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Economic Times
3 days ago
- Business
- Economic Times
BlueStone's pre-IPO glow up; PE funds go tech shopping
Ahead of its listing, BlueStone is poised to become India's next unicorn through a secondary deal. This and more in today's ETtech Morning Dispatch. Also in the letter: ■ Google bets on India■ ETtech Done Deals■ 'Safety Charter' for India BlueStone set to enter unicorn club on road to IPO Gaurav Singh Kushwaha, CEO, Bluestone Omnichannel jewellery retailer BlueStone is set to become India's newest unicorn, with a secondary deal valuing the company at around $1.2 billion, ahead of its public listing. Tell me more: The private wealth management arms of 360 One and Centrum Wealth are in advanced discussions for secondary deals valued at Rs 300–350 crore. Both platforms intend to offload their holdings to clients before the Bengaluru-based firm debuts in the public markets. In numbers: The deal values BlueStone at Rs 10,500 crore ($1.2 billion), reflecting a 30% increase from its Rs 8,100 crore (approximately $970 million) valuation in the August 2024 funding round. Lucrative returns: Singapore-based RB Investments will completely exit the company through these transactions. Holding a 2–3% stake, RB is anticipated to achieve a 10–12x return on investment. Catch up, quick: BlueStone submitted the draft prospectus for its IPO to Sebi in December and obtained regulatory approval in April. The offer comprises a fresh issue of shares worth Rs 1,000 crore and an offer-for-sale (OFS) of nearly 24 million shares. Investors including Accel, Saama Capital, IvyCap Ventures, and Kalaari Capital will partially or fully divest through the OFS. PE funds pick up significant stakes in fast-growing tech firms Private equity funds are acquiring significant stakes in rapidly growing technology firms across high-growth sectors. At least four deals have been finalised since the start of 2025, according to investment bankers and industry executives. Deals book: New Mountain Capital acquired a 70–75% stake in Access Healthcare Kedaara Capital invested $350 million in Impetus Technologies HIG Capital picked up a stake worth C$1.3 billion in Converge Technology Solutions Agilitas PE bought a stake worth 300 million euros in Tietoevry Tech Services. Players on the pitch: Active dealmakers include PE funds like Blackstone, Carlyle, EQT Partners, Barings PE Asia and Chryscapital. Most of the recent activity has concentrated on digital engineering and healthcare revenue cycle management (RCM), with at least 70 to 80 new buyers entering the market, said Shobhit Jain, head of enterprise, technology and services at Avendus Capital. Investor interest: This burst of dealmaking follows a strong run of 21 PE-backed deals valued over $300 million between January 2024 and March 2025. By comparison, only nine such deals were recorded in the previous year. But why? India's software products market is projected to grow from $15 billion in FY23 to $44 billion by FY31, according to a March report by SaaSBoomi and 1Lattice. This projection underscores the rising investor confidence and the increasing scope for tech-focused investments. Google 'very bullish' on India, says new country head Preeti Lobana Google remains "very bullish" on India despite macroeconomic headwinds and a slowdown in consumption, Google India country manager Preeti Lobana told us in her first interview since taking charge. Sectors such as gaming, edtech, ecommerce, and quick commerce continue to experience rapid growth, she said. Growth engines: Google is doubling down on its "One Google' approach and artificial intelligence (AI) to drive growth in India. This includes offering a comprehensive suite of solutions—advertising, cloud, and payments—to serve both large enterprises and small businesses. Lobana said Google remains committed to building India-first products. AI strategy: Lobana dismissed concerns about AI chatbots threatening Google's core search product. The company has weathered every major tech shift and emerged stronger, she said. Google is adapting its products to reflect changing consumer habits, including support for longer, more conversational queries. The AI mode in Search will roll out in India shortly, she confirmed. MakeMyTrip plans $3 billion buyback; China's stake to fall below 20% India's largest online travel platform, MakeMyTrip, plans to raise $3 billion through a mix of equity and debt to buy back shares from China's Group. The deal will reduce stake from 19.99% to 45.34%, making it the biggest-ever fundraise by a listed Indian new-age company. Driving the news: board representation will drop from five directors to two. Meanwhile, MakeMyTrip cofounders Deep