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Time of India
2 days ago
- Business
- Time of India
Sebi eases Esop rules; VCs chase secured credit
Sebi eases Esop rules; VCs chase secured credit Also in the letter: Sebi relaxes Esop norms for IPO-bound startup founders Tell me more: Quick recap: Also Read: But why: VCs back fintechs entering secured credit amid unsecured lending slowdown Driving the news: Vridhi Home Finance, Basic Home Loans, and Easy Home Finance have all raised venture rounds over the past year. Techfino and Mahaveer Finance (as we are reporting today) have secured equity funding from marquee investors. MSME-focused Loantap also closed a fresh round recently. Carving out a niche: Improving operational efficiency through technology Applying tech-enabled underwriting even when property inspections are required Leveraging government digital databases for land and property records The catch: NBFC-style businesses require consistent and sustainable growth, which often clashes with typical VC growth expectations. LAP products may seem attractive, but the segment has historically experienced non-performing assets (NPAs). Fintechs entering the space will need strong collection infrastructure to stay resilient. Mahaveer Finance raises Rs 200 crore Byju's RP alleges asset diversion by former directors Details: $533 million allegedly moved to related entities via a US subsidiary Rs 130 crore transferred to an Indian unit RP Shailendra Ajmera has asked the NCLT to hold directors accountable In response, Riju Raveendran has challenged Ajmera's role citing conflict of interest Tell me more: Charges levelled: Counter: Deeptech VCs rev up fundraising efforts Driving the news: Java Capital is increasing its fund size from Rs 50 crore to Rs 240 crore. Bharat Innovation Fund (BIF) is eyeing $150 million for its second round Ideaspring Capital and Mela Ventures are in the market with their third and second funds, respectively Navam Capital is raising its debut fund of $30 million. Other Top Stories By Our Reporters Insolvency plea filed against FirstCry subsidiary GlobalBees: Karnataka to survey AI impact on workforce: Ola drivers across India can keep entire fare earnings: Global Picks We Are Reading The markets regulator has relaxed Esop rules for founders preparing to take their companies public. This and more in today's ETtech Morning Dispatch.■ Urban Company swings to profit■ Deeptech VCs rev up fundraise■ Insolvency trouble for FirstCryIndia's markets regulator, the Securities and Exchange Board of India (Sebi), has eased rules for startup founders on retaining their employee stock options (Esops) as they take their companies can now retain Esops granted at least a year before filing the draft red herring prospectus (DRHP). These stock options may continue to be exercised even after the company lists, and the founders are classified as promoters, Sebi decided in its board meeting on filing IPO papers, founders were regarded as promoters. Once the company was listed, they could no longer be granted Esops and had to liquidate any outstanding stock options before going public. Sebi acknowledged that this rule negatively impacted founders during the initial public offering (IPO) relaxed norms are expected to help companies looking to list in India following a reverse flip Digital lending startups that once focused heavily on unsecured consumer credit are now transitioning towards secured lending , as the unsecured segment exhibits evident signs of a venture firms are doubling down on investments in home finance and secured credit platforms. These include products such as loans against property (LAP), mutual fund-backed credit, and other asset-based traditional lenders continue to dominate the space, fintechs see opportunities to disrupt key areas:Despite strong investor interest, secured lending is not a natural match for venture capital. Most VC firms favour hyper-growth tech plays, while secured credit demands a different non-bank lender Mahaveer Finance raised Rs 200 crore in its first venture funding round. Elevation Capital led the round, with participation from Banyan Tree Finance and First Bridge Raveendran, founder, Byju'sByju's insolvency resolution professional (RP), backed by EY, has alleged that former directors are liable under IBC provisions for transactions that diverted company Ajmera, the RP of Byju's parent company, Think and Learn, claimed in lawsuits filed late April that two separate sets of transactions were detrimental to the claimed Think and Learn was deprived of the money, which its directors Byju Raveendran, Riju Raveendran, and Divya Gokulnath, should have early April, Riju Raveendran approached the NCLT, claiming Ajmera should be removed as the RP of Think and Learn, citing conflict of deeptech-focused venture capital funds are stepping up their fundraising efforts , as the ecosystem matures with growing government backing and favourable geopolitical investments in India doubled in the first four months of 2025, reaching $324 million across 35 deals. This compares to $156 million across 21 deals during the same period last year.