Bengaluru-based business-to-business (B2B) ecommerce unicorn Udaan has fired close to 120 employees, just within a week after scooping up $340 Mn in its Series E funding round.

Although, it could not be ascertained which verticals were impacted by the layoff, but as per Moneycontrol’s report, the downsizing has majorly affected staff across marketing, finance and operations.

Confirming the development to Inc42, an Udaan spokesperson said that the company is working towards providing all requisite support to the impacted employees, which includes medical insurance and compensation package.

“Over the last few years, we have made significant investments to build a solid and sustainable business. We believe in efficiency as a driver of profitable growth and are continuously making efforts to enhance efficiency, grow business sustainably and further improve customer experience,” the spokesperson said.

“We have already made significant progress in our journey towards building a profitable business and continue to make relevant interventions to our already proven business model, while remaining customer-centric and agile. However, these interventions have also resulted in some redundancies in the system,” the spokesperson added.

Founded by Vaibhav Gupta, Sujeet Kumar and Amod Malviya, Udaan enables supply chain and logistics operations focused on B2B trade. It claims to enable daily delivery across over 1,000 cities and 12,500 pin codes through udaanExpress. It counts the likes of Lightspeed, Microsoft and Tencent among its backers. 

Last Thursday, the company raised fresh capital led by UK-based savings and investment firm M&G Prudential, with participation from its existing investors Lightspeed Venture Partners and DST Global.

Udaan plans to use these funds to further strengthen customer experience, market penetration, and strategic vendor partnerships, and to reinforce long-term supply chain and credit capabilities.

Earlier, Udaan conducted operations with a nationwide scope but has recently opted for decentralisation. Each warehouse now houses multiple products spanning categories such as FMCG, Food, Lifestyle, etc, as per the report.

In the past, the FMCG team operated on a national level; however, the new approach involves organising operations on a cluster basis. This means that distinct teams will be assigned to different clusters, each responsible for overseeing all products within their designated cluster, regardless of categories.

In FY23, Udaan saw its operating revenue shrink by 43% to INR 5,609 Cr from INR 9,897.3 Cr in the previous fiscal year.

The post Udaan Fires 120 Employees Within A Week Of Raising $340 Mn appeared first on Inc42 Media.

Mumbai-based GetSetHome, an online platform that manages and provides accommodations on rent, has raised $1 Mn in a seed funding round from Mumbai-based VC firm Mistry Ventures. The startup plans to use this capital to accelerate growth by expanding its presence into new micro markets, enhancing its platform and UX to strengthen its customer presence in Mumbai and Pune, where it currently operates. 

Founded in 2014 by Junaid Shaikh, Shabnam Virani and Muddassar Virani, GetSetHome offers fully furnished accommodations on a shared and non-sharing basis on rent. 

The startup primarily serves students and professionals relocating to and within these cities. Junaid claimed that to date, the startup has helped over 12,000 individuals secure accommodation and that all its partner properties run on more than 90% occupancy rate. 

GetSetHome aims to increase its user base to 50,000 within the next two years.

Finding rental accommodation often involves dealing with a fragmented brokerage system, high upfront payments, extensive travel and accommodations that lack amenities. 

To streamline this house-hunting process, the trio set up GetSetHome. It allows users to explore homes through verified photos and book accommodations directly. 

Further, the startup claimed that it improves rental yields of residential real estate assets for property owners, including developers, from a typical 2% industry standard to an average of 6%.

Junaid noted that once properties are listed, owners are relieved from frequent broker calls and showing properties to potential tenants. 

Additionally, property owners listing with GetSetHome are freed from the burden of follow-up calls for timely rent collection and navigating complex documentation, among other responsibilities.

While talking to Inc42, Junaid said, “Over the last few years, we have leveraged our understanding of the rental ecosystem and demand trends in different micro markets to develop a robust rental stack solution.”

GetSetHome provides rental solutions utilising AI, ML and big data for insights on micro market demands, predictive analytics and matches property owners with suitable tenants and conducts risk assessments. The startup stands in competition with other startups like Ishtara, Stanza Living, Nestaway, Zolo, among others.

Commenting on the investment in GetSetHome, Zahan Mistry of Mistry Ventures, said, “GetSetHome’s technological and operational capabilities address key pain points for tenants and owners within the rental ecosystem. Their strength is their ability to use capital efficiently which they have demonstrated through the pandemic. This shows the resilience of their business model. With a strong leadership team in place, we are excited to partner with them in their next growth phase.”

Mistry Ventures was founded in 2018 by late Cyrus Mistry and is currently led by Ashish Iyer , the firm’s managing director. Mistry Ventures funds startups across various stages to aid their growth and scaling efforts. The venture capital firm has made investments in diverse sectors such as D2C, SaaS, agritech, among others.

Poised to be a $1 Tn opportunity by 2030, India’s proptech sector has seen remarkable growth, with coliving being one of the key drivers. Early players like NestAway, Zolostays and Coho, all launched in 2015, have been pivotal in harnessing technology for growth in this specialised market.

Investments in Indian proptech startups have also soared, with $4 Bn being raised between 2009 and 2022. For instance, since launch, Zolostays has raised a total of $98 Mn in funding, while Stanza Living has raised a total of $227 Mn. Meanwhile, NoBroker became the first unicorn in proptech after it raised $210 Mn in 2021.

The post Proptech Startup GetSetHome Bags Funding From Mistry Ventures To Simplify House Renting appeared first on Inc42 Media.

Direct-to-consumer (D2C) snacking brand Farmley has raised $6.7 Mn (INR 55.6 Cr) in a Pre-Series B funding round led by BC Jindal Group, with participation from existing investors DSG Consumer Partners, Omnivore and Alkemi Partners.

The New Delhi-based D2C brand will deploy the fresh proceeds for product innovation, diversifying distribution channels and amplifying brand building.

Founded by Akash Sharma and Abhishek Agarwal in 2017, Farmley offers dry fruits and nuts in different flavours and snacking formats such as roasted peri peri makhanas, thai chilli cashews and date bites, among others.

It is available on all ecommerce and quick commerce channels like Amazon, Flipkart, Blinkit, Zepto, Instamart and Big Basket. It is also present in over 10,000 retail outlets across 50 Indian cities and aims to deepen its presence across offline retail touchpoints.

The startup has also onboarded former Indian cricket captain Rahul Dravid as its brand ambassador.
It claims to have crossed the annual recurring revenue (ARR) of INR 300 Cr, growing by over 400% for the past two years. It has also turned EBITDA positive.

