Inc42 Media https://inc42.com/ News & Analysis on India’s Tech & Startup Economy Thu, 07 Sep 2023 08:16:00 +0000 en hourly 1 https://wordpress.org/?v=6.0.1 https://inc42.com/wp-content/uploads/2021/09/cropped-inc42-favicon-1-32x32.png Inc42 Media https://inc42.com/ 32 32 Biomaterials Startup altM Raises Funding To Cut Carbon Footprints In Industrial Supply Chains https://inc42.com/buzz/biomaterials-startup-altm-funding-cut-carbon-footprints-industrial-supply-chains/ Thu, 07 Sep 2023 08:16:00 +0000 https://inc42.com/?p=414543 Biomaterials startup altM has secured a $3.5 Mn seed funding round led by Omnivore, with participation from Theia Ventures, Thai…]]>

Biomaterials startup altM has secured a $3.5 Mn seed funding round led by Omnivore, with participation from Theia Ventures, Thai Wah Ventures, Sanjiv Rangrass, Neha Mudaliar, Maninder Gulati (OYO), Mirik Gogri (Spectrum Impact) and Paula Mariwala (Aureolis Ventures).

altM is Omnivore’s fourth investment under its OmniX Bio initiative, which was set up in 2021 to back early stage agrifood life science startups.

The startup, founded in 2022 by Apoorv Garg and Yugal Raj Jain, both ex-Tesla employees, aims to develop and manufacture sustainable materials from agricultural residue to help companies reduce their carbon footprints and increase circularity in their supply chains.

Apoorv Garg, CEO and cofounder at altM, said, “The scale-up of technology from a laboratory bench to commercial production is not a trivial undertaking. Production scale-up is often the death valley for biotech startups. Our focus on go-to-market strategy, execution, and production scale-up will be the differentiator to most endeavours we see in the world of biomaterials today.”

altM uses lignocellulosic agricultural residues as their raw material to produce advanced materials as alternatives to unsustainable incumbents. Lignocellulosic residue refers to dry plant residue and includes wheat, rice, barley straw, corn stover, sorghum stalks, coconut husks, sugarcane bagasse and banana leaves, among others.

Given its sustainability potential and functional properties, lignocellulosic residue can be used to develop materials such as paper, biofuels and polymers, among other classes of usable chemicals.

Mark Kahn, managing partner at Omnivore, said, “With Apoorv and Yugal’s background in manufacturing excellence, altM’s entry into industrial alternative materials will hasten the global shift towards sustainability and circularity. Omnivore is very excited to be a part of their journey as we kick off our new fund.”

According to government statistics, India has more than 6,000 biotech startups. Earlier this year, Minister of State for Science and Technology Jitendra Singh termed biotech startups crucial to shaping India’s future economy. 

Singh added that the country’s bioeconomy has witnessed significant growth in the past few years, increasing from $8 Bn in 2014 to $100 Bn currently. He also expressed confidence that the sector will continue to flourish and will reach the $150 Bn mark by 2025.

The Centre has also undertaken a slew of measures to strengthen India’s biotech sector and promote biotech startups.

Last year, the government launched a single-window national portal for startups and researchers seeking regulatory clearance for biological research. In August 2022, the government also announced 75 ‘Amrit’ grants for collaborative biotech initiatives involving startups and academia. 

Besides, BIRAC also offers grants of up to INR 50 Lakhs, under the BIG Scheme, for budding biotech startups to validate their ideas, develop prototypes and establish proof of concept. 

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Karnataka To Launch Integrated Fintech Programme Soon https://inc42.com/buzz/karnataka-to-launch-integrated-fintech-programme-soon/ Thu, 07 Sep 2023 08:12:37 +0000 https://inc42.com/?p=414541 Karnataka is working on a fintech programme to unite the government, venture capital and banking sector for offering funding and…]]>

Karnataka is working on a fintech programme to unite the government, venture capital and banking sector for offering funding and mentorship support to startups, said the state’s IT/BT Minister Priyank Kharge.

Speaking at the Global Fintech Fest 2023, he said that the Karnataka government has plans to set up a  centre of excellence (CoE) for fintech that will focus on nurturing talent, leadership, entrepreneurship and fostering innovation. 

Kharge highlighted that out of 23 fintech unicorns, 12 are from Bengaluru alone. “Our state boasts of 1,300 active fintech startups and we are actively working on creating a Fintech Regulatory Support framework to encourage innovation and industry growth,” Kharge said.

Last year, the state’s government announced that it was planning to invest INR 25 Cr to set up a fintech hub in Mangaluru. Karnataka’s former science and technology minister Dr. C.N. Ashwath Narayan had said that at least 50 fintech startups would be established in the hub, giving further impetus to its plan of achieving $500 Bn business turnover by 2030 from the companies in the area.

Also, last year, the state rolled out its Startup Karnataka Policy 2022-2027 with an aim to position Karnataka as the ‘Champion State’ for startups by adopting a holistic approach towards strengthening the startup ecosystem.

The government aims to do this by offering the support of funding, incubation, infrastructure, mentoring, acceleration, R&D and industry linkages. The government claims that 15,000 startups have enrolled for the programme, out of which 700 are funded startups and over 10,000 are government-recognised. 

Kharge’s statements come after Karnataka’s cabinet minister NS Boseraju announced that the state will establish a research foundation to foster R&D in the startup ecosystem. He said that the move would bridge the gap between startups and other stakeholders, further offering easy  access to research and development. He also invited domain experts to offer insights into the proposed foundation.  

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How SunoKitaab Is Overhauling Education In India’s Tier II & III Towns With Its Audio Learning Playbook https://inc42.com/startups/how-sunokitaab-is-overhauling-education-in-indias-tier-ii-iii-towns-with-its-audio-learning-playbook/ Thu, 07 Sep 2023 08:10:23 +0000 https://inc42.com/?p=414517 While working with schools in Rajasthan, under a fellowship programme, in 2019, tier II educators and childhood friends Ajay Vishwakarma…]]>

While working with schools in Rajasthan, under a fellowship programme, in 2019, tier II educators and childhood friends Ajay Vishwakarma and Tanu Aggarwal realised that there was a serious dearth of skilled teachers and resources — both essential for quality education — for students. 

To bridge this gap, Vishwakarma and Aggarwal made it their mission to change the face of academics with a cost-effective solution that could play a key role in upgrading academic standards and ensuring quality education for all.

At the outset, the duo would record chapters in a creative and appealing fashion and share them with teachers on WhatsApp groups — a strategy that was a hit among students.

This vision paved the way for what many students today know as SunoKitaab. Launched in January 2020, the edtech startup provides academic content in the form of audiobooks and podcasts. On its website, it claims to have a compendium of more than 10K lectures in English and Hindi for students studying in Classes I to XII and the ones preparing for competitive exams.  

It is pertinent to mention here that just a few months after its launch, the startup received a major boost in its user base as Covid-19 wreaked havoc across the globe.

While on the one hand, the pandemic gave a significant thrust to many edtech business models, as everyone was forced to stay in the confines of their homes, it, on the other hand, unearthed many unique challenges for students.

For starters, the students with enough resources to study online were exposed to the harmful effects of longer screen time. In contrast, students hailing from the hinterlands of the country, or the ones with little resources to study online, lagged in their studies.    

At this point, the founders took inspiration from a music audio player, Caravaan, and launched an audio player for academic studies called ‘VidyaBox’ in 2022.

“Our academic audiobooks and podcasts bridge the gap between videos and written content, providing an accessible and engaging way to consume educational materials. We are helping students get access to valuable resources with zero screen time,” the cofounder and CEO of SunoKitaab, Vishwakarma, said.

The cofounders’ efforts to make education accessible have been well-received by both students and teachers. As a result, the startup today boasts having a user base of 2 Lakh students and 1,000 teachers. 

Not just this, SunoKitaab has successfully raised INR 20 Lakh from Startup India Seed Funds, Centre for Innovation, Incubation and Entrepreneurship (CIIE). Notably, the startup has also received immense backing from the Rajasthan government’s iStart initiative. 

“iStart programme has provided us with invaluable support, including mentors and essential infrastructure,” Vishwakarma said.

SunoKitaab

SunoKitaab’s Humble Beginnings 

At the outset, when the cofounders decided to embark on their journey to make available academic courses via audio means, they knew that the road they wished to take wouldn’t be a bed of roses as they lacked the technical skills to pursue their mission.

Another major pain point was a serious dearth of funds. However, the duo took a great leap of faith with just INR 1.5 Lakh in hand, and as they stepped forth into uncharted territory, they met Gurkaran Singh.

As the chief technology officer, Singh has played a pivotal role in building the SunoKitaab website and app.

Once the startup’s tech stack was ready, the cofounders leveraged platforms like Google and Facebook, along with content marketing campaigns to target its audience. 

“This increased our visibility and engagement, ultimately aiding in attracting and acquiring new learners for SunoKitaab,” Vishwakarma said.

