A consortium of 61 global digital companies and organisations, comprising Mozilla, Proton and Signal, has called the new Telecommunications Bill a grave threat to democracy and the internet.

In a letter written to the union information technology minister Ashwini Vaishnaw, the group urged the Centre to immediately rescind the Telecom Bill. 

This came on the same day as the Rajya Sabha gave its assent to the Bill, which aims to overhaul the archaic Indian Telegraph Act of 1885 and other allied legislations.

Training the guns at the Centre, the signatories termed the new Bill a major threat to fundamental rights and democracy in the country. The group claimed that the proposed legislation imperils encryption, amplifies unchecked powers of the government to impose internet shutdowns, and enhances surveillance.

“… We respectfully call on the government to withdraw the Telecommunications Bill, 2023, and initiate inclusive, sustained consultation on the new draft, to incorporate rights-respecting amendments to protect encryption, privacy and security, and unimpeded access to an open, secure, and free internet,” read the letter. 

Citing the ‘immeasurable impact’ of the Bill on fundamental rights and the Indian economy,  the signatories called the introduction of the legislation in the Parliament without further consultation as ‘alarming’.

The letter also claimed that the new version of the Bill fails to incorporate provisions that were criticised in the draft, adding that it introduces new changes that ‘deepen the damage’.

Flagging provisions in the Bill that, as per the letter, authorise the interception of messages and disclosure ‘in intelligible format’, the signatories said that Bill ‘threatens’ end-to-end encryption. 

It also claimed that any change in the encryption architecture to enable data access could result in vulnerabilities that could lead to indiscriminate surveillance. 

“Any notion suggesting that decryption/access abilities can be limited to select actors is wishful thinking. The inevitable ramification is weakening of online safety and cyber resilience overall, for individuals, businesses and governments,” added the letter. 

It also claimed that empowering the Centre to notify standards on encryption could create uncertainties around the ‘ability of service providers to offer strong encryption and develop privacy-respecting innovations’.

The biggest bone of contention appears to be the provisions of the Bill that, as per the companies and organisations, grant expansive surveillance and interception powers to the government without meaningful independent and judicial oversight. 

“Further, with requirements such as the one for telecommunication services to use “verifiable biometric based identification”, the Bill facilitates incursions on fundamental rights without any reasonable limitations and safeguards, against principles of necessity and proportionality,” added the letter. 

It also claimed that the new Bill ‘entrenches existing powers’ to suspend internet services without any checks and balances. 

The letter was also signed by names such as Internet Freedom Foundation (IFF), SFLC India, Digipub News India Foundation (which counts names such as The Wire, Scroll, The News Minute and Newsclick among its founding members) as well as individuals such as the Centre for Internet and Society’s Divyank Katira and Nikhil Pahwa of Medianama. 

The signatories are not alone in raising concerns over the new Bill. The tabling of the proposed rules in the Parliament sent alarm bells ringing at the offices of social media giant Meta. 

The Mark Zuckerberg-led company’s India policy head Shivnath Thukral reportedly raised concerns internally that the new Bill could bring OTT communication apps under its ambit. He also said that the Centre could, at a later date, choose to extend the proposed legislation to OTT services as well, according to a report by Moneycontrol.

While there is no specific term ‘OTT’ used in the Bill, many experts claim that the provisions in the legislation have broad definitions and allow the government to intercept messages, set standards of encryption and take control of telecom networks.

The new Bill classifies ‘message’ as a ‘sign, signal, writing, text, image, sound, video, data stream, intelligence or information sent through telecommunication’. This could bring OTT services, which are centred around text and media, under the purview of the proposed law. 

The post Signal, Mozilla, Proton Term Telecom Bill A Threat To The Internet & Democracy appeared first on Inc42 Media.

Update | December 21, 11:00 PM

Foodtech major has denied reports of making an offer of $2 Bn to acquire logistics startup Shiprocket.

In a filing with the bourses, the company ‘cautioned’ the investors against the incorrect reports floating in the market about any such move, adding that it has no plans for any acquisitions currently.

“We have noticed that there are certain news articles circulating in the mainstream media with the subject “Zomato offers to acquire Shiprocket for $2 billion”. We deny this statement and would like to caution investors against such incorrect news floating in the market. We remain focused on our existing businesses with no plans for any acquisition at this moment,” said Zomato in a filing with the BSE.

The company attributed the clarification to ‘abundant caution’ citing uncertainty that the reports may create in the market.

Original Story| December 21, 05:31 PM

Listed foodtech major Zomato has reportedly made an offer to acquire ecommerce logistics unicorn Shiprocket.

As per a Bloomberg report, Zomato’s offer values the SaaS logistics platform at about $2 Bn. Sources aware of the development told the publication that a final decision has not been made. Besides, Zomato could also opt against proceeding with a deal for the company, the report said.

Zomato and Shiprocket were not immediately available to comment on the development.

Shiprocket is an aggregator of third-party logistics companies and works with several courier partners, including Delhivery, FedEx, Aramex, Xpressbees, DTDC, and Shadowfax. Founded in 2017 by Vishesh Khurana, Akshay Gulati, Saahil Goel, and Gautam Kapoor, the startup had raised $185 Mn in its Series E round co-led by Zomato, Temasek, and Lightrock India. 

Later, in August 2022, the startup raised $33.5 Mn in a Series E2 funding round led by Lightrock India with participation from Temasek, Bertelsmann, Moore Strategic Ventures, PayPal, and others, which valued the company at $1.2 Bn.

In October this year, Inc42 exclusively reported that Shiprocket was in advanced talks to raise $10 Mn-$12 Mn from McKinsey & Company in a strategic funding round for business expansion.

Shiprocket reported a 3.6X widened net loss of INR 341 Cr in FY23, hurt by its multiple acquisitions. In fact, the startup blamed its two acquisitions – Omuni for INR 200 Cr and one of its rivals Pickrr for $200 Mn in FY23 – for the threefold increase in loss. 

Meanwhile, its operating revenue increased 78% year-on-year to INR 1,089 Cr in FY23.

On the other hand, after struggling for a year, Zomato has started witnessing a revival in its business. The foodtech major also attained profitability in Q1 FY24, which helped the company’s share performance breach the INR 125 level for the first time in almost two years. The company also posted a profit in the second quarter of FY24.

Shares of Zomato are currently trading at INR 127.55 on the BSE and have gained over 100% year to date.

The post [Update] Zomato Denies Report Of Shiprocket Acquisiton Bid appeared first on Inc42 Media.

General Atlantic-backed fintech giant PhonePe’s net loss crossed the INR 2,500 Cr mark in the financial year ended March 31, 2023. The Bengaluru-based decacorn’s consolidated net loss rose 39% to INR 2,795.3 Cr in the financial year 2022-23 (FY23) from INR 2,013.7 Cr in the previous fiscal year due to a sharp increase in its ESOP expenses.

PhonePe’s operating revenue surged an impressive 77% to INR 2,913.7 Cr during the year under review from INR 1,646.2 Cr in FY22. In comparison, the operating revenue of the startup’s archrival, Paytm, zoomed 61% to INR 7,990.3 Cr in FY23.

PhonePe primarily earns revenue through its payments and allied services. It earned INR 2,707.1 Cr from this revenue stream during the year under review as compared to INR 1,6301.4 Cr in the previous fiscal year.

