recover revenue losses.

Jio Waiting To Pounce

What will be really interesting to see is where the three largest platforms ended up in FY24 after flying high in FY23. If anything, we expect revenue to be at record levels for all the players due to the boom in F&O trading.

The financial performance is going to be even more under the spotlight when Jio Financial Services enters the market. Competition in this space is only growing, and existing players were all extremely bullish about growth — at least before July 2024.

Paytm is redoubling its efforts on this front as it looks to diversify revenue reliance on payments.

Walmart-owned PhonePe continues to press the accelerator on its investment platform Share.Market, which is a key part of its super app plan. CRED acquired investment tech startup Kuvera in January to enter the fast-growing wealth management space and expand its platform play.

As we wrote a few weeks ago, Zerodha, in particular, has lost pace to rivals such as Groww and Angel One. With IPO season in full swing (at least for the new-age tech companies) and likely to continue well into 2025, investor activity was expected to surge as these platforms competed for every trade.

What happens now after the double blow of SEBI changes and the changes from the budget? A stormy July has left Zerodha, Groww and every other player at a disadvantage after the boom of the past two years.

Best Of The Union Budget 2024-25

• Nirmala Sitharaman’s budget signalled that the government is looking at startups not as a separate class of businesses but as a key component of the business landscape at large. Here are the key takeaways
• Angel tax was an albatross across the neck of all Indian entrepreneurs for 12 years, and now the battle has been won, writes 3one4 Capital founding partner Siddarth Pai
• The INR 1,000 Cr VC fund for space tech shows the government’s faith in the space economy, and is a strong validation for the innovation in the sector, according to Vishesh Rajaram, managing partner at Speciale Invest
• While the abolition of angel tax has come as a big relief, now the government needs to dismiss pending cases, urges Mohandas Pai, the former CFO of Infosys and partner at Aarin Capital

Sunday Roundup: Tech Stocks, Startup Funding & More 

• Weekly investment activity fell to a new low for 2024, as just $43 Mn was invested into Indian startups this week. Effect of the Union Budget?
• The blame game continues in the WazirX crypto heist as the company pointed at digital asset management platform Liminal as being the weak link, which in turn laid the fault at WazirX’s doors

• Electric vehicle maker Ola Electricis is set to open its IPO on August 2 and has filed its red herring prospectus in preparation for the public listing
• Apple is set to begin manufacturing high-end iPhone Pro and Pro Max models in India, starting with iPhone 16 series, as it looks to further move production away from China

The post Zerodha, Groww In Revenue Storm  appeared first on Inc42 Media.

Auto marketplace Cars24 has bagged INR 250 Cr ($29.8 Mn) funding from its Singapore-based parent entity Global Car Group Limited.

As per Registrar of Companies (RoC) filings accessed by Inc42, Cars24 Services Pvt Ltd’s board approved the allotment of 2.18 Lakh equity shares (2,18,132) to Global Car Group. 

“… Pursuant to provisions…, the consent of the board be and is hereby accorded to allot 2,18,132 equity shares of face value INR 10 each at a premium of INR 11,489 per share, aggregating to Rs 2,508,299,868,” noted the RoC filings. 

There was no clarity on how the Delhi NCR-based startup intends to use the newly infused funds. 

The fundraise comes close on the heels of Cars24 foraying into new segments to bolster its top line. For instance, in March, the car marketplace began piloting a new service which allows car owners to hire drivers on-demand on an hourly basis.

Additionally, in May this year, Cars24 also signed a letter of intent to join the state-backed Open Network for Digital Commerce (ONDC). The new capital may likely be deployed to fuel these new offerings. 

Founded in 2015 by Vikram Chopra, Gajendra Jangid, Ruchit Agarwal, and Mehul Agrawal, Cars24 operates a marketplace to enable car owners to sell their used cars. It also allows users to purchase used cars via its platform and offline outlets. 