Interestingly, Vishwakarma gives credit to the rise of non-music audio platforms for the success of SunoKitaab. The platforms that played a key role in inspiring the CEO to offer quality education to one and all are homegrown names like Audible Suno, Pocket FM, Khabr, and Kuku FM, just to name a few. 

In fact, Kuku FM is the closest competitor to SunoKitaab in the space. For context, Kuku FM has a range of educational content on various subjects on its platform.

A Deep Dive Into SunoKitaab’s Playbook

The non-music audio OTT approach has worked wonders for SunoKitaab to emerge in the edtech space. SunoKitaab offers a repository of audio content like recorded lectures and summaries. Their playbook has been to reduce screen time and internet dependency. 

This has made SunoKitaab a preferred platform for students who do not want to spend hours staring at computer screens for learning.

On the other hand, SunoKitaab’s VidyaBox has proved to be a game changer for students in the rural areas of the country. This is because VidyaBox is not only cost-effective but also gives access to offline learning in a creative vogue.

Vishwakarma claims that VidyaBox has been adopted by 70% of school students who do not have the internet, smartphones, or personal computers.  

The educational content provided via VidyaBox has been curated by 1,000 teachers and subject experts. The device helps students with ease of learning in different languages.

These teachers record their voices to provide educational content in VidyaBox. Post the first recording session, a team of audio editors and subject experts reviews the recorded content to ensure the sound and content quality before it’s made available on the platform/device.

Another aspect of ensuring content quality is to keep it relevant and up-to-date. For this, the startup takes regular student feedback and closely monitors school and state board syllabi.

All the recording sessions take place in the in-house studio equipped with the necessary audio equipment. This allows the startup to have full control over the content creation process.

The content can be tailored to suit the distinct needs and preferences of different students, with ongoing efforts to make it even more student-specific.

To customise the content in VidyaBox, the startup provides a form on the website to take the details of the academic needs of the students. Based on the input fed by the students, the curriculum is recorded and delivered to the students. It takes a maximum of seven days to deliver the device to the students and the costs for which are incurred by the startup. 

Vishwakarma claims that the platform has empowered many visually impaired students by providing them access to education through its audio content. He said, “Over 30,000 visually impaired students have benefited from SunoKitaab and more than 1 Lakh students in rural areas have gained access to quality education, showcasing the startup’s meaningful contribution to education.”

Moving on, the cofounders also started a fellowship in 2019 which continued after SunoKitaab’s inception. Fellows collaborate with schools to demonstrate the usage of VidyaBox across Tier II and III regions. Eligibility criteria for the fellowship require the candidate to be a graduate with strong communication skills.

The startup generates revenue by selling audio devices, app subscriptions and content creation.

What’s Next For SunoKitaab?

SunoKitaab is dedicated to expanding its audio content across various education boards in multiple regional languages. The startup’s objective is to optimise the learning journey by giving easy access to quality education.

“Audiobooks are gaining momentum as students and parents recognise their value in education. Audio offers quality content without the need for visuals,” Vishwakarma said.  

He believes that the country’s rural areas, including Tier II and Tier III cities and towns, represent a huge market for edtechs today. Not just this, even the quality of education in these areas will get a major overhaul if edtech founders shift their focus from Tier I towns and cities to these high-potential smaller regions. 

At a time when hybrid learning has become a buzzword in the edtech space, SunoKitaab is already catering to both offline and online learners. While we cannot ignore the strides that the startup has made since its inception a few years ago, there are areas that SunoKitaab can work on. 

For instance, its VidyaBox device is priced at INR 3,999, which is a lot of money for students hailing from the rural areas of the country and could defeat the founders’ vision to extend high-quality education in these regions. Realising this, the startup has partnered with Simpl for a buy now pay later option and also provides EMI options. 

As of now, it remains to be seen if the edtech will be able to secure a juicy chunk of the audiobook market, which is expected to touch $35 Bn by 2030, especially when a majority of edtech startups are looking to pivot to survive.

Disclaimer: This article is part of Inc42 and the Government of Rajasthan’s initiative to shine a spotlight on the state’s emerging startups.

The post How SunoKitaab Is Overhauling Education In India’s Tier II & III Towns With Its Audio Learning Playbook appeared first on Inc42 Media.

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SBI Mutual Fund To Invest INR 410 Cr In Gaming Giant Nazara https://inc42.com/buzz/sbi-mutual-fund-to-invest-inr-410-cr-in-gaming-giant-nazara/ Thu, 07 Sep 2023 07:05:28 +0000 https://inc42.com/?p=414514 SBI Mutual Fund is investing INR 410 Cr in Mumbai-based gaming and sports media giant Nazara. In a stock exchange…]]>

SBI Mutual Fund is investing INR 410 Cr in Mumbai-based gaming and sports media giant Nazara. In a stock exchange filing, Nazara said that its board has approved the issue of shares worth INR 410 Cr to SBI Mutual Fund, which would include 57,42,296 equity shares with a face value of INR 4 each, at a price of INR 714 per share.

The funds will be invested via three schemes of SBI Mutual Fund, namely SBI MulScap Fund, SBI Magnum Global Fund and SBI Technology Opportunities Fund.

“Making India the gaming nation of the world has been a long-pursued dream for all of us at Nazara. India’s largest domestic mutual fund investing in Nazara is an important milestone for us in this two decade long journey,” Nitish Mittersain, CEO of Nazara Technologies, said.

This comes close on the heels of the announcement of Zerodha founders Nithin Kamath and Nikhil Kamath investing INR 100 Cr in Nazara Technologies.

The company announced its plan to issue 14,00,560 equity shares with a face value of INR 4 each, priced at INR 714 per share to M/s Kamath Associates and M/s NKSquared managed by Kamath brothers.

The gaming giant had secured board approval to raise up to INR 750 Cr and increase its authorised share capital from INR 30 Cr to INR 50 Cr.

In the financial year 2022-23 (FY23), the company reported a consolidated net profit of INR 61.4 Cr, marking a significant increase, while its revenue from operations grew by 75% year-on-year (YoY) to INR 1,091 Crores during the same period.”

The gaming firm’s profit after tax (PAT) rose 31% YoY to INR 20.9 Cr in the first quarter (Q1) of the financial year 2023-24 (FY24). Nazara’s revenue from operations jumped 14% to INR 254.4 Cr during the quarter under review from INR 223.1 Cr in the year-ago quarter.

Nazara shares were trading at INR 875 at 12:00 pm on BSE.

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Foxconn Explores EV Manufacturing Hub In India Amidst Shifting Global Dynamics https://inc42.com/buzz/foxconn-explores-ev-manufacturing-hub-in-india-amidst-shifting-global-dynamics/ Thu, 07 Sep 2023 06:24:21 +0000 https://inc42.com/?p=414510 Electronics contract manufacturer Foxconn is considering establishing an electric vehicle (EV) manufacturing facility in India, with Tamil Nadu as a…]]>

Electronics contract manufacturer Foxconn is considering establishing an electric vehicle (EV) manufacturing facility in India, with Tamil Nadu as a potential location for the plant.

Young Liu, the chairman and chief executive officer (CEO) of the parent company Hon Hai Technology Group, said that Foxconn will have an EV factory in the country very soon while talking about the company’s decision to build EV factories in Ohio and Thailand, ET reported.

Foxconn has been engaged in talks with the Tamil Nadu government regarding its EV plans, the report added citing sources. However, whether the company intends to engage in contract manufacturing for other EV companies or plans to market and sell EV products under its brand remains unclear.

Young Liu said that India has the potential to become a significant manufacturing hub globally. He noted that while transitioning from China to India as a manufacturing hub will require some time, this shift is expected to happen more quickly compared to the three decades it took for China to establish itself as a manufacturing powerhouse.

Earlier, Foxconn’s Liu said that the company’s Indian arm achieved an annual turnover of $10 Bn at the end of the second quarter. He also noted that Foxconn India’s metrics, such as revenue, number of employees, and investments, have grown ‘exponentially’ since foraying into India.

“Foxconn annual revenue was $200 Bn. From the perspective of India’s potential market size and if we can fully implement our plans there, several billion dollars in investment is only the beginning,” said Liu.

Regarding its foray into EV manufacturing, Liu earlier said that the company was mainly engaged in the information and communication technology assembly business.

Due to geopolitical tensions between Beijing and Washington DC, India continues to be the contract manufacturer’s new focus.

In May this year, Foxconn commenced the construction of $500 Mn manufacturing facility in Telangana’s Kongar Kalaan. Shortly thereafter, discussions took place between the company and Tamil Nadu Chief Minister MK Stalin regarding establishing a potential unit in the state.

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AI/ML Will Deliver Value Across Insurance Value Chain: Debasish Panda https://inc42.com/buzz/ai-ml-deliver-value-insurance-value-chain-debasish-panda/ Thu, 07 Sep 2023 04:59:15 +0000 https://inc42.com/?p=414502 According to the Insurance Regulatory and Development Authority of India (IRDAI) chairperson Debasish Panda, technologies such as artificial intelligence (AI)…]]>

According to the Insurance Regulatory and Development Authority of India (IRDAI) chairperson Debasish Panda, technologies such as artificial intelligence (AI) and machine learning (ML) within the insurtech sector will be harnessed throughout the insurance value chain.