“This new round of investment brings us a step closer to our mission of becoming a household brand and contributing to a healthier world. These funds will play a pivotal role in fuelling our product innovation efforts, in diversifying distribution channels and in amplifying the brand-building efforts,” Sharma said.

“With the increasing awareness about health and wellness, consumers are looking for options that not only taste good but also provide nutritional value. This fresh infusion of funds will allow us to take our brand to new heights and reach a wider audience of snack enthusiasts,” Agarwal said.

Earlier in 2022, Farmley raised $6 Mn in its Series A funding round led by DSG Consumer Partners and Alkemi Growth Capital.

India’s D2C market is likely to reach a size of $100 Bn by 2025. According to Inc42’s analysis, while the beauty and personal care (28.6%) segment tops the D2C market in India, it is closely followed by the food and beverages (F&B)industry at 27%. The F&B segment is expected to grow to $68 Bn by 2030.

The post D2C Snacking Brand Farmley Bags $6.7 Mn For Channel Expansion, Brand Building appeared first on Inc42 Media.

IPO-bound ecommerce furniture startup Pepperfry posted a marginal decline in its net loss in the financial year ended March 31, 2023. The Mumbai-based startup’s net loss narrowed 3% to INR 187.6 Cr in the financial year 2022-23 (FY23) from INR 194 Cr in the previous fiscal year.

Founded in January 2012 by late Ambareesh Murty and Ashish Shah, Pepperfry sells a wide range of furniture and other home products through its website, ecommerce marketplaces, and offline stores. 

The startup’s operating revenue rose 10% to INR 272.3 Cr during the year under review as against INR 246.9 Cr in the previous fiscal year.  

Pepperfry primarily generates revenue from the commission it earns by connecting customers with the merchants on its website. The startup earned INR 241 Cr from this in FY23, an increase of 7.4% from INR 224.4 Cr in the previous fiscal year.

Including other income, Pepperfry’s total income stood at INR 290.3 Cr, a jump of 10% from INR 264.3 Cr in FY22

Where Did Pepperfry Spent?

The startup’s overall expenses increased 3% to INR 474 Cr from INR 458 Cr in FY22.

Procurement Cost: Being an ecommerce marketplace, the startup’s biggest expense was the procurement cost. It spent INR 282 Cr on procurement in FY23, an increase of 36% from INR 207.4 Cr in the previous fiscal year.

Employee Benefit Expenses: Pepperfry’s employee benefit expenses rose 6% to INR 86 Cr in FY23 from INR 80.9 Cr in the previous fiscal year. Employee costs include salaries, provident fund payments, gratuity, among others. The small increase indicates that the startup’s headcount didn’t see a big rise this year. 

Advertising Expenses: While ecommerce marketplaces are known for spending big on advertising, Pepperfry managed to bring down its marketing expenses in FY23. The startup spent INR 106 Cr on advertising in FY23, a decline of 18% from INR 129.8 Cr in the previous year.

Pepperfry raised $23 Mn from its existing investors, including institutional investors and family offices, in September this year. It has raised around $300 Mn across multiple rounds till date and counts the likes of Pidilite, Goldman Sachs, Bertelsmann India, and Innoven among its backers.

Unfortunately, its cofounder CEO Murthy passed away in August this year. Shah later took the CEO role.

The startup, which competes against the likes of Urban Ladder, has been preparing for its initial public offering (IPO) since early 2022. It even converted itself into a public entity in May last year. However, like many other startups, it postponed its plans to go public considering the slowdown in the equity markets last year.

The post Pepperfry’s FY23 Loss Narrows Marginally To INR 188 Cr, Sales Up 10% appeared first on Inc42 Media.

Indian new-age tech stocks witnessed a revival this week, helped by the bull run in the broader market.

Thirteen out of the 19 new-age tech stocks under Inc42’s coverage gained in a range of 1% to 15% this week. Tracxn Technologies emerged as the biggest gainer, with its shares rising 14.8% during the week.

Yudiz, Yatra, Nazara Technologies, RateGain, Zaggle, and Zomato were among the other stocks which witnessed a northbound movement. Meanwhile, RateGain has now almost touched $1 Bn in market capitalisation following this week’s surge of almost 7%.

On the other hand, Paytm continued its slump, falling over 7% this week. Delhivery also declined a little over 7%, while PB Fintech and Fino Payments Bank fell over 3% each this week.

ideaForge and MapmyIndia declined 0.6% and 1.3%, respectively.

In the broader market, benchmark indices Sensex gained 2.4% to end the week at 71,483.75 while Nifty50 rose 2.3% to 21,456.65.

Prashanth Tapse, senior VP (research) at Mehta Equities, said, “There is a lot of enthusiasm amongst the investors, especially foreign investors, who are pumping in funds into domestic equities over the past few weeks post the state election results. Political stability and hopes of continuation of reforms going ahead, coupled with the US Fed’s dovish stance on rates, falling bond yields and sliding crude oil prices, has improved the sentiment.” 

However, Tapse believes that the benchmark indices could consolidate in the near term as they are in the overbought zone on the technical charts. 

Dr. Joseph Thomas, head of research at Emkay Wealth Management, also said that some consolidation around the current levels is expected in the near term. 

Now, let’s take a look at the performance of some of the major new-age tech stocks this week.

The total market capitalisation of the 19 new-age tech stocks under Inc42’s coverage stood at $38.48 Bn at the end of this week as against $38.35 Bn last week.

SoftBank Dumps PB Fintech Shares

After selling stakes in Zomato last week and Delhivery last month, SoftBank offloaded a significant portion of its remaining stake in the fintech major PB Fintech.

SoftBank’s SVF Python II (Cayman) Limited offloaded 2.53% of its stake, involving 1.14 Cr shares, in PB Fintech in multiple block deals worth a cumulative INR 913.7 Cr.

While many institutional investors, including Societe Generale, HDFC Mutual Fund, Goldman Sachs (Singapore) Pte, and ICICI Prudential Life Insurance Company Limited, lapped up the offloaded shares, shares of PB Fintech fell 2.3% on Friday to end the session at INR 789.45 on the BSE.

Meanwhile, the company on Thursday informed the exchanges that Income Tax (IT) officials ‘visited’ the offices of its subsidiary Paisabazaar earlier this week. PB Fintech noted that the business operations of Paisabazaar continue as usual and have not been impacted due to the survey proceedings.

Overall, PB Fintech fell 3.6% this week.

Largely helped by its improving bottom line, shares of the Policybazaar and Paisabazaar parent have gained over 22% in the last six months.