Backed by the likes of SoftBank, Alpha Wave Global, and Commercial Bank of Dubai, Cars24 has raised more than a billion dollars in funding till date and was last valued at north of $3.2 Bn. 

It competes with the likes of CarTrade, CarDekho, Spinny, and Droom. 

Cars24 narrowed its net loss by 32% to $168.3 Mn in the financial year 2022-23 (FY23) from $248 Mn in the previous fiscal year.

Meanwhile, its revenue jumped 16% to $930.3 Mn in the fiscal year ended March 2023 from $803.6 Mn in FY22. The unicorn is yet to file its financial statements for the fiscal year ended March 2024. 

The post Cars24 Bags INR 250 Cr From Singapore-Based Parent Entity appeared first on Inc42 Media.

The Mumbai bench of the National Company Law Tribunal has scheduled the final hearing on the merger of Walt Disney-owned Star India with Reliance Industries-owned Viacom18 for August 1.

In its order dated July 11, the tribunal directed both parties to issue a fresh notice of the final hearing, ET reported.

The bench led by justices Kishore Vemulapalli (judicial) and Anu Jagmohan Singh (technical) said that the notice must be served to the central/state governments, tax authorities, and regulatory bodies like the Competition Commission of India (CCI) and the Ministry of Information and Broadcasting.

If authorities do not reply within 30 days of receiving the notice, it will be presumed that they do not object to the scheme of arrangement between Star India and Viacom18, the order said.

Earlier this year, Reliance Industries, Viacom18 and Disney inked a deal to set up a joint venture that will combine the businesses of Viacom18 and Star India Private Limited.

The deal values the JV at $8.5 Bn on a post-money basis. Once the merger is enforced, the JV will be controlled by RIL, holding a 16.34% stake, while Viacom18 and Disney will own 46.82% and 36.84% of the company’s stakes, respectively.

Further, Reliance plans to invest INR 11,500 Cr in the JV. On top of Reliance and Viacom18-owned sports content, the resultant entity will have exclusive rights to distribute Disney’s content in India. 

The JV is expected to have a strong user base of 750 Mn in India. 

Once the merger plea gets the seal of approval from the NCLT, it will still require the nod from the Competition Commission of India.

However, the $8.5 Bn merger between Reliance Industries and Walt Disney’s India media assets has come under the scrutiny of CCI recently.

Earlier this month, the antitrust watchdog reportedly asked the companies nearly 100 questions, including specifics on sports rights.

It also sought answers as to why YouTube, which primarily features free, user-generated content, should be considered in the same market as subscription streaming services like Netflix and Disney.

The post NCLT Lists Final Hearing On Reliance-Disney Merger Deal For Aug 1 appeared first on Inc42 Media.

India has over 1.4 Lakh startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT), said MoS for Ministry of Commerce and Industry Jitin Prasada.

In a written answer in the Rajya Sabha on Friday (July 26), Prasada said that the DPIIT has recognised 1,40,803 entities as startups as of June 30, 2024. 

Maharashtra led the list, with 25,044 startups, followed by Karnataka with 15,019 startups. While national capital Delhi is home to 14,734 startups, Uttar Pradesh and Gujarat have 13,299 and 11,436 startups, respectively.

At 16, Ladakh has the lowest number of startups. Tripura, Arunachal Pradesh, and Mizoram only have 123, 38, and 32 DPIIT-recognised startups, respectively.

The Centre has taken a number of steps over the last few years to promote startups in the country to foster innovation and create jobs. The government has launched schemes like Startup India, Startup India Seed Fund Scheme, Fund of Funds for Startups (FFS) Scheme, and Credit Guarantee Scheme for Startups over the past few years to give further impetus to the country’s startup ecosystem. 

Earlier this week, the Economic Survey said the government committed more than INR 10,500 Cr for alternative investment funds (AIFs) under the FFS scheme by the end of FY24, which resulted in investments of over INR 18,000 Cr in startups. 

