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.

Gaming unicorn Nazara Technologies has announced its partnerships with four Indian game studios to publish five casual and mid-core games in India.

In an exchange filing on Wednesday (December 20), Nazara said that this initiative is part of its new publishing division, focusing on promoting the ‘Make in India’ vision in the gaming sector.

The company is planning to publish ‘Gravity Shooter’ by Smash Head Studios, ‘World Cricket League’ from Wandermind Labs’, ‘Hacked: Password Puzzle’ by Pixcell Play and ATG Studios’ ‘Laser Tanks’ and ‘Paperly’.

Since its inception a month ago, Nazara Publishing has received a remarkable response from both Indian and international game developers, the company said in its statement. The Indian gaming major offers financial investment as well as comprehensive support, including mentorship, user acquisition, and live operations expertise. 

Nazara has allocated a substantial fund for the publishing division and aims to publish 20 games within the next 12 to 18 months by investing in a range of INR 1 Cr-INR 3 Cr per game.

Speaking on the new partnerships, Nitish Mittersain, joint managing director and chief executive of Nazara Technologies said that the Nazara Publishing division, enriched with innovative AI-led tools from the new Nazara SDK, is set to foster the growth and development of game creators.

As a gaming and sports media platform, the company has a footprint in India and other emerging and global markets such as Africa and North America. Over the last few years, Nazara Technologies has bolstered its offerings by making multiple strategic acquisitions in companies including NODWIN, SportsKeeda and others. 

Earlier this year, the company also increased its majority stake in mobile gaming studio Nextwave.

Nazara Technologies’ consolidated profit after tax (PAT) jumped 53% year-on-year (YoY) to INR 24.2 Cr in Q2 FY24 on an operating revenue of INR 297.2 Cr, which grew 13% YoY.

Recently, the company also raised a fresh capital of INR 510 Cr from investors including Zerodha’s Nikhil Kamath and SBI Mutual Fund. Speaking to Inc42, Mittersain had said that the company would invest the fresh funds in gaming studios capable of producing top-tier games tailored for both the Indian and global markets.

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In a first-of-its-kind initiative for India, tech giant Google has rolled out a host of artificial intelligence (AI)-powered features for maps, which include address descriptors, lens integration and live-view walking navigation.

These features were designed to offer a more tailored and localised map experience for Indian users, Google said in a statement.

“In India, Google Maps has mapped Mns of kilometres of roads and 300 Mn buildings, serving Mns of users with over 50 Mn daily searches. AI technology enhances commute decisions, providing traffic predictions for over 2.5 Bn kilometres of directions daily. Google Maps features information on 30 Mn businesses, fostering over 900 Mn monthly connections between consumers and businesses,” the statement added.

Let’s take a look at the new features: 

A Comprehensive Map Localised For The Needs Of Indian Users

In the past few years, Google Maps has focused on adding key places like worship centres, medical facilities, and government services to better serve Indian users. Address Descriptors, a new India-first innovation, enhances address understanding by automatically identifying up to five relevant landmarks and area names around a pinned location. This feature simplifies location sharing, making it easier for users to navigate unfamiliar areas. 

“We launched this capability earlier this year for developers in India on Google Maps Platform to help them benefit from more intuitive addressing solutions. We’re now expanding this to developers across over 75 cities in the country,” as per a Google report.

More Visual And Immersive Maps For Navigation

The company has introduced Lens in Maps and Live View walking navigation. A year after Street View was launched, Google Maps now allows its users to view and explore over 3,000 cities and towns.

Lens in Maps allows instant identification of nearby restaurants and cafes through the camera, launching in 15 cities by Jan 2024. Live View walking navigation, featuring arrows and distance markers, will cover over 3,000 cities in India, starting with Android. These innovations combine Street View imagery with advanced AI and AR technologies to provide immersive experiences.

Catering To India’s Diverse Mobility Needs

Google Maps is introducing a fuel-efficient routing feature in India for both four-wheelers and two-wheelers by January next year, promoting sustainability. This feature, already estimated to have prevented 2.4 Mn metric tons of CO2e globally, considers real-time traffic data, road elevation, and vehicle type. 

“Over the years, we have partnered with numerous local authorities towards this goal, enabling Mns of users to find information about various modes of public transport including metros, trains, and buses in over 20 Indian cities.”

For public transport users, the Where Is My Train app, used by over 80 Mn people monthly, is expanding to cover Mumbai and Kolkata Local Trains, offering information on schedule changes, delays, and platform numbers. 

In December 2018, Google acquired Bengaluru-based startup Sigmoid Labs, the company behind the app “Where is My Train”. The app was created to improve the experiences of millions of Indian train travellers through technology. 

On Tuesday, Google also announced partnerships with ONDC and Namma Yatri, which aims to bring metro schedules and bookings to users. It is expected to launch by mid-next year with Kochi Metro on Google Maps powered by Namma Yatri, followed by other metros as they join the ONDC Network. 

As per Future Market Insights, the digital map market is expected to be valued at $18.3 Bn in 2023, with a projected growth of $73.1 Bn by 2033. The market is anticipated to achieve a CAGR of 14.8% during the period from 2023 to 2033. 

Meanwhile, Google Maps rival MapmyIndia is looking to raise INR 500 Cr by issuing equity shares through a qualified institutional placement (QIP).

The post Google Unveils AI-Powered Features For Maps In India appeared first on Inc42 Media.

Bengaluru-based coworking space provider BHIVE has acquihired product-engineering firm Praemineo to bolster its support for the fast-growing coworking and fintech businesses.

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

“The transaction comprises a composite structure involving both cash and equity. As part of this acquihire, BHIVE will absorb a 10-member team along with cofounders Rohit Parab and Gaurav Gandhi, who will support growth and business management at BHIVE Group,” the company said in a statement.

Commenting on the acquihire, Shesh Rao Paplikar, founder & CEO of BHIVE Group said, “As a new age organisation, BHIVE is always on the lookout to identify occupiers’ pain points and solve it through our business and technology offerings while joining hands with companies in the ecosystem where we find synergies.”

The acquihire will enhance BHIVE’s capabilities in financial management, approvals processing, issue identification, lead generation, and understanding decision-making processes. This strategic move aims to streamline the efficient management of the company’s 1.5 Mn square feet of coworking space across 25 locations and strengthen the fintech arm of the group.

Rohit Parab and Gaurav Gandhi, cofounders of Praemineo said, “With an ever-expanding portfolio of coworking spaces across Bengaluru, it becomes imperative to efficiently manage the various associated activities related to the business which is where the Praemenio team will play an active role.”

In 2023, BHIVE expanded by one million square feet, transforming its offerings. The recent acquihire is set to boost BHIVE’s business efficiencies and enhance fiscal prudence. 

In June, BHIVE unveiled India’s largest shared office space in the city, spanning 2 acres with over 8,000 seats.

In August BHIVE also announced its decision to wind up the AIF managed by Gupta and launch a new coworking-focussed category II alternative investment fund (AIF) of INR 400 Cr.

Founded in November 2014, BHIVE Group manages BHIVE Workspace and Bhive Alts. BHIVE Workspace is among the largest coworking space providers in Bengaluru and currently houses over 1000 SMEs and startups.

Currently, BHIVE operates exclusively in Bengaluru but plans to expand to six major cities in India by June 2024.

Bhive Alts, as per the company’s website, oversees assets under management (AUM) exceeding 160 Cr, with a platform that caters to over 45,000 investors. This business focuses on granting retail investors access to alternative investments.

According to a Mordor Intelligence report, the current size of the India coworking office spaces market is $1.78 Bn. It is expected to exhibit a Compound Annual Growth Rate (CAGR) of over 7% during the forecast period from 2023 to 2028.

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Bengaluru-based cloud kitchen startup Curefoods, which counts Binny Bansal’s fund Three State Ventures, IronPillar, Chiratae Ventures, ASK Finance and Winter Capital among its marquee investors, has infused INR 10 Cr ($1.2 Mn) into food discovery platform Hogr in its seed funding round.

Curefoods’ latest investment comes within a week of it appointing former Tata Starbucks chief executive officer Avani Davda to its board.

Hogr will use the fresh capital to expand its outreach, refining its features and unveiling updates to elevate the overall user experience.

Founded by Jugul Thachery and Harish Harshan in June this year, Hogr allows users to discover restaurants and dishes through personalised recommendations from contacts, family, friends and fellow food enthusiasts with similar tastes. It provides tailored suggestions for informed dining choices and facilitates building a diverse food network through an easy recommendation system.

Bengaluru-based Hogr aims to revolutionise traditional dish and restaurant discovery. The app streamlines the process, making it easy for users to discover new culinary experiences and share recommendations with a social network of food enthusiasts, Curefoods said in a statement.

“We see Hogr as more than just an app. We strive to create a community where food enthusiasts come together to share the joy of discovering new dishes and places to eat, fostering social connections through this platform,” said Thachery. 