“AI algorithms combined with machine learning models and predictive analysis will be leveraged to make underwriting an essential process in the insurance industry. Process automation will help increase the speed of traditional processes that require manual intervention. Further, conversational AI will be harnessed in the insurance industry throughout the value chain and will help customers by assisting them during various stages of insurance procurement,” said Panda.

Panda was speaking during a session at the Global Fintech Festival, 2023.

The IRDAI chairperson also noted that products such as smart contracts, parametric triggers and decentralised insurance would be the future of insurtech in India. 

“Accessibility, availability, awareness, choiceness, healthy competition all led by technology is the way forward,” he added.

Panda also said that the sector regulator was anticipating a future where insurers can manage significant data sources, harnessing quantum computing to revolutionise risk assessment and decision-making, thereby significantly improving the lifecycle.

India’s insurtech segment has minted unicorns such as Policybazaar, Acko and Digit, alongside soonicorns such as Turtlemint and is set to reach a market opportunity of $307 Bn by 2030, growing at a CAGR of 17% between 2022 and 2030, according to an Inc42 report.

The sector regulator also is working to improve the sector’s adaptability and responsiveness to ultimately improve the insurance life cycle.

“IRDAI is actively pursuing reforms in the sector to enhance its adaptability and responsiveness. We are currently at a juncture marked by personalised offerings and shifting consumer preferences,” Panda said, adding that the regulator is exploring flexible, do-it-yourself insurance products, leveraging advisory technologies and digital assistants.

Panda’s comments come as India has witnessed a sharp increase recently in adoption across multiple products in the country. For instance, ever since the COVID-19 pandemic, there has been a rise in health-related policies in India. 

The year 2020 alone witnessed a 40% increase in health insurance premium collections during the year, per a Forbes report. Further, a report by Mordor Intelligence indicated that while the health insurance market in India was growing at a CAGR of 24%, the growth rate reached 34% during the pandemic.

Despite this, penetration in India stands at around 5% of the population, comparable to other financial products such as credit cards.

To improve the situation, the IRDAI launched the ‘Insuring India by 2047’ scheme in November 2022, “where every citizen has an appropriate life, health and property insurance cover and every enterprise is supported by appropriate insurance solutions and to make Indian insurance sector globally attractive.”

The plan includes introductions of a regulatory sandbox, solvency norms for general and life insurers and an increase in tie-up limits for intermediaries, among other initiatives.

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Demystifying Early Stage Funding: A Guide For First-Time Founders To Raise Angel Funding https://inc42.com/resources/demystifying-early-stage-funding-a-guide-for-first-time-founders-to-raise-angel-funding/ Thu, 07 Sep 2023 03:30:44 +0000 https://inc42.com/?p=414300 The Indian startup ecosystem has witnessed an unprecedented surge, with a multitude of entrepreneurs emerging to address real-world challenges. However,…]]>

The Indian startup ecosystem has witnessed an unprecedented surge, with a multitude of entrepreneurs emerging to address real-world challenges. However, for first-time founders, securing early stage funding can be an overwhelming endeavour. 

In such circumstances, angel investors play a crucial role. These high-net-worth individuals (HNIs) provide financial backing to startups in their nascent stages in exchange for equity. Here, we will demystify the intricacies of early-stage funding and provide invaluable insights and strategies to help Indian entrepreneurs attract angel investors.

Angel Investors & Raising Angel Funding

Angel investors are wealthy investors who invest in promising early-stage startups in exchange for ownership equity in the company. These individuals actively seek opportunities to support innovative ventures and are willing to take calculated risks. Collaborating with angel investors offers several advantages to startups, including financial backing, mentorship and access to extensive networks.

In today’s startup landscape, securing angel funding can make or break a startup. Attracting the attention of angel investors can be tricky, as these HNIs take unproven investment risks with their wealth, funding unprecedented startup models, while some angel investors are selective towards certain sectors.

One critical trap to avoid is the lack of a strong value proposition. Angel investors want to see what sets your startup apart from the competition and why they should invest. Failing to clearly articulate your unique value proposition can significantly diminish your chances of securing funding.

Equally important is conducting thorough market research. Investors need assurance that there is a realistic product-market fit for the innovation. A deep understanding of your target market and its potential can help gain investors’ interest. Financial planning and projections also play a pivotal role in investor confidence. Investors want to see a well-defined plan for using their funds. If your financial projections are inaccurate or overly optimistic, you risk losing credibility. 

Another crucial aspect is delivering an effective pitch. Your pitch serves as the first impression on potential investors. Investors wish to seek clarity on the business model and the vision of the founding team based on which they gauge the execution capability of the founder. Covering these aspects is crucial for founders while pitching.

Moreover, targeting the right investors is paramount. Not all investors have the same interests or specialise in your industry. Founders need to spend time on research and target the right investor who can align with the sector and growth potential.

Recognising the importance of networking must not be overstated. Building a strong network within the investor community can help tap the right individuals to support your startup. Networking opens doors to potential investors who may have otherwise remained undiscovered.

With the global angel investment market projected to reach $500 Bn by 2025 and significant investments being made in startups worldwide, navigating these challenges becomes important. In the US alone, angel investors contributed $29 Bn to startups in 2021, with an average deal size of $250K. Angel investors typically focus on seed or early stage startups, making their support instrumental for innovation and entrepreneurial success.

Founders need to be persistent and resilient throughout the fundraising journey. Securing funding often takes time and setbacks are common. Giving up too easily can hinder your ability to secure the funding necessary for your startup’s growth.

The post Demystifying Early Stage Funding: A Guide For First-Time Founders To Raise Angel Funding appeared first on Inc42 Media.

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Master Startup Investing — Join 100+ Investors At Inc42’s Angel Investing Workshop In Jaipur https://inc42.com/buzz/master-startup-investing-join-100-investors-at-inc42s-angel-investing-workshop-in-jaipur/ Thu, 07 Sep 2023 03:30:44 +0000 https://inc42.com/?p=414441 Inc42 is set to organise an invite-only, in-person workshop on angel investing in Jaipur, Rajasthan, on September 20. To be…]]>

Inc42 is set to organise an invite-only, in-person workshop on angel investing in Jaipur, Rajasthan, on September 20. To be held in partnership with the government of Rajasthan, the workshop will host leading founders and investors who will share their experiences and discuss their investment thesis with 100-plus attendees. 

Known for its rich cultural heritage and historic landmarks, Rajasthan has carved a new identity for itself in India’s business landscape.The state boasts a robust startup ecosystem, with over 3,700 startups registered under the Department for Promotion of Industry and Internal Trade (DPIIT).

Several key factors have contributed to Rajasthan’s growing startup prominence, including a supportive government policy framework, a strong talent pool and a favourable business environment.

In recent years, both domestic and global venture capitalists (VCs) have made bold investment bets on Rajasthan’s startups and have yielded promising returns. Among the standout success stories are unicorn CarDekho backed by Peak XV Partners, Info Edge-backed healthtech startup MedCords and Faering Capital-backed fintech startup Finova Capital. 

These ventures are just the tip of the iceberg as capital inflow in Rajasthan has outpaced more established startup hubs like Delhi NCR and Mumbai, according to Inc42’s research. 

Our research highlights the vast potential of the state’s startup landscape and the growth avenues that have yet to be explored. 

With this workshop, we aim to equip entrepreneurs and potential angel investors in the state with the strategic know-how required to tap into Rajasthan’s vibrant startup environment.

Register Now!

Note: This workshop is entirely free of charge. As this is an invite-only workshop, Inc42 will carefully review applications and select participants through a rigorous vetting process.

Learn The Art Of Angel Investing From Industry Veterans

In recent years, Rajasthan’s angel investor groups such as Marwari Catalysts and Rajasthan Angel Innovators Network (RAIN) have not only played a crucial role in boosting angel investments in the state but also cracked winning deals with tech startups across the country. 

With this workshop, we aim to take a step further in building the angel community in the state by bringing all stakeholders together under one roof. This will create an opportunity for them to network, collaborate and further flourish the investment landscape in Rajasthan.

The workshop is for both budding and experienced angel investors, who can expect to learn all about startup investing. At the workshop, you will learn how to develop a successful investment thesis, identify the right startups to invest in and avoid common pitfalls. 

The event will host veterans such as Anil Joshi, the founder & managing partner at Unicorn India Ventures; Anup Jain, managing partner, Orion Ventures Partners, and Tej Kapoor, managing partners, IvyCap Ventures Advisors, among xx top-tier investors. These industry top brass will share valuable insights into successfully planning your exits and the valuable lessons they have learned in the school of hard knocks.

The interactive sessions will guide you through the intricacies of startup funding like selecting industries, sourcing teams, finding ideal founders, and getting right valuations to have a seamless exit. 