On the back of these efforts, India currently has the third-largest startup ecosystem in the world. The country is home to 115 unicorns and 112 soonicorns, and the homegrown startups have raised over $147 Bn till date, as per an Inc42 report.

In another boost to the startup ecosystem, finance minister Nirmala Sitharaman announced the abolishment of the infamous angel tax in her Budget speech this week. This was a long-standing demand of the startups and the Centre’s move was applauded by the country’s startup ecosystem.

Meanwhile, the finance minister also announced setting up an INR 1,000 Cr venture fund for spacetech startups.

The post India Home To 1.4 Lakh Startups As Of June: Govt appeared first on Inc42 Media.

Shares of Paytm jumped 10% to INR 508.85 apiece during today’s intraday trade on the BSE after the fintech major reportedly secured approval from the government to invest INR 50 Cr in its payments arm, Paytm Payment Services.

Reuters reported on the development first, citing a top finance ministry official.

The approval will enable Paytm to apply for an online payment aggregator (PA) licence from the Reserve Bank of India.

The approval was reportedly stuck for months partly due to concerns about China-based Antfin (Netherlands) Holdings’ shareholding in its parent entity.

As of the fiscal year ended March 2024, Antfin (Netherlands) Holdings held a 9.88% stake in Paytm’s parent One 97 Communications. 

Earlier this month, the government panel overseeing investments linked to China, greenlit the INR 50 Cr investment by Paytm in its subsidiary.

Paytm incorporated Paytm Payment Services to secure a PA licence. While the company initially tried to get the PA licence in 2020, the RBI directed it to resubmit the application to ensure compliance with the FDI rules.

The PA framework was introduced by the RBI in March 2020. It mandates that payment gateways secure an aggregator licence for acquiring merchants and delivering digital payment acceptance solutions.

The approval of Paytm’s investment in its payments arm comes as a major relief for the company after the RBI’s crackdown on Paytm Payments Bank affected its business.

Paytm saw its consolidated net loss widen to INR 840.1 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25), up 134% year-on-year from INR 358.4 Cr in the year ago-period.

Revenue from operations dropped 36% in Q1 FY25 to INR 1,502 Cr from INR 2,342 Cr in the corresponding quarter last year.

Sequentially, Paytm’s consolidated net loss surged 52.6% while revenue from operations plummeted 33.7%.

The post Paytm Gets Govt Nod For INR 50 Cr Investment In Its Payments Arm, Stock Rallies 10% appeared first on Inc42 Media.

Continuing its offerings expansion spree, foodtech major Zomato has rolled out a loyalty programme initiative for select restaurants.

Cofounder and chief executive Deepinder Goyal in a post on X, said, “I repeat-order from my favourite restaurants often, and so do a lot of our customers. To make this more rewarding for you, we are introducing Brand Packs – our first step towards building loyalty programmes for select restaurants on Zomato.”

As a part of this programme, Zomato claims to have already partnered with over 4,000 restaurants so far. 

The company further said in a statement that Brand Packs will cater to customers who often repeat orders from their favourite restaurants. 

Brand Packs are available in the form of coupons that can be accessed by all customers. Under this coupon, Zomato is offering a 10% discount with no upper limit on the first three orders.

Goyal also conveyed that over 10 Lakh customers have already used the Brand Packs coupon. 

Inc42 has sought clarification from Zomato on the nature of the Brand Packs programme. The story will be updated based on the response. 

This development comes a month after Zomato rolled out its restaurant services hub to cater to restaurants around hiring, FSSAI registrations, taxation and trademarking among others. 

While Zomato has its loyalty programme offering called Gold for its consumers, its counterpart Swiggy also has a similar offering under Swiggy One. 

On the broader business front, Zomato has been expanding its offerings with the introduction of its home-cooked meal service ‘Zomato Everyday’ in Mumbai marking its latest offering. 