Kalra and Rajesh Magow, who hold 4.6% voting rights, will retain the right to appoint three independent directors. Backstory: first invested in MakeMyTrip in 2016 via $180 million in convertible bonds. It later acquired Naspers' 42% stake in 2019 through a share swap. Adding context: The buyback follows scrutiny over Chinese ownership amid data security concerns. Rival EaseMyTrip's founder had flagged board influence, which MakeMyTrip dismissed as a 'motivated accusation.' By the numbers: $1.4–1.6 billion via primary equity issuance $1.25 billion via convertible notes, plus a $187.5 million greenshoe option FY25 gross bookings: $9.8 billion; profit: $95.3 million Q4 FY25 gross bookings: $2.5 billion; profit: $29.2 million The big picture: Several Indian startups, including Paytm, Zomato, and Dream Sports, have also cut Chinese holdings in recent years. Secured lender Techfino raises Rs 65 crore from Stellaris, Saison Capital: Non-bank lender Techfino raised Rs 65 crore in equity funding from Stellaris Venture Partners and Saison Capital, the venture arm of Japan's Credit Saison. Razorpay invests $30 million into consumer payments startup Pop: Fintech major Razorpay has invested $30 million in consumer payments platform Pop to help merchants manage rising customer acquisition costs and boost user rewards. Why it matters: Razorpay is doubling down on loyalty and commerce tools after acquiring PoshVine earlier. Other Top Stories By Our Reporters Google releases 'safety charter' for India: The internet major released a 'safety charter' for India to tackle online scams, enhance cybersecurity for government and businesses, and promote responsible AI. Salesforce eyes manufacturing boom in India through AI and cloud solutions: While manufacturing has lagged behind banking and financial services in adopting digital platforms, the situation can be improved with enhanced data and insights, said Arundhati Bhattacharya, Salesforce's president and CEO for South Asia. Global Picks We Are Reading ■ The Trump Mobile T1 Phone looks both bad and impossible (The Verge) ■ Scale AI's Wang brings to Meta knowledge of what everyone else is doing (Bloomberg) ■ Minnesota shooting suspect allegedly used data broker sites to find targets' addresses (Wired) Updated On Jun 18, 2025, 07:16 AM IST
Economic Times
4 days ago
- Business
- Economic Times
Stage set for micro-dramas; WhatsApp's monetisation bid
Investors are flocking to micro-drama startups as the next big thing in India's content and entertainment industry. This and more in today's ETtech Morning Dispatch. Also in the letter: ■ K'taka bike taxi ban ■ ID verification crackdown■ Meta's new India head India's big bet on micro drama: Startups, investors eye a new content race Investors are getting hooked on short, binge-worthy micro dramas as the next big wave in India's entertainment space. Unlike user-generated content on Instagram Reels and YouTube Shorts, micro-dramas are professionally produced, with higher production quality and serialised storytelling designed for mobile-first audiences. Notable actors: Alongside startups such as Flick TV, Eloelo, Kuku FM, Chai Shots, and ReelSaga, larger digital platforms like Amazon, ShareChat, and Zee Entertainment Enterprises (ZEE) are also stepping into the micro-drama market to meet growing demand. Investor interest: Venture capital firms are actively backing local content platforms, hoping to replicate the playbook of their Chinese counterparts. Monetisation hurdles: The big challenge now is figuring out how to monetise the format. In a price-sensitive market like India, where the average revenue per user (ARPU) remains low, this is no small platforms are testing a pay-per-episode model with micropayments, while others plan to introduce monthly and quarterly subscription tiers. A few are also exploring hybrid strategies that combine subscriptions with ad-supported revenue. Zooming out: Micro-dramas have had a breakout moment in China over the past few years. Earlier this year, The Economist noted that the value of China's micro-drama market had jumped 10x between 2021 and 2023. noted that the value of China's micro-drama market had jumped 10x between 2021 and 2023. Its current estimated worth of $5.3 billion is projected to reach $14 billion by 2027. Cumulatively, Chinese micro-drama apps have garnered nearly 55 million downloads and $170 million in revenue overseas, according to iiMedia Research, as reported by The Economist . WhatsApp ads will not impact privacy: Will Cathcart WhatsApp's monetisation efforts will not contravene user privacy, Will Cathcart, head of WhatsApp at Meta, told us in an exclusive interview. Monetisation efforts by the platform have created value for both users and