Commenting on the funding, Ankit Nagori, founder of Curefoods, said, “We have noticed that Hogr addresses and streamlines the challenge of discovering new dishes and restaurants, as well as forms a food community via peer-to-peer recommendations. This aspect intrigued us and motivated our decision to invest in this app.” 

Founded by Nagori in 2020, Curefoods houses brands such as EatFit, Cakezone, Nomad Pizza, Sharief Bhai Biryani and Frozen Bottle. The startup claims to be running over 200 cloud kitchens and offline stores that cater to over 10 cuisines across 15 cities in India.

Curefoods has so far raised around $220 Mn in funding from more than 25 investors. It is also on an expansion spree in the food sector. 

It recently acquired foodtech startup Yumlane for an undisclosed amount.

In July this year, Curefoods also made a strategic investment in Hyderabad-based millet startup Millet Express to help it expand and reach a wider audience for millet-based products. 

The investment in Millet Express came two months after Curefoods raised INR 300 Cr ($37 Mn) in a funding round led by Three State Ventures. The round was a mix of primary and secondary equity and debt.

Earlier, Curefoods acquired startups such as subscription-based home-cooked meals startup Masala Box, Indian breakfast startup Paratha Box, online confectionery chain CakeZone, biryani brand Ammi’s Biryani, pizza brands Olio and Crusto’s and online chaat brand Chaat Street.

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The Supreme Court has refused to grant an interim relief against Goods and Services Tax (GST) demand notices to e-gaming companies Games24x7 and Head Digital Works.

As per Monecontrol’s report, the court, however, indicated that it will consider a case on the constitutional validity of the government’s decision to impose 28% GST on online gaming companies retrospectively on the full value of the bets placed, and not on the gross gaming revenue, from October 1.

Harish Salve, senior advocate for online gaming companies, urged the court to direct the government not to take action on the demand notices until the Supreme Court reviews the case. He informed the court about the constant probes by the GST department, putting pressure on the companies. 

Salve told the court that while they are providing the requisite details, any adverse order will put these companies under further pressure.

Additional Solicitor General (ASG) Venkatraman, representing the government, requested a deferral of the case hearing, citing a lack of proper instructions. Consequently, the court postponed the hearing to January 8.

This comes at a time when the online gaming space has been reeling under the impact of the recent GST changes, as per which a 28% tax would be levied on the full value of bets placed in online games, regardless of whether it involves games of skill or chance.

The online gaming industry in India is currently facing a multitude of challenges. In addition to ongoing concerns related to the Goods and Services Tax (GST) in the real money gaming sector, online gaming companies have reportedly received show-cause notices for suspected tax evasion amounting to a significant sum of INR 1 Lakh Cr.

In light of the evolving tax and regulatory environment, several online gaming platforms have taken the step to temporarily suspend their operations. Platforms such as Quizzy, OWN, and Fantok have opted to halt their operations in response to these changing dynamics.

Meanwhile, Bengaluru-based Gameskraft made a similar strategic decision by shelving its fantasy gaming offering, Gamezy Fantasy, in September.

Earlier, the parent entity of Games24x7 also received a notice amounting to INR 21,000 Cr from tax authorities.

It is pertinent to note that besides facing financial and other troubles after the implementation of the new GST regime for real money gaming in October, online gaming firms have also been receiving show-cause notices from the tax authorities for alleged GST evasion.

Further, the Indian government is thinking about creating a Group of Ministers (GoM) to set up rules for the online gaming industry and address related issues.

The post SC Refuses Interim Relief To Games24x7 & Head Digital Works On Tax Notices appeared first on Inc42 Media.

Mobile Premier League (MPL)-backed Web3 fantasy gaming platform Striker has reportedly become the latest casualty of the GST Council’s decision to levy 28% GST on the online gaming sector. 

The gaming platform is winding up its operations, Moneycontrol reported citing sources. However, there was no clarity on the timeline for the shut down and what will happen to the company’s existing employees. Even cofounder Krishna Mohan Vedula has reportedly left the company. 

MPL declined to comment on Inc42’s queries on the development. 

Founded in 2022 by former MPL employees Vedula and Nitesh Jain, Striker allows users to collect and trade digital collectibles and cards centred around cricket. Users also have the option of redeeming and trading these cards on Striker marketplace to earn money. It also allows customers to make fantasy cricket teams and compete in contests and win prizes. 

MPL provided tech and infrastructure support to the startup. 

Meanwhile, Striker has been in the eye of the storm for quite some time. The 28% GST only added to its woes. The MPL-backed startup was locked in a full-fledged legal case earlier this year with Dream Sports-backed Rario over the former’s non-fungible token (NFT)-focussed fantasy gaming offerings. 

In a petition before the Delhi High Court (HC), Rario had alleged that Striker’s collectibles used identifiers and caricatures of nearly 170 cricketers that the Dream Sports-backed company had exclusive licences for. 

Eventually in April this year, the HC threw out Rario’s plea seeking interim injunction, noting that the data used by Striker was publicly available and could be used by anyone.

A few months later in October, 28% GST on real money gaming came into effect and left the entire ecosystem in troubled waters. Striker too was badly hit. This piled on top of 30% tax levied on profits from trading of virtual digital assets and 1% TDS that took away users from Striker and left it further deep in trouble. 

As crypto and gaming space became less attractive bets for investors, waning user numbers, a major legal case and funding winter set Striker on a downward path. 

However, Striker is not alone in this. The 28% GST has also hit its peers hard in the online gaming ecosystem. While many such as Fantok and Quizzy have temporarily shut down operations, others such as MPL and Hike have resorted to mass layoffs to cut costs and streamline operations.

Striker’s competitor Rario, earlier this year, saw a full-scale internal tussle between cofounders Ankit Wadhwa and Sunny Bhanot and investors. After a tug of war, the two were said to be reportedly exiting the company while investor Dream11 began exerting more control over the operations of the firm.

MPL Acquires Good Game Exchange

Meanwhile, the crypto sector continues to see a consolidation wave. MPL has reportedly acquired NFT marketplace Good Game Exchange (GGX) for $12.75 Mn. 

As per Entrackr, the MPL board has passed a special resolution to acquire the business and assets of GGX Protocol and is buying out the tokens of the startup’s existing investors. The deal, however, involves the issuance of 25.19 Lakh Series E preference shares to the existing investors of GGX as payout for the acquisition.

It is pertinent to note that MPL acquired a 20% stake in GGX in 2022 while the majority of ownership still lay in the hands of investors and staff members. 

As the entire ecosystem braces for a meltdown and increased compliance, it remains to be seen how the Indian online gaming ecosystem emerges from the shadow of this regulatory quagmire and the raging funding winter. 

The post Another Casualty Of 28% GST? MPL-Backed Striker To Shut Operations appeared first on Inc42 Media.

Cloud kitchen startup Curefoods, floated by Cure.fit cofounder Ankit Nagori, has appointed former Tata Starbucks chief executive officer Avani Davda to its board.

The Bengaluru-based startup, which counts Binny Bansal’s fund Three State Ventures, IronPillar, Chiratae Ventures, ASK Finance and Winter Capital as among its marquee investors, aims to strengthen the depth of proficiency and leadership at hand with this appointment, it said in a statement on Thursday (December 14).

Davda, who currently serves as an independent director in Mahindra Logistics and JSW Paints, has over 20 years of experience across multiple companies, especially in the food and beverage (f&b) space.

Currently, she also serves as a strategic advisor to Bain Advisory Network and had served as the managing director and CEO at Godrej Nature’s Basket. Prior to that, she served Tata Global Beverages as the vice president and eventually moved on to lead Starbucks as its CEO. 

“Avani’s expertise and years of experience in the f&b industry adds a fresh perspective of thought and direction to the brand and its strategy,” Nagori said.

Founded in 2020, Curefoods houses brands like EatFit, Cakezone, Nomad Pizza, Sharief Bhai Biryani and Frozen Bottle among others. The startup claims to be running over 200 cloud kitchens and offline stores that cater to over 10 cuisines across 15 cities in India.

The startup said in a statement that it will continue to focus on growth, expansion in offline restaurant category and the overall initial public offering (IPO) preparedness.

It added that this onboarding marks a significant milestone, as it looks at onboarding more experts on their leadership in 2024 and plans further growth strategy.

Curefoods has so far raised around $220 Mn in funding from more than 25 investors. It is also on an expansion spree in the food sector. 

The startup recently acquired foodtech startup Yumlane for an undisclosed amount. As a part of this acquisition, Yumlane will leverage the reach of Curefoods to boost its proprietary pizza technology.

In July 2023, it also made a strategic investment in Hyderabad-based millet startup Millet Express to help it expand and reach a wider audience for millet-based products.

This investment was followed by a $37 Mn funding round led by Three State Ventures. 