Paytm Continues To Fall

Paytm’s decision to scale down its loan disbursement business, largely affecting the BNPL or postpaid loan vertical, continues to weigh heavily on the fintech giant’s market performance.

After slumping a massive 25% last week, the stock fell almost 7.1% this week. 

Shares of Paytm ended the week at INR 605.85 on the BSE. The stock had last touched the INR 600 level or below towards the end of March this year. 

On the back of its improving outlook and bottom line, Paytm shares had gained a massive 86% this year till October. However, they are now trading only 14% higher year to date following the recent slide.

Rupak De, senior technical analyst at LKP Securities, said that Paytm seems to have reached its support level at INR 590. 

“Now, if Paytm holds above INR 590, then there is a possibility of some recovery towards INR 650-INR 700,” he said, adding that the stock might fall towards INR 500 if it slips below the support level.

Delhivery Trading At A Six-Month Low

Shares of the logistics unicorn started witnessing a significant slump in early October, days after it announced the allotment of some ESOPs. Since then, the stock has been on a downtrend. 

The company’s Q2 FY24 financial results also failed to add any major boost to the falling share prices. SoftBank selling its 1.83 Cr shares in November further added to the woes.

After a little over 7% fall this week, Delhivery shares have touched their lowest level since June 9. The stock ended the week at INR 357.6 on the BSE. In September, shares of Delhivery were trading around INR 440.

LKP Securities’ De said that Delhivery looks very weak on technical charts. It has support at INR 345 and a reversal is only possible above INR 376, he said.

The post Broader Market Bull Run Lifts Up New-Age Tech Stocks This Week, RateGain Nears $1 Bn M-Cap appeared first on Inc42 Media.

Minister of State (MoS) for Information Technology Rajeev Chandrasekhar on Saturday (December 16) said that the Centre plans to fund and support artificial intelligence (AI) startups in the country. 

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

“AI compute (part of India AI Mission) will have two segments – one led by the private sector, similar to the design of the semiconductor ecosystem with incentivised investments. The other segment involves indigenously developed public sector capacity for AI emerging from C-DAC, which will be available to the Indian ecosystem,” Chandrasekhar said while speaking at an event in Bengaluru.

The government will also deploy ‘financial resources’ to build foundational AI models, large language models (LLMs), and various use cases for the emerging technology. He also said that the Centre would explore synergies between AI and semiconductor industries in areas such as development of AI chips. 

The minister said that the Centre is focussed on building a close knit ecosystem of academia, industry and startups to push the AI space in India. Chandrasekhar also called for nurturing AI talent in the country to fuel the demand from the booming AI space.

Meanwhile, he also called for formulating a global framework to regulate AI, saying that the emerging technology, over the course of next six to nine months, may take shape in a way that the world ‘may not anticipate or fully understand’.

“We need a global framework urgently because, in the next six to nine months, AI will take shape and evolve in a way that we may not anticipate or fully understand… Therefore, we need to establish this framework quickly, with a granular set of principles and rules that all countries can follow,” added Chandrasekhar.

He also termed AI as a ‘significant bolt’ to the ‘already galloping’ Indian digital economy. The MoS said that AI can propel India’s digital economy and foster growth in sectors such as healthcare, agriculture, and governance. 

On the rising menace of GenAI-powered deepfakes, misinformation, and disinformation, the minister reiterated that the Centre has proactively taken steps to address challenges on the digital front.

“Deepfakes are a classic example because misinformation and patently false information are diseases that social media has spread, causing harm, especially in democratic countries. It creates divisions, incitements, and fake narratives. Misinformation has been a problem in social media; now imagine misinformation powered by AI,” the minister added.

The move to fund homegrown AI startups comes at a time when generative AI has become a buzzword among Indian entrepreneurs. From Google’s Bard to OpenAI’s ChatGPT, the GenAI space has caught the imagination of people across the globe in the recent past. The adoption of the emerging technology is further expected to soar as businesses and consumers deploy and use applications such as text, image, audio and video, among others. 

This has spawned a host of new Indian startups in the domains. As per Inc42 data, India is home to more than 70 GenAI startups that have raised capital in excess of $440 Mn between 2019 and Q3 2023. 

Inc42 also estimates the homegrown GenAI market to grow to a market size of $17 Bn by 2030 from $1.1 Bn in 2023.

The post Centre To Support, Fund Indian AI Startups: MoS Rajeev Chandrasekhar appeared first on Inc42 Media.

The University Grants Commission (UGC) has yet again warned edtech platforms of stern action for offering online degree courses in association with foreign institutions. 

The Commission noted that franchisee arrangements between edtech startups and foreign universities are barred. Flagging ads published by edtech companies, it added that degrees issued as part of such courses would not be valid. 

“It has also come to the notice of UGC that some edtech companies are… offering degree and diploma programmes in online modes in association with some foreign… institutions… Action will also be taken against all the defaulting edtech companies as well as the HEIs (higher educational institutions) under applicable laws/rules/regulations,” said UGC in a public notice issued on December 12.

The Commission also advised the general public to exercise ‘due caution’ while enrolling for such courses, adding that those opting for such degrees would be doing the same at their own risk and consequences.

It is pertinent to note that the amended UGC Act, 1956 bars HEIs from offering courses via franchising agreements with foreign universities. Current rules stipulate that such courses are not recognisable by the Commission. 

The move is expected to rein in edtech startups that offer such courses and ensure that students and parents do not spend resources and time on earning degrees that have no recognition. 

However, this is not the first time that authorities have cracked the whip on edtech companies.for offering non-recognised educational programs. In early 2021, the Commission had directed HEIs to withdraw any degree or diploma programmes being offered in partnership with edtech companies.

Afterwards in October 2022, the UGC again issued a fresh order that noted that online Ph.D programmes offered by edtech players in partnership with foreign institutes were not recognised.

The development comes at a time when the Indian edtech sector has been mired in a slew of troubles. 

The funding winter, increased regulatory compliance, layoffs, and a merger and acquisition wave headlined the Indian edtech startup ecosystem in 2023. From BYJU’s to Unacademy, the sector has seen companies slashing headcount by thousands. As per Inc42, 24 Indian edtech startups have fired more than 14,616 employees since 2022.

The post UGC Warns Edtechs Of Action For Selling Courses In Partnership With Foreign Institutes appeared first on Inc42 Media.

Union minister Smriti Irani took a dig at the venture capital (VC) funds for not backing enough women-led innovative startups, and instead focussing more on entities founded by men.