In July, Zomato’s fully owned subsidiary Zomato Financial Services Limited (ZFCL) voluntarily withdrew its application with the Reserve Bank of India to operate as a non-banking financial company (NBFC).

In May, Zomato received a goods and services tax (GST) demand notice of INR 9.45 Cr by the Assistant Commissioner of Commercial Taxes (Audit) in Karnataka.

On Friday, shares of Zomato were trading at INR 222.35 at 3 PM on BSE, up 1.5% from its previous close.

The post Zomato Launches ‘Brand Packs’ To Reward Repeat Orders & Build Loyalty Program For Restaurants appeared first on Inc42 Media.

Chennai-based WayCool has initiated another round of layoffs just within five months of sacking at least 70 employees as the agritech startup looks to streamline its business operations.

As per Moneycontrol’s report, the company has cut over 200 jobs across several verticals in its third layoff exercise within a year, impacting employees across Chennai, Bengaluru and Hyderabad, and its subsidiaries — CensaNext and BrandNext.

This comes at a time when the company looks to streamline its operations to cut down losses after struggling to close funding.

Sources close to the development have confirmed to Inc42 about the layoff exercise, without further disclosing the number of impacted employees.

“Each of WayCool’s businesses is executing their plans to get to profitability. As part of this, roles and structures are further simplified and automated. This will be a continual process,” a WayCool spokesperson told Inc42 in a statement.

“The company has already received 75% of the capital from its bridge round and will complete the round by August. This gives it adequate capital runway to get past the cash profitability milestone,” the spokesperson added.

Founded in 2015 by Karthik Jayaraman and Sanjay Dasari, WayCool is an agritech company that sells its food products under seven different labels, while also offering supply chain tech solutions. The company has raised a total funding of around $300 Mn so far, and is backed by investors such as Lightrock, Lightbox, Lightsmith, 57 Stars, and FMO.

Sources attributed the latest layoff exercise to the company’s worsening financial woes, including delayed salaries and client payments, the report said.

Last year, it was reported that WayCool fired 300 employees in a restructuring exercise.

Back then TOI reported that the startup, which raised more than $350 Mn in funding, has conducted the restructuring to chase profitability.

The post WayCool Cuts Over 200 Jobs In Another Round Of Layoffs Within Five Months appeared first on Inc42 Media.

PharmEasy-owned diagnostics platform Thyrocare Technologies is acquiring the pathology diagnostic business of Polo Labs to expand its presence in northern India.

In a statement, Thyrocare said it has entered into an agreement to acquire the Punjab-based pathology laboratories’ business. However, it didn’t disclose the deal value.

Polo Labs operates 14 laboratories across Punjab, Haryana, and Himachal Pradesh.

The PharmEasy-owned diagnostics platform said that the acquisition will expand its reach in the northern parts of India and further solidify its position as a dominant player in the Indian diagnostic industry.

“This strategic acquisition will enhance our diagnostic capabilities and service offerings, leveraging Polo Labs’ existing widespread network in North India. We are committed to a seamless integration and look forward to the growth and innovation this acquisition will bring,” said Rahul Guha, MD and chief executive of Thyrocare and president of API Holdings.

This is the second acquisition by Thyrocare. Earlier this year, it acquired a 100% stake in Chennai-based Think Health Diagnostics and a related party to offer ECG services at home

PharmEasy acquired Thyrocare, founded in 1996 by Arokiaswamy Velumani, in 2021.

Earlier this week, Thyrocare reported a 35% increase in profit after tax to INR 23.5 Cr in Q1 FY25 from INR 17.4 Cr in the same quarter of the previous fiscal. Revenue from operations surged 16.3% to INR 156.9 Cr during the June quarter from INR 134.9 Cr in Q1 FY24.

Meanwhile, PharmEasy is facing multiple troubles, including rising losses, valuation markdowns, funding woes, and mass layoffs. Earlier this year, the digital pharmacy raised INR 1,804 Cr ($216.2 Mn) at a 90% valuation cut.