Not only this, the event will conclude with a startup showcase where you can discover new startups and level up in your angel investing game.

Register Now!

Note: This workshop is entirely free of charge. As this is an invite-only workshop, Inc42 will carefully review applications and select participants through a rigorous vetting process.

By the end of the workshop, we aim to equip you with the basics of angel investing so that you can find your next winning deal and expand your portfolio!

Who Should Attend

The workshop offers a golden opportunity for aspiring angel investors to bet on Rajasthan’s burgeoning startup ecosystem and play a pivotal role in shaping the future of institutional investing.

We invite founders, second generation entrepreneurs, existing angel investors, executive business leaders, high-net-worth individuals (HNIs) and foreign investors to discover new partnership opportunities and unlock the true potential of network-based investing.

Don’t miss the opportunity to join an exclusive angel networking event to become a distinguished angel investor! 

Register Now!

Note: This workshop is entirely free of charge. As this is an invite-only workshop, Inc42 will carefully review applications and select participants through a rigorous vetting process.

The post Master Startup Investing — Join 100+ Investors At Inc42’s Angel Investing Workshop In Jaipur appeared first on Inc42 Media.

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Bewakoof’s Founder On The Checkboxes D2C Brand Ticked Before Getting Acquired By TMRW https://inc42.com/buzz/ceo-prabhkiran-singh-on-the-checkboxes-he-ticked-while-getting-acquired-by-tmrw/ Thu, 07 Sep 2023 02:45:42 +0000 https://inc42.com/?p=413890 When it comes to exiting a startup, each founder finds themselves in a unique position. However, Prabhkiran Singh, the CEO…]]>

When it comes to exiting a startup, each founder finds themselves in a unique position. However, Prabhkiran Singh, the CEO & cofounder of D2C brand Bewakoof, firmly believe that founders should possess a clear understanding of their priorities when it comes to their startup and whether they align with the company’s board.

“You, as a founder, should have clarity on what you are optimising for to decide on the key value additions you seek in a future deal. It could be financial gain or the commitment to continue building, which would require patient capital,” Singh said.

Singh shared these insights during a panel discussion titled “The BIG Exit – How D2C Brands Can Develop an Exit Strategy” at the fourth edition of Inc42’s D2C Summit 2023. The session was moderated by Angshuman Bhattacharya, National Leader of the Consumer Products & Retail Sector at EY India. Joining Singh on the panel were Pranav Malhotra, the founder of Trunativ; Rishubh Satiya, the CEO & cofounder of Plix; and Mohit Sadaani of The Moms Co.

Incorporated in 2012 by Prabhkiran Singh and Siddharth Munot, the Mumbai-based D2C brand Bewakoof specialises in selling casual wear and accessories, including theme-based clothing, notebooks, and backpacks, through its website.

In December 2022, Aditya Birla Group’s house of brands business, TMRW, invested INR 200 Cr in Bewakoof.

Deliberating upon another aspect of the exit strategy, Singh said that founders must gauge the strategic value of the deal. He added that it is essential to understand whether the acquisition will genuinely benefit the company or if it’s merely a perceived benefit.

Additionally, one must consider the perspective of the D2C platform, assessing whether the other party recognises the valuable skills that the brand brings to the table.

“There must be a willingness to make the acquired entity a corporate brand custodian and delegate authority in key areas or to the founders, as the brand requires independence to thrive,” he added.

During the discussion, Singh emphasised that no founder starts a startup with a pessimistic view of getting acquired. He cited several past partnerships where acquisitions proved highly beneficial to the success of companies such as Flipkart and PhonePe, CaratLane and Tanishq, MakeMyTrip and ibibo, Disney and Pixar, and Facebook and WhatsApp, among others.

He also stressed that some truly transformative and substantial ideas require significant capital. Therefore, a startup must decide whether to pursue this path independently or collaborate with a like-minded company where both parties are mature and can create something meaningful for consumers.

The post Bewakoof’s Founder On The Checkboxes D2C Brand Ticked Before Getting Acquired By TMRW appeared first on Inc42 Media.

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Here’s Everything You Need To Know About Return on Investment https://inc42.com/glossary/return-on-investment-roi/ Thu, 07 Sep 2023 02:30:04 +0000 https://inc42.com/?post_type=glossary&p=414327 What Is ROI? Return on Investment, commonly referred to as ROI, is a crucial financial metric that measures the profitability…]]>

What Is ROI?

Return on Investment, commonly referred to as ROI, is a crucial financial metric that measures the profitability of an investment relative to its cost. In essence, it evaluates how effectively an investment generates profit in comparison to the initial amount invested.

How Do You Calculate It?

Calculating ROI is a straightforward process that involves dividing the net profit generated from an investment by the initial cost of the investment and then expressing the result as a percentage.

The formula for calculating ROI is as follows:

ROI = [Cost of Investment / Net Profit]×100

What Is A Good ROI?

The interpretation of a “good” ROI varies depending on the context of the investment, the industry, and the company’s objectives. Generally, a positive ROI indicates that an investment has generated more profit than its cost, making it a worthwhile endeavour.

However, what constitutes a “good” ROI can differ widely. An ROI of 10% might be impressive for a stable, low-risk investment, while a high-risk venture might require an ROI of 30% or more to be considered successful.

What Are The Factors Determining The Return On Investment?

  • Investment Type: The nature of the investment, whether it’s in stocks, real estate, marketing campaigns, or research and development, greatly influences the potential ROI.
  • Timeframe: The duration over which the investment generates returns affects the overall ROI. Short-term investments might yield quicker returns, while long-term investments may require more patience.
  • Costs: The initial cost of the investment, along with any ongoing expenses, impacts the ROI. Higher costs can reduce the overall profitability.
  • Market Conditions: External factors such as economic conditions, industry trends, and market demand can significantly influence the success of an investment.
  • Risk: Risk and ROI often go hand in hand. Investments with higher risk may offer the potential for greater returns, but they also come with an increased chance of loss.
  • Management & Strategy: How well an investment is managed and the strategies employed to maximise returns play a pivotal role in determining ROI.

How Can You Maximise It?

Maximising ROI requires strategic planning, informed decision-making, and effective execution. Here are some strategies to enhance your investment returns:

  • Thorough Research: Conduct extensive research before investing. Understand the market trends, potential risks, and growth prospects to make informed decisions.
  • Diversification: Spread your investments across different assets or industries to minimise risk. Diversification can help protect your portfolio from significant losses.
  • Set Clear Objectives: Define clear investment objectives and goals. Are you seeking short-term gains or long-term stability? Having a clear vision guides your investment choices.
  • Risk Management: Assess and manage risk effectively. While higher-risk investments can yield substantial returns, it’s essential to balance risk with potential rewards.
  • Continuous Monitoring: Regularly monitor the performance of your investments. Be prepared to make adjustments based on changing market conditions and new opportunities.
  • Invest In Learning: Stay informed about the investment landscape. Continuous learning about financial markets and trends can help you make informed decisions.
  • Cost Reduction: Minimise unnecessary costs associated with your investments. High fees and expenses can eat into your returns over time.
  • Optimise Marketing Efforts: In the context of business, optimising marketing campaigns is essential. Use data-driven insights to allocate resources effectively and target the right audience.
  • Customer Satisfaction: For businesses, delivering exceptional customer experiences can lead to repeat business and positive word-of-mouth, ultimately contributing to increased revenue.
  • Innovation & Research: Invest in research and development to create innovative products or services that can open up new revenue streams and give you a competitive edge.
  • Employee Training: For companies, investing in employee training and development can lead to higher productivity, improved quality, and enhanced customer satisfaction, all of which contribute to a healthier bottom line.

The post Here’s Everything You Need To Know About Return on Investment appeared first on Inc42 Media.

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IPO-Bound Ola Electric Bags $140 Mn At $5.4 Bn Valuation From Temasek, Others https://inc42.com/buzz/ipo-bound-ola-electric-bags-140-mn-at-5-4-bn-valuation-from-temasek-others/ Thu, 07 Sep 2023 01:30:59 +0000 https://inc42.com/?p=414482 Electric vehicle (EV) maker Ola Electric has reportedly signed an agreement to raise $140 in a funding round led by…]]>

Electric vehicle (EV) maker Ola Electric has reportedly signed an agreement to raise $140 in a funding round led by Singapore’s sovereign wealth fund Temasek with participation from other existing investors.

Sources told Livemint that the agreement was inked on Monday (September 4) and the amount would be credited into the EV major’s account within four to five days. As per the report, Temasek will invest $90 Mn while the remaining $50 Mn will be pumped by remaining investors, primarily comprising family offices. 

The round reportedly pegs Ola Electric at a valuation of $5.4 to $5.5 Bn. This is higher than the company’s last funding round in January 2022 when the EV maker raised around $200 Mn from a clutch of investors at a valuation of $5Bn. 

A person familiar with the development told the publication that the capital will give the company more runway and ‘an additional buffer’ as it prepares for its much-touted public listing. 