At an event on Friday (December 16), the minister said that there are many women-led startups in science and technology but they are not getting translated into commercial ventures.

“Even today, risk taking by VCs for women-led initiatives which are based on innovation is far lower as compared to those by men,” PTI reported Irani as saying. 

The union minister for women and child development acknowledged that her recent statement in Parliament opposing period leaves for women has caused an “uproar” but stuck to her stance, saying allowing so will have deep concerns on privacy.

Irani also suggested business schools impart negotiating skills to their students, especially girls. 

The minister’s statement is in line with the findings of Inc42’s funding report. Amid the funding winter, the women-led startups saw an 88% YoY decline in funding during H1 2023. 

The Indian Tech Startup Funding Report H1 2023 points out that Indian startups with at least one woman founder raised $290 Mn between January and June 2023 versus $2.4 Bn raised in the same period a year ago. In terms of the deal count, the women-led startups saw a 55% YoY decline to 62 during H1 2023 from 140 during the same period of 2022. 

However, the startup landscape of India is witnessing a shift never seen before. Even amid the crisis, women founders and investors are gradually seeing an increase in their share in the Indian startup ecosystem. 

Anjali Bansal, Deepika Padukone, Aarti Gupta, Bhawna Bhatnagar, Debjani Ghosh, Namita Thapar, and Padmaja Ruparel are among the leading women investors and entrepreneurs who are frequently talked about in the startup ecosystem.

The post VCs Betting On Fewer Women Startups Than Men-Led Ones, Says Minister Smriti Irani appeared first on Inc42 Media.

Japanese investment major SoftBank offloaded 2.53% of its stake in PB Fintech in multiple block deals worth a cumulative INR 913.7 Cr.

SoftBank’s SVF Python II (Cayman) Limited held 1.97 Cr shares, or a 4.39% stake, in the parent entity of the insurtech platform Policybazaar in the quarter ended September 2023. 

Following the deal on Friday (December 16) involving 1.14 Cr shares, SoftBank is now expected to hold 83.23 Lakh shares in PB Fintech.

The offloaded shares were lapped up by Societe Generale, HDFC Mutual Fund, Goldman Sachs (Singapore) Pte, Smallcap World Fund, ICICI Prudential Life Insurance Company Limited, and a few others.

While Societe Generale and HDFC Mutual Fund bought 15.5 Lakh PB Fintech shares each in block deals, Government Pension Fund Global bought 16.5 Lakh offloaded shares. New World Fund lapped up 16.4 Lakh shares from SVF Python II’s offloaded stake.

SoftBank’s stake sale in PB Fintech comes a year after the Japanese conglomerate sold over 5% stake in the company last year.

Following SoftBank’s stake sale, shares of PB Fintech fell 2.3%, ending Friday’s session at INR 789.45 on the BSE.

SoftBank’s stake sale in PB Fintech comes a week after it offloaded 9.35 Cr shares of foodtech giant Zomato in an INR 1,127 Cr block deal last Friday, likely exiting the company.

In November, SVF Doorbell (Cayman) had also offloaded 2.5% of its stake in logistics unicorn Delhivery for almost INR 740 Cr. 

The Japanese investment major has been cutting its shareholding in most Indian listed entities since last year amid its increasing losses.

Meanwhile, PB Fintech has been seeing an improvement in its bottom line for the last few quarters. Its net loss declined over 89% year-on-year (YoY) to INR 21 Cr in Q2 FY24. The fintech major also reported its third consecutive adjusted EBITDA-positive quarter in Q2.

On Friday, PB Fintech also informed the exchanges that Income Tax (IT) officials ‘visited’ the offices of its subsidiary Paisabazaar earlier this week.

The post SoftBank’s Stake Sale Continues, Offloads 1.14 Cr PB Fintech Shares Worth INR 914 Cr appeared first on Inc42 Media.

Continuing with its upward momentum in the second week of December, the Indian startup ecosystem managed to secure $527 Mn across 21 deals, marking one of the highest funding weeks in the past two years, ever since the funding winter set in early 2022. This marks a 520% jump from $85 Mn raised across 18 deals in the preceding week.

Besides, the week also witnessed a mega deal in the ecosystem with Udaan raising $340 Mn in its Series E funding round. 

Funding Galore: Indian Startup Funding Of The Week [Dec 11 – Dec 16]

Key Startup Funding Highlights Of The Week

• Business-to-business (B2B) ecommerce giant Udaan raised $340 Mn in its Series E financing round led by UK-based M&G Prudential, with participation from existing investors Lightspeed Venture Partners and DST Global, making it the biggest funding deal of the week.
• Fuelled by Udaan’s funding, the ecommerce sector not only emerged as the most funded sector this week with $380.9 Mn funding but also witnessed a maximum number of deals with eight deal counts.
• Lightspeed Venture Partners emerged as the busiest investors as it participated in two deals each.
• Seed funding took a backseat this week with a mere $2.8 Mn across two deals.

Startup Acquisitions This Week

• US-and India-based CareStack, a cloud-based dental practice management platform acquired Kerala-based artificial intelligence (AI) startup Waybeo for an undisclosed amount.
• Direct-to-consumer (D2C) superfood brand Nourish You acquired Bengaluru-based One Good (erstwhile Goodmylk) for an undisclosed sum.
• Fintech startup M2P acquired big data analytics and intelligence platform Goals101 for $30 Mn in a cash-and-equity deal.
• Kunal Shah-backed Anq Finance acquired healthcare-focussed lending startup Kiwimoney for an undisclosed amount.
• Indian mobile gaming company Octro acquired Israel-based DGN Games for an undisclosed amount.

Other Major Developments From This Week

• Aditya Birla Group’s Hindalco Industries will invest INR 800 Cr to set up a battery foil manufacturing facility in Odisha’s Sambalpur district.
• Climate-focused Asha Ventures marked the first close of its debut fund at $50 Mn, which will have a total corpus of $100 Mn.

The post From Udaan To VeGrow — Indian Startups Raised $527 Mn This Week appeared first on Inc42 Media.

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

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

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

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

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

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

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

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

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

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

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

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

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

Listed startup PB Fintech informed the bourses that Income Tax (IT) sleuths ‘visited’ the offices of its subsidiary Paisabazaar earlier this week.

In a filing with the BSE, the fintech major said that the visits were conducted on December 13 and 14 and pertained to certain vendors of Paisabazaar.

“We hereby inform you that the Income Tax officials visited Paisabazaar, a wholly owned subsidiary and PB Fintech Limited on 13th & 14th December, 2023 and enquired about certain vendors of Paisabazaar,” said the company. 