PharmEasy’s net loss widened 31% to INR 5,211.7 Cr in FY23 from INR 3,992.4 Cr in the previous fiscal year. The unicorn’s operating revenue jumped 16% to INR INR 6,643.9 Cr during the year from INR 5,728.8 Cr in FY22.

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Days after IPO-bound Swiggy launched marketing tool ‘Smart Links’ to help restaurants widen online reach and boost orders, the foodtech major has now unveiled a new data tool for restaurant partners to gauge their marketing performance against peers.

The new tool ‘Market Intelligence Dashboard’ shows information about order growth, average order value and how efficiently the restaurant is operating, the company said in a statement.

It also offers insights into customer behaviour like the number of people placing orders after taking a look at the menu. Besides, it helps restaurants to track their marketing efforts on Swiggy.

The dashboard offers restaurants with a score on a scale of 100 at both brand and individual outlet levels on their overall menu quality. 

“It effectively helps partners benchmark their performance versus the best in class, understand their areas of improvement or strength and make informed business decisions,” said Deepak Maloo, assistant vice president for supply at Swiggy.

The company further said that the new tool allows restaurants to benchmark their performance against industry standards, identify areas for improvement and make data-driven decisions. 

Swiggy’s move mirrors similar efforts by its rival Zomato. Last year, the foodtech giant introduced ‘Zomato Food Trends’, an open platform providing insights on food trends in specific localities. 

The new offering comes as the foodtech gears up for its much awaited $1 Bn public listing on the bourses later this year. In April, Swiggy turned into a public limited company, saying the transition would help it raise funds from the public, including through an IPO.

In preparation for the market debut, it has been streamlining and consolidating operations. Earlier this week, Swiggy strengthened its quick commerce business Instamart with four new vice president appointments across various roles.

Back then the Bengaluru-based startup said that these new appointments would further enhance the efficiency of its on demand services across India. This also comes at a time when ecommerce giant Amazon India has reportedly approached Swiggy for a potential deal involving Instamart.

In March, Swiggy also merged its premium grocery vertical InsanelyGood with Instamart.

Swiggy reported a loss of $207 Mn (INR 1,720 Cr) in the first three quarters of the financial year 2023-24 (FY24). In the entire FY23, its net loss stood at INR 4,179 Cr.

The post Swiggy Unveils Data Tool For Restaurant Partners To Gauge Marketing Efforts Against Peers appeared first on Inc42 Media.

Listed fintech major Paytm has been slapped with multiple fines for failing to pay stamp duties pertaining to allotment of equity shares following exercise of employee stock options (ESOP) granted by the company in previous years.

Paytm, in an exchange filing, said that the Office of Collector of Stamps in New Delhi levied a fine of INR 250 for non-payment of stamp duty worth INR 199 upon allotment of 3,828 equity shares on December 18, 2017.

In another exchange filing, Paytm said an additional penalty of INR 370 has been imposed for similar non-compliance.

These stock options were granted under the Paytm Employee Stock Options Scheme 2008, the filing showed.

Paytm said that there was a delay in submission of some applications for payment of stamp duties at the relevant time.

The company said it may receive more such orders in the future as the Office of Collector of Stamps in New Delhi is currently processing its applications.

This comes just days after Paytm got a show cause notice from market regulator SEBI in relation to the 2.1 Cr stock options granted to the company’s founder and CEO Vijay Shekhar Sharma in the fiscal year ended March 2022 (FY22).

Earlier this month, Paytm also received an administrative warning letter from SEBI over related party transactions conducted by the company with its subsidiary Paytm Payments Bank in FY22.

Paytm’s consolidated net loss widened 134% year-on-year to INR 840.1 Cr in the quarter ended June 2024 (Q1 FY25) as compared to INR 358.4 Cr in the year ago-period.