(L-R), Supam Maheshwari and Nitin Agarwal, founders, GlobalBeesThe directors of the direct-to-consumer (D2C) homecare company Kuber Industries have filed an insolvency petition against GlobalBees Brands, a subsidiary of the omnichannel retailer FirstCry, concerning unpaid dues amounting to Rs 65 state government has invited responses from industry leaders, HR heads, technology practitioners, and academics on how they are using artificial intelligence (AI) in the workplace to identify skill gaps, emerging job roles, and the nature of workforce platform Ola has introduced a zero-commission model across India, allowing driver-partners of autos, bikes, and cabs to keep 100% of their fare earnings.■ This AI model never stops learning ( Wired ■ AI obituary pirates are exploiting our grief. I tracked one down to find out why ( CNET ■ India wants its own EV market, but needs China to get there ( Rest of World
Time of India
4 days ago
- Business
- Time of India
Stage set for micro-dramas; WhatsApp's monetisation bid
Stage set for micro-dramas; WhatsApp's monetisation bid Also in the letter: India's big bet on micro drama: Startups, investors eye a new content race Notable actors: Investor interest: Flick TV raised $2.3 million in seed funding in June. ReelSaga secured $2.1 million in May. Chai Shots is looking to raise $5 million in fresh capital. ZEE signed a strategic equity partnership with content startup, Bullet. Monetisation hurdles: Zooming out: Earlier this year, The Economist 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 Driving the news: No risks to privacy: But how? Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: 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: How the ban on Karnataka's bike taxis affects gig workers, commuters: ETtech explains What happened to the apps? Who's hit? Companies continue to lobby: Also Read: ET Explainer: Behind crackdown on unauthorised use of government databases for user onboarding Scrambling to comply: What's on offer: Also Read: The need: Problem? Other Top Stories By Our Reporters Meesho secures NCLT approval for reverse flip to India: Meta appoints Arun Srinivas as its India head: ShareChat CBO Gaurav Jain steps down amid leadership shakeups: Global Picks We Are Reading 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.■ K'taka bike taxi ban■ ID verification crackdown■ Meta's new India head 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 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 capital firms are actively backing local content platforms, hoping to replicate the playbook of their Chinese 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 have had a breakout moment in China over the past few 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 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.'Nothing has changed about the privacy of people's messages, their calls, their statuses,' Cathcart emphasised, adding that these features remain end-to-end 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 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 the edited interview here 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 Reach out to us at spotlightpartner@ to explore sponsorship 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 Uber renamed its bike taxi option to 'moto courier' while Rapido called it 'bike parcel'. Ola, meanwhile, removed the feature users speculated that the aggregators were trying to sidestep the regulations, both Uber and Rapido pulled the options from their apps 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 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 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 the government tightens scrutiny of data platforms, industry players are now pushing for clearly regulated avenues to carry out Aadhaar 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 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 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 Aatrey, CEO, MeeshoThe 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 Platforms has named Arun Srinivas as its new managing director and head for India, the company announced on 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.■ 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
Time of India
06-06-2025
- Business
- Time of India
Payments firms in limbo; CG Power's Wolfspeed problem