The company said that it has furnished information sought by the officials and will continue to provide further details that might be required by the Department in future. Assuaging the investors, PB Fintech added that the business operations of Paisabazaar continue as usual and were not impacted on account of the visits. 

This comes nearly two months after the Securities and Exchange Board of India (SEBI) imposed a fine of INR 1 Lakh on Paisabazaar for employing a principal officer without requisite qualification. The markets regulator then said that Paisabazaar cofounder and chief executive officer (CEO) Naveen Kukreja, who was also the company’s principal officer, did not possess the National Institute of Securities Markets (NISM) certification.

The visits come when Paisabazaar has been clocking hefty revenue growth while scaling up operations. Paisabazaar closed the second quarter (Q2) of the financial year 2023-24 (FY24) with a revenue of INR 154 Cr, contributing little more than 25% to the parent PB Fintech’s core quarterly revenues.

At the end of the September quarter, the credit marketplace vertical clocked an annual loan disbursal rate of INR 16,600 Cr, having disbursed loans worth INR 4,129 Cr on the platform during the three-month period.

Meanwhile, PB Fintech reported a loss of INR 21 Cr in the second quarter (Q2) of the financial year 2023-24 (FY24), down more than 89% year-on-year (YoY). Meanwhile, revenues soared 42% YoY to INR 812 Cr during the same period. 

The quarter ended September 2023 was the third consecutive adjusted EBITDA-positive quarter for PB Fintech. The company’s consolidated EBITDA, excluding ESOP costs, hovered around the INR 13 Cr mark in Q2 FY24 against an adjusted EBITDA loss of INR 53 Cr during the same period last year. 

Last month, PB Fintech chairman and CEO Yashish Dahiya affirmed that the company would begin clocking profits from Q3 onwards.

Meanwhile, PB Fintech closed the day 2.31% lower at INR 789.45 on the BSE on Friday (December 16).

The post Paisabazaar Under Income Tax Dept’s Scanner Over ‘Certain Vendors’ appeared first on Inc42 Media.

The Delhi High Court on Friday (December 15) rejected an interim application filed by BharatPe cofounder Shashvat Nakrani that sought to restrain the fintech unicorn’s former managing director (MD) Ashneer Grover from selling or alienating the shares that the former sold to him.

A single-judge bench of Justice Sachin Datta dismissed the plea but directed Grover to intimate Nakrani when he decides to sell or transfer the shares in question. 

Nakrani claimed that he had transferred his shares to Grover but never received any money for it. However, Grover claimed to have paid for them in cash.

In recap, BharatPe was founded by Nakrani and Bhavik Koladiya in March 2018. Grover joined the company as a third cofounder and board member in July 2018 and purchased 3,192 shares (2,447 from Nakrani and 745 from Koladiya for INR 10 apiece).

In March, Inc42 reported that Grover was supposed to pay INR 24,470 to Nakrani and INR 7,450 to Koladiya. However, Nakrani claimed the former MD is yet to pay for the shares. With time, the 2,447 shares that Nakrani transferred to Grover now translate to 24,470 shares due to share splits and are worth around INR 4 Lakh each.

Appearing for Grover, advocate Giriraj Subramanium argued that Nakrani’s case is based on a complete ‘misreading, misinterpretation and misunderstanding’ of the Sale of Goods Act, 1930.

He noted that the transfer of shares to Grover, and permitting him to join and remain a member of BharatPe for nearly five years, showed that Nakrani not only delivered the shares to the former MD on July 2, 2018 but also never reserved any right of disposal whatsoever. 

Subramanium further contended that, in this case, the contract was adhered to in its entirety. He also argued that the share transfer form was duly executed and Grover’s name was entered into the shareholders’ register as per set norms. This makes it evident that the title to the shares has passed to Grover, he submitted. 

Incidentally, BharatPe’s other cofounder, Bhavik Koladiya, has also sued Grover over a dispute about the transfer of shares. According to media reports, Koladiya (the largest shareholder in the startup) had to allegedly leave BharatPe as his past conviction in the United States in a credit card fraud case was hindering talks with investors.

As he resigned, Koladiya transferred his shares to Grover, Nakrani and one Mansukhbhai Mohanbhai Nakrani, as well as some other early-stage and angel investors. The consideration for the transfer of the shares was approximately INR 88 Lakh. He has claimed that to date, Grover has not paid the purchase consideration.

In Koladiya’s case, Grover claimed that his wife transferred INR 8 Cr to Koladiya’s wife, a payment which also included the INR 88 Lakh for the shares. However, Grover agreed, in January this year, to not create any third-party interest in the 16,110 BharatPe shares in question and in any rights that accrue to him as a consequence thereof.

Grover’s stake in BharatPe has become a major bone of contention for all parties involved in the nearly two-year-long saga since the former Shark Tank India judge’s acrimonious exit from the fintech unicorn in March 2022.

While Nakrani and Koladiya have claimed they did not receive payment for the stake they sold to the former MD, BharatPe approached the Singapore International Arbitration Centre (SIAC) earlier this year, seeking to claw back Grover’s restricted shareholding in the company.

The post Delhi HC Rejects BharatPe Cofounder Shashvat Nakrani’s Appeal Against Ashneer Grover appeared first on Inc42 Media.

Community and security management platform MyGate hit zero cash burn in November, said cofounder Abhishek Kumar in a LinkedIn post on Friday (December 15).

“We finally hit Zero cash burn last month. Now the journey towards generating free cash flow starts…,” Kumar said.

Founded in 2016 by Vijay Arisetty, Vivaik Bharadwaj, Shreyans Daga, and Kumar, MyGate offers security solutions for apartment complexes at entry and exit gates, replacing security-related systems such as RFID cards and biometrics.

In FY23, the startup reported a net loss of INR 227.1 Cr, which widened more than 30% year-on-year (YoY). However, excluding ESOP costs and loss of financial liabilities, MyGate’s loss narrowed 35% to INR 76.43 Cr in FY23.

Its operating revenue during the year under review stood at INR 71.1 Cr against INR 40.1 Cr in FY22. As on March 31 2023, MyGate registered aggregate cash and bank balances of INR 100.4 Cr.

“The management has reviewed the cash flow forecast for the future period and taken various measures to contain costs and increase the revenue,” the startup said in its FY23 financial filing. 

With profitability now becoming a key focus for investors, most tech startups globally have started focussing on turning profitable. 

In November last year, MyGate bagged $12.2 Mn (INR 100 Cr) in a funding round led by Urban Company and Acko. This was three years after raising $56 Mn in a Series B funding from Tiger Global, JS Capital, and China’s Tencent Holdings.