Founded in December 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer, PhonePe offers financial services to users. It offers digital payments service, mutual funds and insurance products.

Earlier this year, PhonePe attributed the increase in its revenue in FY23 to growth in money transfers, mobile recharges and bill payments.

The Walmart-owned company also said that the growth in revenue was driven by the launch and scale-up of new products and businesses such as smart speakers, rent payments, and insurance distribution. PhonePe said its smart speaker deployment stood at 4.1 Mn as of  August 31, 2023. 

Meanwhile, its market share in the total payments value (TPV) for UPI stood at 50.54% in the month of March 2023. PhonePe competes against the likes of Paytm, Google Pay, and CRED in the UPI transactions category.

Including other income, PhonePe’s consolidated total income grew over 80% to INR 3,084.6 Cr in FY23 from INR 1,692.7 Cr in the previous fiscal year.

Where Did PhonePe Spend?

The digital payments giant’s total expenses shot up 59% to INR 5,886.3 Cr in FY23 from INR 3,705.6 Cr in FY22.

Employee Benefit Expenses Zoom: Employee costs accounted for the lion’s share of the total expenses of PhonePe. The startup spent INR 3,096 Cr on employees in FY23, an increase of 78% from INR 1,741 Cr in the previous fiscal year. Within this, ESOP expenses increased 73% to INR 2,057 Cr from INR 1,185.8 Cr in FY22.

Advertising Expenses Decline: The startup’s advertising cost dropped 23% to INR 671.3 Cr in FY23 from INR 866.2 Cr in the previous fiscal year.  

IT Costs Rise: Being a fintech company, PhonePe has to spend on IT infrastructure. In FY23, its IT expenses rose 54% to INR 216.3 Cr from INR 139.8 Cr a year ago. 

After raising nearly $1 Bn in 2023, PhonePe has been on an expansion spree, launching multiple new offerings, including separate apps for ecommerce (Pincode) and investment tech (Share.Market) and also its own apps store, Indus Appstore.

Earlier today, the startup also rolled out a new feature on the platform that will allow its users to manage their credit cards and pay bills and loans.

The post Walmart-Backed PhonePe’s Loss Crosses INR 2,500 Cr Mark In FY23 appeared first on Inc42 Media.

Walmart-backed ecommerce major Flipkart is reportedly looking to raise a fresh funding of $1 Bn, with the US retail giant committing $600 Mn.

This fresh infusion will likely value Flipkart at about 5-10% premium to its last valuation of $33 Bn, ET reported, citing sources.

Besides Walmart and other existing shareholders, the Bengaluru-based ecommerce major’s round will also see new investors joining the cap table, the report said.

Flipkart confirmed Walmart’s infusion of $600 Mn in the company but said that the rest is speculative. Walmart also informed about its fresh infusion in a regulatory filing.

Walmart acquired 77% stake in Flipkart in 2018 for $16 Bn, valuing the company at $22 Bn. After the separation of PhonePe from the group last year, Flipkart’s valuation stood at $33 Bn.

Recently, during the six months ended July 31, 2023, Walmart spent $3.5 Bn to acquire Flipkart shares from non-controlling stakeholders, including Tiger Global and Accel.

Flipkart also plays a major role in the US-based ecommerce giant’s earnings performance each quarter. Walmart said in its recent Q3 2023 earnings statement that its India operations were impacted due to the late arrival of the festive season, and as the Flipkart Big Billion Days sales shifted from Q3 last year to Q4 this year.

“The timing of Flipkart’s Big Billion Days pressured International sales growth, as the event moved from Q3 last year to Q4 last year. So we expect the timing to be a benefit to Q4’s growth rate for the segment,” Walmart had said.

Meanwhile, Flipkart continues to incur losses. Flipkart India, the B2B arm of the company, saw its standalone net loss widen over 42% year-on-year to INR 4,845.7 Cr in FY23 while its operating revenue increased 9.7% to INR 55,923.9 Cr.

In FY22, Flipkart Internet, the ecommerce giant’s marketplace arm, also reported widened losses.

The post Walmart To Inject $600 Mn Into Flipkart During A Billion Dollar Funding Round appeared first on Inc42 Media.

Edtech unicorn Unacademy has decided to stop putting non-performing employees on performance improvement plans (PIPs) and will instead provide a direct exit to such employees, sources told Inc42.

In a message sent on an internal communication channel, Unacademy CEO and cofounder Gaurav Munjal said, “We are putting a ban on PIP. We will not have PIP in the organisation moving forth.”

“If someone is not doing their job well then give feedback. If it happens repeatedly then it’s better to part ways,” Munjal added. 

Inc42 has seen the message sent by Munjal.

The CEO said that PIPs don’t lead to anything and just delay the decision. “Moving forth, we will have a Direct Exit with notice period for Non-Performers. We will not waste the Non-Performer’s time and the company’s time with the PIP process,” he said.

Meanwhile, a representative of Unacademy, in a statement sent to Inc42, said, “We’ve decided to do away with the PIP process that was part of the notice period in case of (a) negative outcome of the PIP. From now on, if an employee is not performing well, they can serve their notice period and leave the company. This change allows us to address performance concerns more directly and make decisions more efficiently, without unnecessary delays.”

The statement said that rather than PIPs, the non-performing employees will have the opportunity to address their performance issues directly through feedback channels. However, if performance issues persist, it is in the best interest of both the individual and the organisation to facilitate a smooth and respectful transition. 

Typically, a PIP is the last warning issued by an employer to the employees considered inefficient. It generally involves a 30 or a 60 days timeline, during which the employer sets a target for the employees to achieve. Failing to meet the target, the company parts ways with the employee. PIPs are widely used by tech companies across the world. 

The latest development has come almost a month after Unacademy appointed Sandhydeep Purri as its new chief people officer (CPO). While announcing her appointment, Unacademy said that Purri will cultivate talent and drive a culture of innovation and progress at the startup. 

Purri’s appointment also came after Unacademy saw several senior-level exits in 2023. The following were the key exits during the year:

• Arnab Dutta – Senior Vice President Strategy
• Vivek Sinha – Chief Operating Officer
• Abhyudaya Singh Rana – Chief of Staff, Chief of Compliance Officer
• Subramanian Ramachandran – Chief Financial Officer
• Siddharth Manchanda – General Counsel
• Tina Balachandran – Senior Vice President, Talent and Culture
• Sachin Aggarwal – Head Franchisee Business (Offline Centres)
• Karan Shroff – Partner & Chief Operating Officer
• Ashish Arora – Senior Vice President & National Head Academics

Meanwhile, after several rounds of layoffs and cost-cutting exercise, Munjal recently claimed that Unacademy reduced its cash burn by 60% in 2023.

Unacademy’s loss jumped by 85% to INR 1,537 Cr in FY22, while its operating revenue increased to more than 80% to INR 719 Cr.

The post Unacademy Shuns PIPs, To Give ‘Direct Exit’ To Non-Performers appeared first on Inc42 Media.

The Rajya Sabha on Thursday (December 21) approved the Telecommunications Bill 2023, which aims to overhaul and modernise the archaic Indian Telegraph Act of 1885 and related legislations.

The Upper House okayed the Bill a day after it was approved by the Lok Sabha. It will turn into an Act after the President’s assent.

Minister of Communications Ashwini Vaishnaw introduced the Bill on December 18.