It has earlier acquired startups such as subscription-based home-cooked meals startup Masala Box, Indian breakfast startup Paratha Box, online confectionery chain CakeZone, biryani brand Ammi’s Biryani, pizza brands Olio and Crusto’s and online chaat brand Chaat Street.

The post Curefoods Ropes In Ex-Tata Starbucks CEO Avani Davda On Its Board appeared first on Inc42 Media.

Elon Musk-led xAI is rapidly expanding its generative artificial intelligence (AI)-based chatbot Grok AI into India and 46 other countries including Australia, Canada, Malaysia, New Zealand and Singapore among others, within a week of its US launch.

The bot is currently accessible to subscribers of X Premium+, the top subscription tier of X, the social network formerly known as Twitter. 

xAI’s foray into the Indian market comes at a time when ChatGPT developer OpenAI is navigating the country’s policies and regulations to venture into the AI space. 

X rolled out Grok on December 8. “Access to @grok is now rolling out to Premium+ subscribers in the US over the next week. You can find Grok in the side menu on web, iOS, and Android,” the platform said in a tweet.

Linda Yaccarino, the chief executive of X, said, “Grok is now gracing the world in even more countries, spreading knowledge and laughter far and wide. The future is looking brighter already!”

In October, X launched the Premium+ tier, which offers users an ad-free experience. Priced at $16 per month, subscribers enjoy various benefits, including the ability to edit tweets, post longer text or videos and participate in ad revenue sharing.

For Indian users, the Premium+ tier is available at INR 1,300 per month on the web or INR 2,150 per month on mobile apps.

Grok challenges OpenAI‘s ChatGPT and operates on the Grok-1 AI model. 

It is pertinent to note that Musk was one of the cofounders of OpenAI in 2015 and after three years he stepped down from the company’s board of directors.

Meanwhile, OpenAI is set to host its inaugural developer meetup in Bengaluru next month as the ChatGPT developer looks to penetrate deeper into India’s AI space. 

This comes at a time when Sam Altman’s OpenAI is reportedly partnering with Rishi Jaitly, former Twitter India head, to gain insights into and navigate India’s policies and regulations concerning the AI landscape.

Although OpenAI does not have an official presence in India, it recently secured trademark approval. 

According to IMARC Group, the AI market in India was valued at $680.1 Mn in 2022. Projections suggest a significant growth with an expected market size of $3,935.5 Mn by 2028, showcasing a CAGR of 33.28% from 2023 to 2028. The surge is fuelled by factors such as government initiatives, rapid digitisation, increasing demand for AI solutions across industries and continuous innovations.

The post Elon Musk’s Grok AI Chatbot Enters India appeared first on Inc42 Media.

OpenAI is set to host its inaugural developer meetup in Bengaluru next month as the ChatGPT developer looks to penetrate deeper into India’s artificial intelligence (AI) space. 

This comes at a time when Sam Altman’s OpenAI is reportedly partnering with Rishi Jaitly, former Twitter India head, to gain insights into and navigate India’s policies and regulations concerning the AI landscape.

Although OpenAI does not have an official presence in India, it recently secured trademark approval. 

During a session at the Global Partnership on AI (GPAI) Summit on Tuesday (December 12), Anna Makanju, vice president of Global Affairs at OpenAI, said that the gathering will mark the commencement of OpenAI’s engagement in the Indian market, ET reported.

“We will hold a developer gathering with our vice-president of engineering, Srinivas Narayanan in Bangalore, in January—with more to follow. We plan to convene developers in India to work with OpenAI product leaders on some of the most difficult products and safety challenges,” Makanju said.

OpenAI, along with other major global technology players such as Google, Microsoft, Amazon, and Nvidia, forms part of the 29-nation delegations participating in GPAI 2023. 

Speaking at the GPAI Summit in New Delhi, Makanju discussed the company’s focus on advancing AI safety and capacity following recent leadership changes. 

Makanju further highlighted OpenAI’s collaboration with the farmer welfare organisation Digital Green, aiding India’s agriculture ministry in cost-effective agricultural extension services. 

The initiative employs a chatbot providing location-specific guidance in multiple languages. The tool is set to launch in 10 states by early 2024, with plans for nationwide availability.

In June, Altman met Prime Minister Narendra Modi during his trip to New Delhi and expressed interest in investing in Indian startups. “We had some discussions about investing in Indian startups, and we would love to explore opportunities in that space.”

Founded as a non-profit by Altman, Elon Musk, and others in 2015, OpenAI later introduced a for-profit arm in 2019. Originally focused on creating beneficial AI for humanity, the launch of ChatGPT, a consumer chatbot app, propelled OpenAI into the mainstream, establishing itself as a leading company in AI. 

In October, a report from The Information revealed that according to Altman, OpenAI is achieving an annual revenue rate (ARR) of $1.3 Bn

The post OpenAI To Host Developer Gathering In Bengaluru To Discuss AI Safety appeared first on Inc42 Media.

Studies reveal that one in four Singaporeans dine out daily, while 80% opt for at least one restaurant meal every week. This shift away from traditional home-cooked meals has stemmed from broader socio-economic changes such as busy lifestyles, increased affluence and, most importantly, the rise of on-demand food delivery services riding the wave of ubiquitous digital tech and the smartphone economy.

But the dynamics of change are not limited to the island nation alone. In the past decade, India has witnessed a similar transformation in eating habits, driven by the rapid growth of the online food delivery segment. As mentioned by Statista, a Rakuten survey in December 2022 found that most Indian respondents aged 16-54 dined out at least once a week. 

Given the exponential growth across India, the online food delivery market volume is estimated to reach $81.9 Bn by 2028, growing at a CAGR of 19.7% during 2023-2028. However, this surge would not have been possible without the sturdy industry stalwarts – Zomato and Swiggy – who lay the groundwork for the food-delivery ecosystem.

Both leverage the techvantage of a digital-first ecosystem to cater to the diverse Indian food palate but compete fiercely for a bigger market share. Zomato has maintained a sizable lead over its closest competitor in terms of execution. But is Swiggy lagging far behind or breathing down its rival’s neck?

An assessment of the year gone by (2023) and the outlook for 2024 will reveal these interesting ground realities and the shape of things to come.    

Is It Zomato All The Way In 2023?

The narratives of Gurugram-based Zomato, now a listed company, and its unlisted peer Swiggy from Bengaluru are not analogous. However, much of their growth is the direct outcome of innovative marketing strategies (more on that later) and lucrative sales tactics such as discounts, cashback deals, exclusive offers and attractive loyalty programmes.

These sureshot bets (to say nothing about their expansive reach in the pan-India restaurant market) have lured gastronomes to online food-ordering over the years. Subsequently, engagement has increased and customer loyalty has split into two distinct camps. (Take a look at the app download comparison.)

The Zomato-Swiggy face-off in the food-delivery space has been accelerated by sustained investor interest. Together, these industry leaders have raised $5.4 Bn for strategic acquisitions, cloud kitchens and implementation of value-added services. More importantly, their deep pockets and industry dominance slowly squeezed out other players from the arena.

For instance, ride-hailing giant Uber India’s food delivery business UberEats was acquired by Zomato in early 2020, while Ola completed the 100% acquisition of Foodpanda (India) in early 2022 from Germany-based Delivery Hero.  

The outcome: The industry has a duopoly now where the arch-rivals claim nearly identical market shares in India. However, Zomato maintained its lead with a 54% market share compared to Swiggy’s 46% in the food delivery space as of H1 2023, according to reports.

Although it has not been a smooth ride for either of the companies in 2023, Zomato has taken the lead in several critical areas to hold strong as an icon of India’s post-pandemic gig economy boom. Here is a look at how the companies have fared this year.   

Zomato Tops The Consumer Sentiment Survey

According to Inc42’s Consumer Sentiment Survey 2023, done in collaboration with Clootrack, Zomato emerged as the preferred online food delivery service among Indian consumers.

The conclusion was based on a Clootrack analysis of more than 24K user reviews on the Apple App Store and Google Play Store between January 1 and November 22. The findings underscore Zomato’s stronghold and positive reception in the highly competitive food aggregation, online ordering and delivery market.

The survey also revealed that key success metrics, including offers and discounts, food quality, customer service, delivery time and interactions with delivery partners, received high scores for Zomato on a scale of 1-5, where 1 signified the lowest and 5 represented the top score for consumer experience.

Zomato Sweeps The Field In App Downloads

According to an Inc42-AppTweak analysis, the combined monthly app downloads of Zomato and Swiggy averaged 7.6 Mn and reached a total of 83.5 Mn between January and November 2023. Zomato led with 47.5 Mn downloads (56.9%), while Swiggy recorded 36 Mn (43.1%).

It is worth noting that the Swiggy app covers its grocery services (Instamart) and restaurant deals and discovery (Dineout) vertical besides food delivery.