Payments firms in limbo; CG Power's Wolfspeed problem Also in the letter: Digital payment firms in a no-win game as margins hit rock bottom Driving the news: There are 54 licensed PAs today, all vying for a slice of the booming online commerce market. Venture-backed fintechs are undercutting aggressively to defend their turf. Smaller players are struggling to keep up with the scale and pricing power of bigger firms. Making sense: Large fintechs get subsidised rates from banks through subvention deals. Every major PA is chasing the same handful of large clients in travel, food delivery, and ecommerce. With little room left for tech-led innovation in core payments, the business has become largely commoditised. Also Read: Way forward: Easebuzz is going after the education sector. DigiO is betting on recurring payments via UPI or net banking mandates. PayGlocal and BriskPe are focused on cross-border transactions. Also Read: CG Power's chip plans rocked by turmoil at wafer company Wolfspeed What's the news: With Wolfspeed now teetering on the brink of default, Renesas faces not just financial strain but also the prospect of a disrupted supply chain. That spells uncertainty for CG Power's Sanand project, which hinges heavily on demand from Renesas. Industry voice: Impact ahead: Also Read: Details: Also Read: Early-stage VC Inflexor eyes Q2 first close of $150-million Fund-III In focus: Alongside its core interest areas, such as artificial intelligence (AI), the new fund will also invest in companies developing healthcare devices and advanced materials, including those used in electric vehicle (EV) batteries. Inflexor plans to invest in 25-27 startups through this fund. Gunuturu said the average cheque size will be around $2.5-3 million, in exchange for a 15% stake. Tell me more: Quote, unquote: ETtech Done Deals Wealthtech platform Syfe closes $80 million funding round: Cleantech asset financier StrideGreen raises $3.5 million: Other Top Stories By Our Reporters Uber appoints Palo Alto CEO Nikesh Arora to board: Google has handled people's deepest, darkest secrets responsibly: ETtech Explainer: Why WazirX's recovery plan hit a legal roadblock | The Trump-Musk rift: All that you need to know | Global Picks We Are Reading Happy Friday! Payment aggregators are cutting prices to stay competitive, as a crowded market, shrinking margins and limited innovation squeeze the sector. This and more in today's ETtech Morning Dispatch.■ Inflexor's new fund■ ETtech Done Deals■ Uber adds board muscleOnline payment aggregators (PAs) are locked in a race to the bottom on pricing, each trying to outbid the others to win market share in an increasingly cutthroat online PA space has seen frenetic activity over the past year, including new licenses issued, major players re-entering growth mode, and a couple of large fundraises.A few structural forces are pushing pricing PAs are carving out niche use cases to build sustainable potential bankruptcy of American Silicon Carbide (SiC) wafer maker Wolfspeed could have ripple effects on India's semiconductor ecosystem, particularly CG Power's upcoming chip facility in Sanand, backed by the Murugappa Power's partner for its outsourced semiconductor assembly and test (OSAT) project, Renesas, had entered a long-term SiC wafer supply agreement with Wolfspeed, worth $2 Faruqui, CEO of US-based chip investment advisory Fab Economics, said Wolfspeed's bankruptcy will send shockwaves through supply chains in Japan and China as well. "If Wolfspeed undergoes bankruptcy proceedings, Renesas will face significant accounting losses to recognise impairment losses because it will likely struggle to recover the advance payment of $2 billion."Another expert stated that if Renesas faces a prolonged downturn, CG Power's Sanand OSAT plant will need a complete reassessment, both in terms of technology and demand Power, a part of the Murugappa Group, holds 92.3% stake in the Sanand-based OSAT joint venture, with Renesas Electronics Corporation owning 6.8%. The Rs 7,600-crore plant in Sanand is expected to commence mass production in Krishna Gunturu, partner, Inflexor VenturesEarly-stage venture fund Inflexor Ventures expects to announce the first close of its $150 million (Rs 1,250 crore) Fund III by the end of the second quarter, partner Murali Krishna Gunturu told fund, which has previously backed consumer durables maker Atomberg, spacetech startup Bellatrix Aerospace, CredFlow, and Bioprime Agrisolutions, has also closed its Rs 350-crore Opportunities Fund . It did so by acquiring the entire portfolio of its first fund (Parampara Capital), thereby providing liquidity to its early investors."The pressure on exits is only going up, not just in India, but globally as well. Limited partners invested in many startups between 2020 and 2022 with high expectations from VCs (venture capitalists), seeking returns within five or so years. But now there is a sense of disillusionment," Gunturu, one of the founding members of Inflexor, told Arora, founder, SyfeThe Singapore-based wealth management platform Syfe has secured $53 million in a new funding round, led by two family offices from the UK. In August 2024, the company had raised $27 million as part of the same round, and this extension takes the total funds raised in the round to $80 a climate tech-focused asset financing and management platform, has raised $3.5 million in a funding round led by the clean mobility-focused Micelio Technology Fund. The funds will be utilised to strengthen StrideGreen's product offerings and expand its