Earlier this year, MyGate laid off 30% of its workforce after letting go of a similar percentage of employees in December 2022.

The startup competes with NoBroker’s apartment management platform NoBrokerHood, JioGate, and GateKeeper.

The post MyGate Cofounder Claims ‘No Burn November’ appeared first on Inc42 Media.

The Computer Emergency Response Team (CERT-In), the Centre’s nodal agency dealing with cyber security, has issued a high-risk security alert for four versions of Samsung phones, saying that multiple vulnerabilities have been reported in the products with certain software.

The affected software includes Samsung mobile Android versions 11, 12, 13 and 14.

“Multiple vulnerabilities have been reported in Samsung products which could allow an attacker to bypass implemented security restrictions, access sensitive information and execute arbitrary code on the targeted system,” said CERT-In in its vulnerability note.

These vulnerabilities exist due to issues such as improper access control in Knox features, issues in the facial recognition software, improper authorisation verification vulnerability in AR emoji, improper input validation vulnerability in Smart Clip, and others, said the advisory. 

“Successful exploitation of these vulnerabilities may allow an attacker to trigger heap overflow and stack-based buffer overflow, access device SIM PIN, send broadcast with elevated privilege, read sandbox data of AR emoji, bypass Knox guard lock via changing system time, access arbitrary files, gain access to sensitive information, execute arbitrary code and compromise the targeted system,” it added.

These vulnerabilities are likely to affect a range of Samsung devices, including the Galaxy S23 series, Galaxy Flip 5, and Galaxy Fold 5. 

Meanwhile, Samsung is one of the leading smartphone manufacturers in India, along with companies including Xiaomi, OPPO, OnePlus and Apple. The company has also been bolstering its position as one of the top smartphone manufacturers in the country.

As per a Canalys report, Samsung maintained its top position with a market share of 18% and a shipment of 7.9 Mn units in Q3 2023.

The post CERT-In Issues High-Risk Security Alert On Certain Samsung Mobile Android Versions appeared first on Inc42 Media.

Ola founder Bhavish Aggarwal on Friday (December 15) unveiled AI models of his new startup Krutrim AI and touted its solutions as “India’s first full-stack AI”.

During the launch event, Aggarwal also showcased an AI chatbot, powered by Krutrim, which functions in a way similar to other open source large language models (LLM) such as OpenAI’s ChatGPT, Meta’s Llama 2, and Google’s Bard. 

“Today, all AI models, called LLM, are trained largely in English. But language is just not text but also the vehicle for cultural values, context, and ethos. Hence, the current AI models just can’t capture India’s culture, knowledge, and aspirations, given our multicultural, multilingual context. An India-first AI… needs to be trained on datasets specific to us,” said Aggarwal.

Ola Krutrim AI claims to have built its AI models from scratch, having trained them on 2 Tn tokens and unique datasets. The AI models can understand over 20 Indian languages and generate text in 10 Indian languages, including Bengali, Tamil, Malayalam, Gujarati, and Marathi.

The word Krutrim is taken from the Sanskrit language and means “artificial”. 

The sign-ups for the base model ‘Krutrim’ will open today on the Krutrim website. Its next model called ‘Krutrim Pro’, with more sophisticated problem solving capabilities in text, speech, and vision, is expected to be launched in the next quarter.

With superior linguistic skills, Ola Krutrim expects to become a valuable tool for a wide range of purposes – from education to business communications. It also incorporates the latest techniques in safe AI to reduce inappropriate responses. 

Aggarwal incorporated the startup, Krutrim Si Designs Private Limited, in April this year with Ola’s parent ANI Technologies’ long-time board member Tenneti Venugopala Krishnamurthy as its director. Recently, the startup also raised $24 Mn in debt funding from Matrix Partners.

Aggarwal’s new AI entity comes at a time when he is also increasing his focus on bolstering his emobility business – Ola Electric. Both Ola and Ola Electric are already using Krutrim AI for sales, service, support, and several other processes.

Meanwhile, Krutrim is also working on AI infrastructure to develop indigenous data centres and eventually, server-computing, edge-computing, and super-computers. The startup is also working on silicon chips.

“For a well-run AI computing story and a business, you need to build AI models and you need to build the infrastructure and the silicon, and you need to integrate them very tightly. And that’s what our endeavour is,” said Aggarwal, speaking about the further upcoming developments.

Production is scheduled for mid-2024 for prototypes and a roll-out production roadmap by the end of 2025, said the startup.

The post Bhavish Aggarwal’s Krutrim Unveils ‘AI Models For India’ appeared first on Inc42 Media.

Motorola, the smartphone brand owned by China’s Lenovo, is looking to double its exports from India next year by ramping up shipments to North America.

“North America is our primary export market from India. Currently, we have been exporting 20-25% of our capacity to North America, and every year, we are seeing step-ups in terms of growth. We are planning to double our exports next year (in 2024),” Prashant Mani, executive director for Asia Pacific at Motorola, told ET.

It is pertinent to note that Motorola was among the early beneficiaries of the Centre’s production-linked incentive (PLI) for mobile phone manufacturing.

The PLI for large scale electronics manufacturing was introduced in 2020. It provides manufacturers with incentives to encourage domestic production. 

Motorola is expected to have exported over 1 Mn smartphones from India, all manufactured by contract manufacturer Dixon Technologies, in 2022. By October, the company had already shipped 800,000 units.

Mani said, “If we are seeing a 50-60% growth in domestic sellouts, exports will grow faster than domestic sellouts.”

He added that exports and localisation are the two main objectives set by the Indian government for mobile phone companies. 

The report said that Motorola has most likely achieved a 50-60% domestic value addition, excluding semiconductor parts, higher than rivals like Samsung and Apple.

The development comes as a big boost to the Indian government which has been trying to make the country a global hub for electronics production, including smartphones. The Centre has also been pushing for Chinese smartphone companies, which enjoy a large share in the domestic market, to set up manufacturing plants in India and export devices from the country.

This push by the government and the ongoing tensions between Beijing and Washington have resulted in iPhone manufacturer Apple shifting some of its production to India. The company is now looking at producing iPhones worth INR 1 Lakh Cr in India by the end of March 2024.

Amid all this, Apple also became the largest smartphone exporter from India, with South Korea’s Samsung at the second place.

Meanwhile, another Chinese manufacturer Xiaomi, which is currently manufacturing wireless audio products in India, is also said to be looking to start smartphone production in the country. Tech giant Google has also announced its plans to begin production of Pixel smartphones in India.