businesses, without compromising the app's core promise of privacy, security, and an ad-free chat experience, he said. Driving the news: On Monday, WhatsApp introduced ads in Status updates and launched subscriptions on Channels. The company clarified that these ads will not appear in private chats or calls. No risks to privacy: 'Nothing has changed about the privacy of people's messages, their calls, their statuses,' Cathcart emphasised, adding that these features remain end-to-end encrypted. But how? According to Cathcart, one of the key challenges is that encryption limits the amount of data available for ad targeting. This, he added, was a deliberate trade-off to preserve user privacy. However, the platform will do its 'best to make the ads relevant', he said. The ads in the Updates tab will reflect how users interact with the space, based on factors such as their country, city, language, and Channel activity, among other things, Cathcart said. Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: ETtech Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and employees. The opportunity: Reach a highly engaged audience of decision-makers. Boost your brand's visibility among the tech-savvy community. Custom sponsorship options to align with your brand's goals. What's next: Interested? Reach out to us at spotlightpartner@ to explore sponsorship opportunities. How the ban on Karnataka's bike taxis affects gig workers, commuters: ETtech explains On Monday morning, many Bengaluru commuters found themselves in a fix. With the Karnataka government's bike taxi ban taking effect, they were left scrambling for alternative transport. But beyond the inconvenience to riders, the move threatens the livelihoods of thousands of gig workers who relied on the service. What happened to the apps? Initially, Uber renamed its bike taxi option to 'moto courier' while Rapido called it 'bike parcel'. Ola, meanwhile, removed the feature entirely. As users speculated that the aggregators were trying to sidestep the regulations, both Uber and Rapido pulled the options from their apps altogether. Who's hit? Several commuters expressed frustration over the ban, especially those who depended on bike taxis for their speed and 50,000 and 60,000 gig workers are likely to be impacted across Karnataka, according to Shaik Salauddin, founder president of the Telangana Gig and Platform Workers Union. Companies continue to lobby: In separate statements, ride-hailing firms Rapido and Uber stated they are engaging with the state's transport department in search of a resolution. Both expressed hope that the discussions would lead to a positive outcome. Ola has not commented on the matter. Also Read: Karnataka's ban on bike taxis: A timeline ET Explainer: Behind crackdown on unauthorised use of government databases for user onboarding The Ministry of Electronics and Information Technology (MeitY) has directed several technology-led startups to cease their offline Aadhaar-based know-your-customer (KYC) services. According to two individuals familiar with the situation, these companies have been accessing Aadhar data through unauthorised channels. Scrambling to comply: As the government tightens scrutiny of data platforms, industry players are now pushing for clearly regulated avenues to carry out Aadhaar verification. What's on offer: With customer onboarding increasingly shifting online, financial services companies and consumer technology firms need to verify users efficiently. This has opened up space for ID verification startups, which help validate documents and cross-check them against official government databases. Also Read: ID please? MeitY verifies identity verification startups The need: Startups rely on these services mainly to prevent fraud in sectors such as digital lending, insurance, payments, and merchant onboarding. Verifying identities on the go makes it easier to onboard users and reduce risk. Problem? The government is now assessing whether these verification services are being offered through legitimate channels and legal means. Industry sources told us that while most large startups follow the rules, several smaller players have allegedly gained unauthorised access to some sensitive government databases. Also Read: NPCI curbs unauthorised use of UPI IDs by fintech companies Other Top Stories By Our Reporters Vidit Aatrey, CEO, Meesho Meesho secures NCLT approval for reverse flip to India: The Bengaluru bench of the National Company Law Tribunal (NCLT) has approved Meesho's proposal to demerge its Indian entities from its US-based parent, marking a significant milestone in the company's plan to relocate its domicile to India. Meta appoints Arun Srinivas as its India head: Meta Platforms has named Arun Srinivas as its new managing director and head for India, the company announced on Monday. ShareChat CBO Gaurav Jain steps down amid leadership shakeups: Jain, who heads ShareChat's monetisation efforts across functions, shared plans to leave amid a string of high-profile exits at the vernacular social media platform. Global Picks We Are Reading ■ AI alone cannot solve the productivity puzzle (FT) ■ OpenAI and Microsoft tensions are reaching a boiling point (WSJ) ■ Would you switch browsers for a chatbot? (The Verge) Updated On Jun 17, 2025, 07:35 AM IST
