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.

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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.

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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. 

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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.

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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.

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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.

The Reserve Bank of India (RBI) has issued guidelines to all regulated entities including banks and non-banking financial companies (NBFCs) to not make investments in any alternative investment funds (AIFs) that have invested in a borrower or investee of that lender.

In November last year, the Securities and Exchange Board of India (SEBI) informed RBI about instances of non-bank financiers evergreening loans through the AIF route.

Reportedly SEBI has detected at least a dozen cases involving $1.8 Bn to $2.4 Bn where AIFs have been misused to circumvent rules of other financial regulators including the RBI.

In October this year, Ananth Narayan G, a whole-time member of SEBI, said the regulator had come across multiple instances of entities using alternative investment funds to circumvent financial norms and urged the industry to form a quasi-self-regulatory body. SEBI has also seek commitment from fund managers to make sure that AIFs will not be misused.

The guidelines have been issued in order to curb such misuse of AIF funds.

What Are Evergreen Loans?

In simple terms, evergreen loans are the loans which never end. This means that to repay the earlier unpaid loan, the regulated entity offers the borrower another loan through AIF as an investment vehicle. AIF, being a  private credit fund, looks for such deals with the belief that with a small investment these companies could bounce back.

Banks and NBFCs resort to such loans to showcase low percentage of non-performing assets (NPAs) in their books.

“In some cases, non-bank lenders have sold non-performing loans (NPLs) to AIFs that they have partially set up themselves. The fresh funds received by the AIFs are then used to repay the original debt, preventing the loans from being classified as bad loans. This practice is seen as a classic example of evergreening,” said Mayank Mehra, managing partner, SphitiCap.

Key Guidelines Issued By RBI

To address concerns relating to possible evergreening through this route, it is advised as under:

Regulated entities (REs) shall not make investments in any scheme of AIFs which has downstream investments either directly or indirectly in a debtor company of the RE to which the RE currently has or previously had a loan or investment exposure anytime during the preceding 12 months.

If an AIF scheme, in which RE is already an investor, makes a downstream investment in any such debtor company, then the RE shall liquidate its investment in the scheme within 30 days from the date of such downstream investment by the AIF. 

If REs have already invested into such schemes having downstream investment in their debtor companies as on date, the 30-day period for liquidation shall be counted from the date of issuance of this circular. REs shall forthwith arrange to advise the AIFs suitably in the matter.

In case REs are not able to liquidate their investments within the above-prescribed time limit, they shall make 100% provision on such investments.

In addition, investment by REs in the subordinated units of any AIF scheme with a ‘priority distribution model’ shall be subject to full deduction from RE’s capital funds.

This move by the RBI has been seen in the right direction by some. According to reports, the credit exposure of banks to NBFCs stood at INR 14.8 Lakh Cr in October 2023, indicating a 22.1% year-on-year (y-o-y) growth. Further, there are currently more than 1200 registered alternative investment funds in the country as of December 2023. If remain unregulated, this poses a significant risk to the economy considering that bad NPAs may lead to a liquidity crisis in the banks, thereby triggering the ripple effect. 

However, there is a flip side to this coin as well. According to Punit Shah, Partner, Dhruva Advisors, the intention of the move by RBI is to prevent evergreening of loans by Banks, NBFCs etc. However, the circular prohibits any exposure by these entities to specified AIFs, which can be extremely damaging and can have unintended negative impact on the AIF industry, especially sponsored by financial services players.

The post RBI Tightens Norms For Banks, NBFCs Investing In AIFs 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.

Fintech unicorn BharatPe is looking to secure INR 500 Cr debt through unlisted non-convertible debentures (NCDs).

Although a final decision on the issue price is pending, the company plans to secure the funds in multiple tranches throughout the upcoming year, ET reported.

BharatPe’s board sanctioned the fundraising initiative last week. Additionally, the board also approved the appointment of Colin Bryant, chief operating officer (Private Equity) and general partner at the US-based hedge fund Coatue, as a director. Bryant is set to succeed Rahul Kishore, the previous nominee from Coatue who departed the fund in November.