Revenue from operations declined 36% in Q1 FY25 to INR 1,502 Cr from INR 2,342 Cr in the corresponding quarter last year.

Sequentially, Paytm’s consolidated net loss surged 52.6% while revenue from operations plummeted 33.7%.

Earlier this week, Paytm parent One97 Communications partnered with Axis Bank to offer point of sale solutions and card payment machines to its merchant network.

The post Paytm Slapped With Fine For Not Paying Stamp Duties appeared first on Inc42 Media.

Wealthtech startup Groww’s asset management business Groww Mutual Fund launched two new fund offerings (NFO) – Groww Nifty EV & New Age Automotive ETF and Groww Nifty EV & New Age Automotive ETF FOF on Wednesday (July 24).

The NFO of Groww Nifty EV & New Age Automotive ETF (exchange-traded fund) will be open till August 2, 2024, and that of Groww Nifty EV & New Age Automotive ETF FOF (fund of funds) will be open till August 7, 2024. 

The development comes on the heels of the National Stock Exchange (NSE) launching a new thematic index – Nifty EV & New Age Automotive index – in May this year. The exchange announced the launch of the index to track the performance of companies that are a part of the EV ecosystem or involved in developing new-age automotive vehicles or related technology.

Speaking on the NFOs, Varun Gupta, CEO of Groww Asset Management Ltd, said, “With the rapid growth in the electric vehicle sector, these new funds aim to offer investors opportunities to benefit from this dynamic and evolving industry. Our ETF and FOF are specifically designed to help investors capitalise on the potential future of electric mobility and related technologies.” 

“By investing in these funds, investors can seek to gain exposure to a diverse portfolio of companies driving innovation in electric vehicles, battery technology, charging infrastructure, and other critical areas of the EV ecosystem,” he said.

The listed companies that are included in this list are EV battery manufacturers Amara Raja Energy & Mobility and Exide Industries Ltd, vehicle manufacturers Bajaj Auto Ltd, Hero MotoCorp Ltd, Olectra Greentech Ltd, TVS Motor Company Ltd, and Tata Motors Ltd, among others. 

Meanwhile, it is also pertinent to note that the leading electric two-wheeler manufacturer in the country, Ola Electric, is set to soon make its public market debut.

Groww’s new funds are designed for long-term capital appreciation but have ‘very high risk’ benchmarks.

As Groww’s asset management arm noted in its statement today, the Indian government, under the Electric Mobility Promotion Scheme 2024 has allocated INR 500 Cr from April 1 to July 31 2024 to accelerate the adoption of electric two-wheelers and three-wheelers. 

While FAME III is not yet launched, there is a high expectation in the market of its launch soon, which could further bolster EV adoption in the country.

Earlier, Mirae Asset Investment Managers (India) also launched its Nifty EV & New Age Automotive ETF.

The post Groww Mutual Fund Launches NFOs Based On Nifty EV & New Age Automotive Index appeared first on Inc42 Media.

Insurtech unicorn Acko has bought digital chronic care management company OneCare as it looks to build a comprehensive healthcare ecosystem.

The deal was an all-cash transaction, although the company did not disclose the financial details of the acquisition.

Acko said the acquisition is a key component of its strategy to build a healthcare ecosystem to address various aspects of a customer’s health insurance needs, from protection to prevention, care and recovery.

As part of the deal, OneCare’s cofounders Rakesh Shivran and Sagar Bhat will be joining the leadership team of Acko.

“Integrating OneCare’s capabilities will help us weave cutting-edge clinical care directly into our customers’ insurance experiences, ensuring they receive the best possible care,” said Acko’s founder and CEO Varun Dua.

Founded in 2021, OneCare claims to have developed an omnichannel care model that combines wearables, data insights, physical clinics, and virtual care teams.

Acko, founded in 2016, offers insurance for vehicles, health, and travel. The company claims to have distributed insurance policies to over 78 Mn unique customers and issued more than 1 Bn policies to date. Recently, the company entered the car repair and service space by launching ‘Acko Drive Service Centre’.

