With an eye on curbing malpractices by digital lending apps, the Ministry of Electronics and Information Technology (MeitY) is reportedly in talks with Google Play Store to restrict lending apps from accessing user data.

Sources told Business Standard that some officials in the ministry are batting for sweeping restrictions on such apps, while others believe that the issues can only be tackled on a case-by-case basis.

MeitY is considering legal provisions to restrict the access of apps only to the data necessary for their operations, the report said. 

The officials at MeitY are also examining the rationale for which such apps require access to contact details, media and messages of the users. 

“Law enforcement agencies and other authorities concerned should approach Google Play Store to take down unregistered lending apps,” a source was quoted as saying. He added that illegal activities of these platforms are already covered under the Indian Penal Code (IPC) and as such these apps can only be taken down case by case.

This comes close on the heels of the Reserve Bank of India releasing its first set of guidelines for digital lending apps earlier this month. The framework urged the government to consider framing a law for banning unregulated lending activities.

The central bank also mandated that only regulated and registered entities will be allowed to operate and disburse loans. 

The report quoted MeitY officials as saying that the RBI’s guidelines have required mechanisms for compliance, adding that there is a need to ensure that digital loan apps produce their lending licence while being vetted by app stores.

As per a source, Google Play is currently reviewing legal aspects of the order.

“Any collection of data by digital lending apps (DLAs) should be need-based and with prior and explicit consent of the borrower…DLAs should desist from accessing mobile phone resources such as file and media, contact list, call logs, telephony functions, etc”, the RBI framework said.

This comes amidst a growing crackdown on unregulated digital lending apps. Many of these digital loan apps have been accused of charging exorbitant interest rates from customers and employing unethical recovery practices.

In one incident, a man from Mumbai died by suicide after getting repeated life threats over an online loan of INR 5,000 that he never took. In two separate incident, residents of Karnataka and Telangana died by suicide after being harassed by digital loan sharks.

Apart from this, a Mumbai-based woman and her kin were also sexually harrased for allegedly not paying a loan.

Earlier, the Institute of Chartered Accountants of India (ICAI) said that it was probing several chartered accountants (CAs) for helping unregulated Chinese lending apps set up business in the country. 

Finance Minister Nirmala Sitharaman also informed the Rajya Sabha this month that the government was taking action against dubious digital loan apps originating outside the country

RBI’s Sachet portal received more than 2,562 complaints against digital lending apps between January 2020 and March 2021. The central bank had also identified more than 600 unregistered lending apps on the Play Store last year.

The post Indian Govt In Talks With Google Play Store To Restrict Lending Apps From Accessing User Data appeared first on Inc42 Media.

At the first annual general meeting (AGM) since last year’s IPO, Paytm CEO Vijay Shekhar Sharma informed the shareholders that his employee stock option plan (ESOP) grant will not vest until the fintech major’s share price does not cross the price at the initial public offer (IPO) of INR 2,150.

On Friday (August 19), Paytm’s shares closed at INR 771 apiece, down 1.93% from its previous close. Therefore, the fintech’s share price is still more than 64% less than its IPO price. In other words, Paytm’s shares will have to rise by 3X for Sharma’s ESOP grant to vest.

This is also not the first time that Sharma has stated this.

In a letter to the shareholders in April, the Paytm CEO first said that his stock options grant will only vest after Paytm’s share price remains above the IPO price ‘on a sustained basis’. Coincidentally, this letter was also the first of many instances that Sharma said that Paytm will be operationally profitable by September 2023.

He reiterated the same in his opening remarks at the AGM. “We are committed to building long-term profit. My ESOP grant is not vested until Paytm market cap has not crossed IPO price,” Sharma said.

According to Paytm’s shareholding pattern as of June 30, 2022, Sharma held 5,78,45,053 equity shares in the company or about 8.92%. 

Sharma was reappointed Paytm’s CEO and MD for a period of five years in May 2022. However, ahead of the AGM, three proxy advisory firms opposed his reappointment, calling for the board to vote him out.

“Vijay Shekhar Sharma has made several commitments in the past to make the company profitable, however, these have not played out. We believe the board must consider professionalising the management,” said Institutional Investor Advisory Services India Limited (IiAS), one of the advisory firms in opposition.

While the matter of Sharma’s reinstatement and the consequent increase in his remuneration was discussed at the AGM, Paytm has not disclosed the shareholders’ call on the matter.

At Friday’s AGM, Sharma reassured the investors that Paytm is on track to achieve the September 2023 profitability target, with its continued growth. “We are ensuring that the company is trying to be profitable. As they say, in due course, the stock price will take care of itself,” the Paytm CEO added.

Paytm’s consolidated loss widened by 69% YoY In Q1 FY23 to reach INR 645.4 Cr. At the same time, however, revenue from operations grew 89% YoY to INR 1,680 Cr.

The CEO noted that Paytm is making ‘world-class’ technology and is looking to expand its business even further, eyeing an international expansion sometime in the future. It should be noted that Paytm is already present in Japan via PayPal.

The post My ESOP Grant Won’t Vest Until Paytm’s Market Cap Crosses IPO Price: Vijay Shekhar Sharma appeared first on Inc42 Media.