Furthermore, the company elevated its General Counsel, Sumeet Singh, to the position of a whole-time director. Singh, who assumed roles at BharatPe in 2021, has been instrumental in overseeing corporate strategy, corporate affairs, and fundraising. In February of the current year, he was appointed as an additional executive director.

Peak XV-backed BharatPe last raised $370 Mn at a valuation of $2.9 Bn in 2021. Earlier in September, it was reported that BharatPe was in talks with existing investors to raise $100 Mn in a new round of funding.

Meanwhile, the fintech startup has claimed to have turned EBITDA positive in the month of October. The startup said that its annualised revenue has crossed INR 1,500 Cr in FY24, a 31% increase from FY23.

BharatPe’s lending vertical, in October alone, has facilitated loans exceeding INR 640 Cr for its merchants in partnership with its NBFC, demonstrating a 36% year-on-year jump as compared to FY22. The startup has facilitated loans worth INR 12,400 Cr since its foray into the lending business in late 2019.

The post BharatPe Looking To Raise INR 500 Cr Debt In The Upcoming Year appeared first on Inc42 Media.

Financial product delivery platform Finhaat has raised $3 Mn (approximately INR 25 Cr) in a seed funding round led by impact venture fund Omnivore, with participation from Kettleborough VC.

The Mumbai-based startup plans to deploy the fresh proceeds for further building technological models, rolling out innovative products, scaling up its partner base and hiring resources for new verticals.

Founded by Sandeep Katiyar, Navneet Shrivastava and Vinod Singh, Finhaat is a financial product delivery platform created for the emerging middle-class and lower-income segments primarily in the rural, tier III and IV cities. It offers a complete range of insurance products on its insurance broking platform delivered through Finhaat Insurance Broking Pvt Ltd.

The startup, which first began operations in 2022 with insurance as its first product vertical, claims to be building a business-to-business (B2B) insurance distribution platform for institutions working with the underserved, including NBFCs, MFIs, BC networks, Nidhi companies, cooperatives, NGOs and FPOs.

“Our operations already cover over 65% of pin codes in India. We are determined to transform the financial services space for the underserved,” said cofounder Singh. 

“Financial inclusion remains dismally low in rural India – just 11.5% of households have net savings, and under 10% have life insurance. This vulnerability is most acute in low-income segments, especially for farmers confronting myriad risks. Yet, tailored products to mitigate uncertainties and boost financial stability and growth are few and far between,” said Omnivore’s managing partner Jinesh Shah.

The landscape of insurance, a sector traditionally entrenched in legacy systems and cumbersome processes, is undergoing a seismic shift in India. The space has been gaining momentum for the past some time now. 

For instance, in November, insurtech startup Onsurity secured $24 Mn in its Series B funding round led by the International Finance Corporation (IFC) to co-create a technology solution with its insurance partners, to drive seamless and transparent transactions.

Also the fintech soonicorn InCred declared in a filing that it may soon foray into the insurtech segment as its board has already given a nod to apply for a corporate insurance agency licence from the Insurance Regulatory and Development Authority of India (IRDAI). 

According to Inc42’s State Of Indian Fintech Report, Q3 2023 InFocus, the insurtech market size was more than $87 Bn in 2022 and is estimated to cross the $307 Bn mark in 2030 at 17% CAGR. 

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The central government has 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, said IT Secretary S Krishnan.

Addressing a conference by the Centre for Development of Advanced Computing (C-DAC) in Kolkata on Tuesday (December 19), Krishnan said that the government has been working on the preparation of the regulations on AI and it is also evaluating global inputs, as per reports.

He also hinted that discussions are underway on whether a separate act of AI should be introduced or if regulations can be introduced in existing acts.

“The government is already engaged in working on AI data and regulation. There are ongoing discussions within the government about AI data and its regulation,” he said.

The government is considering a policy approach akin to the Digital Personal Data Protection (DPDP) Act. This strategy aims not only to safeguard data but also to foster development and innovation, avoiding any hindrance to the growth of emerging technology.

With AI taking centre stage globally, the government is increasing its focus on the segment. Recently, Minister of State (MoS) for Information Technology Rajeev Chandrasekhar said that the centre is planning to fund and support AI startups in the country.