Although Zomato has integrated UberEats’ operations with its own to strengthen the food delivery business, its quick commerce platform Blinkit (formerly Grofers, which was acquired in 2022) operates via a separate app. It has seen 14 Mn downloads in 2023 (excluding December data), and combined with Zomato’s download numbers, puts the parent company in a superior position.

But Financial Dips, Critical Exits – Who Has Weathered It Better

Zomato faced a challenging start to 2023, marked by the departure of its CTO, Gunjan Patidar. A subsequent 2% dip in its share prices was followed by an 8% decline, hitting its lowest since July 2022. Despite the setback, Zomato’s consolidated revenue for Q3FY23 (October-December 2022) surged by 1.75x to INR 1,948 Cr, but the foodtech giant saw a 5x spike in losses, reaching INR 346.6 Cr. 

Not only this, it liquidated its subsidiaries in Jordon, Czech, Portugal while in process of shutting operations in the Philippines and Indonesia with active operations only in India and the UAE. 

Zomato had also placed early bets on non-metro markets to widen and deepen its reach, a cash-burning exercise as it would not provide immediate results. However, given the global slowdown in 2023 due to macro headwinds, the foodtech unicorn focussed on improving its financial performance.

Zomato hit overall profitability in Q1 (April-June 2023) and Q2 (July-September 2023) of the current financial year and reintroduced its Gold loyalty programme in January, which has now surged to 38 Lakh members.

Although it is not strictly contextual (Swiggy is not a listed company), Zomato stock has given excellent returns in 2023 on a YTD (year-to-date) basis. After some dismal performances post its IPO, the stock has emerged as a multibagger and gained around 103% as of November 2023.

We have not considered the market loss it suffered on December 11, 2023, as the company was under pressure after SoftBank offloaded its remaining stake in Zomato.

Swiggy, too, grappled with persistent losses, high-profile exits and diminished investor confidence ahead of its impending IPO. 

The Bengaluru-based foodtech unicorn is yet to announce its FY23 earnings, but it reported a loss of INR 3,628.9 Cr in FY22 with an operating revenue of INR 6,119.8 Cr. It also restructured the business and adopted cost-cutting measures, resulting in the termination of 380 employees.

Key people, including Karthik Gurumurthy (Senior Vice President and Head of Swiggy Instamart), Dale Vaz (CTO), Anuj Rathi (SVP, Central Revenue and Growth ), Ashish Lingamneni (VP, Marketing) and Dineout cofounder Vivek Kapoor, were among its high-profile exits.

To add to its woes, the US-based investment firm Invesco marked down Swiggy’s valuation twice earlier this year, eventually slashing it to $5.5 Bn from an earlier $10.7 Bn. Swiggy reached the decacorn valuation when it raised $700 Mn from the US investor in 2022.   

Things took a turn for the better when Swiggy CEO Sriharsha Majety claimed that the foodtech unicorn’s food delivery business achieved profitability as of March 2023, excluding ESOP costs. Investors also displayed renewed confidence, with Invesco marking up Swiggy’s valuation by nearly 43% to $7.85 Bn and Baron Capital internally raising the valuation by 33.9% quarter-on-quarter to $8.54 Bn.

Creative, Relatable & Witty: How Zomato Campaigns Capture Foodies  

Innovation-driven marketing is a major growth driver in today’s business scenario, and Zomato has vroomed into that space. Take, for instance, the age-old SEO tools consistently driving traffic 24×7. According to traffic analyser Ubersuggest, Zomato ranks in India for 2,494,988 keywords as of August 2023, with monthly organic traffic amounting to 30,484,205, as mentioned in an IIDE (Indian Institute Of Digital Education) report. Although these figures are a tad lower than its SEO performance in February 2023, Zomato has outperformed Swiggy by 2.5 times.

However, the company has taken the cake in the social media domain.

Zomato and Swiggy are active on major social media platforms like Instagram, Facebook and X (formerly Twitter). As of November 2023, Zomato has 891K followers on Instagram, 1.9 Mn on Facebook and 1.5 Mn on X. Swiggy is a notch down, with 457K followers on Instagram, 999K on Facebook and 209K on X.

Zomato’s ability to attract and engage people on every medium can be attributed to its use of trendy and witty posts. For instance, a recent collaborative campaign with Blinkit tweaked a famous Bollywood dialogue, leaving people in splits. While the Blinkit billboard turned the original dialogue on its head and said: Doodh mangoge, doodh denge (Ask for milk, and we will deliver it), Zomato took a page from it and made a humorous addition: Kheer mangoge, kheer denge (Ask for kheer, and we will deliver it). 

Then there are other campaigns – the story of Raksha and Bandhan, Zomato vs Zomato and Humans of Zomato – which are equally intriguing and never fail to captivate consumers. A recent case study by IIDE also highlighted the food delivery giant’s effective strategy of creating witty and relatable content to enhance engagement and appeal to its audience.

Moreover, when Zomato’s founder and CEO, Deepinder Goyal, joins the upcoming season of the popular TV show Shark Tank India, the event can set social media on fire. The company will not let go of this opportunity to impress netizens.

As global customer reach is its primary objective, Zomato utilises every available digital marketing tool to understand the preferences of its target audience and cater relevant content. According to the digital marketing agency Ideatick, the company sticks to a creative marketing strategy to stay at the forefront of the industry.

That does not mean Swiggy is lagging. The company has earned industry acclaim for its skilful storytelling, exemplified by its famous campaign What’s In A Name, where it ingeniously weaves relatable stories around restaurant names. Swiggy typically looks at people’s hunger quotient to craft a comprehensive marketing strategy, epitomised by its timeless tagline: Craving Something?

It also captivates its audience with visually compelling content and relevant Indian topics, ranging from cricket to political unrest. Again, pictures of delicious food are promoted on Instagram to position the company as the go-to choice for those desiring delectable meals.

Recognising the fast-growing significance of memes in the new millennium vernacular, Swiggy infuses its distinct flavours into them to enhance customer interaction on social platforms. A notable example is its viral Vadapav meme on Instagram (posted in September 2022), which got more than 1.2 Mn views and 5K comments, showcasing the effectiveness of this approach.

2024 Outlook: Competitive Sparring On The Menu

According to a Statista report, the number of users across the meal delivery market in India is estimated to reach 346.6 Mn by 2028. This anticipated surge in user numbers has transformed online food aggregation and delivery into a highly lucrative segment, attracting new players and investors. 

So, it is not surprising that startups like Waayu and Thrive, as well as the Indian government’s ambitious digital commerce network ONDC, are challenging the longstanding duopoly of Zomato and Swiggy.

Interestingly, WAAYU distinguishes itself as a no-commission food delivery platform, backed by Bollywood actor and investor Suniel Shetty and supported by the Mumbai-based Indian Hotel and Restaurant Association (AHAR). The startup charges an introductory fee of INR 1K per month per outlet, which will be doubled a month after the onboarding. Restaurants also have to pay a one-time onboarding/setup fee of INR 3,650.

Another noteworthy contender is Thrive, a foodtech platform supported by Coca-Cola. It collaborates with restaurants for online and WhatsApp ordering, order management and setting up digital menus. Thrive claims to have a large restaurant base (exact number not disclosed) as it charges a 3% commission compared to 18-25% levied by Zomato and Swiggy.

The presence of ONDC makes the market more competitive as it has already onboarded more than 50K restaurants, signalling a tough time ahead for Zomato and Swiggy. 

As we approach 2024, the fate of these industry leaders remains uncertain. Only time will tell if they can operate in a stable market and grow sustainably, or it will continue to be a roller-coaster ride.

[Edited by Sanghamitra Mandal]

The post The 2023 Face-Off: How Zomato Powered Past Swiggy In The Food Delivery Race appeared first on Inc42 Media.

A landmark fine by the Competition Commission of India (CCI) on Google in late 2022 set into motion a series of events that echoed well into 2023. The domino effect led to a turbulence that hit Google’s ship, a force to reckon with and a digital juggernaut. 

Emulating its global operations, 2023 turned out to be a tumultuous year for the big tech major in India as well. The CCI penalty emboldened Indian startups to take the company to courts and even paved the way for the homegrown ecosystem to wrest control of a key industry body (IAMAI) from Google.

Piling on top of these issues were other anti-competitive cases brewing in the news aggregation and the smart television space. 

Besides, as a flurry of legislation, centred on the country’s digital ecosystem, took shape this year, Google found itself in the crosshairs of the government. Be it rap from authorities for failure to crack the whip on fake news or the emergence of deepfakes, the year turned out to be a trying time for the big tech giant.

Macroeconomic headwinds too hit the company as layoffs brought bad press for the big tech giant.

Notwithstanding these challenges, Google continued to focus on India, its biggest market globally in terms of users. 

From chief executive officer (CEO) Sundar Pichai’s bonhomie with Prime Minister Narendra Modi to moving some of the production of Pixel smartphones to India, Google left no stone unturned to tout its India push. 