The Rajasthan government’s initiative to boost startup innovation in the state — Rajasthan DigiFest 2022 kicked off on Friday (August 19). The two-day event, which aims to bring entrepreneurs, students and enablers of the startup world together under a single roof, commenced at Birla Auditorium in Jaipur. More than 15K participants attended the first day of the event.

The fest featured a large-scale startup exhibition to help startups across industries showcase their offerings and give them an opportunity to interact with VCs, founders and government officials. Several startups recognised by iStart Rajasthan put up their stalls to showcase and sell their products to a wide range of audience, including students, investors and SHGs (self help groups). 

For instance, Kartikey Gupta, founder of Jaipur-based foldable EV startup UPXO, told the Inc42 team that his startup received an overwhelmingly positive response from the attendees at the event, especially VC firms.

The fest is also facilitating an online marketplace or eBazaar to help the startups enhance their visibility online. 

“More than 150 startups will be attending the two-day event. We’ll be facilitating live pitching sessions and are expecting on-the-spot funding by several investors who will be joining us for the event,” said Ashish Gupta, commissioner and joint secretary, Department of Information Technology & Communication, Rajasthan.

He added that the attending startups can also register for the Rajasthan government’s tech employability platform R-CAT (Rajiv Gandhi Centre of Advance Technology) to help them upgrade their tech knowledge. “We have partnered with six big companies, including Oracle and Cisco, on R-CAT to help startups grow,” he said. 

R-CAT is an initiative of the Rajasthan government to enhance employability opportunities for tech graduates in the state and to offer them training and certification programmes in the field of IT.   

The first day of the event also featured panel discussions, fireside chats and knowledge sessions on themes such as building the next sportstech unicorn, India’s fintech ecosystem and designing products for the Metaverse.

Encouraging Entrepreneurship Among Youth

Through DigiFest, the government aims to promote the spirit of entrepreneurship among the youth of Rajasthan and bring them employment opportunities, Gupta said. 

For this, the fest hosted an ‘IT for Youth’ section, targeting students, working professionals and job seekers. It offered them a place for collaboration with several IT firms and enabled them to register for R-CAT. Students can apply for several short-term and long-term certificate courses through R-CAT to become industry-ready, said Gupta.

The state government is also looking to build co-working spaces across Rajasthan for startups, professionals and students to collaborate and nurture ideas, Gupta said.

In addition, the Rajasthan government is also planning to develop a fintech university in the state to foster innovation, he added. 

Building A Global Startup Hub

Government initiatives, combined with technology adoption and individual efforts, are helping Rajasthan rise among the ranks of India’s top startup hubs. 

Speaking to Inc42, several startups at the event said that they are now not only selling their products in India but have also expanded to the international market.

A representative from Barmer Bazaar, a startup that sells handmade artisan products, said that it has sold its products to many international customers and aspires to become a local brand for a global audience. Agritech startup EF Polymer’s representative at the event revealed that while its offerings primarily help India’s farmers in Uttar Pradesh, it has also expanded its presence in Japan. 

“There is no dearth of ideas here, people just need the right guidance from the government and private players to help them grow,” said Gupta. 

The government will also be signing Memoranda of Understanding (MoU) with many investors attending the event to ensure that startups in Rajasthan receive the monetary support they need to help them achieve success, Gupta added.

The post Rajasthan DigiFest 2022 Kicks Off, 15K+ Attendees, 150 Startups Join The 2 Day Event appeared first on Inc42 Media.

After a steady rise in funding in the past two weeks, the funding momentum seems to have lost its pace, once again. During the Independence Day week(between August 15 and August 20), the Indian startup ecosystem raised $185 Mn across 23 deals, a 58% drop from the previous week, when Indian startups raised $440 Mn across 24 deals. 

The week also lacked mega deals, but did mint India’s 106th unicorn as Shiprocket. Zomato and Info Edge-backed logistics startup raised $33.5 Mn in a funding round led by Light Rock India and Temasek at $1.2 Bn valuation.

The Most active investor of this week was Force Ventures, as it participated in two deals. 

The Indian Startup Funding Deals Of The Week

Updates On Indian Startup IPOs

Insurtech Startup Digit Insurance Files For INR 1,250 Cr IPO

Virat Kohli-backed Digit Insurance has filed the draft red herring prospectus (DRHP) for an initial public offer (IPO) with market regulator SEBI.

The IPO offer will consist of fresh issue of shares worth INR 1,250 Cr and an offer for sale (OFS) of 109.45 Mn shares from existing shareholders. It seems that the total offer size will be made clear in the subsequent filings with the market regulator.