“The Bill (seeks) to amend and consolidate the law relating to development, expansion and operation of telecommunication services and telecommunication networks; assignment of spectrum; and for connected matters,” Vaishnaw said while introducing it.

The Bill seeks to replace the decades-old and archaic Indian Telegraph Act, 1885, the Indian Wireless Telegraphy Act, 1933 and the Telegraph Wires (Unlawful Possession).

The significant highlight of the Bill is the exclusion of over-the-top (OTT) communication apps from its scope, with no mention of such platforms. This decision provides a significant relief to OTT communication apps, as earlier drafts of the bill had broadened the definition of telecommunications services to include OTT communication apps like Meta-owned WhatsApp, Signal, Skype, Telegram and others.

Nevertheless, concerns have been raised by various quarters due to the broad definitions of key terms such as ‘telecommunication’ and ‘messaging’. These concerns suggest that the government might still have the option to regulate OTTs and internet-based communication applications under the new telecom bill.

The 2023 Telecommunication Bill is a big win for foreign players like Elon Musk’s Starlink and Amazon’s Kuiper, as it chooses to allocate satellite communication licenses administratively.  

The telecom sector in India is undergoing a remarkable transformation. As of July 2023, the country registered a subscriber base of 1.17 Bn, with a staggering 881.26 Mn internet subscribers, as per DoT.

The post After Lok Sabha, Telecommunications Bill Passed In Upper House appeared first on Inc42 Media.

Walmart-owned digital payments app PhonePe has rolled out a new feature on the platform that will allow its users to manage their credit cards as well as pay bills and loans.

The ‘Credit’ section will enable users to view their credit bureau score without any additional cost, PhonePe said in a statement, adding that the credit bureau report will also provide summarised credit insights such as their credit utilisation, credit age, on-time payments and more. 

Founded in December 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer, PhonePe offers financial services to users. It competes with publicly listed Paytm and Google Pay in the digital payments space and also provides mutual funds and insurance products.

Commenting on the launch, Hemant Gala, chief executive at PhonePe Credit, said, “We believe that financial empowerment starts with understanding and managing your credit health. This launch is a significant step towards providing our users with the tools and knowledge they need to make informed financial decisions.’’ 

The startup’s ‘Credit’ feature is aimed at offering easily accessible and simple tools to users to enable them to achieve their financial goals by launching financial services like insurance, stock broking and mutual funds.

PhonePe further said that it will soon expand its credit offerings by launching consumer loans within the app. With this, the company aims to address the diverse credit requirements of its customer base across various segments. 

The fintech unicorn is also working on the development of a lending platform distributing diverse products by partnering with the banking and non-banking financial company (NBFC) industry while adhering to the policy and guidelines set by the regulator. 

The announcement comes weeks after Walmart’s chief financial officer David Rainey said that PhonePe reached a total payment value (TPV) of $1.3 Tn, equating with some of the largest fintech firms in the US market.

After raising nearly $1 Bn in 2023, PhonePe is on an expansion spree and has launched a number of new offerings in recent times, including separate apps for ecommerce (Pincode) and investment tech (Share.Market) and Indus Appstore.

The post PhonePe Rolls Out Credit Feature On App To Help Users Manage Credit Cards, Pay Bills appeared first on Inc42 Media.

Shares of Delhivery surged 6.8% to INR 389.35 during the intraday trading on Thursday (December 21), a day after the company launched its largest mega-gateway in Bhiwandi, one of India’s largest trucking terminals.

However, the shares shed some of the gains and were trading at INR 388.15 on the BSE at 2.30 PM IST. 

The logistics unicorn said in an exchange filing on Wednesday that its newly launched Bhiwandi trucking terminal is built over a land area of 12,00,000  sq ft. It combines automated hub, sortation, returns, and freight operations with the capability to handle Delhivery’s parcel and part truckload freight volume simultaneously.

The facility’s automation system, developed and deployed by Falcon Autotech, comprises 1.8 km of integrated double-deck cross-belt sorters with over 5 kms of material conveyance systems. It is equipped to process over 32,000 shipments and 17,000 freight units per hour, said Delhivery in its statement.

“Our expanded Bhiwandi gateway will enable us to increase capacity for Mumbai and the West Zone’s large and SME freight shippers while maintaining world-class service reliability and efficiency,” said Sahil Barua, MD and CEO of Delhivery.

Delhivery claims to currently have a nationwide network covering over 18,600 pin codes. Its logistics services include express parcel transportation, PTL freight, TL freight, cross-border, supply chain, and technology services. 

The logistics startup posted a net loss of INR 102.9 Cr in Q2 FY24, which declined 59.5% year-on-year (YoY). Adjusted EBITDA loss reduced 90% YoY to INR 13 Cr during the quarter.

ICICI Securities said in a recent research report that from Q3 FY24, Delhivery is expected to see a reversion to adjusted EBITDA profitability on a sustainable basis given ecommerce shipment volumes are trending upwards again after a lull of a year. 

Currently, Delhivery’s shares are trading over 10% higher year to date.

The post Delhivery Surges Almost 7% Intraday After Launch Of New Trucking Terminal In Bhiwandi appeared first on Inc42 Media.

Delhi-NCR-based electric mobility startup BluSmart has raised $24 Mn (INR 200 Cr) in a fresh equity funding round, which saw participation and over-subscription from its existing investors, founders and leadership team.

The startup will use the capital to build large-scale EV charging superhubs enabling the expansion of its electric ride-hailing service.

Founded in 2019, BluSmart offers EV ride-hailing services and charging infrastructure across Delhi NCR, Bengaluru and other megacities in India. The startup currently operates over 5,500 EVs and aims to increase the fleet size to 8,000 across Delhi-NCR and Bengaluru by next year.

The company claims to have completed more than 10 Mn rides so far, travelling more than 330 Mn zero-carbon Kms in the process.

BluSmart also owns and operates over 4,000 EV chargers, across its 34 EV charging superhubs.

“It has been a landmark year for BluSmart with great achievements like the historic milestone of completion of 10 million electric trips and key industry recognitions. We will continue to expand our brand promise of zero ride denials, on-time service and clean mobility to more geographies,” said Anmol Singh Jaggi, cofounder and CEO of BluSmart.

Tushar Garg, CEO of BluSmart Charging business said that EV Charging Infrastructure is the biggest bottleneck for large-scale EV adoption and is also the single largest opportunity.
“Cities have challenges with finite prime locations and a lack of adequate power load. BluSmart is building large EV charging superhubs at prime locations across Delhi-NCR and Bengaluru,” he added.

In April this year, BluSmart raised $42 Mn in a funding round. The startup counts Alteria Capital, BlackSoil, Stride Ventures, Mumbai Angels, BP Ventures and LetsVenture among its investors.

The startup competes with the likes of BOLT, Ather Energy, Cell Propulsion, CHARGE+ZONE and Chargeup in the electric mobility space.

Indian EV startups offer services such as sustainable mobility, energy infrastructure, commercial mobility and battery management system, among others, to the general masses and enterprises. Besides, they are also helping reduce carbon emissions and offering a cheaper alternative to fossil fuels. As a result, the space has been gaining a lot of traction from the investors.

The post BluSmart Nets $24 Mn In Fresh Funding To Build EV Charging Superhubs appeared first on Inc42 Media.

Robotics firm GreyOrange has raised $135 Mn (around INR 1,123 Cr), marking the first close of its Series D funding round led by Anthelion Capital (erstwhile Cowen Sustainable Investments), with participation from existing investors Mithril, 3State Ventures and Blume Ventures. 