The year also saw Google bolster its fintech ambitions while rolling out new AI offerings for its Indian audiences. While 2023 indeed was, in some sense, a mixed bag for the company, unease prevailed among the company’s top leadership over regulatory strife and legal cases stuck in limbo.

Google Caught In The Great Indian Legal Limbo

As the competition watchdog issued a landmark antitrust judgement against Google in October 2022, little was known that it would stir up a big storm for the company. 

The CCI slapped two separate fines, totalling over INR 2,200 Cr, on Google for abusing dominance in the Android devices market and over its Play Store policies. It also directed the US-based major to undertake sweeping reforms to its operations in the country. 

Refusing to take the order lying down, the company appealed the decision before the National Company Law Appellate Tribunal (NCLAT). 

As cases dragged on, Google was forced to change course and instituted a slew of changes to India operations. It made some changes to its agreements with original equipment manufacturers (OEMs) and even announced a new user choice billing system (UCBS), which slashed developer commissions to 11-26%.

However, as Google began rolling out new policy changes to comply with the CCI rules, it met an unexpectedly tough adversary — Indian startups. 

First on the menu were public statements by Indian startup founders, trashing the new billing policy and equating it with British-era ‘Lagaan’. Some even termed Google a threat to the country’s startup ecosystem. 

What followed was Indian startups banding together to file cases against Google’s UCBS in Delhi High Court and Madras High Court. The homegrown players even approached the NCLAT and other stakeholders to pitch their case against the new policy.

As this saga played out, many founders were irked by the silence of industry body Internet and Mobile Association of India (IAMAI) on the matter. Consequently, the startups trained their guns on the industry body, which, as per many founders, was controlled by big tech executives. 

The aftermath saw Indian founders participate in huge numbers in the IAMAI’s elections and wrest its control from Google representatives – a small win for the Indian startup ecosystem.

In the middle of all this, it was the regulatory standoff that seemed to be the biggest trouble in Google India’s paradise.

Google’s Regulatory Pitfalls In India

A recurring theme of Google’s operations in India has been its behind-the-scenes, if not always public, skirmishes with the government. As the government undertook the overhaul of key digital laws in 2023, Google found itself in the middle of the action. 

While the amended IT Rules brought the safe harbour protections into question, the Telecommunication Bill hinted at the possibility of regulation of its OTT communication apps. The Digital Data Protection Act proposed an elaborate set of homework, hefty fines and additional compliance burden for the Sundar Pichai-led company.

The emerging threats such as deepfakes as well as misinformation, ahead of 2024 general elections, has also put the company in the crosshairs of the union government. 

In a bid to tide over this, the company has largely resorted to its time-tested strategy of engaging with authorities behind closed doors, partnering with the Centre on a slew of initiatives, and emboldening its Make in India push. 

Be it the production of Pixel smartphones in India or launching accelerator programmes for Indian startups, in partnership with MeitY, Google pitched itself as a force dedicated to the cause of the Indian digital economy. 

Meanwhile, the company continued to shore up its fintech ambitions, looking to capitalise on the burgeoning number of Indians joining the digital fold. 

The India Ambition Scales Up

Google continued to heavily scale up operations to capture a bigger pie of the Indian digital economy, which is projected to soar to a market size of $1 Tn by 2025. 

Diversifying from offering mere digital payments services, the big tech major forayed into the financial services segment. In partnership with Indian banks and startups, Google Pay, starting 2023, began to offer merchant credit lines and sachet loans for consumers.

With an eye on accelerating its fintech growth, Pichai also announced that the company would set up its global fintech operation centre at the GIFT City in Gujarat. 

Capitalising on GenAI, the flavour of the season, Google announced a spree of AI-focussed launches this year. Be it Bard or visual search, the tech giant rolled out a host of AI-led products and services for its Indian users even as competition intensified from Sam Altman-led OpenAI. 

Meanwhile, it continued to feel the heat of the global economic meltdown that unfolded in 2023. As a result, Google undertook a cost cutting exercise to streamline operations which resulted in axing of more than 450 jobs in India. 

The Mountain View-based company also shut down and announced the discontinuation of a slew of products and services, such as Google Podcasts, Google Stadia, and Google Jamboard, to focus on actual money-minting products. 

In India, YouTube also shut down its live social commerce app Simsim, just two years after the streaming giant splurged millions of dollars to acquire the Indian startup. 

What 2024 Holds For Google?

After a turbulent 2022 and 2023, Google has work cut out for itself in 2024. With general elections around the corner, Google could be in the spotlight as apprehensions grow over misinformation and negative use of generative AI.

While its legal troubles and standoffs with government authorities are expected to continue well into next year, the company could be hoping for some relief from Indian courts as it charts its path ahead in India.

The company will also continue to pump millions of dollars to roll out GenAI offerings, especially its GPT-4 rival Gemini. The suite of AI products will largely cater to consumer-facing products while it straddles potential regulations for the emerging technology. 

The world is also expected to return to sanity as macroeconomic pressures ease, paving the way for healthier revenues for the big tech giant. While the antitrust rulings are expected to continue, the company will continue to scale up its presence in India, focussing more on vernacular media and tapping into the growing Indian population that wants to access the internet in their own language.

The post 2023 In Review: A Year When Digital Goliath Google Met Its Adversaries In India appeared first on Inc42 Media.

At the time when the real money gaming industry is reeling under the impact of the GST Council’s decision to hike the GST rate to 28%, gaming startup Gameskraft crossed the INR 1,000 Cr mark in consolidated net profit in the year ended March 31, 2023.

On the back of strong growth in its business, Gameskraft’s profit rose 14.2% to INR 1,061.9 Cr in the financial year 2022-23 (FY23) from INR 930.4 Cr in FY22.

Founded in 2017 by Prithvi Raj Singh, Deepak Singh, Rajkumar Taneja, and Sindhu Devi Jha, GamesKraft operates real money gaming platforms such as RummyCulture, RummyPrime, Playship, Pocket52 and LudoCulture.

The startup primarily earns revenue from facilitation of gameplay in the form of commission or platform fees charged to the users as a fixed percentage of the amount they spend as entry fees.

Gameskraft’s revenue from operations jumped 24.8% to INR 2,662.5 Cr in FY23 from INR 2,133.1 Cr in FY22.

Including other income, total income rose xx% to INR 2,732.1 Cr from INR 2,153.2 Cr in FY22.

Where Did Gameskraft Spend?

Gameskraft’s total expenses soared 45.7% to INR 1,300.7 Cr in FY23 from INR 892.8 Cr in FY22.

Advertising and Marketing Expenses: The startup’s marketing expenses saw a sharp rise of 346% to INR 408.57 Cr in FY23 from INR 91.51 Cr in FY22, accounting for the biggest portion of the total expenditure. Its business promotion cost also rose 96% to INR 208.1 Cr in FY23 from INR 106.4 Cr in the previous fiscal year.

It must be noted that the costs incurred by the company towards free games and contribution towards player prize money in case of tournament are recorded as an expense and reported as part of advertisement, promotional and marketing expenses.

Employee Cost: Employee benefit expenses continued to account for a significant share of the startup’s total expenditure. Employee costs increased 57% to INR 374.9 Cr from INR 208 Cr in FY22.

While the startup posted a rise in its top and bottom lines, the numbers pertain to the period before the GST Council’s decision to hike GST for real money gaming. Following the GST Council’s decision, Gameskraft decided to discontinue its fantasy offering, Gamezy Fantasy.

GamesKraft is also among the gaming majors that received GST notices from the government. In September, the Supreme Court stayed Karnataka High Court’s judgment, which quashed a goods and services tax (GST) notice against Gameskraft for alleged tax evasion to the tune of INR 21,000 Cr.

The post Amid Tax Woes, Gameskraft’s FY23 Profit Jumps 14% To Cross INR 1,000 Cr Mark appeared first on Inc42 Media.

Sam Altman’s OpenAI is reportedly partnering with former Twitter India head Rishi Jaitly to understand and navigate the country’s policies and regulations on the artificial intelligence (AI) landscape.

According to a TechCrunch report, Jaitly is working as a senior advisor with the ChatGPT developer to facilitate talks with the Indian government about AI policy.

Jaitly served as the head of the public-private partnership for Google in India between 2007 and 2009. In 2012, he transitioned to Twitter (now X), becoming the company’s inaugural employee in the country, as indicated on his LinkedIn profile.

While OpenAI currently lacks an official presence in India, recent developments include the approval of a trademark earlier this month. OpenAI’s cofounder and chief executive officer Altman visited New Delhi in June during a global tour and held discussions with Prime Minister Narendra Modi. 

During his visit to India in June, Altman expressed keen interest in investing in Indian startups. When asked by Inc42 at an event in Delhi about OpenAI’s venture capital arm considering investments in Indian startups, he said, “We had some discussions about investing in Indian startups and we would love to explore opportunities in that space.”