The post Lenovo-Owned Motorola Aims To Double Smartphone Exports From India appeared first on Inc42 Media.

Union minister of science and technology Jitendra Singh has said that  the number of Indian spacetech startups have gone up from just 1 in 2014 to 189 in 2023.

Citing data of the department for promotion of industry and internal trade (DPIIT), Singh informed the Parliament that the investment in spacetech startups has climbed to $124.7 Mn. 

Singh told the Rajya Sabha that the government has set up a space technology incubation centre (S-TIC) to nurture and attract young students with innovative ideas and enable them to carry out research and set up new startups in the space segment. 

Elaborating on the significance of the Indian Space Policy 2023, Singh said that it will enable end-to-end participation of privately owned spacetech companies in all domains of space-related activities. 

He said that the incentives offered by the government under the space policies have enabled some privately owned spacetech companies to launch their own satellites. 

According to a report by Inc42 titled ‘Indian Spacetech Startup Landscape and Market Opportunity, 2023’, more than 150 spacetech startups secured $285 Mn+ in funding between 2014 and 2023. Most of them are backed by a diverse array of active investors, including prominent names such as Pi Ventures, Speciale Invest, Peak XV (formerly Sequoia Capital India and Southeast Asia), Mumbai Angels, Artha India Ventures and 9Unicorns, among others.

Earlier this year, Skyroot secured INR 225 Cr (approximately $27.5 Mn) in a Pre-Series C funding round led by Temasek to drive the next phase of growth through increased investments in infrastructure, reinforcement of its technology leadership, attraction of top-tier talent, and the enhancement of its launch frequency and capabilities

It is pertinent to note that in October this year, Skyroot also unveiled its indigenously built rocket Vikram-I at its new headquarters.

Another spacetech startup Agnikul, which owns the first private launchpad within the ISRO campus, secured INR 200 Cr ($26.7 Mn) in October to accelerate the commercialisation of its existing technologies and invest more in key facilities such as mobile launchpads and other test rigs to cater to growing customer requirements.

The post India Now Home To 189 Spacetech Startups: Union Minister Jitendra Singh appeared first on Inc42 Media.

Manu Sharma, who has been leading the India operations of smartphone startup Nothing since February 2021, has stepped down from his position as general manager and vice president. 

His last working day with Nothing will be on January 20, 2024.

Taking to LinkedIn on Thursday (14 December), Sharma posted, “As we ring in the year 2024 very soon, I am excited to share that I have decided to move on from Nothing. The last 3 years have been very eventful and memorable. This has been the most fortunate & incredible time of my life to build the foundation of the Nothing brand in India from ground zero.” 

“The decision to move on came after intensive deliberation due to personal reasons. Nothing India is in an incredibly strong position and has a very robust pipeline of products in 2024 and a very capable team. I am very excited about the adventure that awaits but I am not leaving just yet and will be with Nothing India till the end of January 2024,” he added.

The London-based tech company, launched by former OnePlus cofounder Carl Pei, enlisted Sharma to establish Nothing’s presence in India and propel growth. 

At Nothing, Sharma crafted its India strategy, built the business from scratch, and established key partnerships online and offline. 

He recruited cross-functional teams, implemented processes and systems, and offered vital advice on strategic investments for brand growth in India.

Sharma, who has over two decades of experience, worked with companies such as Samsung Electronics and HP in the past.

Nothing competes with the likes of Apple, Samsung, and OnePlus. In 2021, the London-based consumer tech company Nothing announced its foray into India in partnership with the homegrown ecommerce marketplace Flipkart.

The latest development comes at a time when smartphone shipments in India remained flat, as reported by Counterpoint Research, in Q3 2023 (July-September). Despite the overall stagnation, Apple achieved its highest-ever quarterly shipments during this period. 

The 5G smartphone shipments accounted for 53% of the market, with the primary growth being driven by original equipment manufacturers (OEMs) launching multiple devices in the INR 10,000 to INR 15,000 ($120-$180) segment.

Samsung maintained its position as the market leader for the fourth consecutive quarter, holding a 17.2% share. Meanwhile, Apple experienced a high-growth phase in India, recording a 34% year-over-year (YoY) growth. 

The post Smartphone Startup Nothing’s India Head Manu Sharma Quits appeared first on Inc42 Media.

Global pharmaceutical company Cipla said it will invest an additional INR 42 Cr ($5.04 Mn) in Mumbai-based GoApptiv, a transaction that will increase the former’s total stake in the digital tech company to 22.99%.

“With this move, we aim to utilise GoApptiv’s technology to strengthen our presence across the healthcare continuum, especially to the underserved population by enabling greater access to lifesaving treatments,” Cipla said in a statement.

This marks Cipla’s third investment in GoApptiv which will be made in a combination of equity shares and compulsorily convertible preference shares.

In June 2020, Cipla first acquired a 21.85% stake in GoApptiv for INR 9 Cr and after two years it raised the stake to 22.02% for INR 25.90 Cr.

Launched in 2015 by Rajasekhar Parcha and Sreeram Venkitaraman, GoApptiv is a digital tech company engaged in the business of offering digital solutions to pharmaceutical companies for increasing patient reach.

It offers end-to-end business solutions including distribution, digital solutions, integrated brand sales management, digital marketing, patient support and healthcare data analytics and channel engagement for healthcare companies.

“Our long-standing partnership with GoApptiv has helped us increase penetration in underserved rural areas of India and address critical healthcare gaps where pharmaceutical coverage is limited,” said Umang Vohra, managing director and global chief executive officer at Cipla Limited.

In September, Cipla also launched drone-based deliveries of its critical medicines for hospitals in Himachal Pradesh, in partnership with Skye Air Mobility. The medicines included cardiac, respiratory and other essential chronic therapies.

Back then, the drugmaker said that the use of drones would support on-time delivery of its medicines to chemists and clinics in remote areas while minimising risks including temperature-linked issues affecting cold chain products.

Cipla claims to be the first among large Indian pharma companies to adopt drone-based deliveries to facilitate expedited supply to stockists in remote areas. The company also aims to expand its market coverage to inaccessible and hilly terrains such as Uttarakhand and the NorthEast region.

The post Cipla Raises Stake In Digital Tech Startup GoApptiv To 22.99% For INR 42 Cr appeared first on Inc42 Media.

A division bench of Delhi High Court on Thursday (December 14) removed travel tech major MakeMyTrip’s injunction on Google and Booking.com to use registered trademarks as ‘keywords’ on the Google Ads Programme.