Modelled on the lines of a similar framework for the semiconductor industry, Chandrasekhar said that funding and incentives will be rolled out to scale the burgeoning ecosystem.

The government will also deploy ‘financial resources’ to build foundational AI models, large language models (LLMs) and various use cases for the emerging technology.

Chandrasekhar added that the Centre would explore synergies between AI and semiconductor industries in areas such as the development of AI chips.

These discussions come at a time when generative AI (Gen AI) has become a buzzword among Indian entrepreneurs. This has given rise to many new Indian startups in the segment.

As per Inc42 data, India is home to more than 70 GenAI startups that have raised capital in excess of $440 Mn between 2019 and Q3 2023. The homegrown GenAI market is expected to grow to a market size of $17 Bn by 2030 from $1.1 Bn in 2023.

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Reiterating her stance on 28% GST on the online gaming sector, Finance Minister Nirmala Sitharaman on Tuesday (December 19) said that the valuation rules for levying the tax on entry level bets are prospective in nature. 

“28% is the tax and as to who it will apply to and on whom the incidence will fall is clearly explained…The valuation rule to exclude winnings is prospective. So, I hope there is no confusion on that,” said Sitharaman during a discussion on the CGST (Second Amendment) Bill in Lok Sabha.

The FM made the comments in response  to a query from Biju Janata Dal Member of Parliament (MP) Sarmistha Sethi.

Citing an example, the FM said that if a user places a bet of INR 1,000, a GST of 28% would be levied. However, if the user wins INR 300 and then places another bet of INR 1,300, including the winning amount, then the GST would not be levied on the INR 300 winning amount which has been redeployed.

On the other hand, if a user loses the original INR 1,000 amount and places a new bet, then the new amount would be considered a fresh bet and would attract 28% GST.

At the centre of this row is the GST Council’s decision, in August this year, that said that 28% GST is applicable on online gaming. 

Eventually, the government notified amendments in law and the new changes came into effect on October 1. But the bone of contention appears to be the tug of war over the supposed retrospective effect of the rule. 

Since the promulgation of the new law pertaining to GST on online gaming, enforcement agencies have sent a flurry of notices to online gaming platforms for alleged tax evasion. 

The Centre recently informed the Parliament that the Directorate General of GST Intelligence has issued notices to the tune of INR 1.12 Lakh Cr to multiple online gaming companies for alleged short payment of taxes.

Meanwhile, the 28% GST has triggered an adverse domino effect on the homegrown ecosystem. When the new tax was levied, industry stakeholders had warned that the move could lead to job losses and put a spanner in the works for the budding ecosystem. 

Since then, startups such as Fantok, Quizzy, OWN have temporarily shut operations while big names such Mobile Premier League and Hike have laid off employees in droves. There have also been a barrage of legal cases filed by online gaming firms such as Games24x7 and Head Digital Works challenging the respective GST notices issued to them by the enforcement agencies. 

The regulatory flux has also resulted in the drying up of capital for online gaming firms, leading to layoffs and shutting down of ailing verticals to extend runway and conserve cash. Amid the tussle, the Indian government is mulling extending an olive branch to the ecosystem and is considering setting up a Group of Ministers (GoM) to address issues related to the industry.

The post Valuation Rules For Levying 28% GST On Online Gaming Prospective In Nature: FM Sitharaman appeared first on Inc42 Media.

Fintech startups Razorpay and Cashfree Payments, and neobank Open have received final approval from the Reserve Bank of India (RBI) to operate as payment aggregators. 

“…. Razorpay has received the final authorisation from the Reserve Bank of India (RBI) to operate as a Payment Aggregator (PA) under the Payment Settlements Act, 2007… We welcome this new development and are delighted to be one of the first Payment Gateways to have received the final PA license from RBI,” said Razorpay in a statement. 

The Harshil Mathur-led company also said that it has restarted onboarding new customers after receiving the said nod. 

Meanwhile, Cashfree said that the approval will enable it to drive exponential growth and add new clients to its kitty. 

“Securing the Payment Aggregator (PA) license from the RBI is a pivotal moment for Cashfree Payments, affirming our focus on compliance and highlighting the significance of a well-regulated payments landscape… We are now onboarding new merchants on our payment gateway…,” said a Cashfree spokesperson. 