The startup will deploy the fresh proceeds to scale up its technology leadership, expansion and bolster adoption of its fulfillment orchestration platform in warehouses, distribution centres and retail stores.

Founded by Akash Gupta and Samay Kohli in 2012, GreyOrange specialises in designing, manufacturing, and deploying AI-based robotic systems for automating routine tasks in warehouses and fulfilment centres for major ecommerce and retail companies. 

With manufacturing units in India, China, and the US, and research and development facilities in various countries, including India, the company claims to have played a crucial role in managing warehousing operations for Indian companies like Flipkart, Myntra, Pepperfry, Mahindra Tractors and others. 

“As we scale our technology and enhance customer experiences and operational efficiency, we recognise that keeping the needs of our customers at the centre of our product and solution roadmap has proven essential for our customer’s success, as well as our own,” said Gupta.

 “Not only has GreyOrange automated the movement of goods within the warehouse, but the company has also built a network that optimises how retailers move their goods across their entire supply chain,” said Vusal Najafov, cofounder of Anthelion Capital. 

GreyOrange’s latest funding round comes one year after the firm raised $110 Mn in growth financing.  A major portion of the infusion came from its existing investor Mithril Capital Management, along with new investors.

So far, the company has raised close to $425 Mn in total funding.

As per the 2023 Gartner Hype Cycle for Supply Chain Execution Technologies report, by 2027, more than 75% of companies are expected to integrate some form of cyber-physical automation into their warehouse operations.

The Gartner report notes that as more and more companies are stepping up to employ robotics, they will likely manage diverse robot fleets from different vendors. This calls for standardised software for seamless integration, efficient task assignment and communication with other automation types like door or elevator controls. 

The post GreyOrange Raises $135 Mn To Boost Automation For Warehouses, Fulfilment Centres appeared first on Inc42 Media.

Continuing its winning streak, Reliance Jio added 3.4 Mn wireless subscribers to its kitty in September, as per monthly subscriber data released by the Telecom Regulatory Authority of India (TRAI).

Taking the second spot on the charts was the country’s second biggest telecom operator Bharti Airtel which accounted for 1.3 Mn subscriber additions during the month. Meanwhile, Vodafone Idea (Vi) continued to lose users in droves as it shed 2.32 Mn subscribers in the month of September.

State-owned BSNL and MTNL also saw heavy user churn as they lost 7.49 Lakh and 2,596 wireless users, respectively, during the course of the month. 

The Indian wireless telecom ecosystem saw a net addition of 1.7 Mn subscribers in the month against 1.39 Mn in August 2023. Overall, the number of active wireless subscribers in September hovered around the 1.04 Bn mark.

Meanwhile, Jio continued its stranglehold over the Indian telecom space, accounting for a market share of 39.06%, followed closely by Airtel with 32.85%. VI’s market share stood at 19.78% while BSNL contributed 8.14%. 

The country’s overall teledensity improved to 82.54% in September, up from 82.48% in the previous month. The push was largely led by rural India where teledensity improved further to 57.75% during the month under review compared to 57.67% in August. 

The total number of broadband users (both wireless and wireline) in the country stood at 885 Mn at the end of September with Jio grabbing more than half, 51.86% to be precise, of the total market. Airtel stood at 29.11% while VI took the third spot with 14.29% market share in the broadband market. 

In addition, 12.65 Mn subscribers submitted requests for Mobile Number Portability (MNP) in September, taking the total requests submitted till date beyond the 890 Mn mark. A majority of these, 7.21 Mn, emerged from Zone-I (Northern and Western India) while the remaining 5.44 Mn came from Zone-II (Southern and Eastern India).

The data comes close on the heels of the Centre tabling the much-awaited Telecommunications Bill, 2023 before the Parliament. The proposed law seeks to replace the archaic century-old Indian Telegraph Act of 1885, as well as the Indian Wireless Telegraphy Act of 1933.

Not heeding to the demands of the telcos, the Bill kept OTT platforms outside the ambit of the regulatory framework but critics claimed that the proposed legislation covertly brings internet-enabled services under its purview. 

The Bill also charted out a new definition for ‘telecommunication’ and reiterated a host of compliance mandates for the operators. It also set the stage for the allocation of satellite communication licences through administrative process to private players, ruling against an auction process for the same. 

With this, the fight between telecom giants Jio and Airtel is expected to spill into the satcom domain as their arms Jio Satellite Communications and OneWeb respectively, have licences to offer such services.

The two players have also begun to roll out unlimited 5G data packs for their prepaid and postpaid users as they look to monetise the new generation technology for which they spent billions of dollars for spectrum in auction.

The post Reliance Jio Continues Winning Streak, Adds 3.4 Mn Subscribers In September appeared first on Inc42 Media.

The Centre may release the administrative rules under the Digital Personal Data Protection (DPDP) Rules within two weeks and likely notify the final version of the Bill by the end of next month.

On Wednesday (December 20), executives from social media and internet intermediaries met with senior officials from the Ministry of Electronics and Information Technology. The discussions focused on crucial topics including child gating, the formulation of consent architecture, and the delineation of rights and obligations for data principals, ET reported.

After several years of waiting, India got its data protection law earlier this year. The DPDP Bill was passed in the Lok Sabha on August 7 and in the Rajya Sabha two days later. On August 11, President Droupadi Murmu finally granted her assent to the Bill to become an Act.

The DPDP Act directs setting up a Data Protection Board of India to ensure its implementation. In case of any personal data breach, the board will be responsible for looking into the matter, inquiring into the breach and imposing penalties.

The DPDP Act seeks to protect the privacy of Indian citizens. In case of any breach for misusing citizens’ data or failing to protect the digital data of individuals, the Act proposes a penalty of up to INR 250 Cr on entities.

The Act not only offers transparency to users regarding how corporations can utilise their data but also provides clear guidelines for companies, including startups, on how they should handle users’ personal data and obtain consent.

Earlier Inc42 reported that the government was looking at a phased implementation of the act. Minister of State for Electronics and IT Rajeev Chandrasekhar said that certain government entities, such as those at the panchayat level, micro, small, and medium enterprises (MSMEs), and early-stage startups, might be eligible for exemptions and won’t fall under the scope of the DPDP Act right away.

Meanwhile, the central government has also started the process of preparing regulations for artificial intelligence (AI) to support its growth, safeguard interests and encourage innovation in this evolving technology in India.

The post Government Likely To Unveil Personal Data Bill Rules In Two Weeks appeared first on Inc42 Media.

Ecommerce took centre stage on the 13th day of the Parliament’s Winter Session as the government answered a slew of questions regarding regulation, competition, ONDC and ecommerce exports.

Responding to a question, the Minister of State (MoS) for Commerce and Industry Som Parkash on Wednesday (December 20) said that the ONDC network was now live in 500 towns and cities across the country. 

“The geographic coverage of ONDC is determined both by the capability of its Network participants and the independent business decisions of merchants onboarded by the Network participants,” he added.

Parkash’s comments were part of a written response to a question by Lok Sabha member Ravikumar D on whether ecommerce regulations extended to the state-backed ONDC. 

“All existing laws and regulations of India, related to ecommerce apply to ONDC and the Network Participants on [the] ONDC network,” Parkash said.