Additionally, there are indications that OpenAI is exploring the establishment of a local team in India, the TechCrunch report added.

In 2015, Sam Altman, along with Elon Musk and other collaborators, established OpenAI as a non-profit organisation. However, in 2019, they introduced a for-profit arm. The primary objective was to develop artificial intelligence for the benefit of humanity.

With the introduction of ChatGPT, a consumer-oriented chatbot app, OpenAI not only gained widespread recognition but also emerged as a leading force in AI. Reports suggest that Altman asserted OpenAI was achieving an Annual Recurring Revenue (ARR) of $1.3 Bn.

Lately, things have been a bit topsy-turvy for OpenAI’s top brass. First, Sam Altman and board president Greg Brockman got unexpectedly booted from the company. They briefly hopped over to Microsoft before making a comeback to OpenAI with a freshened-up board.

As per an Inc42 report, “India’s Generative AI Startup Landscape, 2023”, the GenAI market in India is poised to see a substantial increase from $1.1 Bn in 2023 to over $17 Bn by 2030, growing at a CAGR of 48%.

India currently boasts over 70 generative AI startups. These startups have collectively secured more than $440 Mn in funding between 2019 and the third quarter of 2023.

The post ChatGPT Developer OpenAI Working With Ex-Twitter Executive Rishi Jaitly To Enter India’s AI Space appeared first on Inc42 Media.

Tech giant Google has shortlisted 20 artificial intelligence (AI)-first startups in the seed to Series A stage for the eighth batch of its startup accelerator in India.

“These startups represent cutting-edge AI innovation in India, tackling diverse challenges, including discovering antibodies, detecting identity fraud, helping small and medium-sized businesses (SMBs) to reach more customers, reducing developers’ repetitive work and focusing on building solutions that use AI to address systemic challenges,” Google said in a blog post on Friday (December 8).

The company aims to foster an environment that nurtures innovative startups and fuels the rapidly evolving AI landscape of the Indian startup ecosystem, it added.

The accelerator offers a three-month equity-free programme where selected startups get mentorship and support across areas such as artificial intelligence/machine learning, cloud, user experience, Android, web, product strategy and growth. It will also conduct workshops focused on product design, customer acquisition and leadership.

The current batch started this week with a week-long in-person boot camp, which includes training workshops and mentorship support around product, design, tech, growth and people.

What Are These 20 Startups Building?

Beatoven.ai

An AI-powered royalty-free background music creation platform for content creators

DhiWise

An AI-powered DevTool that enables developers to deliver production-ready source code for web and mobile apps 10x faster for all kinds of apps

Endimension

An end-to-end AI platform for radiology diagnosis

FilterPixel

An AI software that saves hours by automatically selecting the best photos from thousands of photos and then editing them automatically as per the style of the photographer

GalaxEye Space

A platform which is building next-generation imaging satellites using multiple sensors and generative AI for night/cloud-proof imaging

Gan.ai

A video personalisation platform that leverages generative AI to create personalised videos at scale from a single recording

Goodmeetings

A generative AI-driven video sales platform that helps salespeople sell 10X better on video

immunitoAI

A TechBio startup developing AI-generated novel antibody therapeutics with pre-defined drug properties

Kalam

A personalised mentorship and discipline-facilitating learning ecosystem tapping AI to address the challenges of affordability and accessibility to quality education in India.

Keploy

An open-source TestGPT toolkit for automating integration testing, converting network calls to test cases and data mocks for APIs and enabling production incident replays

Mugafi

Reshaping entertainment through Ved, an AI copilot that empowers storytellers to effortlessly create captivating novels or scripts, transcending traditional storytelling boundaries

NeuroPixel.AI

A deep tech startup working in the intersection of generative AI and computer vision, primarily focused on fashion ecommerce

Onward Assist

A platform which helps improve cancer outcomes by assisting the cancer biopsy reporting process through an AI-based solution that assists cancer pathologists with accurate scoring, tumor detection and workflow software.

Pepper Content

A content marketing platform that helps companies scale content marketing through expert talent and generative AI

Prescinto

An AI-powered SaaS platform that regularly collects renewable energy plant (solar, wind, storage) data, applies ML/AI models to this data to identify causes for underperformance and suggests work orders to increase electricity generation from these renewable plants

Presentations.AI

An AI-powered platform that lets everyone effortlessly create stunning presentations fast

SpoofSense.ai

A startup which helps businesses detect identity fraud using computer vision

Wright Research

A startup which aims to redefine investment in India with AI-driven, personalized quantitative strategies, delivering exceptional performance and risk management through a user-friendly, transparent digital platform

Zocket

An AI-powered SaaS platform for SMBs to grow their business with high-performing digital ads

ZuAI

An AI self-study buddy for students

The post Google Picks 20 AI-First Startups For Its India Accelerator Programme appeared first on Inc42 Media.

Japanese tech investor SoftBank on Friday (December 8) offloaded 9.35 Cr shares of foodtech giant Zomato in an INR 1,127 Cr block deal. 

SVF Growth (Singapore) dumped 1.06% stake in the company at INR 120.5 apiece, as per NSE data. 

The shares that flooded the market were lapped up by Invesco, ICICI Prudential Insurance, Goldman Sachs (Singapore), Kadensa Capital, Morgan Stanley Asia Singapore, among others. 

SVF Growth (Singapore) held a 2.17% stake in Zomato at the end of September 2023, owning 18.71 Cr shares. However, the investor sold 1.09% stake in the company in October for a sum of INR 1,040.5 Cr. 

With the latest share sale, the investor has most likely completely exited Zomato.

The Japanese investor has been on a selling spree, looking to book profits as the Indian equity markets and new-age tech stocks continue to rise. Prior to this, SVF Growth offloaded 1.15% stake in Zomato for INR 947 Cr in August 2023.

This is in line with the larger trend in the market where international investors have been selling their stakes in homegrown new-age tech companies. Earlier this month, Chinese tech major Alipay exited Zomato by selling its entire 3.44% stake via multiple block deals for INR 3,336.7 Cr. 

In August, VC firm Tiger Global also sold 12.24 Cr shares of Zomato for INR 1,123 Cr.

This stake sale spree comes as Zomato reported its second consecutive profitable quarter in the second quarter of the financial year 2023-24 (FY24). The foodtech major’s profit after tax soared to INR 36 Cr during the September quarter of FY24, up 18X from PAT of INR 2 Cr in the preceding quarter.

Meanwhile, Zomato has been grappling with its own set of challenges. The company, along with competitor Swiggy, reportedly received notices for a cumulative goods and services tax (GST) bill of INR 1,000 Cr, incurred on account of the 18% tax levied on the total amount collected by them as delivery fees since commencing operations. 

Shares of Zomato ended today’s trading 1.27% lower at INR 120.15 on the NSE.

The post SoftBank Offloads 1.06% Stake In Zomato For INR 1,127 Cr appeared first on Inc42 Media.

Shares of foodtech giant Zomato nudged higher during the early trading session on Friday (December 8), on the back of a large block deal.

Around 1.06% stake of the company or 9.35 Cr shares exchanged hands on the block deal. The shares exchanged hands at an average price of INR 120.5 apiece, taking the total transaction value to INR 1,127 Cr.

However, the buyers and sellers in the transactions are not known.

During the early session of the day, Zomato shares were trading at INR 123.6 apiece on the BSE, 1.3% up from its previous close.

On Thursday (December 7), Inc42 reported, citing multiple media reports, that Japanese tech investor SoftBank’s SVF Growth is looking to offload another 1.1% stake in Zomato in a block deal worth $135 Mn.

As per the reports, SVF Growth is expected to sell the shares at INR 120.5 apiece, which is a slight discount to Zomato’s close at INR 121.8 on the BSE on Thursday .

At the end of September 2023 quarter, SVF Growth (Singapore) Pte Ltd held a 2.17% stake in Zomato with 18.71 Cr shares. Following that, in October the Japanese investor sold a 1.1% stake, or 9.36 Cr shares, in the foodtech major.

In August this year, SVF Growth offloaded its 1.15% stake, or 10 Cr shares, in Zomato, bringing down its holding in the company to 2.17%.

Last week, another international investor Alipay exited Zomato by selling its entire 3.44% stake in the company via multiple block deals worth a cumulative INR 3,336.7 Cr. However, the shares were lapped up by investors like Morgan Stanley and Fidelity Investment. 

Investment firm Tiger Global also exited Zomato in August by selling 12.24 Cr shares worth INR 1,123 Cr, amounting to 1.44% stake.

Zomato reported its second consecutive profitable quarter, with profit after tax surging to INR 36 Cr during the September quarter of the financial year 2023-24 (FY24). This was an 18X jump from PAT of INR 2 Cr in the preceding quarter.

Meanwhile, Zomato and Swiggy, the duo, reportedly received notices for a cumulative goods and services tax (GST) worth around INR 1,000 Cr, which is the 18% tax levied on the total amount collected by them as delivery fees ever since they started offering food delivery services.