For neobank Open, the final approval has come more than a year after it received in-principle approval from the RBI for the PA licence. As per the company, it was working closely with the central bank since then to complete the necessary requirements, such as System Audit Report and CA certificate, for the licence. 

“We are elated to receive the Payment Aggregator/Payment Gateway licence from the RBI…. The enhanced capabilities will bolster our financial automation platforms, providing SMEs with advanced tools to streamline their financial operations and thrive in the digital era. We are grateful to the RBI for their evaluation and recognition of our contribution,” said Open’s cofounder and chief executive officer (CEO) Anish Achuthan.

The approval was granted to the companies under the provisions of Payments Settlements Act, 2007. For the uninitiated, the payments aggregator licence was introduced by the central bank in 2020 to bring all payment aggregators as regulated entities under the Act and to streamline the operations of the entire segment. 

The development comes as a major respite for Razorpay and Cashfree Payments as the Reserve Bank of India (RBI) had barred them from onboarding new merchants late last year. This came right after the Enforcement Directorate (ED) raided the premises of multiple online PAs as part of its crackdown on illegal Chinese lending apps. 

The central bank was also said to have tightened its screening process to ensure that only the ‘right companies’ get the final approval for the payment aggregator licence.

As a result, the merchant onboarding process was frozen and subsequently revenues flatlined even as competitors with licences began to race ahead. While Cashfree and Razorpay reportedly built alternative revenue streams, the core business continued to stagnate. 

But, with the new licences in place, all decks have been cleared for the two fintech startups to onboard new merchants and scale up revenues even as competition continues to mount from competing PAs such as PhonePe, Juspay and PayU. 

As per latest RBI data, as many as 45 applicants have been granted in-principle authorisation to operate as a payment aggregator including the likes of Zomato, Infibeam Avenues, EaseMyTrip, among others. On the other hand, 71 applications have been returned by the central bank.

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Tech giant Meta and the government’s Open Network for Digital Commerce (ONDC) announced a partnership to enable and educate small businesses to build conversational buyer and seller experiences on WhatsApp.

While Meta will bring its ecosystem of business and technical solution providers to the table, ONDC will allow these solution providers to become seller apps, thus bringing the businesses they service onto the ONDC network and helping them drive commerce.

In a statement, the companies said they would digitally upskill 5 Lakh MSMEs over the next five years via the Meta Small Business Academy, which offers certifications to empower entrepreneurs and marketers to gain digital marketing skills to grow on the Meta apps.

Speaking on the partnership, T Koshy, MD and CEO of ONDC, said, “Our partnership with Meta will not only digitally upskill these businesses but will also enable them to connect with a customer base far and wide. We are confident that our collaborative efforts will pave the way for millions of small businesses by providing them with the right impetus for growth.”

As part of the partnership, Meta will also support Sahayak, ONDC’s WhatsApp chatbot, in enhancing the services offered on the bot as the single point of seller communication and customer communication for ONDC.

Sandhya Devanathan, VP of Meta in India, said, “Meta has been a frontrunner in partnering with the government and the industry to advance digital inclusion, especially for MSMEs across India. Our partnership with ONDC builds on supporting the government’s vision for Digital Public Infrastructure (DPI) and furthering our ongoing commitment to skilling small businesses and aiding this rapid digital transformation and growth story in the country.”

The development comes as ONDC has been partnering with multiple companies to enhance the services it offers to network partners. Last month, Ola Cabs was said to be in talks with ONDC to offer last-mile delivery services to sellers on the platform.

The government’s digital commerce network also recently launched the ONDC Official Guide App to help and support the user community like sellers, buyers, logistics providers and network participants. The app is available on Google Play Store with language support in English, Hindi and 10 other Indian languages.

Since its launch in September 2021, ONDC has come leaps and bounds ahead of where it was a year ago. As per a RedSeer report from earlier this month, the digital commerce network is poised to potentially generate $250-300 Bn in ecommerce GMV by 2030.

However, recent comments from Consumer Affairs Secretary Rohit Kumar Singh indicated that ONDC still had some kinks to iron out. Speaking at an event, Singh said it is important to address the liability issues to provide satisfactory services to the consumers.