Economic Times
09-06-2025
- Business
- Economic Times
ID startups face data heat; Nykaa eases into qcomm
Happy Monday! Startups offering identity verification services are under the government's scanner. This and more in today's ETtech Morning Dispatch. Also in the letter: ■ Vibe coding needs more than vibes ■ Lenskart's IPO route■ Byju's in NCLAT ID please? MeitY verifies the verifiers The government is investigating startups offering identity verification services for potential unauthorised access to the Aadhaar, permanent account number (PAN) and goods and services tax (GST) databases. What's happened: The ministry of electronics and information technology (MeitY) is investigating firms, including Surepass, Digitap, Zoop, and Signzy, over concerns they may have bypassed authorised protocols to access confidential databases. In response, MeitY has blocked access to some of these companies' websites via telecom networks. Under the lens: Banks access the Aadhaar database under strict licence agreements to authenticate customers. The government is now probing how these services are offering verification services, and whether the routes they use are compliant. These platforms typically partner with financial institutions, consumer-facing startups and other entities to help them verify customers or businesses. Their services are used to detect fraud and assess clients for underwriting. Expert take: Some verification startups collect customer application forms from clients and then scrape databases to confirm identity. According to an industry insider, this data is often available through open websites, unsecured APIs or even the dark flagged a growing number of startups relying on such scraping techniques, potentially without proper authorisation. Yes, but: Companies such as Idfy, DigiO, Signzy and Datasutram are among the widely used in this space. However, only a few platforms have faced regulatory action so far, ET has learnt. Also Read: NPCI curbs unauthorised use of UPI IDs by fintech companies 'Quick commerce ops not hurting beauty biz, its aiding personal care' Adwaita Nayar, CEO, Nykaa Fashion As Blinkit, Zepto, and Instamart expand aggressively into beauty and personal care, Nykaa is taking a more slower, curated approach. Its pilot, Nykaa Now, is live in select areas of Mumbai, New Delhi, and Bengaluru, with a deliberate focus on personal care rather than its core beauty range. Driving the news: 'Nearly 80% of what we sell is beauty and 20% is personal care. Personal care is what's really picking up on quick commerce,' Adwaita Nayar, cofounder and CEO of Nykaa Fashion, told us in an interview. Why it matters: Beauty is among the most competitive ecommerce categories, and quick commerce platforms are seeing strong growth from impulse-driven beauty buys. Nykaa, however, is staying the course, pointing to its core category's reliance on depth, shade options, and browsing behaviour. 'People browse a lot of shades and products before they buy. The nature of quick commerce doesn't typically support that kind of assortment,' Nayar added. By the numbers: 30% year-on-year growth in Nykaa's beauty GMV over the past four quarters. Delivery time cut from four days to two. Same-day or next-day delivery is active in 100 cities. Nykaa Now orders are currently fulfilled via dark stores, with other models under trial. Also Read: Rapid fashion delivery gathers pace, but long-term viability in question Go deeper: Nykaa Now is designed as a separate merchandising layer, curated using demand signals and quick commerce-specific use cases. 'It's not about what Nykaa already sells, but what the customer really wants quickly. That's more likely to be personal care or gifting,' Nayar said. While Nykaa is actively improving fulfilment speeds platform-wide, Nayar remains sceptical of the 10-minute delivery rush. 