The government also added that ONDC was also taking ‘comprehensive’ steps to ensure trust, fairness and transparency on the network, including fairness in search and discovery, payment mechanisms, KYC requirements, reviews and ratings, and enforcement, among other factors.

During the session, Parkash also pointed out that the government has so far not undertaken any studies to address competition-related issues identified by the 172nd report of the Rajya Sabha on the promotion and regulation of ecommerce in India. 

The minister added that the government had filed an ‘Action Taken’ report in response to the recommendations of the Parliamentary Standing Committee on Commerce on the matter.

Incidentally, the government had then decided not to take any recommendations on the aspect of competition.

The standing committee had recommended changes related to the current regulatory regime encompassing ecommerce, the Competition Act of 2002, abuse of dominant position by big players as well as mergers and acquisitions. The committee had also recommended that the Ministry of Corporate Affairs take ‘concerted efforts’ to finalise and enact the Competition Amendment Bill ‘at the earliest’.

The government, in its action-taken report, noted that the amendment bill would already include most of the recommendations made by the standing committee in terms of competition and address gaps in the current regulatory regime. 

DGFT Collaborating With Ecommerce Cos: MoS Commerce & Industry

On the question of whether the government has tied up with any startup or private players for ecommerce exports, MoS Commerce and Industry Anupriya Patel said that efforts were being taken to promote ecommerce exports in partnership with various stakeholders.

“… outreach events are being held in the districts under Districts as Export Hubs initiative with [a] focus on promoting ecommerce exports of the identified goods from the districts in collaboration with various stakeholders,” said Patel in a written response.

According to Patel, the Directorate General of Foreign Trade (DGFT) is collaborating with various ecommerce platforms to promote ecommerce exports from the country. 

“The core objective of this collaboration is to leverage ecommerce platforms operating in other countries to support local exporters, manufacturers, and MSMEs in India in reaching potential international buyers,” the MoS added.

The post ONDC Live In 500 Towns & Cities; All Ecommerce Rules Apply To The Network: MoS Commerce appeared first on Inc42 Media.

Taking on troubled startup Dunzo, logistics startup Shadowfax on Wednesday (December 20) announced its foray into the on-demand delivery space with the launch of its app Flash. 

The new service will offer last-mile delivery solutions to customers in more than 50 cities within 30 minutes. Users will be able to make pickup and drop-off requests through the app, which will cater to both merchants and end customers within the city limit. 

In a statement, the startup said that the Flash platform has introduced a new concept of ‘milk run deliveries’, enabling customers to consolidate multiple shipments on a single route which, in turn, would optimise efficiency and lower delivery costs. 

Touting the new platform as a ‘cost-efficient logistics solution’ that prioritises speed and reliability, Shadowfax said that Flash also integrates GPS technology to offer full visibility into delivery and ensuring real-time tracking capabilities.

Commenting on the launch, Shadowfax cofounder and chief business officer Praharsh Chandra said, “We are thrilled to introduce Flash by Shadowfax… This service aligns with our commitment to innovation and customer satisfaction, providing a comprehensive solution for efficient, on-demand logistics…”

The new offering pits Shadowfax directly against Dunzo. Flash will enable the company to tap into the growing demand for on-demand delivery and further diversify its portfolio. Alongside, the move will also enable the company to further scale up its offerings and create alternative revenue streams. 

The development comes at a time when Dunzo is facing a major cash crunch and has shelved its expansion plans. With the hyperlocal startup in disarray, it looks like an opportune time for Shadowfax to enter the space that has been dominated by Dunzo for the past many years. 

Interestingly, the new launch comes a month after the Competition Commission of India (CCI) greenlit Mirae Group’s proposal to acquire a minority stake in Shadowfax. The move also comes months after reports surfaced that the logistics giant was finalising a $60 Mn funding round led by TPG NewQuest.

Founded in 2015 by Vaibhav Khandelwal, Abhishek Bansal, Chandra and Gaurav Jaithliya, Shadowfax is a third-party logistics platform that caters to hyperlocal and delivery businesses. 

The startup claims to have a network of more than 1.25 Lakh monthly active delivery partners that deliver to more than 15,000 pincodes and 35 Lakh registered users. 

It is backed by big names such as Mirae, Flipkart, Qualcomm Ventures and Eight Roads Ventures. With customers such as Meesho, Myntra, Zomato-owned Blinkit, and Flipkart in its kitty, Shadowfax has raised more than $120 Mn till date.

Shadowfax reported a net loss of INR 142.63 Cr in the fiscal year 2022-23 (FY23), down 19% year-on-year (YoY), while total income rose 42% YoY to INR 1,423 Cr.

The post Shadowfax Ventures Into On-Demand Delivery With New App Flash To Take On Dunzo appeared first on Inc42 Media.

Foodtech major Swiggy has begun charging restaurants a 2% ‘collection fee’ on all orders to facilitate payments from customers on the food delivery platform. 

While the company declined to comment on the matter, sources told Inc42 that the platform has begun levying the new charge. As per reports, the fee will be deducted from the payouts to the listed restaurants.

This comes days after the company informed select partner restaurants about the impending move. 

As per a correspondence seen by The Economic Times, Swiggy said, “Commencing from December 20, 2023, we will be introducing a standardised 2% collection fee on all orders. This fee is designed to facilitate smooth customer payments on the Swiggy platform. It is important to note that this amount will be subtracted from your payouts.”

Interestingly, Swiggy is following the suite of competitor Zomato, which already imposes a similar ‘payment gateway fee’ of around 1.8% on all orders. However, the new development from Swiggy comes more than four to five years after the Deepinder Goyal-led company instituted its gateway fee. 

Meanwhile, the move seems to have sparked a major discontent within a section of the members of the National Restaurants Association of India (NRAI). The industry body’s vice president and founder of QSR chain Wow! Momo, Sagar Daryani, reportedly termed the new charges by Swiggy an ‘unwelcome distraction’.

He told ET that the ‘collection fee’ is essentially a method of indirectly raising commission costs. However, the NRAI declined to comment on Inc42’s queries on the matter. 

The new charge could likely be part of Swiggy’s strategy to create alternative revenue streams and boost its top line as it prepares for a public listing later next year. Just this year, the foodtech major also hiked its platform fee to INR 3 per order, irrespective of cart order, to enhance unit economics and spruce up revenues. 

As per reports, Swiggy’s average order value hovers around INR 400, which means that a 2% collection fee would translate into an additional INR 8 in revenue per order for Swiggy. This could pave the way for better unit economics for the company as it looks to show a healthy balance sheet to investors while filing for its IPO papers. 

As per the half yearly financial report of Swiggy’s investor Prosus, the startup’s food delivery business saw a 28% year-on-year growth in gross merchandise value (GMV) to $1.43 Bn in the first six months of FY24. 

The foodtech major was also one of the best performers in the Dutch investor’s books with an IRR of 7% in H1 FY24. 

The post Swiggy Follows Zomato’s Footsteps, Introduces 2% Collection Fee On Restaurant Partners appeared first on Inc42 Media.

At its annual general meeting (AGM) on Wednesday (December 20), troubled edtech major BYJU’S‘ stakeholders approved its financial statements for the fiscal year 2021-22 (FY22). 

With close to 60 shareholders in attendance, BDO was reappointed as the statutory auditor of the company during the three-hour long AGM, BYJU’S said in a statement, adding that all the resolutions proposed by the company were passed. 