Arora, CEO, Palo AltoUber has appointed Nikesh Arora, the chief executive officer (CEO) of Palo Alto Networks, to its board of directors. The ride-hailing giant communicated this to the Securities and Exchange Commission (SEC) in a filing. Arora will serve on the Nominating and Governance Committee as well as the Compensation Sundar Pichai | Google CEO Sundar Pichai was recently asked during an interview why people should trust Big Tech companies like Google, considering these companies store their users' 'deepest and darkest secrets.'The Indian cryptocurrency exchange WazirX faced a significant setback on Wednesday when the Singapore High Court dismissed a restructuring plan submitted by its parent company, Zettai Pte Ltd, in November 2024. The proposal emerged just months after the platform suffered a massive $235 million cyber theft last July.A senior White House official recently told The Wall Street Journal that US President Donald Trump was displeased with Elon Musk's open criticism of his 'one, big, beautiful bill.' The official emphasised how baffled the president was given how closely they had collaborated for four months. But what prompted all this? ■ Trumpworld is fighting over 'official' crypto wallet ( Wired ■ Inside the collapse of Microsoft-backed UK tech unicorn Builder AI ( FT ■ Tech giants in the Gulf are building super-apps to dominate digital life ( Rest of World
Time of India
04-06-2025
- Business
- Time of India
Startups eye insurance pie; Good Glamm's salary delay
Next Startups eye insurance pie; Good Glamm's salary delay Want this newsletter delivered to your inbox? Also in the letter: Startups leverage distribution chops to gain ground in general insurance Piece of pie: Rapido is seeking the insurance regulator's nod for the licence. Vehicle management firm Park+ entered the fray in March with a full-stack distribution license. Fintech firms like Freo and wealth management startup IndMoney are also making their move. Strategy take: Other players: Also Read: Good Glamm delays paying salaries again amid cash crunch What's happening? Asset sales Also Read: The bigger picture: Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: 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: Hyundai, Kia sell shares worth Rs 690 crore in Ola Electric via block deal Tell me more: Big buyer: Stock hit: Tough quarter: IndiaAI empanelment drives down prices of GPUs in second round Driving the news: The hourly rate for the same GPU model fell between Rs 4 and Rs 1,234 from round one to round two. Thanks to a 40% government subsidy, India may now offer some of the world's lowest GPU service prices. The second round includes 53 GPU categories Prices have dropped in 16 of those categories, compared to the first round. Other Top Stories By Our Reporters TCS, Virgin Atlantic extend tech alliance of two decades: Wipro signs deal with US security solutions firm Entrust: OpenAI announces $150,000 in grants to 11 Indian nonprofits for social innovation: Musk kicks off xAI, Neuralink fundraises after DOGE farewell: Global Picks We Are Reading Happy Wednesday! Startups are eyeing a piece of the general insurance market. This and more in today's ETtech Morning Dispatch.■ Ola Electric block deal■ GPU price reductions■ TCS-Virgin Atlantic allianceStartups are leveraging their distribution muscle to carve out a larger share of India's underpenetrated general insurance market.A growing number of startups have secured or are applying for corporate agency licences, which allow them to partner with up to 27 insurers across life, general and health vehicle management or ride-hailing companies, car insurance is a logical extension, and a sizable opportunity, according to industry insiders.'Since car insurance is a mandatory product, many vehicle owners opt for the cheapest available option. That limits room for product innovation," one expert said, adding that the viability of the business is a challenge in the made its entry into insurance a few years ago, offering full-stack products for both driver-partners and customers. Fintech major Cred is eyeing the same route via its vehicle tracking platform, encourage wider adoption, the Insurance Regulatory and Development Authority of India (IRDAI) is promoting greater participation by startups in insurance distribution. Meanwhile, insurers themselves are increasingly open to tech-led beauty and content platform Good Glamm Group has delayed employee salaries for a second consecutive month, as it continues to grapple with a funding squeeze, sources told company had previously informed employees that April salaries would be deferred and paid along with May's in June. However, as of June 3, no salaries have been credited, and this time, management has not provided any explanation for the former employees are also awaiting their full and final settlements, leaving both current and former staff financially strained.: To stay afloat, the Mumbai-based company has been selling or exploring the sale of multiple portfolio brands. Sources