Acko has raised over $450 Mn in total funding from investors, including Amazon, General Atlantic and Multiples Private Equity. In FY23, the startup reported a net loss of INR 738.5 Cr, up 53% year-on-year, while its operating revenue grew 32% to INR 1,758.6 Cr.

This comes at a time when the Indian insurtech market is gaining a lot of traction from the investors. The market size is expected to reach $8.63 Bn in 2024 and grow at a CAGR of 30.34% to $32.47 Bn by 2029.

Other major players in the market are also expanding their offerings. For instance, PolicyBazaar, valued at $3.5 Bn, has diversified into various insurance products. Another player, Digit Insurance, valued at $4 Bn, has expanded into health, motor, travel, and property insurance.

The insurtech sector in India is seeing increased adoption of digital technologies, AI, and automation. Key trends include data-driven product design, AI-powered underwriting, and enhanced fraud detection.

The post Acko Buys Chronic Care Management Platform OneCare To Expand Its Healthcare Play appeared first on Inc42 Media.

Bengaluru-based B2B seafood startup Captain Fresh is planning to acquire Poland-based food and beverage manufacturing company Koral to expand its footprint in the European market.

However, the company did not disclose the financial terms of the deal.

This will also mark Captain Fresh’s third overseas and second acquisition in the European market after US-based seafood importer CenSea and French shrimp distributor Senecrus.

Koral operates in the fish processing market and produces smoked salmon products under its SuperFish brand. It also offers a wide range of processed products such as tuna, halibut, trout and cod.

Captain Fresh said in a statement that the acquisition will mark its entry into the salmon market, estimated to have a size of $33.5 Bn.

The planned acquisition is part of Captain Fresh’s strategy to strengthen its global market reach in the fish and seafood sector.

The deal is subject to regulatory approval. Once the acquisition is completed, Justyna Frankowska, currently a management board member at Koral, will take on chief executive’s role.

Captain Fresh also recently appointed Mathew George as its group CFO. 

Utham Gowda, group CEO of Captain Fresh, said, “This acquisition is a strategic milestone in our mission to become the leading tech-enabled multi-species, multi-origin global seafood conglomerate.”

“The European market is one of the most exciting VAP (value-added product) opportunities in seafood globally. Koral augments our earlier acquisition of France-based Senecrus, adding marquee Polish and German retailer brands to our portfolio of offering,” he added.

Founded in 2020, Captain Fresh has established itself as a major exporter and distributor of fish and seafood. The company, backed by investors including Tiger Global Management and Prosus Ventures, expects to close the current financial year with a revenue run rate of $650 to $700 Mn.

The company has also been actively raising funds to fuel its expansion. Inc42 exclusively reported in February that Captain Fresh was planning to raise about $7 Mn from British International Investment (BII), which will join the cap table with around a 1.45% stake.

The post Captain Fresh Eyes Third Overseas Acquisition With Poland-Based F&B Manufacturing Firm Koral appeared first on Inc42 Media.

Escrow banking startup Castler has received an in-principle nod from the International Financial Services Centres Authority (IFSCA) to offer global escrow and cross-border money transfer services.

The company said in a statement that the move will enable it to bridge the gap in secure, efficient and seamless financial transactions, crucial for international trade.

This will also allow Castler to launch a global platform, leveraging its partner bank ecosystem at GIFT City to provide efficient escrow and cross-border money transfer solutions.

According to Vineet Singh, founder & CEO of Castler, “This regulatory nod sets a new standard for the industry, fostering trust and reliability in international financial transactions.”

“The approval reiterates India’s potential to nurture fintech innovation, enabling companies like Castler to operate on a global scale without requiring overseas operations. As Castler prepares to launch its global platform, it remains committed to providing secure, efficient, and seamless escrow services to businesses worldwide,” he added.