“Think and Learn, the parent company of BYJU’S, held its Annual General Meeting (AGM) today with close to 60 shareholders in attendance. All the resolutions were passed, including the accounts for FY22. BDO was reappointed as the statutory auditors of the company,” the statement said. 

As per the edtech major, cofounder and chief executive officer (CEO) Byju Raveendran kicked off the AGM with an ‘account of the state of business and its challenges’. This was followed by chief financial officer Nitin Golani briefing the stakeholders about the audit while India CEO Arjun Mohan spoke about business updates and plans. 

The AGM also saw auditor BDO answering questions from shareholders about the newly furnished financial statements. 

The audited financial results were finally approved by the stakeholders after multiple delays from the company in furnishing them. This resulted in the resignation of previous auditor Deloitte and exit of three key board members, including GV Ravishankar of Peak XV Partners, Prosus’ Russell Dreisenstock and Vivian Wu of Chan Zuckerberg Initiative.

In November this year, the troubled startup released select financial numbers for its core operations. Think and Learn Private’s standalone EBITDA loss stood at INR 2,253 Cr in FY22 compared to an EBITDA loss of INR 2,406 Cr in the previous fiscal. Total income stood at INR 3,569 Cr in the year ended March 2022 as against INR 1,552 Cr in FY21. 

While there was no mention of the net loss figure in FY22, the edtech major’s consolidated net loss stood at INR 4,588 Cr in FY21, up 1,880% year-on-year.

The edtech decacorn has been grappling with a slew of issues, including paucity of funds, mass layoffs, mounting losses, top-level leadership exits and full-blown confrontation with its lenders over the repayment of its $1.2 Bn Term Loan B. 

To tide over the crisis, the company has been scouting investors to raise funds and has also been in the market to reportedly sell subsidiaries Epic and Great Learning to repay the loan.

The post BYJU’S AGM: FY22 Audited Financials Approved, BDO Reappointed As Auditor appeared first on Inc42 Media.

Bengaluru-based B2B food and ecommerce marketplace Jumbotail’s net loss more than doubled during the year ended March 31, 2023. The startup’s loss surged 112% to INR 264.16 Cr in the financial year 2022-23 (FY23) from INR 124.74 Cr in the previous fiscal year.

The bottom line took a hit despite revenue from operations jumping 117% to INR 819 Cr from INR 377.36 Cr in FY22.

Founded in 2015 by S Karthik Venkateswaran and Ashish Jhina, Jumbotail offers a suite of go-to-market services for brands looking to reach the kirana market. It runs an online B2B marketplace for groceries and food and primarily caters to wholesale buyers.

How Did Jumbotail Make Money In FY23?

Being an ecommerce marketplace, the startup primarily earns revenue from the sale of products. It also earns revenue from the sale of services via its omnichannel retail brand J24, which integrates offline kirana stores and helps them sell both online and offline.

The startup also gets service income via its Golden Eye retail operating system, a cloud-based retail POS Operating System.

During the year under review, Jumbotail earned INR 766.59 Cr from the sale of products, an increase of 117% from INR 351.74 Cr in FY22. Revenue from services shot up 105% to INR 52.42 Cr in FY23 from INR 25.61 Cr a year ago.

Including other income, total income rose to INR 849.87 Cr from INR 398.85 Cr in FY22.

Where Did The Startup Spend In FY23?

In line with the rise in its top line, Jumbotail’s total expenses zoomed 113% to INR 1,114.04 Cr in FY23 from INR 523.60 Cr in the previous year. 

Purchase Of Stock Expenses Shot Up: Purchase of stock-in-trade accounted for the biggest chunk of expenses. The startup spent INR 760.99 Cr under the head in FY23, almost double that of INR 352.29 Cr in the previous fiscal year. 

Employee Benefits Expenses Doubled: Jumbotail’s employee costs grew to INR 101.51 Cr in the year ended March 31, 2023, from INR 52.34 Cr in FY22. 

The sharp increase indicates that the startup may have increased its headcount during the year. The startup spent INR 82.31 Cr on wages in FY23, up 84% from INR 44.69 Cr in the previous financial year.

Distribution Costs Jump: In line with its business, the transportation and distribution costs incurred by Jumbotail also saw significant growth. During the period under review, the startup spent INR 60.44 Cr on transportation, up 108.76% from the INR 28.95 Cr it recorded in FY22.

Ad Spend Increases: The startup spent INR 17.11 Cr on advertisements and other promotional activities, up nearly 90% compared to the INR 9.16 Cr it spent during FY22. 

The startup’s EBITDA margin contracted to -9.83% in FY23 from -9.26% in FY22. On a unit economic basis, Jumbotail spent INR 1.36 to earn every INR 1 in FY23.

Earlier this year, during its INR 75 Cr debt round, Jumbotail said it planned to achieve operational profitability in the next 12 months. 

In a statement, Jumbotail said it is now aiming to expand its retailer base to about 4 Lakh and reach over 80% penetration in the addressable market in FY24. Currently, Jumbotail claims to have 2.5 Lakh+ retailers across 50+ cities. The startup also said it is looking to double its operating revenue and increase the number of J24 stores to 300 stores in FY24.

Jumbotail competes with the likes of Udaan and BigBasket. It has so far raised a total funding of around $139 Mn in equity and debt from investors, including Kalaari Capital, Invus, Heron Rock, VII Ventures, Nexus Ventures, Arkam Ventures, Alteria Capital, and Innoven Capital.

The post Jumbotail’s FY23 Loss Surges 112% To INR 264 Cr Despite Doubling Sales appeared first on Inc42 Media.

Unicommerce eSolutions Pvt Ltd, which offers a software-as-a-service (SaaS)-based order management and fulfilment platform to ecommerce and retail businesses, has roped in five industry leaders to its board.

The startup, which aims to go public late next year, has appointed former SoftBank India head Manoj Kohli, along with Ullas Kamath and Sairee Chahal as independent directors and Kunal Bahl and Rohit Bansal as non-executive directors. 

These appointments are poised to boost reach, institutionalise governance structure and steer the company into the next phase of growth, Unicommerce said in a statement.

Other than SoftBank, Kohli has served as the executive chairman of SB Energy Projects Private Limited as well as a managing director and CEO of Bharti Enterprises Limited. He had been instrumental in driving growth, profitability and operational excellence across multiple sectors, the statement added.

Meanwhile, Kamath was the joint managing director of Jyothy Labs, where he played a crucial role in the transformation of the company into a multi-brand FMCG corporate entity. 

Chahal is the founder of SHEROES, a women-focussed digital platform and an ecosystem with over 20 Mn women. She is also the founder of Mahila Money, a neobank for women, and cofounder of Fleximoms, which works towards creating, enhancing and co-creating workflex opportunities for women professionals.

Bahl and Bansal are the cofounders of Snapdeal, AceVector and Titan Capital.

“The depth and diversity of their expertise aligns seamlessly with our vision of anticipating and serving the evolving technology needs of our customers both in India and in other countries,” said Kapil Makhija, MD and CEO of Unicommerce.

Unicommerce was launched by three classmates at IIT Delhi – Ankit Pruthi, Karun Singla and Vibhu Garg. It was later acquired by Snapdeal in 2015.

The startup enables end-to-end management of ecommerce operations for D2C brands, retail companies, and other online sellers through its comprehensive suite of SaaS-based technology products.