A source reportedly also said that the EV maker will likely raise another round before the public markets debut. This comes days after reports surfaced that Ola Electric was looking to raise $350 Mn ahead of its initial public offering (IPO) in a round led by Temasek.

The fresh capital will give the company more heft as it lines up more investors for its potential listing early next year. The capital could also be deployed to scale up the production of its recently announced long line-up of electric scooters, bikes and a potential electric car. 

The announcement comes at a time when the EV original equipment manufacturer (OEM) has been grappling with losses. The company saw its net loss surge almost 4X to INR 784.1 Cr in the financial year 2021-22 (FY22) compared to INR 199.2 Cr in FY21. The numbers are not comparable as the company only began delivering its EV scooters in December 2021. 

The company is yet to disclose its financial numbers for FY23, but, if reports are to be believed, it raked up a loss of INR 1,116 Cr ($136 Mn) against revenue of INR 2,750 Cr ($335 Mn), missing its targets for the fiscal year. 

As Ola Electric lines up investment banks for its purported 2024 IPO, the company has been mired in multiple issues, with losses being the least of its problems. The EV maker’s escooters have been involved in fires while top-level executives have been leaving in droves amid a leadership reshuffle. 

Alongside, expenses continue to pile up as Ola Electric continues to scale up its ambitious plans of setting up factories even as sales numbers dwindle in the aftermath of the FAME-II crisis. On top of that, the company has also fired many employees in the past one year as part of a cost-cutting exercise at the parent company. 

However, Ola Electric seems to be well-placed to capture the growth momentum of the Indian EV space, which has grown steadily lately on the back of higher adoption among the masses and government incentives. 

The post IPO-Bound Ola Electric Bags $140 Mn At $5.4 Bn Valuation From Temasek, Others appeared first on Inc42 Media.

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Taxation For Online Gaming Platforms: Govt Notifies ‘Tax-Neutral’ Stance For Winners https://inc42.com/buzz/taxation-for-online-gaming-platforms-govt-notifies-tax-neutral-stance-for-winners/ Thu, 07 Sep 2023 00:30:51 +0000 https://inc42.com/?p=414478 Putting its rubber stamp on the 28% GST regime, the union government on Friday (September 1) notified amendments specifying valuation…]]>

Putting its rubber stamp on the 28% GST regime, the union government on Friday (September 1) notified amendments specifying valuation methodology to be used by online gaming platforms for calculating tax liability. 

Following the GST Council’s recommendations, the Ministry of Finance notified amendments to the Central GST law for calculating the value of supply by online gaming platforms. Further clearing the air, the order stated that winnings by any player will remain tax-neutral as the entire tax is collected at the first stage itself. 

The development comes a month after the Parliament approved amendments to the Central and Integrated GST laws to levy a 28% tax on the full face value of bets for online gaming.

Reacting to the development, EY Tax Partner Saurabh Agarwal told news agency PTI that the notification is expected to effectively settle the ambiguity and uncertainty around this matter. He, however, added, “… the aspect of whether the mere deposit of money in a wallet qualifies as a supply is unclear, and may be challenged by the industry.”

This follows the GST Council’s decision to impose a 28% GST on the amount being paid at the entry level for online gaming in July this year. As the government moved ahead with its plans to solidify the levy, Indian online gaming platforms made a beeline, seeking revocation of the proposed plans

Despite criticism from all quarters of the gaming industry, the Centre stuck with plans and passed the amendments in the Parliament. Since then, the gaming ecosystem has been gripped by crises. 

Last month, Mobile Premier League (MPL) slashed half of its workforce to cut corners. This was followed by Hike and Spartan Poker firing employees in droves as they grappled with the tax burden. 

On top of that, Inc42 recently reported that more than 20-25% of online gaming platforms are mulling to get acquired or acquihired. An analyst even said that these startups were selling for pennies on a dollar. 

As the crisis mounts, it remains to be seen how the industry reacts to the new curveball.

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Govt Working On Various Incentives For EV Industry: PM Modi https://inc42.com/buzz/govt-working-on-various-incentives-for-ev-industry-pm-modi/ Wed, 06 Sep 2023 17:44:16 +0000 https://inc42.com/?p=414464 Prime Minister Narendra Modi has said that the Centre is mulling various sops for the country’s electric vehicle (EV) ecosystem. …]]>

Prime Minister Narendra Modi has said that the Centre is mulling various sops for the country’s electric vehicle (EV) ecosystem. 

In an interview with Moneycontrol, PM Modi said the potential incentives will be offered to ensure India achieves its carbon emission targets. He also applauded the homegrown EV industry for spurring innovation in the emerging space.

“The government has been working on providing incentives for the electric vehicle industry. The industry has responded with greater innovation and the people are responding to it with greater openness to try the alternative,” the PM said.

Speaking about the Open Network for Digital Commerce (ONDC), he noted that the platform will create a level playing field for various stakeholders. Terming ONDC a futuristic initiative, PM Modi said the platform is well-poised to revolutionise the tech arena. 

“For a long time, India was globally known for its tech talent. Today, it is known for both its tech talent and tech prowess, especially in digital public infrastructure… The ONDC is a futuristic initiative that will revolutionise the tech field by creating a level playing field on digital platforms for a number of different stakeholders,” he added. 

He also said that various state-backed public digital infrastructure initiatives and platforms unveiled in the past nine years are having a ‘multiplier effect on the economy’, adding that India’s tech revolution has had both economic and deep social impact.

The comments come at a time when the government has ramped up its focus on green technologies, especially the EV space. While work is underway on a new EV policy, the Centre is also mulling incentives in the form of lower import taxes for companies setting up manufacturing bases in the country. 

Even as the EV ecosystem grapples with the fallout of the FAME-II crisis, electric two-wheeler registrations continue to see marginal uptick. Total two-wheeler EV registrations in the country rose to 58,927 units in August from 54,498 units in July.

On the other hand, the Centre has pulled out all the stops when it comes to its ambitious ONDC initiative. Built on the idea of open protocol, the network aims to break the silos related to ecommerce using an open-network methodology that is not limited to a single platform.

The government aims to onboard 900 Mn buyers and 1.2 Mn sellers through the network, directly pitting it against the likes of behemoths such as Flipkart, Amazon, Zomato, Swiggy, among others, across various sectors. 

The post Govt Working On Various Incentives For EV Industry: PM Modi appeared first on Inc42 Media.

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Talk & Pay: NPCI Launches New UPI Offerings With An Eye On 100 Bn Monthly Transactions https://inc42.com/buzz/talk-pay-npci-launches-new-upi-offerings-with-an-eye-on-100-bn-monthly-transactions/ Wed, 06 Sep 2023 15:51:40 +0000 https://inc42.com/?p=414448 In another major push for digital payments in the country, Reserve Bank of India (RBI) governor Shaktikanta Das on Wednesday…]]>

In another major push for digital payments in the country, Reserve Bank of India (RBI) governor Shaktikanta Das on Wednesday (September 6) launched multiple new UPI products at the Global Fintech Fest 2023. 

The new offerings, built by the National Payments Corporation of India (NPCI), included credit line on UPI, near-field communication (NFC)-based offline payment modules UPI LITE X and Tap & Pay, and conversational payment products Hello! UPI and BillPay Connect. 

In a statement, the NPCI said the products aim to create an inclusive, resilient, and sustainable digital payments ecosystem in the country. The launches are in line with the central bank’s earlier announcements. 

The move is part of the NPCI’s bid to achieve 100 Bn monthly transactions in the near future and to bring more Indians into the fold of digital payments.

Lauding the UPI ecosystem, the RBI governor said it has facilitated digital payments for small merchants, leading to greater financial inclusion.

“The UPI has played a phenomenal role in the fintech revolution in India. Its success story has in fact become an international model… UPI has also spurred innovation in the fintech space, leading to the growth and development of other payment systems,” said Das while addressing the gathering. 

The event also saw NPCI advisor and IT veteran Nandan Nilekani and NPCI non-executive chairman Biswamohan Mahapatra in attendance. 

The Digital Payments Push

Making waves at the launch were two conversational payment products launched by the NPCI – Hello! UPI and BillPay Connect, which are based on human-machine interaction and are facilitated by AI-enabled transactions.

Hello! UPI allows users to give voice commands to transfer funds and input UPI PIN through the UPI app, telecom calls, and IoT devices in Hindi and English. The feature is expected to be soon rolled out in other Indian languages as well. 

The product has been built in partnership between the NPCI and Bhashini program (AI4Bharat) at IIT Madras. 

“This expansion will broaden payment accessibility for most Indians who are fluent in their native languages, providing significant benefits to senior citizens and digitally inexperienced individuals,” the NPCI said.

Meanwhile, BillPay Connect allows users to fetch and pay bills through voice commands on their smart home devices. Feature phone users or offline users can also use the product by messaging or calling a pan-India single number to fetch and pay their bills. Afterwards, they will receive an immediate call back for verification and payment authorisation. 