said Good Glamm is in talks to sell its stake in personal care brand Organic Harvest back to the brand's founders. As we've reported earlier, it has already exited Sirona and ScoopWhoop Once valued at over a billion dollars, Good Glamm pursued an aggressive acquisition spree during the peak of the roll-up ecommerce boom, rapidly acquiring direct-to-consumer (D2C) and content brands. However, scaling and integrating those businesses proved more challenging than anticipated, leading to layoffs, restructuring, stalled growth, and a depleted funding Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and Reach out to us at spotlightpartner@ to explore sponsorship Motor and Kia Corporation have sold shares worth nearly Rs 690 crore in electric two-wheeler maker Ola Electric through open market offloaded 108 million shares at Rs 50.70 apiece, totalling Rs 551.9 crore. Kia sold 27 million shares at Rs 50.55 each, amounting to Rs 137.3 crore, according to NSE Global Markets Mauritius picked up shares worth Rs 435.4 crore in the same Electric shares closed 8% lower at Rs 49.33 on the NSE on June Bengaluru-based firm has endured a challenging fourth quarter , marked by declining market share, a falling stock price, and increasing regulatory India AI Mission has triggered a 10% drop in the lowest (L1) prices for graphics processing units (GPUs) in the second round of the tenders, data reviewed by ET from the first round will now be asked to match these revised prices, unlocking significant savings for end Consultancy Services (TCS) and UK-based airline Virgin Atlantic have extended their technology partnership for an additional seven years, aiming to drive artificial intelligence (AI)-led airline operations and enhance the customer the country's fourth-largest IT services company, announced on Tuesday that it has entered into a multi-year agreement with Entrust, a US-based company focused on identity-centric security solutions. The financial details of the deal were not intelligence (AI) model developer OpenAI has announced grants totaling $150,000 for nonprofit organisations in India that address challenges in healthcare, education, agriculture, gender equity, and disability Elon Musk is busy raising fresh funds for his new-age companies as he steps away from politics and refocuses on managing his businesses. The richest person in the world recently bid farewell to the Department of Government Efficiency (DOGE) amid widespread backlash and his apparent disillusionment with the current administration.■ How to make AI faster and smarter—with a little help from physics ( Wired ■ VC money is fueling a global boom in worker surveillance tech ( Rest of World ■ New spying claims emerge in Silicon Valley corporate espionage scandal ( FT
Time of India
02-06-2025
- Business
- Time of India
New-age cos' road to profitability; QED's Nigel Morris interview
New-age cos' road to profitability; QED's Nigel Morris interview Also in the letter: Most listed new-age startups improve Q4 profitability; Swiggy, Ola lag behind Why it matters: By the numbers: Between the lines: Brokerages highlighted rising margins at Nykaa and PB Fintech as signs of sustainable growth. Swiggy claims its peak burn is behind it; Blinkit says it will prioritise growth, even at the cost of profitability. Ather Energy narrowed losses, while Ola Electric lost EV share to Bajaj & TVS. The bottom line: Also Read: Regulators realising fintechs are here to stay: QED's Nigel Morris Fintech domination: Regulatory headwinds? Neobanking concerns: APAC in focus: UPI transactions rise 4.4% in May after April decline Numbers game: May's figure marks a 4.4% rise from April's 17.89 billion transactions, which had fallen from 18.30 billion in March due to a spate of service outages. In value terms, UPI handled Rs 25.14 lakh crore in May. This is up from Rs 23.95 lakh crore recorded in April. Also Read: Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: 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: Job losses: How AI has painfully disrupted dreams of young software engineering graduates Uncertain days: Rise in anxiety: How to surivive: Also Read: BigBasket pilots 10-minute food delivery with Starbucks, Qmin in Bengaluru Going in-house: Starbucks, a joint venture between Tata Consumer Products and Starbucks Corporation. Qmin, a food delivery platform owned by Indian Hotels Company Limited (IHCL). Customers can also order beverages, including coffee, tea, and juice, along with snacks, meal bowls, and desserts. Tell me more: Also Read: Other Top Stories By Our Reporters VerSe Innovation allegedly billed without services; Indian company denies claims: Top illegal betting site Parimatch draws more visits than Amazon, X: LinkedIn lays off hundreds as tech giants continue to cut jobs: Global Picks We Are Reading After a torrid time on Dalal Street, new-age firms have taken a turn towards profitability in the March quarter. This and more in today's ETtech Morning Dispatch.