Unicommerce’s platform keeps track of stocks across multiple warehouses, keeps inventory information updated across multiple sales channels (both offline & online) and automates order pick-ups to support faster and more accurate deliveries.

The startup generates revenue by selling its SaaS solutions. Including other income, its total revenue stood at INR 92.9 Cr in FY23 as against INR 61.3 Cr in the previous fiscal year.

Unicommerce’s operating revenue zoomed 52% to INR 90 Cr in the financial year 2022-23 from INR 59 Cr in the previous fiscal year on strong demand for its services. This resulted in the SoftBank-backed startup’s net profit rising 8% to INR 6.4 Cr in FY23 from INR 5.9 Cr in FY22.

The post IPO-Bound Unicommerce Strengthens Board With Five Key Appointments appeared first on Inc42 Media.

Fintech startup EnKash has received the final approval from the Reserve Bank of India (RBI) to operate as a payment aggregator under the brand name ‘Olympus’.

In a statement, EnKash said with the licence in place, it aims to further drive innovation in B2B payments.

The fintech startup had received the in-principle approval from the central bank for the payment aggregator licence in January this year.

The RBI introduced the payment aggregator framework in March 2020. Under the norms, all payment gateway operators need to obtain a licence to acquire merchants and deploy digital payments solutions.

Commenting on the final approval, EnKash cofounder Yadvendra Tyagi said, “We are thrilled to have received approval from the Reserve Bank of India, making us the first new applicant in the cohort. This affirms our unwavering commitment to maintaining regulatory standards and highlights the significance of our role in advancing the industry.”

Founded by Naveen Bindal, Hemant Vishnoi and Tyagi in 2017, EnKash operates a spend management platform that allows enterprises to manage payables, receivables and expenses. It claims to have issued over 8 Lakh corporate cards till now.

Since its inception, EnKash claims to have aided over 2,50,000 businesses in digitising and decentralising corporate payments. 

The startup last raised $20 Mn in April last year in its Series B round led by Ascent Capital. Overall, Enkash has raised a total funding of $23 Mn till date and counts the likes of MayField India, Baring India, and Axilor Ventures among its backers.

The latest development comes a day after it was reported that fintech startups Razorpay, Cashfree Payments, and neobank Open received final approval from the RBI to operate as payment aggregators.

As per the latest data, the central bank has so far granted in-principle authorisation to 37 existing payment aggregators, including  Zomato and Infibeam Avenues. Besides, it has granted the in-principle approval to around 24 payment aggregators and returned applications of over 60.

The post Fintech Startup EnKash Gets RBI’s Final Approval For Payment Aggregator Licence appeared first on Inc42 Media.

SoftBank India has seen a significant exit as Vikas Agnihotri, an operating partner who worked closely with Paytm ahead of its IPO in 2021, has exited the investment fund. 

According to an ET report, Agnihotri left SoftBank in September. It needs to be clarified if he has taken up a new role yet.

Agnihotri’s LinkedIn profile also shows he was associated with SoftBank until September this year.

The Mumbai-based executive worked with Google till February 2020, where he was the managing director for sales in India. Agnihotri joined SoftBank after this as its first operating partner to work with the investor’s portfolio firms in India. 

At Google, he is also believed to have worked closely with Rajan Anandan, now the MD of Peak XV Partners. Before his brief stint at Google, Agnihotri was the CEO of Religare Macquarie Private Wealth Management.

He is also a member of the boards of several major companies in SoftBank’s India portfolio, including FirstCry, GlobalBees and InMobi. However, sources cited by ET noted that Agnihotri is expected to transition out of his board roles in the coming months. He resigned from eyewear giant Lenskart’s board in September, around the same time as his exit from SoftBank.

Inc42 has reached out to Agnihotri and SoftBank on the development and the story will be updated upon receiving their responses. 

Agnihotri’s exit comes as the storied Japanese tech investor has been booking profits by selling its stake in listed Indian tech startups. This month alone, SoftBank sold a stake in PB Fintech and Zomato, completely exiting the latter.

Sumer Juneja, the firm’s managing partner and head for Europe, the Middle East and Africa, said in August that the Japanese conglomerate made more than $5.5 Bn in exits from its India portfolio since it began operations in November 2018 in Mumbai. He added that the late stage investor realised $1.5 Bn from exits in the past 12 to 18 months. 

The post SoftBank India Sees Major Exit As Operating Partner Vikas Agnihotri Leaves appeared first on Inc42 Media.

Panasonic Life Solutions India (PLSIND) and Panasonic Corporation (PC) in collaboration with micro VC fund 100X.VC have selected 12 startups as part of accelerator programme Panasonic Ignition.

The accelerator programme was launched in October to support young entrepreneurs and provide them with investment, masterclasses, expert mentorship, product strategy and growth plans. 

The selected startups will participate in the accelerator programme over the next three months and will receive comprehensive support from both Panasonic and the 100X.VC teams. 

In addition to financial resources, the startups will also receive support in the form of mentorship sessions and guidance to complete their project, said a statement on Wednesday.

Commenting on the programme, Manish Misra, chief innovation officer at Panasonic Life Solutions India, said, “This initiative underscores our commitment to fostering groundbreaking technologies and solutions that address the evolving needs of commercial spaces while contributing to a sustainable future.”

The selected startups are:

• SustLabs – Based out of Mumbai, the startup was founded by Kaushik Bose in 2016. It develops consumer IoT solutions for home energy monitoring. 
• MinionLabs – The Bengaluru-based startup was launched in 2017 by Gokul Shriniva. It has developed a product for measuring individual energy consumption in buildings.
• Clairco – Founded by Aayush Jha in 2018, the startup is headquartered in Bengaluru. It develops IoT-based smart air purification and space optimisation devices.
• Enlite – Founded in 2017 by Gaurav Bali, the Mumbai-based startup provides an AI-enabled wireless building management system. 
• Zodhya – Launched in 2017 by Rohith Pallerla, the Hyderabad-based startup is a provider of energy optimisation solutions for commercial spaces.
• Living Things – Based out of Mumbai, the startup was launched by Madhusudhan Naik in 2019. It provides smart control hubs for air conditioners.
• Sensiable – Launched in 2019 by Ashish Singh, the startup is headquartered in Bengaluru. It is a provider of an IoT-enabled workplace space management solution.
• Carbon Minus – The startup was launched in 2019 in Pune by Ashok Ranfive. It is a provider of cloud-based solutions for energy plant management.
• Nebeskie – The Chennai-based startup was launched by Anik Bose in 2016. It is  a provider of a SaaS, AI & IoT-powered electricity management platform.
• Quebeq Venture – Launched in 2019 by Logesh Janarthanan, the Chennai-based startup integrates a virtual power plant with proprietary energy solutions.
• Blaze – The Hyderabad-based startup was launched in 2007 by Arjun Valluri. It integrates smart sensor-based devices and IoT to deliver cost-effective and efficient device management, connectivity management, and application enablement solutions.
• Cymbeline – Launched in 2017 by Vivek Gowripeddi, the Bengaluru-based startup develops industrial IoT with diverse hardware, middleware, analytics, and cloud.

The development comes at a time when a number of companies and VC firms have been announcing accelerator and incubation programmes for startups. 

For instance, game development major Krafton launched its incubator programme called KRAFTON India Gaming Incubator to support early stage gaming startups with primary investment and mentorship. 