Credit line on UPI was the other product launched today which will enable users to avail pre-sanctioned credit lines from banks through UPI. The launch came days after the RBI allowed scheduled commercial banks to offer credit lines to their customers through UPI.

As per the NPCI, the product will expand access to credit and foster a more streamlined and digital banking ecosystem. The payments corporation expects the process of availing, connecting, and utilising credit lines to significantly expedite and will enable banks and fintechs to create new and niche digital products. 

“The initiative encompasses several key features, including the linkage of pre-sanctioned credit lines, the creation of digital credit products by banks, the establishment of interest-free credit periods and corresponding interest rates, defined schedule of charges, customer engagement channels for credit sanction requests, and the ability to link various pre-sanctioned credit lines via UPI-enabled apps for transactions,” said NPCI. 

UPI LITE X and Tap & Pay, built at the intersection of NFC and offline payments, were the other products launched today.

Through UPI LITE X, offline users can make digital payments of up to INR 500 to anyone with an NFC-enabled compatible device. Meanwhile, UPI Tap & Pay allows customers to simply tap NFC-enabled QR codes at merchant outlets to complete their payments.

Meanwhile, fintech major Paytm announced its partnership with NPCI to launch products such as credit line on UPI, Billpay Connect and UPI Tap & Pay on its app. 

“As pioneers of mobile payments, we are proud to partner with NPCI to enable the launch of innovative new features like Credit Line on UPI, Billpay Connect and UPI Tap & Pay. Bringing these offerings first to our users, we will take Paytm UPI to the next level, driving further adoption,” said a Paytm spokesperson.

The developments come just days after UPI achieved a major milestone of 1,000 Cr monthly transactions in August 2023. The slew of offerings have been introduced with an eye on scaling monthly transactions on the UPI network to 10,000 Cr in the near future. 

The post Talk & Pay: NPCI Launches New UPI Offerings With An Eye On 100 Bn Monthly Transactions appeared first on Inc42 Media.

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Startups Can List Directly On GIFT IFSC Exchanges By The End Of 2023: IFSCA chairman https://inc42.com/buzz/startups-can-list-directly-on-gift-ifsc-exchanges-by-the-end-of-2023-ifsca-chairman/ Wed, 06 Sep 2023 15:23:10 +0000 https://inc42.com/?p=414431 The International Financial Services Centres Authority (IFSCA), the regulator for GIFT IFSC, is looking to operationalise the framework for direct…]]>

The International Financial Services Centres Authority (IFSCA), the regulator for GIFT IFSC, is looking to operationalise the framework for direct listing of companies, including startups, on IFSC exchanges by the end of the ongoing year, its chairman K Rajaraman said.

Speaking at Global Fintech Fest 2023, Rajaraman said the necessary amendment for this would be notified in the next three months.

Earlier in July, finance minister Nirmala Sitharaman said that the government has allowed Indian companies to list directly on IFSC Exchanges.

“In May 2020, I had said that direct listing of securities by Indian public companies would be permissible in foreign jurisdictions… Now, I am pleased to announce that the government has taken a decision to enable direct listing of listed and unlisted companies on IFSC exchanges,” said Sitharaman. 

Meanwhile, Rajaraman also said that the IFSCA would soon come up with payments regulations to facilitate instant settlements, Business Standard reported.

Speaking about the Indian fintech ecosystem, he said the sector has been instrumental in driving financial inclusion.  

Commenting on IFSCA’s role in promoting fintech innovations, he said, “In recent years, IFSCA has facilitated startup access and encouraged innovative financial product development, implementing over 30 streamlined global-standard regulations.” 

The statements come at a time when the Indian government is aggressively taking steps to promote GIFT as a financial hub. The IFSCA recently also set up a 10-member expert committee on ‘Onshoring Innovations To GIFT IFSC’. The committee has made various recommendations to encourage Indian startups to register in GIFT.

Moving beyond GIFT, Rajaraman praised initiatives like the launch of UPI for the growth of India’s fintech ecosystem.

Earlier on Tuesday, Sitharaman said fintech startups have surpassed traditional banks in terms of the number of UPI payments. She also added that 36% of the lending business market has been taken over by the fintech startups in the country. 

According to Inc42’s State Of The Indian Fintech Report Q2 2023, the Indian fintech market is expected to reach a size of $2.1 Tn by 2030, expanding at a CAGR of 18%. 

The post Startups Can List Directly On GIFT IFSC Exchanges By The End Of 2023: IFSCA chairman appeared first on Inc42 Media.

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Airtel Payments Bank Partners IDEMIA, Nokia To Enable CBDC Payments On Feature Phones https://inc42.com/buzz/airtel-payments-bank-partners-idemia-nokia-to-enable-cbdc-payments-on-feature-phones/ Wed, 06 Sep 2023 15:19:32 +0000 https://inc42.com/?p=414430 Airtel Payments Bank has partnered with French biometric solutions provider IDEMIA and Nokia parent HMD Global to launch an offline…]]>

Airtel Payments Bank has partnered with French biometric solutions provider IDEMIA and Nokia parent HMD Global to launch an offline system for facilitating digital rupee payments on feature phones. 

Digital rupee is simply a tokenised digital version of the Indian fiat currency and is issued by the Reserve Bank of India (RBI) as a central bank digital currency (CBDC).

In a statement, IDEMIA said the trio will work together to introduce an ‘advanced offline payment system’ over the course of the next few months. The new system will enable users to make payments via CBDCs without being connected to the internet or not having a smartphone. 

“This partnership will work towards further strengthening financial inclusion and digital payments, to make it possible to pay in digital currency even without having a smartphone or being connected to the internet, either temporarily or because of coverage limitations,” the statement said.

The product is currently in design phase and, as per the companies, is the first ‘industry attempt’ to facilitate the use of digital rupee on feature phones through an app interface. 

The new offering will leverage Airtel Payments Bank’s financial solution and IDEMIA’s CBDC stack to build the app, and will be available on Nokia feature phones. 

It will aim to fuel the adoption of CBDCs in the country, promote financial inclusion and address issues associated with facilitating digital transactions in areas with limited connectivity. The app will also enable the players to tap into the growing adoption of digital currencies in the country and acquire a first mover advantage in the arena. 

“… We are confident that once we move from the design phase and launch the solution commercially with all required approvals, it will play a pivotal role in advancing the accessibility of financial services and contribute to India’s transition towards a digitally inclusive economy,” said Prasad Routray, head of corporate business and alliances at Airtel Payments Bank.

Amit Kakatikar, senior vice president of payments solutions at IDEMIA, added that the alliance will provide ‘valuable insights and contributions’ to the evolution of offline retail CBDC systems.

The new system will also enable the trio to roll out the CBDC payments to a wide-range of population, or almost 40 Cr Indian feature phone users. 

The development comes at a time when CBDCs are witnessing rapid adoption in the country. On Wednesday, RBI Governor Shaktikanta Das said that CBDC retail pilot has so far onboarded 1.46 Mn users and 0.31 million merchants at the end of August. A separate news report noted that last month saw 10.83 Cr overall CBDC transactions totalling INR 24,000 Cr

It is pertinent to note that retail CBDCs are still in pilot mode and were launched by the central bank in December 2022. 

Earlier this week, the State Bank of India (SBI) also integrated UPI with its digital rupee app to streamline user experience and enhance adoption of the new technology. 

The latest announcement from Airtel Payments Bank also comes as RBI tinkers with a host of novel technologies to spur the adoption of digital payments beyond metros and Tier-I cities. Earlier today, the NPCI launched four new UPI products – Credit Line on UPI, Near Field Communication (NFC)-based offline payments offerings UPI LITE X and Tap & Pay and conversational payments products Hello! UPI and BillPay Connect.

The post Airtel Payments Bank Partners IDEMIA, Nokia To Enable CBDC Payments On Feature Phones appeared first on Inc42 Media.

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[Update] Ather Energy Raises INR 900 Cr From Hero MotoCorp, GIC https://inc42.com/buzz/ev-startup-ather-energy-bags-inr-550-cr-funding-from-hero-motocorp/ Wed, 06 Sep 2023 12:15:33 +0000 https://inc42.com/?p=413842 Update: September 6 | 05:30 PM The EV startup said in a statement on Wednesday it has raised INR 900…]]>

Update: September 6 | 05:30 PM

The EV startup said in a statement on Wednesday it has raised INR 900 Cr from existing shareholders Hero MotoCorp and GIC through a rights issue.

Ather said it would use the fresh funds to launch new products and expand its charging infrastructure and retail network.

The startup claims to have over 200 retail touchpoints across over 100 cities.

“… We have always believed that this (EV) transition will be led by world class technology and products designed and built in India and this year will be no different with our largest outlay on research and development yet, planned in 2023-24. This round will allow us to expand our product portfolio while expanding our footprint,” Ather CEO and cofounder Tarun Mehta said.

Original Copy: September 4 | 11:20 PM

Bengaluru-based EV startup Ather Energy is raising INR 550 Cr from existing investor Hero MotoCorp. 