■ AI and the Indian middle-class dream■ BigBasket's rapid food delivery foray■ Builder AI-VerSe dirty dealOut of 17 publicly listed new-age firms in India, 11 reported better profitability in the March quarter, either by narrowing losses or posting stronger profits. Top performers included Nykaa, Policybazaar, Delhivery , Ather Energy and Ixigo This points to stronger operational discipline across India's digital-first companies. But the momentum remains uneven, with quick commerce bleeding cash through the quarter.A few breakout names are beginning to show maturity, but India's new-age tech companies are still navigating the trade-off between growth and profitability, with quick commerce emerging as the new Morris, managing partner, QED InvestorsFintechs are no longer scrappy outsiders. They're scaling faster than traditional players and increasingly, regulators are recognising them as a permanent fixture in the financial services industry, QED Investors' cofounder Nigel Morris told us In an exclusive interview during his annual visit to India, Morris said fintechs are beginning to dominate categories such as earned wage access, money transfers, and neobanking. With AI reshaping everything from underwriting to product delivery, fintechs are adopting the technology at a far faster rate than legacy fintech sector is currently navigating tighter scrutiny, particularly around unsecured lending and digital compliance, pressures that have hit both fundraising and valuations. But Morris sees this as a 'natural cycle' that will ultimately lay the groundwork for the next wave of QED remains bullish on India, it is cautious about segments like neobanking, where many players have yet to show strong user engagement or effective cross-selling, said its Asia head, Sandeep Patil. Still, Morris believes the stronger fintechs will earn regulatory trust and may eventually secure banking which backs Jupiter, OneCard, Upswing, and Efficient Capital Labs in India, plans to invest $250–300 million in early- and growth-stage startups across India and the Asia-Pacific. The fund has deployed about $220 million in the region over the past five Payments Interface (UPI), the real-time payment system operated by the National Payments Corporation of India (NPCI), processed 18.68 billion transactions in May, a bounce back from April's Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and Reach out to us at spotlightpartner@ to explore sponsorship languages like Java, C++, and Python have done more than just build software . They built lives. For years, they offered a ticket to stable jobs, upward mobility, and a way out of the lower-middle-class trap. Millions rode that wave, often becoming the first in their families to do came AI. And with it, the middle class's dreams, written in the promise of software, are under jobs that generations of engineering students saw as a gateway to long, stable careers are no longer a given. AI has redrawn the industry map, leaving behind a trail of layoffs, shifting role definitions, and a rising cohort of under-skilled young developers are the worst hit. Many AI tools now outperform entry-level programmers, leaving them anxious, unsure, and struggling to prove their worth. The impact goes beyond the professional, with mental health issues becoming increasingly common.'More than 60% of engineering students don't have enough hands-on knowledge and experience,' says TeamLease Digital's Neeti Sharma, adding that beyond college degrees, what's needed is certifications in AI, cloud, security, or data science, working on real projects (like sharing code on GitHub), and joining hackathons or its services, the Tata Group's grocery delivery firm, BigBasket, has entered the rapid food delivery space , offering 10-minute deliveries in select Bengaluru pin its 10-minute food play, BigBasket has tapped into Tata's in-house brands. New offerings include items from:The move comes five months after cofounder and CEO Hari Menon said on X that BigBasket would enter the food delivery market. In a December 2024 post, Menon had announced plans to expand BigBasket's SKUs to over 30,000 in all tier-1 cities, launch pharma deliveries via Tata 1mg, and introduce a food delivery VerSe Innovation, the parent company of the news aggregator platform Dailyhunt, and London-based AI startup allegedly inflated revenue by issuing invoices to one another without providing services in many instances, according to a Bloomberg betting and gambling platforms such as 1xBet, Parimatch, Stake, Fairplay, and BateryBet drew a staggering 5.4 billion visits in FY25, with Parimatch alone generating more traffic than Amazon, X (formerly Twitter), LinkedIn, Hotstar, Quora, or Reddit, according to a study by CUTS job and networking platform LinkedIn has joined the growing list of tech giants laying off employees, reducing 281 positions across California.■ How the loudest voices in AI went from 'regulate us' to 'unleash us' ( Wired ■ The math tutor and the missing $533 million ( Rest of World ■ Can the Gulf really become an AI superpower? ( FT