“If I order through an app of a bank through Amazon and buy it from a seller located elsewhere and I get the wrong phone, then who is liable? So the issue of liability… I keep telling Mr T Koshy (ONDC CEO) that you have to address the issue of liability otherwise this thing is not going to work,” Singh said.

The post ONDC Teams Up With Meta To Bring Small Businesses On The Network appeared first on Inc42 Media.

Angel investment networking platform We Founder Circle’s (WFC) GIFT City Fund has raised $10 Mn (around INR 83 Cr) and onboarded more than 250 investors.

The GIFT City Fund, called  WFC Global Angels Fund, has a target corpus of $30 Mn, with a green shoe option of $30 Mn.

WFC Global Angels Fund, a cross-border fund based in Gujarat’s GIFT, is one of the two funds launched by the Mumbai-based angel network last year to back early-stage startups in India. 

WFC’s other fund is Invstt Trust, with a target corpus of INR 200 Cr (roughly $24 Mn) and a green shoe option of up to INR 200 Cr.

The sector-agnostic GIFT City fund has so far invested in six startups – Nintee, Zivy, Pixxel, Trading Leagues, Piersight, and Aistra Labs. 

The fund’s average cheque sizes range from $50,000-$1.5 Mn and aims to close at least up to 10 deals by the end of the current fiscal year.

The GIFT City fund leverages innovative financial structures and compliance strategies to facilitate fast and convenient cross-border investments, WFC said in a statement.

“We aim to complete onboarding of at least 300+ investors with a signed contribution of $15 Million+ by March 2024. In a relatively short span, we have forged partnerships with leading incubators, accelerators, and other startup funds,” said WFC’s cofounder Gaurav VK Singhvi. 

The strategy of being sector-agnostic in early-stage startups suggests a focus on diversification and a willingness to explore opportunities across various industries. This approach is aligned with the principle of spreading risk and capturing potential high-growth opportunities, the statement added.

Founded by Singhvi, Bhawna Bhatnagar, Deo Saurabh and Neeraj Tyagi in 2020, WFC has over 12,000 investor base with over 120 investments made since inception. The network counts companies like Stylework, Vidyakul, Settle, Blusmart Mobility, Microfinance.ai, etc as its portfolio. 

The development comes days after Prime Minister Narendra Modi announced that new forms of capital and digital technology will play an important role in the development of GIFT City. 

For the past few years, most of the VC, PE or angel networking platforms have been floating funds to back early-stage startups, also paving the way for overseas investors for investment opportunities in India.

For instance, earlier this year, PE firm Airavat Capital also announced the launch of a global technology fund called Airavat Global Technology Fund R (AGTF R). The fund is aimed at offering Indian HNIs and investors the opportunity to leverage Indian technology ecosystem insight to capitalise on the growth potential of top listed technology companies worldwide, the statement added.

The post We Founder Circle’s GIFT City Fund Raises $10 Mn, Onboards 250+ Investors appeared first on Inc42 Media.

Days after the Supreme Court directed consolidation of all FIRs in the GainBitcoin scam for investigation by the Central Bureau of Investigation (CBI), the Enforcement Directorate (ED) apprehended Simpy Bhardwaj, the spouse of Ajay Bhardwaj, a principal figure in the Ponzi scheme. 

In a statement, the ED alleged that Simpy Bhardwaj, who was arrested on December 17, along with Ajay Bhardwaj, actively participated in enticing unsuspecting investors with promises of substantial returns on their investments and ultimately defrauding the public through fraudulent activities.

The City Session Court in Mumbai has granted the ED the custody of Simpy Bhardwaj till December 26. Ajay Bhardwaj and Mahendra Bhardwaj, identified as key suspects, have been declared absconders by the ED.

Earlier, in a hearing on December 13, the Supreme Court, while hearing a petition filed by Ajay Bhardwaj, ordered a CBI investigation into the case. The ED was directed to concurrently continue its investigation under the Prevention of Money Laundering Act (PMLA), 2002.