Launched in 2021 by Singh, Dinesh Kumar, Kumar Amit Sinha, and Ritesh Tiwari, the startup offers escrow solutions, such as tackling complex transaction flows, identity verification, fraud management and customer protection.

The fintech SaaS startup has a subscription-based revenue model and caters to various industry segments such as logistics, retail, real estate, fintech and more. It has partnered with nine leading banks to help customers operate escrow accounts. Castler also raised $7 Mn from marquee investors, including Venture Catalysts++, Flipkart Ventures, Capital 2B (an Info Edge fund) and IIFL Fintech Fund, Zerodha’s Rainmatter, 9Unicorns among others.

The company claims to manage over INR 10,000 Cr in monthly transactions and partners with 12 banks to offer a comprehensive suite of escrow services.

According to Inc42 data, India is home to over 24 fintech unicorns and 36 soonicorns. These startups are trying to grab a pie of the country’s fast-growing fintech market which is expected to become a $2.1 Tn opportunity by 2030.

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Shares of traveltech majors EaseMyTrip and Yatra soared during intraday session today (July 23) after  finance minister Nirmala Sitharaman announced a slew of initiatives during her Union Budget 2024-25 (FY25) speech to fuel growth of India’s tourism industry.

While EaseMyTrip’s shares touched the intraday high of INR 43.6 each, up 8.86% from the previous close on BSE, Yatra’s shares traded as high as INR 127.35 during the day’s trading session, up 4.9% from the previous close.

Notably, shares of both EaseMyTrip and Yatra closed the trading session at INR 42.25 and INR 125.85, respectively, on Tuesday.

Sitharaman announced that the government has allocated INR 2,479.62 Cr for the tourism sector for FY25, up 46% from the revised allocation of INR 1,692.10 Cr in FY24. 

It is pertinent to mention that the estimate for the tourism industry in the interim budget was pegged at INR 2,449.62 for FY25.

“Tourism has always been part of our civilization. Our efforts in positioning India as a global tourist destination will also create jobs, stimulate investments and unlock economic opportunities for other sectors,” Sitharaman said.

The finance minister also made some key announcements to boost the spiritual tourism sector.

“In FY25, the government announced the development of Vishnupad Temple at Gaya and Mahabodhi Temple at Bodh Gaya in Bihar. “Comprehensive development of Vishnupad Temple Corridor and Mahabodhi Temple Corridor will be supported, modelled on the successful Kashi Vishwanath Temple Corridor, to transform them into world class pilgrim and tourist destinations,” Sitharaman said.

The government has also proposed a comprehensive development initiative for Rajgir. “Rajgir holds immense religious significance for Hindus, Buddhists and Jains. The 20th Tirthankara Munisuvrata temple in the Jain Temple complex is ancient. The Saptharishi or the 7 hotsprings form a warm water Brahmakund that is sacred. A comprehensive development initiative for Rajgir will be undertaken,” she added.

Besides this, the FM also announced a simpler tax regime for foreign shipping companies operating domestic cruises in India to boost cruise tourism in the country.

Meanwhile, EaseMyTrip’s cofounder Rikant Pittie, said, “The government’s attempt to position India as the global tourist destination is evident in the Union Budget 2024-25. We are optimistic that this will enhance the overall experience of the tourists visiting these religious sites and will uplift state tourism.”

At the heart of this announcement lies the growing emphasis of the government on spiritual tourism with the inauguration of Ram Temple in Ayodhya in January earlier this year. Even the hospitality and tourism sector welcomed this move by the government. 

According to a report by IBEF, India’s travel market is expected to reach $125 Bn by FY27 against $75 Bn in FY20. Additionally, projections indicate that international tourist arrivals are poised to reach 30.5 Bn by 2028.

The post EaseMyTrip, Yatra’s Shares Jump After FM Unveils Initiatives To Boost Tourism appeared first on Inc42 Media.