The post Zomato Sees INR 1,127 Cr Block Deal, SoftBank Likely Seller appeared first on Inc42 Media.

Japanese tech investor SoftBank’s SVF Growth is reportedly looking to offload another 1.1% stake in Zomato in a block deal worth $135 Mn.

As per multiple media reports, SVF Growth is expected to sell the shares at INR 120.5 apiece, which is a slight discount to Zomato’s close at INR 121.8 on the BSE on Thursday (December 7).

At the end of September 2023 quarter, SVF Growth (Singapore) Pte Ltd held a 2.17% stake in Zomato with 18.71 Cr shares. In October, the Japanese investor sold a 1.1% stake, or 9.36 Cr shares, in the foodtech major.

If the stake sale takes place, it would mark a complete exit of SoftBank from Zomato.

It is pertinent to note that SoftBank has been lowering its stake in the listed new-age Indian entities for the last few months. In August this year, SVF Growth offloaded its 1.15% stake, or 10 Cr shares, in Zomato, bringing down its holding in the company to 2.17%.

On the other hand, SoftBank’s SVF Doorbell (Cayman) offloaded 2.5% of its stake in logistics unicorn Delhivery last month for almost INR 740 Cr. The Japanese firm has also been trying to exit other listed Indian startups from its portfolio, including Paytm and PB Fintech.

Meanwhile, a few other international investment firms, including China’s Alipay and Alibaba, have also been trying to exit the listed companies from their India portfolio.

Alipay exited Zomato last week by selling its entire 3.44% stake in the company via multiple block deals worth a cumulative INR 3,336.7 Cr. However, the shares were lapped up by investors like Morgan Stanley and Fidelity Investment. 

In November, Warren Buffett-led Berkshire Hathaway also exited Paytm by offloading its entire 2.46% stake in the company for about INR 1,370.6 Cr.

The post SoftBank Likely To Exit Zomato With 1.1% Stake Sale appeared first on Inc42 Media.

In a major win for app developers and startups in India, tech giant Google has withdrawn its appeal against a Delhi High Court order asking the Competition Commission of India (CCI) to hear the petitions moved by Indian startups against Google’s user choice billing system.

Google’s counsel senior advocate Sajan Poovayya told the Delhi HC that the order was passed by a single judge when the CCI did not have the quorum to hear the plea, Moneycontrol reported. However, the CCI now has the quorum and has been hearing the plea by startups, he said.

Poovayya further told the court that while Google wishes to withdraw the appeal, it wishes to keep the questions of law open.

On the other hand, the CCI’s counsel Akanksha Kaul told the court that the regulator has no objections to the withdrawal. 

The matter goes back to April this year, when a group of Indian startups moved the Delhi HC asking the competition watchdog to hear their appeals against Google’s user choice billing system. The HC then asked the CCI to hear the applications.

In May 2023, the CCI said it needed to inquire into Google’s new billing policy and check whether the company complied with its October 2022 order asking the tech major not to restrict app developers from using third-party billing systems.

The bone of contention is the commission charged by Google on all in-app purchases for the apps listed on its app store, the Google Play Store. Indian startups have been vocally opposing the tech giant’s policies, calling them a modern-day lagaan.

Google came out with the new user choice billing system after the CCI slapped a fine of INR 936 Cr on it last year for abusing its dominant position in the app store market.

The post Big Win For Startups As Google Withdraws Plea Against CCI Probe Into Billing System appeared first on Inc42 Media.

Real money gaming unicorn Mobile Premier League (MPL) saw its consolidated net loss plunge 81% to $37.04 Mn in the financial year 2022-23 (FY23) from $194.47 Mn in the previous fiscal year.

M-League Pte Ltd, the Singapore-based parent entity of MPL, saw its revenue from operations soar 63% to $104.6 Mn during the year under review from $64.1 Mn in FY22, as per its filings. 

The unicorn said that revenue from international operations accounted for 38% of its operating revenue in FY23, up from 11% in FY22.

Founded in 2018 by Sai Srinivas Kiran G and Shubh Malhotra, MPL offers games ranging from skill-based fantasy sports to chess and other casual games. While India is the primary market for MPL, it also forayed into the US market in 2021. In the next year, it acquired GameDuell, one of the biggest gaming companies in Europe known for its community card and board games. 

In 2023, MPL entered Africa by partnering with Carry1st, a leading gaming company in the continent. 

Meanwhile, MPL’S other expenses declined over 67% to $95.67 Mn in FY23 from $149.06 Mn in the previous fiscal year, while employee compensation rose over 22% to $71.51 Mn from $58.29 Mn in FY22.

The improvement in MPL’s top and bottom lines come at a time when the online gaming sector in India is reeling under the impact of the GST Council’s decision to levy 28% tax on full face value of bets placed on these platforms.

MPL became the first Indian gaming startup to fire employees this year following the GST Council’s decision to increase the tax rate for the sector. In August, the unicorn laid off 350 employees, saying the increase in GST levy increased the tax burden on it by as much as 350-400%. 

Meanwhile, the Indian entity of MPL saw its FY23 loss fall over 80% to INR 87.2 Cr from INR 449.4 Cr in the previous financial year. Operating revenue rose 36% to INR 814 Cr in FY23 from INR 601 Cr. 

MPL competes against platforms such as Dream11, Fantasy Akhada, and WinZO Games. The Bengaluru-based startup entered the unicorn club in September 2021 after raising $150 Mn from Legatum Capital, Accrete Capital and Gaingels LLC at a pre-money valuation of $2.3 Bn.

Overall, MPL has raised a funding of over $350 Mn till date and counts SIG Global, Pegasus Tech Ventures, and RTP Global among its backers.

The post Gaming Unicorn MPL’s FY23 Net Loss Narrows 81% To $37 Mn appeared first on Inc42 Media.

Online gaming firms have reportedly proposed government oversight to regulate the burgeoning sector, which is in a state of flux currently. 

Dream11 cofounder and chief executive (CEO) Harsh Jain and Games24x7 cofounder and CEO Trivikraman Thampy told The Economic Times that the industry is proposing a three-tier regulatory mechanism where self-regulatory bodies (SRBs) would report to a government-led oversight panel. 

Conventionally, under a three-tier system, the first layer comprises the company’s own grievance redressal ecosystem. The second tier comprises SRBs, modelled on the lines of OTT space, which are then overseen by a third tier comprising a government oversight committee that deals with appeals and compliance-related issues.

“The way SEBI (Securities and Exchange Board of India) unlocked the financial potential of the country through the stock market, that’s the kind of regulation we need. The government has proposed an SRB for the gaming industry, but there can be a three-tier structure with government oversight, where it’s not just an independent SRB…this is a tried and tested model where you have a three-tier structure that can regulate gaming,” Jain told the publication.

Curiously, this comes a couple of months after reports surfaced that the Centre had postponed plans to establish SRBs for the online gaming space. The idea of such a body was envisaged under the amended Information Technology Rules, notified in May this year. The SRBs were supposed to be the nodal agency for the industry and would comprise an independent board. 

While the government had then directed the industry to submit proposals for the self-regulating body, the Centre eventually deferred the plans despite receiving recommendations from major players. 

Jain also added that the government’s intervention in establishing clear boundaries and regulations can help unlock the sector’s ‘untapped’ and ‘true’ potential.

Similarly, Thampy said that the industry is seeking a regulatory regime to weed out the bad players from the ecosystem. 

“We’d like the SRBs to be notified, but it’s not as if the government’s concerns are misplaced. Their concerns are…around whether the operators are controlling the SRBs. Obviously, the way the rules were set up, an SRB needs to have an independent board of directors,” Thampy reportedly said. 

He further added that the industry is ‘very open-minded’ about the government-led approach and is willing to adhere to either an oversight committee or a government regulatory body.

The duo made the comments on the sidelines of the Indian Gaming Convention, organised by the Internet and Mobile Association of India (IAMAI) in partnership with other industry bodies. 

During the event, members of the IAMAI, the Federation of Indian Fantasy Sports (FIFS), the E-Gaming Federation and the All India Gaming Federation (AIGF) signed a voluntary ‘Code of Ethics for Online Gaming Industries’.

As per a joint statement, the signatories said that the code will commit the players to building a safe, trusted, and accountable digital gaming industry.

“With close to 50 Cr actively engaged users, India’s gaming industry is a sunrise sector. The ‘Code of Ethics’ for online gaming intermediaries reinforces the industry’s commitment towards growing the sector, contributing to the Hon’ble Prime Minister’s vision of becoming a $1 Tn digital economy and creating a safe, trusted and accountable gaming ecosystem,” said FIFS director general Joy Bhattacharjya.

Chiming in, Minister of State (MoS) for Electronics and Information Technology Rajeev Chadrasekhar, in a written message, said, “I would like to reiterate and reaffirm that the Government of India considers online gaming as an important part of our $1 Tn digital economy goal.”