'It's not about 10 minutes. But people's expectations for delivery speed globally are going up.' Also Read: Nykaa Q4 profit doubles to Rs 19 crore; revenue up 24% Why vibe coding needs more than vibes for enterprise-scale solutions In the age of artificial intelligence (AI), vibe coding is all the rage, with companies and tech celebrities touting it as a simple way to build websites and apps using just a prompt. But the founders ET spoke to are highlighting the flip side. What happened: Executives said the growing trend of vibe coding, where developers rely on AI prompts to generate code, is triggering increased scrutiny, more rigorous code reviews, and a heavier burden on senior engineers to guide younger colleagues. As AI takes over the mechanics of coding, the new wave of engineers entering the workforce often lacks core programming knowledge. This has led to subpar code that requires additional checks and rarely reaches production without significant rework. Also Read: AI 'vibe coding' startups burst onto scene with sky-high valuations Golden use case: Coding remains one of the most visible and impactful applications of AI. Around 30% of new code at Google and Microsoft is now AI-generated, and executives expect that share to grow over time.. 'There is an overdependence on LLMs, and this is leading to critical thinking issues,' said Nida Sahar, founder of bootstrapped cloud infrastructure platform Also Read: Vibe coding: A threat to software engineers? Other Top Stories By Our Reporters Piyush Bansal, CEO, Lenskart Lenskart becomes public limited company in preparation for IPO: Omnichannel eyewear brand Lenskart has become a public company in preparation for its public listing, changing its registered name from Lenskart Solutions Private Limited to Lenskart Solutions Limited through a special resolution passed by its shareholders. NCLAT rejects Byju's resolution professional's petition in Aakash shareholding row: The Chennai bench of the National Company Law Appellate Tribunal (NCLAT) on Friday dismissed an appeal lodged by the resolution professional of Byju's parent, Think & Learn, against an interim order that mandated the maintenance of the status quo on the shareholding of Aakash Institute. Sundar Pichai answers who would be next Google CEO: Google chief executive Sundar Pichai, expects AI to play a critical role in the tech giant's future leadership at the Bloomberg Tech Conference. When asked whether a human or AI will run Google in the future, Pichai stated, 'I do think whoever is running it will have an extraordinary AI companion.' Computational thinking is key as AI reshapes software: Microsoft CEO Satya Nadella | In a recent conversation with tech YouTuber Sajjaad Khade, Nadella encouraged aspiring developers to concentrate on the fundamentals of software engineering, despite the increasing role of AI in coding. 'Just getting real fundamentals of software, if you're a software engineer, I think matters a lot,' Nadella said. 'To me, having the ability to think computationally is important.' Global Picks We Are Reading ■ Apple's struggles to update Siri lead to investor concerns over AI strategy (FT) ■ How Trump and Musk are still linked - despite falling out (BBC) ■ New apps help immigrants navigate Trump's deportation crackdown (Rest of World) Updated On Jun 09, 2025, 07:22 AM IST
Economic Times
03-06-2025
- Business
- Economic Times
Rohit Kapoor on Swiggy's food delivery slowdown; Group life insurance gains traction
Happy Tuesday! As the food delivery market cools, aggregators are scrambling to find growth avenues. This and more in today's ETtech Morning Dispatch. Also in the letter: ■ Krutrim AI's uptake struggles ■ ETtech Done Deals■ Tata Electronics' Malaysia foray Pushing value meals and 10-min food delivery to revive growth: Swiggy's Rohit Kapoor Rohit Kapoor, CEO (food marketplace), Swiggy As the food delivery market cools, Swiggy is turning to quick meals, affordable combos, and deeper city penetration to stoke demand. What's happening: In an exclusive interview with ET, Swiggy's food marketplace CEO Rohit Kapoor said growth will now come from low-frequency users and category innovation, not merely from city expansion. He also called for a more open dialogue between platforms and restaurants on commissions. Swiggy is focusing on three key growth drivers in food delivery: Expanding delivery-friendly categories Drawing low-frequency users into the fold with value bundles Scaling 10-minute deliveries via its Bolt platform By the numbers: Swiggy's food delivery GOV grew 17.6% YoY in Q4 Bolt now accounts for 12% of Swiggy's delivery volumes Food delivery covers around 700 cities; density, not geography, is now the focus Also Read: How Swiggy and Zomato are dealing with the slowdown in food delivery Why it matters: With quick commerce eating into food delivery profits, Swiggy and Zomato are under pressure to revive their core businesses. Kapoor says there's latent demand to tap — but unlocking it depends on restaurant supply, better aggregator-partner dynamics, and faster