“Considering that all the FIRs have similar allegations and are directed against Variabletech Pte Ltd, which had allegedly extended false promises on investment in Bitcoins, we are of the considered opinion that all these FIRs should be directed to be investigated by a common agency,” the court said.

“We, therefore, deem it appropriate to direct the Central Bureau of Investigation (CBI) to investigate all these FIRs. During the investigation, it shall be open to the CBI to club/consolidate any one or more of the FIRs. It is further clarified that in the event that charge sheets have already been filed by the local Police in connection with any of the FIR, this shall not preclude the CBI from conducting further investigation and thereafter file charge sheets or supplementary charge sheets, as the case may be,” ordered the three-judge bench comprising CJI DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Misra. 

 What Role Did Simpy Bhardwaj Play? 

The ED alleged that illicit gains from the Bitcoin scam were funnelled into overseas companies and utilised for acquiring properties abroad, with Simpy Bhardwaj actively involved in generating, concealing, and layering these proceeds of crime. 

The agency said it carried out search operations at the residences of Simpy Bhardwaj and Ajay Bhardwaj, resulting in the seizure of three cars, including a Mercedes GLS350D and Audi Q3, incriminating documents, and jewellery valued at INR 18.91 lakh. 

The ED’s ongoing investigation has led to the attachment of properties totalling INR 69 Cr in the case so far.

GainBitcoin is recognised as one of the largest global Ponzi schemes, causing financial losses to about 1 Lakh investors.

Insiders close to Amit Bhardwaj claim that the ED and Pune Police’s special investigation team have merely scratched the surface of the operation. While Amit was prominently featured as the mastermind, the entire operation was orchestrated by the three brothers — Amit, Ajay, and Vivek, alongside their father Mahendra Kumar and a few other associates. 

According to the victims of the scam, Ajay, an IT professional, managed wallets and overall operations in recent years. The complainants are now seeking a full-fledged interrogation of Ajay. 

As per the Pune Police’s chargesheet, Amit and Vivek established Variabletech in Singapore in 2014. This entity launched a cryptocurrency exchange named BitEx, subsequently introducing the GainBitcoin MLM scheme and offering Bitcoin mining contracts with a promised 10% monthly return on investments for 18 months, paid out in Bitcoin.

The post GainBitcoin Scam: Alleged Mastermind’s Wife Falls In ED’s Trap As Multi-Agency Pursuit Intensifies appeared first on Inc42 Media.

Mumbai-based mortgage startup Easy Home Finance Ltd has partnered with DCB Bank for a a co-lending business alliance to provide affordable home loan solutions.

The alliance aims to use DCB Bank’s expertise in affordable housing and Easy Home Finance’s tech capabilities to enable quick disbursement of affordable home loans.

In a statement, the companies said that DCB Bank has established a secure home loan portfolio across varied geographies and has built expertise in credit assessment for a range of loans such as prime home loans, affordable home loans, Loan against Property (LAP), Micro-LAP, loans for home improvement, and construction finance for developers as well. 

“The co-origination, underwriting and disbursement activities from both the parties working together will enable a seamless process for new home buyers. Easy’s asset-light model of neo banking mortgage and a greater reach for digital home loans combined with rural and urban connect of DCB Bank will help customers in faster processing of their home loan applications,” the statement added.

The alliance aims to streamline home loan processes, eliminating lengthy procedures and excessive paperwork for customers. 

Commenting on the partnership, Narendranath Misha, head-retail & agri loans at DCB Bank, said, “Our expertise in origination and credit assessment will be boosted with the expertise and digital tech of Easy Home Finance. It will enable more customers to experience the range of affordable home loan products of DCB Bank and fulfill the home ownership dreams of prospective customers in underserved geographies.”

Rohit Chokhani, managing director of Easy Home Finance, said, “As a common motive of being more customer-centric and broadening our geographical footprint, we aim to make our customers’ home ownership journey easier while offering them highly interactive digital experiences.” 

Founded in 2018 by Rohit Chokhani, Easy Home Finance offers ‘instant’ home loans to customers across the country digitally.  It raised $15 Mn in its Series A round led by Xponentia Capital Partners in July 2021. 

In December 2022, Easy Home Finance Ltd was reported to be in talks to raise $50 Mn in its Series B funding round.

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