This comes at a time when the online gaming space has been reeling under the impact of the recent GST changes, as per which 28% tax would be levied on the full value of bets placed in online games, regardless of whether it involves games of skill or chance.

Making matters worse has been a slew of show cause notices sent to online gaming companies for alleged tax evasion to the tune of INR 1.2 Lakh Cr. Previously, the Directorate General of Goods and Services Tax Intelligence (DGGI), Mumbai Zone, issued a notice totalling INR 28,000 Cr to gaming giant Dream11.

Prior to this, the parent entity of Games24x7 also received a notice amounting to INR 21,000 Cr from tax authorities.

This has resulted in downward projection for the Indian gaming sector. The gaming-focused venture capital firm Lumikai revised the revenue projections for the homegrown online gaming industry to $7.5 Bn from $8.6 Bn previously due to recent tax changes in the sector.

The post Indian Online Gaming Startups Bat For Government Oversight To Regulate Sector appeared first on Inc42 Media.

Cloud kitchen startup Biryani By Kilo (BBK) has reportedly raised about $9 Mn (INR 72 Cr) in its Series C funding round led by Alpha Wave Ventures. 

The round also saw participation from Vevek Ventures, DSP HMK Holdings, IvyCap Ventures, Incred Weath and Clear Bridge Ventures among others.

As per the company’s regulatory filing with the Registrar of Companies, the board of Biryani By Kilo has passed a special resolution to issue 18,086 Series C CCPS at an issue price of INR 39,800 per share to raise the amount, Entrackr reported.

Inc42’s email to Biryani By Kilo seeking comments on the development did not elicit any response till the filing of this report.

While Alpha Wave Ventures infused INR 28 Cr in the round, IvyCap Ventures, Incred Weath and Clear Bridge Ventures invested INR 16.5 Cr, INR 8.2 Cr and INR 8.3 Cr, respectively. 

Following the fundraise, Alpha Wave will now reportedly hold 35.06% stake in the startup, while IvyCap Ventures, Incred, and Clear Bridge will hold 5.37%, 1.09%, and 1.10% stakes, respectively. 

Biryani By Kilo’s promoter shareholding will dilute to 17.31% from 19.14%, the filing showed.

Founded in 2015 by Vishal Jindal and Kaushik Roy, Biryani By Kilo sells various biryanis, kebabs, kormas, and desserts. The new funding round comes two years after Biryani By Kilo raised $35 Mn in a Series B round from Falcon Edge Capital, SBI and IvyCap Ventures, among others, in November 2021.

With its latest round, the startup has raised over $50 Mn in total funding till date.

With more than 100 outlets across India in cities including Bengaluru, Hyderabad, Kolkata and Delhi-NCR, Biryani By Kilo offers deliveries across more than 45 cities. Its primary competition includes Rebel Foods’ Behrouz Biryani and Biryani Blues, Bengaluru-based Potful, and EatClub’s brands.

Last year, Biryani By Kilo acquired a majority stake in healthy dessert startup Get-A-Way with a preliminary investment of $2 Mn.

In terms of financial health, the startup’s net loss more than doubled to INR 42.6 Cr in the financial year 2021-22 (FY22) from INR 15.6 Cr in the previous fiscal, on revenue of INR 135 Cr.

As per a report, India’s cloud kitchen market size reached $969.5 Mn in 2023 and is expected to reach $2.94 Bn by 2032.

The post Biryani By Kilo Bags $9 Mn From Alpha Wave Ventures, Vevek Ventures, Others appeared first on Inc42 Media.

Joel Kaplan, vice president of global policy at Meta, has proposed that social media platforms and internet intermediaries should implement an age verification and consent management system akin to the standards applied in app stores for users under 18 years of age.

During his visit to India last week, Kaplan told ET, “It works for everyone and you have to do it one time. People may be on social media apps that have greater or lesser capability to do it well. The burden for parents would be much simpler if they only had to do it one time for age verification.”

Though there are other approaches such as verification of age of the children with Aadhaar or with documents stored in digital public infrastructure such as DigiLocker, Kaplan said that implementing an app-store level check would be the most “elegant and effective solution.”

The Digital Personal Data Protection (DPDP) Act, enacted in August this year, has made it mandatory for all social media and internet intermediaries to undertake age verification and consent management for users below the age of 18. 

According to the provisions of the Act, children, defined as users under the age of 18, require age verification and explicit consent from their parents is necessary for the processing of any data related to them.

Further, Kaplan mentioned that having a centralised repository, such as an app store, would simplify the process for both parents and teenagers. He added that Meta’s approach to ensuring teenager safety is in alignment with the stipulations of the DPDP Act, particularly concerning the safety and security of children and teenagers using the platform.

“These things do need to happen at an industry-wide scale. That is why having a law ensures that all companies have to create and provide the same tools and experience and we think that is a good thing for teenagers,” Kaplan said.

Akin to the necessary industry consensus on age-gating, social media and internet intermediaries will also need to come together to form a common framework to fend off the challenge posed by deep fake and synthetically altered content, he said.

As country-wide elections approach in major countries like India, Indonesia, and the US, Meta is intensifying its efforts to deploy tools to combat misinformation that could impact the polls. Despite the collective efforts of platforms, including Meta, to prevent poll-related deep fakes, there may still be instances where such content surfaces. 

In November, the government planned a strategy to tackle online predator incidents involving children on social media. The approach aimed to provide options for age-gating and parental consent to platforms like Meta-owned Facebook and Instagram, YouTube and others.

On September 19, a Karnataka High Court (HC) bench reportedly urged the union government to consider setting age limits for social media users in the country. The court suggested that social media platforms could verify user ages through documents like Aadhaar, similar to mandates for gaming platforms. The bench noted that school-going children are addicted to social media and suggested that making some form of identification mandatory for registration would be beneficial.

The government introduced the DPDP Act in August, prompting social media platforms to propose effective “child gating” methods, emphasising data minimisation principles.

The post Meta’s Joel Kaplan Urges Social Media Platforms To Implement App-Store Level Age Verification appeared first on Inc42 Media.

Mukesh Ambani’s Viacom18, which operates JioCinema, Netflix, and other streaming giants are reportedly planning to collectively request the Indian government to delay or revamp the proposed broadcasting bill. 

In a private meeting this week, executives of leading OTT platforms strategised on approaching the government to request a delay and potential overhaul of the bill, Reuters reported citing sources. 

Last month, India introduced a new draft law aimed at regulating both the broadcasting sector and streaming giants. The proposed law suggests establishing individual content evaluation committees comprising members from diverse social groups. These committees would be responsible for reviewing and approving shows before their release.

Unlike films in Indian cinemas, streamed content currently escapes government-appointed board review and certification. The streaming industry fears that the proposed legislation could prove burdensome and is seeking either a delay or a more favourable revision of the bill.

The bill is open for public consultation until December 10.

Netflix and other streaming companies are concerned that the proposed content committees may result in too many pre-screening checks, posing implementation challenges due to the large volume of online content that would need prior review, a person close to the matter told Reuters.

Another source told the news agency that the streaming executives, during this week’s meeting, flagged that the law could impact the industry’s growth.

The government contends that the new law and the establishment of content committees are aimed at fostering “robust self-regulation”. 

The bill allows the government to determine the committee’s size and quorum, ensuring that only “duly certified” shows can be broadcast. However, there are concerns about potential extensive government oversight on streaming platforms, according to a second source.

Between January 2022 and March 2023, out of a total online video consumption of 6.1 Tn minutes, the premium category’s share increased from 10% in 2021 to 12% in India, as indicated by a report from Media Partners Asia (MPA). India’s premium video consumption now aligns with that of Indonesia, Thailand, and the Philippines, where the share stands at approximately 10%.

The report revealed that YouTube dominated the online video category, capturing 88% of the total watch time. In the premium video segment, Disney+ Hotstar led with a 38% market share, driven by sports and a robust library of Hindi and regional content. Following were MX Player (23%) and Jio TV (8%). Prime Video and Netflix collectively held a 10% share in the premium category. Prime Video showed a preference for local content, constituting over 60% of its consumption, while Netflix had a lower share of 24%.

In November, MIB released the 2023 Broadcasting Services (Regulation) Bill for consultation, aiming to replace the 1995 Cable Television Networks Act and consolidate laws under a unified framework. The bill intends to bring streaming platforms like Netflix and Hotstar under the MIB’s direct regulation, eliminating reliance on the Information Technology Rules, 2021. 

This move was anticipated to be a game-changer for OTT platforms in India, as the bill sought to bring all such platforms under its regulatory framework. Additionally, the proposed bill extends regulations to online news broadcasters and treats certain social media accounts as OTT broadcasters.

The post Viacom18, Netflix, Other OTT Platforms To Challenge New Broadcasting Bill appeared first on Inc42 Media.