“Prima facie, we are unable to accept that MMT can claim any such right on the basis of its rights under the Trademark Act,” the order said.

The court also said that considering Booking.com is also a well-known platform offering travel services, an internet user is unlikely to be misled in any manner.

For the uninitiated, MakeMyTrip filed a complaint against Google and Booking.com because whenever a user searches for MakeMyTrip on Google, the first name that comes is of its competitor Booking.com.

MakeMyTrip issued a notice to Booking.com for the first time in 2019 to cease bidding on the keyword ‘makemytrip’  through the Google Ads Programme. Following this, another cease-and-desist notice was issued to Booking.com in August 2020 for the same.

The traveltech startup then filed a copyright infringement case against Booking.com and Google, alleging that the former had been illegally bidding on the trademarks associated with MakeMyTrip in Google Ads, which resulted in traffic and business being diverted to Booking.com from MakeMyTrip.

In April 2022, a single-judge bench of Justice Prathibha M. Singh deemed the use of MakeMyTrip’s trademark and its variations on Google Ads a passing off and ordered the search engine major to stop offering it as a keyword for bidding.

“In view of the facts, orders and legal position as discussed above, this court is prima facie of the opinion that the use of the plaintiff’s registered mark ‘MakeMyTrip’ on the Google Ads Programme as a keyword would amount to trademark infringement,” the court said.

However, in a recent decision taken by the High Court, this injunction is now removed. The bench held that  “there was nothing illegal in Google using the trademarks as keywords for display of advertisements if it did not result in any confusion or mislead internet users to believe that sponsored links or ads displayed were associated with the proprietors of the trademarks.”

Last month, the Delhi High Court also issued a restraining order against Dialmytrip, prohibiting the use of its name in connection with tours, travel, hospitality, and related services. This legal restriction follows a case initiated by MakeMyTrip, an online travel company, seeking an injunction against Dialmytrip to prevent the use of the name ‘Dialmytrip’ and the domain names ‘www.dialmytrip.com’ and ‘www.dmtgroup.in‘.

The post MakeMyTrip Trademark Case: Delhi HC Allows Google & Booking.com To Resume Adwords appeared first on Inc42 Media.

Pawan Munjal-led Hero MotoCorp will buy an additional 3% stake in Bengaluru-based EV startup Ather Energy for up to INR 140 Cr ($16.8 Mn). With this deal, Hero’s stake in Ather will increase to 39.7% from the current 36.6%, the former said in a regulatory filing on Thursday (December 14).

“Currently, HMCL’s shareholding in Ather is 36.7% (on a fully diluted basis) of the paidup share capital of Ather. Post the purchase of additional shares, HMCL’s shareholding in Ather would increase to 39.7% (on a fully diluted basis) of the paid-up share capital of Ather,” the filing said.

In September this year, Ather raised INR 900 Cr (around $108 Mn) from its existing shareholders Hero MotoCorp and Singapore’s GIC through a rights issue.

Earlier this month, Hero MotoCorp and Ather Energy also entered into a partnership for an interoperable fast-charging network in India. Through this pact, EV users will be able to seamlessly use both VIDA and Ather Grids across the country. The combined network will cover 100 cities with over 1900 fastcharging points.

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. Before this investment, Ather has raised $400 Mn in funding since inception.

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.

It competes with players such as Ola Electric, Ampere, Okinawa, Revolt, TVS, among others.

Ather Energy reported a net loss of INR 864.5 Cr in FY23. This is more than 150% YoY increase as against a loss of INR 344.1 Cr in FY22. The EV startup’s operating revenue ballooned 4.3X to INR 1,783.6 Cr in FY23 from INR 408.5 Cr in the previous fiscal year, while its total expenses more than tripled to INR 2,670.6 Cr from INR 757.9 Cr in FY22.

The post Hero MotoCorp To Invest $16.8 Mn In Ather Energy For Additional 3% Stake appeared first on Inc42 Media.

The cyber crime unit of the Maharashtra Police has arrested a key figure behind the betting platform FairPlay India for allegedly infringing the IPL-related intellectual property rights (IPRs) of Reliance-backed Viacom18.

Gulam Abbas Muni was arrested on December 12 after the company filed a criminal complaint against the platform, its owners and distributors with the Maharashtra Cyber Digital Crime Unit (MCDCU). 

As per a statement by Viacom18, Muni was produced before a court on the same day and has now been remanded to police custody until the unspecified next date of hearing.

The complaint spans allegations of copyright infringement, criminal conspiracy, cheating, among other offences. It also names two other accused, Penny and Joe, in the case. The betting platform is said to have allegedly unlawfully streamed the cricket tournament on the FairPlay app.

Viacom18 had secured the digital rights for streaming the Indian Premier League (IPL) matches from BCCI for a period of five years, 

Commenting on the development, Viacom18’s general counsel Anil Lale said, “The unlawful streaming made it imperative for us to intervene promptly. After almost a whole year of persistence we now have one of the perpetrators behind bars. In such cases prompt action is of utmost importance. The damage caused was not just financial but also to our reputation. At Viacom18, we consistently strive to stay ahead of infringers/pirates through proactive legal measures and will continue to do so.”

The case harks back to late last year when Viacom18’s JioCinema announced that it would stream IPL 2023 matches for free on its app. Around the time when the OTT platform began streaming the tournament earlier this year, FairPlay is said to have pushed ads as well as put up hoardings in Mumbai and other major cities and associated itself with the tournament. 

As per Viacom18, the company advertised taglines such as ‘Watch IPL for Free, LIVE’ and the betting site was later found to have unlawfully streamed the matches on the FairPlay platform.

Acting on this, the digital juggernaut approached the Madras High Court (HC) and sought a pre-infringement injunction. In April this year, the Court also granted Viacom18’s request for an injunction against FairPlay and barred the latter from unauthorised streaming of IPL 2023 on its website, including any advertisements. 

Prior to this, in December 2022, the HC had also passed an order that restrained more than 4,750 websites, internet service providers (ISPs), and other unknown parties from streaming content that violated Viacom18’s IPL rights. 

Afterwards, the company also filed a complaint with the MCDCU, which resulted in Muni’s arrest. 

The post Viacom18 Vs FairPlay: Betting Platform Operator Arrested For Unlawfully Streaming IPL 2023 appeared first on Inc42 Media.

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

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

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

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

MPL provided tech and infrastructure support to the startup. 

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

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

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

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

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

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

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

MPL Acquires Good Game Exchange

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

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

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

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

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