fulfilment. On restaurant partners: Aggregators' ties with restaurant partners have been strained in recent years over the commissions rates. Kapoor acknowledged the need for more conversation, but argued the current narrative often overlooks the larger economic shift aggregators have enabled. Also Read: Swiggy Food CEO Rohit Kapoor sees Bolt as core future offering New-age life insurance firms tap group products to boost business Acko, Go Digit and CreditAccess, three new-age life insurance players licensed in 2023, have completed their first full financial year in FY25. Industry data shows that in their initial phase, all three have leaned heavily on group insurance policies to drive early growth. Driving the news: Data sourced from the Life Insurance Council reveals sharp contrasts in their premium collections. Acko has written life insurance premiums worth Rs 63 crore. Go Digit has crossed Rs 1,000 crore. CreditAccess has processed close to Rs 200 crore in life insurance premiums. Different paths: Go Digit continues to scale rapidly in general insurance, while Acko is betting on a digital-first, direct-to-consumer model to disrupt traditional distribution. Beyond the numbers: Early trends suggest that the trio have focused on employer-employee group life products and credit-linked insurance policies. Why this strategy? It allows for quick ramp-up in premium volumes It helps test systems and processes for corporate sales, ahead of a retail push. It ensures a smoother claims settlement experience for customers. Challenges remain: While these players made waves in general insurance, industry insiders say life insurance will be a tougher battleground. Why is that? Trust takes longer to build in life insurance Higher ticket size products need more persuasion and often, physical intermediation. Claims settlement is complex and often requires last-mile human support Also Read: Go Digit General Insurance doubles net profit in Q4 FY25; posts third straight profitable year Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: ETtech Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and employees. The opportunity: Reach a highly engaged audience of decision-makers. Boost your brand's visibility among the tech-savvy community. Custom sponsorship options to align with your brand's goals. What's next: Interested? Reach out to us at spotlightpartner@ to explore sponsorship opportunities. Krutrim finds few takers for its LLMs and cloud products Bhavish Aggarwal, founder, Krutrim In a setback to Bhavish Aggarwal and the broader Indian AI ambitions, several founders and investors told ET that Krutrim large language models (LLMs) and cloud offerings have received a lukewarm response from the market. Driving the news: Krutrim, the AI venture backed by the Ola group, became India's first AI unicorn in 2024, after raising $50 million at a $1 billion valuation. But the company has since faced product roadblocks and leadership churn. Founders cited poor documentation as a key issue with Krutrim's products. They also flagged a lack of technical maturity. Many startups continue to prefer established hyperscalers like Google Cloud and Amazon Web Services. More than 20 employees have exited the company since 2024. Tell me more: Krutrim offers a chatbot and cloud services, but usability issues persist. Two founders reported difficulties simply logging into the chatbot. Similar issues surfaced with Krutrim AI model also suffers from high latency, which refers to response time, deterring potential users. In tests reviewed by ET, Krutrim's AI chatbot took 41 seconds to generate a response to a single prompt. In contrast, ChatGPT-4o and DeepSeek responded in under 10 seconds. Also Read: Social media abuzz about toxic work culture at Ola Krutrim after employee's 'suicide' ETtech Done Deals Vaibhav Gupta, CEO, Udaan Udaan closes latest funding round at $114 million: B2B ecommerce platform Udaan has raised $114 million in a fresh funding round led by existing investors, M&G Prudential (UK) and Lightspeed Venture Partners. Round details: The round closed at a flat valuation of $1.8 billion and includes the previously disclosed $75 million investment from the same two investors, which founder and CEO Vaibhav Gupta announced at a town hall earlier this year. Furniture retailer Pepperfry raises Rs 43 crore: Omnichannel furniture and home goods company Pepperfry has raised Rs 43.3 crore from existing investors Norwest Venture Partners, Goldman Sachs, General Electric Pension Trust, Growth Equity Opportunity Fund, and Panthera Growth Partners, among others. Wealthtech startup Stable Money raises $20 million: Wealthtech startup Stable Money, which provides digital fixed-return investment products, has raised $20 million (Rs 173 crore) in a funding round led by Infosys cofounder Nandan Nilekani's Fundamentum Partnership. Other Top Stories By Our Reporters Tata Electronics eyes Malaysia foray via chip fab acquisition: Tata Electronics is in talks with several global semiconductor companies including X-Fab, DNeX and Globetronics to acquire a fabrication or outsourced semiconductor assembly and test (OSAT) plant in Malaysia. Infosys paid CEO Salil Parekh Rs 80.62 crore as salary in FY25: Indian IT major Infosys chief executive officer (CEO) Salil Parekh received a 22% rise in his annual compensation to Rs 80.6 crore for the fiscal year 2024-25 ending March, the company's annual report showed. Nykaa shares drop over 5% despite strong Q4 performance: Shares of Nykaa parent FSN E-commerce declined as much as 5.11% to 192.85 a piece during Monday's trade. The scrip closed 4.33% lower at Rs 194.45 per share, compared to a 0.09% decline in the benchmark Sensex. The counter opened 1.1% lower at Rs 201, against the previous closing of Rs 203.25 on the BSE. Tesla unlikely to make in India: All you need to know | Electric vehicle maker Tesla, helmed by Elon Musk, is not keen on manufacturing in India despite the government wooing it aggressively through policy incentives. Global Picks We Are Reading ■ A Neuralink rival just tested a brain implant in a person (Wired) ■ 'Humanity deserves better': Jony Ive and Laurene Powell Jobs on tech's next chapter (FT) ■ This giant microwave may change the future of war (MIT Technology Review) Updated On Jun 03, 2025, 07:21 AM IST
Economic Times
29-05-2025
- Business
- Economic Times
Dhan's funding nears close; BNPL gets regulated out
Happy Thursday! Stock broking startup Dhan is poised to finalise its long-awaited funding round. This and more in today's ETtech Morning Dispatch. Also in the letter: ■ Petcare opportunity ■ Veterans enter AI chip space■ TCS CEO pay hike Dhan closes in on $200 million fundraise from Chrys Cap, Alpha Wave, MUFG Pravin Jadhav, founder, Dhan Online investment platform Dhan is set to close a $190–200 million funding round, making it the latest entrant to the coveted unicorn club. Driving the news: The Mumbai-based startup is finalising a new round led by ChrysCapital, with participation from Alpha Wave and Japanese financial services giant MUFG. Sunil Bharti Mittal's family office and Dream11 founder Harsh Jain, an existing investor, will also join the round. Deal details: The fundraise includes a mix of primary capital and secondary share sales The round values Dhan at $1.1 billion, making it India's fifth unicorn of 2025. Google and Amazon may come in through a smaller follow-on round. Dhan, in numbers: Active traders: 971,000, as of March 2025 971,000, as of March 2025 Net profit: Rs 155 crore in FY24, against loss of Rs 22 crore in FY23 Rs 155 crore in FY24, against loss of Rs 22 crore in FY23 Revenue: Rs 380 crore in FY24, 600% up from Rs 54.2 crore in FY23. Zoom out: Dhan's fundraise comes as Groww, India's largest stockbroker by active clients, gears up for an IPO. While many peers have lost ground, Dhan has grown its user base, thanks to a profitable business model and a sharp focus on sticky, high-frequency power management startups are navigating a choppy start to 2025, amid tighter regulations on F&O trading and a post-bull market cooldown. Dhan, however, is bucking the trend. BNPL hits the brakes as fintechs pivot to EMI loans and traditional consumer credit Buy-now, pay-later (BNPL) products are losing momentum amid regulatory tightening and growing concerns over credit quality. Losing takers: PayU has migrated LazyPay into a KYC-compliant EMI checkout solution. Paytm shut down its BNPL product last year. Mobikwik has discontinued Zip Loans, according to its FY25 earnings disclosure. Simpl remains one of the few major players still active in the BNPL space. Quote, unquote: 'Fintechs are finding that instalment financing is still viable, but only through a regulated, KYC-compliant setup. The shift is forcing many players to abandon pure-play BNPL and embrace structured EMI lending,' a senior executive at a large fintech company told us on the condition of anonymity. Zoom out: The credit tightening goes beyond fintechs. Banks and NBFCs — key partners in BNPL lending — are pulling back due to rising macroeconomic risks and growing exposure to unsecured loans. Also Read: Listed fintechs feel the pinch of lenders going slow on unsecured lending Karur Vysya Bank, which backs Amazon's BNPL programme, struck a cautious tone during its recent analyst call, noting it has tightened onboarding norms. Bigger story intact: Despite the pivot, industry insiders say the broader story of unsecured consumer credit growth remains unchanged. What's changed is the format: The industry is shifting away from short-term, low-ticket loans with loose underwriting towards EMI-based products with complete Know Your Customer (KYC) checks, longer tenures, and stronger risk controls. Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: ETtech Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and employees. The opportunity: Reach a highly engaged audience of decision-makers. Boost your brand's visibility among the tech-savvy community. Custom sponsorship options to align with your brand's goals. What's next: Interested? Reach out to us at spotlightpartner@ to explore sponsorship opportunities. VCs sniff opportunity as petcare expands beyond food A post-Covid surge in pet adoption, the expansion of petcare services, and the rise of quick commerce are drawing both venture capital and strategic investors to India's growing petcare space. Funding frenzy: On Monday, Nestlé SA announced a minority investment in Drools, making it a unicorn. Supertails, backed by Fireside Ventures, is in talks to raise $24–25 million in fresh funding. Gurugram-based veterinary care startup Vetic recently raised $26 million in a round led by Bessemer Venture Partners. Industry outlook: Over the past five years, petcare startups in India have secured $198 million across 20 deals. The Indian petcare market, currently valued at $3.5 billion, is projected to double to $7–7.5 billion by 2028. Pet ownership has grown steadily, with the number of pets in Indian households rising from 26 million in 2019 to an estimated 32 million by 2024. Tell me more: Pet parents are moving beyond need-based purchases, increasingly spending on grooming products, clothing, toys, and more. While the market is currently dominated by Mars, the maker of Pedigree and Royal Canin, D2C brands are rapidly gaining ground. Quick commerce is fueling growth, enabling faster access to pet supplies and expanding consumer demand, according to industry experts. Ex-intel, AMD executives throw hat into AI semicon ring Around a dozen senior professionals from tech giants such as Intel, AMD, and Texas Instruments, each with 15-20 years of experience, are now leading AI semiconductor startups in India. Tell me more: Four Texas Instruments executives launched C2i Semiconductors, which is building hardware designed to reduce energy consumption in chips. Bodhi Computing, founded by Intel veterans Sambit Sahu and Raghuraman Barathalwar, was acquired by Krutrim in 2023. Agrani Labs, set up in Bengaluru by four ex-Intel and AMD executives, is working on India's own AI chip designs. Zoom out: India is rapidly emerging as a hub for chip design and development, with increasing momentum to establish comprehensive, full-stack semiconductor ecosystems. Startups beyond the AI space have also drawn investor interest in the past year, including Mindgrove Technologies, InCore, and Agnit Semiconductors. Other Top Stories By Our Reporters K Krithivasan , CEO, TCS TCS paid CEO K Krithivasan Rs 26.5 crore in FY25: Tata Consultancy Services (TCS) paid its chief executive, K Krithivasan, Rs 26.5 crore in the financial year 2025, representing a 4.6% increase from the previous fiscal year. This total includes a base salary of Rs 1.4 crore, benefits, allowances, and prerequisites worth Rs 2.13 crore, as well as Rs 23 crore in commissions. Zetwerk sharpens focus on capital goods equipment business: Contract manufacturer Zetwerk has launched a dedicated division within its electronics manufacturing branch, aimed at producing equipment and capital goods. Karnataka to issue draft gig workers' welfare rules in two weeks: Karnataka will release draft rules on charging a fee on online platforms to fund welfare programmes for gig workers in about two weeks, state labour minister Santosh Lad told us, a day after Governor Thaawarchand Gehlot approved an ordinance to this effect. L Catterton to raise $600 million for its first India-dedicated fund: LVMH-backed L Catterton is raising $600 million for its inaugural India-focused fund, marking the first time a global private equity firm has launched an investment vehicle specifically for the Indian market. Snabbit raises $19 million to fund expansion: Quick home services app Snabbit has raised $19 million in a funding round led by Lightspeed. The new capital will be used to expand into new micro-markets and strengthen the team amid rising demand. Global Picks We Are Reading ■ If algorithms radicalize a mass shooter, are companies to blame? (The Verge) ■ Grand Theft Auto publisher swaps DEI for 'Diversity of Thought' in annual report (Wired) ■ Microsoft starts testing Copilot for Gaming in Xbox app for iOS and Android (TechCrunch) Updated On May 29, 2025, 07:11 AM IST