Hero MotoCorp, in an exchange filing, said it would invest up to INR 550 Cr in Ather via its rights issue by subscribing to the EV startup’s Series E2 compulsory convertible preference shares.

Hero Motorcorp first invested in the EV startup in 2016 and currently holds a 33.1% stake in it. Its shareholding will further increase following the rights issue, which is expected to close by September 30.

The funding round comes almost 11 months after Ather raised $50 Mn from Caladium Investment. Prior to that, it raised $128 Mn from NIIFL and Hero MotoCorp in May last year as part of its Series E round. 

Overall, the startup has raised a total funding of over $400 Mn till date.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather is a major player in the Indian two-wheeler EV market. It currently offers two escooters – Ather 450X and Ather 450S.

Ather also claims to have the largest fast-charging network in the country. It has over 1,400+ charging points in over 99 cities, including Delhi, Chennai, Bengaluru, Mumbai, Hyderabad, Jaipur.

Registrations of Ather’s escooters stood at 6,780 units in August, a marginal rise of 1.6% from 6,671 units in July. Its rival Ola Electric’s registrations declined 10.4% month-on-month to 17,331 units in August but it continued to lead the two-wheeler EV space.

Besides Ola Electric, Ather competes with Ampere, Okinawa, Revolt, TVS, among others.

Ather’s revenue stood at INR 1,806 Cr in FY23, a massive jump from INR 408.5 Cr in FY22, as per Hero MotoCorp’s filing. While the filing didn’t mention profit/loss numbers for FY23, Ather’s net loss rose 47% to INR 344 Cr in FY22.

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Razorpay Launches ‘UPI Autopay On QR’ For Subscription-Based Businesses https://inc42.com/buzz/razorpay-launches-upi-autopay-on-qr-for-subscription-based-businesses/ Wed, 06 Sep 2023 12:07:23 +0000 https://inc42.com/?p=414315 Fintech major Razorpay on Wednesday (September 6) launched ‘Razorpay UPI Autopay on QR’, in collaboration with the National Payments Corporation…]]>

Fintech major Razorpay on Wednesday (September 6) launched ‘Razorpay UPI Autopay on QR’, in collaboration with the National Payments Corporation of India (NPCI), at the Global Fintech Fest 2023 for subscription-led businesses.

The new offering aims to simplify and streamline the challenges faced by subscription-based businesses by making the UPI payment process for subscription quicker.

By leveraging the widespread use of QR codes, this solution aims to help subscription-based businesses drive rapid adoption and encourage quick acceptance, Razorpay said in a statement.

With the new offering, businesses can create QR codes for their subscription services and seamlessly integrate them into their marketing strategies, spanning online ads, newspapers, billboards, websites, TV, product packaging, and delivery bags, Razorpay said.

A customer will only have to scan the QR code and make the payment.

Commenting on the new launch, Khilan Haria, SVP and head of payments product at Razorpay, said, “We embarked on a steadfast mission to provide businesses with optimal results, leveraging the synergy of India’s digital payments ecosystem and our technological expertise. Introducing ‘Razorpay UPI Autopay on QR’ innovation felt like a natural step in this direction.”

“With subscription-based businesses such as OTT platforms, and insurance providers having already established themselves in metropolitan and Tier 1 cities, Razorpay UPI Autopay on QR will play a pivotal role in their next phase of growth,” he added.

The National Payments Corporation of India (NPCI) launched UPI Autopay in 2020 to enable payments for recurring payments such as mobile bills, electricity bills, EMI payments, and OTT subscriptions.

The transition towards UPI Autopay has primarily been driven by a series of guidelines issued by the Reserve Bank of India (RBI) over the past four years. These guidelines aimed to tighten regulations for recurring payments, ensuring that such transactions do not occur without the explicit consent of users.

Earlier this year, tech major Apple introduced UPI Autopay as a new payment option for subscription-based purchases on its app store in India. Google also introduced UPI Autopay as a payment option for subscription-based purchases on Google Play in India last year.

In August, UPI transactions crossed the 1,000 Cr mark for the first time. It recorded 1,024.1 Cr transactions amounting to a total value of INR 15.18 Lakh Cr.

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Reliance Retail Acquires Majority Stake In Alia Bhatt’s Ed-a-Mamma https://inc42.com/buzz/reliance-retail-acquires-majority-stake-in-alia-bhatts-ed-a-mamma/ Wed, 06 Sep 2023 11:57:00 +0000 https://inc42.com/?p=414316 Reliance Retail Ventures Limited (RRVL) on Wednesday said it is acquiring a majority stake in Alia Bhatt’s children’s wear brand…]]>

Reliance Retail Ventures Limited (RRVL) on Wednesday said it is acquiring a majority stake in Alia Bhatt’s children’s wear brand Ed-a-Mamma.

In a statement, RRVL said it has signed a joint venture agreement with Ed-a-Mamma to acquire a 51% stake. However, it didn’t disclose the financial details of the deal.

RRVL said it aims to closely collaborate with Bhatt and leverage the management strength of its subsidiary Reliance Brands to spearhead the business.

Founded in 2020, Ed-a-Mamma manufactures and sells kids-wear and maternity-wear products. The startup operates on an omnichannel model, selling across ecommerce platforms, its website, and offline retail chains, including Lifestyle and Shoppers’ Stop.

“With sustainability as its core proposition the brand has garnered acclaim for its meticulous attention to detail, using ethically sourced materials and eco-conscious production processes. This aligns seamlessly with Reliance Brands’ vision of fostering a more responsible future for the fashion industry,” said Isha Ambani, director of Reliance Retail Ventures Limited.

The development comes at a time when Reliance Retail is taking big strides to expand its online retail presence. Recently, the company entered into an agreement with the once-banned Chinese fast fashion brand, Shein, to reintroduce it to the Indian market.

Last month, the wholly-owned subsidiary of Reliance Industries received an investment of INR 8,278 Cr from the Qatar Investment Authority at a pre-money equity valuation of INR 8.3 Lakh Cr.

RRVL’s digital and new commerce businesses, including its fashion ecommerce venture AJIO, contributed 18% to its total revenue in Q1 FY24. The retail arm’s net profit stood at INR 2,448 Cr in Q1, while operating revenue was at INR 62,159 Cr.

RRVL also entered into the beauty and personal care (BPC) space in the country with the recent launch of its brand Tira, posing significant competition to Nykaa.

RRVL has been expanding its portfolio through multiple acquisitions, including those of V Retail and Insight Cosmetics, in the recent past.

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Furlenco Enters Offline Segment With Launch Of Two Stores In Bengaluru https://inc42.com/buzz/furlenco-enters-offline-segment-with-launch-of-two-stores-in-bengaluru/ Wed, 06 Sep 2023 11:34:06 +0000 https://inc42.com/?p=414304 Furniture renting startup Furlenco on Wednesday (September 6) said it is taking the omnichannel approach for growth and has launched…]]>

Furniture renting startup Furlenco on Wednesday (September 6) said it is taking the omnichannel approach for growth and has launched two offline stores in Bengaluru as part of this strategy.

Founded in 2012 by Ajith Mohan Karimpana, Furlenco operates an online subscription-based furniture rental platform in Bengaluru, Mumbai, Delhi NCR, among others. It also sells furniture through its marketplace. 

The startup said its offline stores would offer customers the opportunity to experience the products and make informed purchase decisions. Like its app and website, Furlenco’s offline stores will offer both buying and renting options. 

“While the online platform has been instrumental in building our brand, we understand the value of offline touchpoints. As Furlenco expands its horizons beyond the confines of a furniture rental brand, we are committed to seize the untapped potential of offline opportunities to scale our operations and propel growth,” Furlenco founder and CEO Karimpana said.

Calling the launch of the stores just a beginning of the startup’s offline expansion plans, the CEO said Furlenco aims to enhance the customer experience and cater to their diverse buying habits via these stores. Going ahead, the startup aims to open offline stores across major Indian cities.

The stores will have a material library displaying physical material swatches, miniature furniture designs, furniture joinery, and finished products. 

The development comes months after mattress brand Sleepwell’s parent Sheela Foam announced acquisition of a 35% stake in Furlenco’s parent House of Kieraya for INR 300 Cr.

In FY22, Furlenco’s net loss rose 71% to INR 149 Cr, while operating revenue surged 1.5X to INR 129 Cr.

Amid mounting losses, Furlenco laid off about 180 employees last year as part of a cost-cutting exercise to attain profitability. 

Furlenco competes with the likes of Rentomojo, Pepperfry, and Urban Ladder. On Tuesday, Pepperfry said it has raised $23 Mn from existing investors, including institutional investors and family offices. 

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Blow For Gameskraft: SC Stays K’taka HC Order Quashing INR 21,000 Cr GST Notice https://inc42.com/buzz/blow-gameskraft-sc-stays-ktaka-hc-order-quashing-inr-21000-cr-gst-notice/ Wed, 06 Sep 2023 10:14:28 +0000 https://inc42.com/?p=414292 In a major blow to online gaming startup Gameskraft, the Supreme Court on Wednesday reportedly stayed the Karnataka High Court…]]>

In a major blow to online gaming startup Gameskraft, the Supreme Court on Wednesday reportedly stayed the Karnataka High Court order quashing the GST department’s show cause notice for an alleged evasion of INR 21,000 Cr.