Earlier this month, GVFL in partnership with Brinc and Games24x7 in partnership with the Karnataka government announced accelerator programmes.

However, according to Inc42’s Indian Tech Startup Funding Report Q3 2023, for the first three quarters of 2023, the funding in Indian startups was merely more than $7 Bn against about $22 Bn during the corresponding quarters of 2022.

The post Meet The 12 Startups Part Of Panasonic’s Accelerator Programme appeared first on Inc42 Media.

Fintech major Paytm is aiming to generate an operating profit in under a year by bolstering its online wealth management services and onboarding more merchants on its network, coupled with cost savings from AI automation.

Paytm founder and CEO Vijay Shekhar Sharma made the projection in an interview with Bloomberg, highlighting the company’s plans to hire over 50,000 salespeople to onboard more merchants and revamp its online wealth management services.

“We have learned and we will amplify our ability to serve India, its small merchants and businesses,” Sharma was quoted as saying. “We should be crossing about 50 Mn merchant-base signed up on the Paytm platform in the year.”

Sharma’s interaction with the publication came days after Paytm faced a major setback in its growth trajectory due to the Reserve Bank of India (RBI) tightening regulations around unsecured loans. 

Earlier this month, Paytm said that it would scale down its small-ticket loans of less than INR 50K, which predominantly comprise its postpaid loan business. However, to compensate for this major change, the company said it would increase its focus on the merchant and personal loan business.

Multiple brokerages cut their estimates on Paytm’s various metrics such as revenue and EBITDA in the medium to long term following the changes in its loan disbursal business.

Besides, Paytm’s share price also took a hit, falling to more than a seven-month low. While the shares were trading over 80% year to date till October, they nosedived due to the company’s decision to scale down postpaid loans. Shares of Paytm are currently trading a little over 15% higher.

Besides the loan disbursement business, which comprises a relatively smaller part of the company’s total revenue, Paytm also has a payments business. It had around 38 Mn merchants as of September, of which nearly 10 Mn paid for offerings such as QR codes, Paytm soundboxes, and card machines.

Paytm also operates wealth management platform Paytm Money. Speaking to Bloomberg, the Paytm boss said that the company now wants to double down on this business, layering it with AI, as India’s middle class is increasingly going online to invest in the capital markets.

Meanwhile, by using automation, Paytm also plans to bring down its employee costs.

“We will be able to save the targeted 10% to 15% that we had planned in employee costs, all because AI has actually delivered more than what we expected it to,” Sharma said. 

The statements also come at a time Paytm is seeing a rise in competition. Most recently, Jio Financial Services’ marked its full-fledged foray into the fintech space, while PhonePe is also looking to diversify its offerings and launched stock broking platform Share.Market earlier this year.

The post Paytm Betting On Paytm Money, Merchants & AI To Turn Operationally Profitable In A Year appeared first on Inc42 Media.

SAR Group’s energy solutions brand Livguard said it has acquired Delhi NCR-based battery swapping and IoT solutions startup Emuron Technologies to venture into the EV battery swapping space.

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

Founded in 2018 by Kunal Garg, Vedant Khanna and Vibhor Bharti, Emuron Technologies is a bootstrapped startup which helps EV businesses deploy battery-swapping stations across India. 

Its offering include a battery tracking system to monitor battery health, location, and utilisation; customisable and modular smart electrical cabinet that allows swapping of discharged Li-ion batteries with charged batteries; and a battery intelligence platform which provides utilisation report and ageging predictions. The startup also claims to be working on a battery management system.

Commenting on the acquisition, SAR Group’s cofounder Rakesh Malhotra said Livguard will leverage Emuron’s battery-swapping technology alongside its own battery expertise. “Our comprehensive solutions, combined with our EV subsystems portfolio, position us as a one-stop shop for all 2 and 3-wheeler EV OEMs,” he added. 

SAR Group, which owns companies including Livfast and Mooving, launched Livguard in 2014. It offers energy-related solutions including automotive batteries, inverters, and residential solar panels. 

Recently, the group ventured into the EV business with the launch of Lectrix EV.

“We have a strong commitment towards research and development, innovation and Make in India,” Livguard’s chief executive Gurpreet Bhatia told Inc42. 

He added that Livguard is currently working on a unique energy services ecosystem for the two- and three-wheeler EV industry. Following the acquisition, it plans to rapidly deploy swapping stations in key markets to solve the range anxiety of electric vehicles.

The development comes at a time when the India EV space is buzzing with activities. From talks about Tesla’s entry into India to the potential IPO of Ola Electric, a lot has been happening in the EV segment lately. 

Recently, EV charging startup Exponent Energy secured INR 220 Cr ($26.4 Mn) in its Series B funding round to strengthen its manufacturing and business operations.

Also, Macquarie Capital invested an undisclosed amount in EV charging startup ChargeZone to help it further develop its cloud technology-enabled charging network.

The post SAR Group’s Livguard Acquires Emuron Tech To Enter EV Battery Swapping Space appeared first on Inc42 Media.

Social media platform ShareChat today fired around 200 employees in a second round of layoffs this year to cut costs, sources told Inc42.

The startup confirmed the development with Inc42. In a statement, it said that the “comprehensive restructuring effort”, which resulted in reduction in its team size by about 15%, was aimed at streamlining operations, enhancing productivity, and positioning the company for sustainable growth.

“ShareChat, today undertook a strategic restructuring as part of its annual planning for the year 2024. The decision reflects the company’s commitment to streamlining its cost base and achieving profitability within the next 4-6 quarters,” the statement said. 

However, the startup did not disclose the severance pay that will be paid to the impacted employees.

As per the sources, the employees were informed about the restructuring exercise today in a one-on-one call with the management team. 

The layoff exercise came almost 11 months after ShareChat fired around 500 employees, or about 20% of its workforce.

As per the EPFO portal, the startup credited PF amount for 1,281 employees in November 2023 as compared to 2,346 employees in November 2022.

The retrenchments in January this year came on the back of ShareChat parent Mohalla Tech shutting down its fantasy gaming platform Jeet11 in December 2022, which resulted in 100 employees losing their jobs.

In January this year, two of ShareChat’s cofounders – Bhanu Pratap Singh and Farid Ahsan – also resigned. Following this, they founded a robotics startup General Autonomy and raised $3 Mn seed funding for it last month from venture capital firms India Quotient and Elevation Capital.

Besides, the founder exits and employee layoffs, ShareChat is also struggling to raise capital. As per a TechCrunch report, the startup is in talks to raise a much needed $50 Mn at a valuation under $1.5 Bn. In March last year, the startup touched the peak valuation of $5 Bn after adding Temasek to its captable. As of date, ShareChat has raised a total of $1.7 Bn in funding across multiple rounds and counts the likes of Lightspeed Ventures, Twitter, and Google among its backers. 

ShareChat’s net loss jumped 38.17% to INR 4,064.31 Cr in FY23 from INR 2,941.51 Cr in the previous fiscal year. The bottom line took a hit despite its operating revenue surging 62% to INR 540.21 Cr from INR 332.69 Cr in FY22.

Meanwhile, its total income increased 54.90% to INR 628.85 Cr from INR 405.96 Cr in FY22. Effectively, it spent INR 7.46 to earn every rupee in FY23.

The post Exclusive: ShareChat Fires Nearly 200 Employees In Second Layoff Exercise This Year appeared first on Inc42 Media.