A bench of Chief Justice of India (CJI) DY Chandrachud and Justices JB Pardiwala and Manoj Misra sought a response from Gameskraft and listed the matter for hearing after three weeks. “Do not worry…nothing is going to happen in three weeks,” the CJI orally remarked, as per a report by Bar and Bench.

CJI Chandrachud also permitted the Directorate of Revenue Intelligence of GST to file a rejoinder to the same. 

During today’s hearing, the Additional Solicitor General (ASG) N Venkatraman argued that the government approached the Supreme Court in the case as the High Court relied heavily on a judgment of a two-judge bench of the same court. 

According to the ASG, the observations made by the HC in the judgment have put a pause on other show cause notices leading to a problem for the GST department. He argued that the department has had to hold back at least 35 different show cause notices owing to the HC’s judgment.

The Gameskraft Case

In September 2022, the Directorate General of GST Intelligence (DGGI) issued a show cause notice to Gameskraft, alleging that the online gaming startup failed to pay INR 21,000 Cr in GST, the biggest such claim in the history of indirect taxation. The notice was for the period between 2017 and June 30, 2022.

Gameskraft was also accused of promoting online betting through cards and casual and fantasy games such as Rummy Culture, Gamezy and Rummy Time. Gameskraft was not issuing invoices to customers, the officials alleged at the time.

GST officials slapped a 28% tax on betting amounts of nearly INR 77,000 Cr. “GTPL (Gameskraft) was engaged in the betting by allowing its players/gamers to place bets in the form of money stakes on the outcome of card games played online,” the authorities said.

The authorities alleged that the gaming platform submitted fake/back-dated invoices and added that it was inducing its customers to bet as there was no way of returning the money once it was added to the wallet.

The company approached the Karnataka High Court challenging the show cause notice. In May 2023, the High Court quashed the show cause notice and observed that the department was picking and choosing its arguments. Following this, the GST department appealed against the judgment in the Supreme Court.

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ONDC Partners Google Cloud To Boost Ecommerce Adoption Using Generative AI https://inc42.com/buzz/ondc-partners-google-cloud-to-boost-ecommerce-adoption-using-generative-ai/ Wed, 06 Sep 2023 10:05:16 +0000 https://inc42.com/?p=414291 The Open Network for Digital Commerce (ONDC) has teamed up with Google Cloud to increase the adoption of ecommerce in…]]>

The Open Network for Digital Commerce (ONDC) has teamed up with Google Cloud to increase the adoption of ecommerce in India using generative AI.

As part of this partnership, they will launch a nationwide ‘Build for Bharat’ hackathon to foster an open ecosystem of developers, students, and startups to drive innovation within the ONDC framework.

The hackathon intends to develop solutions that democratise access to digital commerce, regardless of digital literacy, geography, or economic status, a joint statement said.

“This hackathon will serve as an ideal launchpad, enabling us to discover numerous gifted individuals and organisations with inventive concepts. This, in turn, propels the drive for innovation for Bharat by solving countless pressing challenges faced by merchants and consumers both in metro cities and smaller towns,” ONDC MD and CEO T Koshy said.

The hackathon will span three months and will offer mentoring and assistance to participants working to solve ecommerce challenges such as building better supply chain visibility, improving inventory management, creating targeted personalisation for consumers, among others.

Earlier in June also, ONDC and Google Cloud teamed up to launch an open sourced ONDC Open Commerce solution to help users and buyers onboard the ONDC platform seamlessly. The programme has been leveraged by 20 ecommerce companies as of now. 

As the next step to the strategic partnership, the two will enable buyers and sellers of all sizes across the country to use Google Cloud’s generative AI tools for seamless transactions. The AI powered tools will offer features like voice commands, product descriptions and image improvement, automatic translation of catalogues in local languages, among others. 

India is seeing a generative AI boom since the launch of Open AI’s ChatGPT. Last week, Google also announced that it would add its generative AI capabilities to ‘Search’ in India.

Meanwhile, the government-backed ONDC has been constantly expanding since its launch last year, onboarding new players and entering new segments. Most recently, the likes of Pepsico and Ola joined the open network.

Last week, ONDC also said that the number of restaurants on the platform surged to 50,000 from just 500 in February.

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OYO India CEO, Europe Head Step Down Ahead Of IPO https://inc42.com/buzz/oyo-india-ceo-european-head-step-down-ahead-of-ipo/ Wed, 06 Sep 2023 07:12:34 +0000 https://inc42.com/?p=414239 As OYO gears up for its anticipated IPO, the company has seen the departure of key executives. Ankit Gupta, OYO’s…]]>

As OYO gears up for its anticipated IPO, the company has seen the departure of key executives. Ankit Gupta, OYO’s India CEO, and Mandar Vaidya, the head of OYO Europe, have both opted to leave the hospitality and travel tech unicorn.

“Ankit Gupta and Mandar Vaidya moved on from their roles six months ago (in March 2023). We are proud of their achievements at OYO and are thankful for their leadership,” an OYO spokesperson told Inc42.

The traveltech unicorn elevated Gupta as CEO of India from his position of CEO, Hotels and Homes -India, last year. On the other hand, Vaidya assumed the role of Europe CEO in 2021.

“Both roles were already transitioned 6 months ago to Varun Jain, as COO India, and, Gautam Swaroop, as CEO OYO Vacation Homes, respectively,” the spokesperson added.

Earlier this year, the hospitality unicorn underwent a major management reshuffle, which included assigning additional responsibilities to founder Ritesh Agarwal’s core team. As part of the rejig, OYO International CEO Gautam Swaroop took over allied businesses at OYO, including Weddingz. The company also changed the role of COO Abhinav Sinha to chief product and technology officer.

Late last year, market regulator SEBI asked OYO to refile its draft red herring prospectus (DRHP) by updating all relevant sections, such as risk factors, KPIs, and outstanding litigations, after the company submitted its financial results for the first half of FY23 by filing an addendum.

OYO first filed DRHP for IPO in September 2021, initially aiming to raise INR 8,430 Cr ($1.2 Bn). However, it later took the confidential route to pre-file its draft documents and cut the IPO size to $400 Mn – $600 Mn (INR 3,286 Cr – INR 4,929 Cr).

In an internal town hall in July, Oravel Stays Ltd, the parent entity of hospitality chain OYO, claimed that it registered an adjusted EBITDA of about INR 175 Cr in the first quarter of the financial year 2023-2024 (FY24).

“Our Q1 adjusted EBITDA of around INR 175 Cr makes it an exciting start to the year. If you annualise this outcome, it sets us up for INR 700 Cr adjusted EBITDA this financial year, though, in all likelihood, we will achieve or probably surpass our previously stated target of INR 800 Cr,” OYO founder and CEO Ritesh Agarwal told the employees.

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Google To Allow Real Money Games On Play Store https://inc42.com/buzz/google-allow-real-money-games-play-store/ Wed, 06 Sep 2023 06:57:10 +0000 https://inc42.com/?p=414234 Google plans to continue permitting real-money games on its Play Store, pending approval from self-regulatory bodies, once the government introduces…]]>

Google plans to continue permitting real-money games on its Play Store, pending approval from self-regulatory bodies, once the government introduces a new regulatory framework for gaming platforms.

These apps will remain available for download via Google Play due to them being part of a pilot project by the tech giant. Google started a year-long pilot to offer daily fantasy sports and rummy apps to users in India in September 2022. The pilot is set to end later this month.

The tech giant’s stance would likely be a shot in the arm for skill-based gaming companies that are currently under immense pressure following the government’s recent move to implement a 28% GST on real money games.

“We intend to enable distribution on Google Play for all Self Regulatory Bodies (SRB) verified online real money games that comply with our policies. We are closely tracking all developments in this regard to determine next steps and timelines,” a Google spokesperson said.

For now, the tech giant has updated its support page to mention that it will no longer accept new apps into the pilot programme after the pilot ends. Google will still provide a grace period for existing apps that are already a part of the pilot programme to remain on Google Play till January 15, 2024.

In April, MeitY notified new gaming-related amendments to the IT Act 2021, allowing multiple self-regulatory organisations (SROs) to determine whether a real money game is permitted to operate in India.

Real money games are still awaiting more clarity from the GST Council on the exact GST norms and which companies will come under the ambit of the move. However, this is still being perceived as a black swan event for online gaming in India.

Since the introduction, several gaming startups have trimmed their workforce, while few even decided to halt operations temporarily. Gaming unicorn Mobile Premier League (MPL) slashed 350 jobs, Hike slashed its workforce by 25% and online gaming platform Spartan Poker fired 125 employees in recent weeks. 

At the same time, the likes of Fantok suspended operations temporarily, while many small real-money gaming companies are looking to get acquired amid the increased tax burden.

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