From The Startup Acquisition Desk

• Fintech unicorn Razorpay has acquired Bengaluru-based digital payment company Ezetap for an undisclosed amount
• Edtech startup PhysicsWallah announced the acquisition of another edtech startup FreeCo.
• Edtech platform Open English has acquired mobile-based language learning platform enguru for an undisclosed amount

Startup Funds This Week

• Venture debt firm Stride Ventures has closed its second fund Stride Ventures India Fund II, with a corpus of $200 Mn. Stride Ventures will dole out cheques worth $4 Mn–$5 Mn to 60-70 startups over a period of four years.
• Cactus Venture Partners has made the first closure of its maiden fund after raising INR 350 Cr ($44 Mn). The fund has a corpus of INR 750 Cr ($94.4 Mn) and will likely close by the end of this year.
• Nandan Nilekani’s Fundamentum Partnership has raised $227 Mn for its second fund to invest in Indian startups. The fund has been oversubscribed by $77 Mn from its initial corpus of $150 Mn.

Other Developments From The Indian Startup Ecosystem

• Info Edge said it would invest INR 300 Cr in its wholly owned subsidiary Startup Investments (Holding) Limited (SIHL)
• PhonePe has earmarked $15 Mn for its entry into the government’s Open Network for Digital Commerce (ONDC).
• Flipkart Ventures, an investment arm of Flipkart is going to invest $500K in six startups as part of its accelerator program called Flipkart Leap Ahead.

The post [Funding Galore] From Graas To Jar — $185 Mn Raised By Indian Startups This Week appeared first on Inc42 Media.

On Friday (August 19), Chinese smartphone maker Xiaomi said that the ongoing investigations in India could take a long time to settle, which may lead the company to receive judgements or settlement options that ‘may adversely affect its operating results or cash flows’.

In its quarterly report, Xiaomi said, “The management assessed the aforesaid matters related to Xiaomi India, taking into consideration opinions from professional advisors and concluded Xiaomi India has valid grounds to respond to the relevant Indian authorities.”

The company has reported a 20% drop in its global sales, reaching $10.31 Bn in the quarter ended June 30, 2022. Noting further about the probes ongoing in India, the Chinese smartphone maker said that it was not possible to quantify the related financial effects of the same at this stage.

According to Xiaomi, its India unit has been involved in various investigations from Indian authorities, including the Income Tax Department, the Directorate of Revenue Intelligence (DRI) and the Enforcement Directorate (ED). These investigations have been related to compliance with regulations related to income tax, customs duties and foreign exchange.

The investigation into Xiaomi India has been going on since late February this year, when the ED summoned former India head Manu Jain and seized INR 5,551.27 Cr in Xiaomi India’s bank accounts under the provisions of the Foreign Exchange Management Act (FEMA), in connection with the illegal outward remittances made by the company.

In a turbulent series of events, Xiaomi did manage to get the funds released from the Karnataka High Court. At the same time, it alleged that ED officials threatened physical violence against its top officials and any statements made were under duress.

In the Monsoon Session of the Parliament, Union Finance Minister Nirmala Sitharaman informed that there were probes going on in Xiaomi and compatriots OPPO and Vivo related to alleged tax evasion and money laundering.

Similar probes are underway in OPPO and Vivo’s India units, both of which have been accused of tax evasion, evading customs duty and in Vivo’s case, of ‘financial terrorism’, a charge that the Chinese smartphone maker vehemently denied. However, the numbers that are being stated are staggering.

Xiaomi has been accused of remitting an equivalent of INR 5,551.27 Cr to foreign entities as royalties. Vivo India has been accused of remitting INR 62,476 Cr to foreign entities as remittances and of evading customs duty worth INR 2,217 Cr. Finally, OPPO India has been accused of INR 4,389 Cr in tax evasion.

The post Investigations In India May Adversely Impact Cash Flows, Operating Results: Xiaomi appeared first on Inc42 Media.

The edtech sector was one of the fastest growing sectors in the country’s startup ecosystem for the past two years. The stay-at-home mandates during the pandemic led to schools, colleges and tuition centres shutting down, which resulted in students flocking to these edtech startups.

The boost provided by the pandemic to the sector was also reflected in the salaries of top executives of these startups, with founders of eight major edtech startups earning over INR 420 Cr in gross salary in FY21.

While BYJU’S cofounder Divya Gokulnath was on the top of the list, taking home INR 1.94 Cr in gross salary in FY20, Unacademy’s Gaurav Munjal stood second with a gross salary of INR 1.58 Cr in FY21. 

It must be noted that BYJU’S is yet to file its audited financials for FY21, hence the startup’s FY20 numbers have been considered for this article.

While founders of LEAD – Sumeet Mehta and Smita Deorah  – received INR 1.07 Cr each as gross salary in FY21, newly-turned unicorn PhysicsWallah’s founder Alakh Pandey took home a salary of INR 75 during the year.

One of the reasons behind such high salaries could be the large amount of funding received by these startups during the period. As students took to edtech startups in 2020 and 2021 for their learning needs, investors cut big cheques to these startups to make the most of the exponential growth. 

This is clearly reflected in the data of the number of funding deals in the sector. In 2019, before the onset of the pandemic, edtech startups raised $440 Mn across 49 deals. However, the deal count, as well as the funding amount, rose substantially in the pandemic-ridden next two years. In 2020, edtech startups mopped up $1.4 Bn in funding across 103 deals, while the number further increased to $4.7 Bn in funding across 166 deals in 2021.

The rush of investors in the edtech sector can also be gauged from the fact that six of the seven edtech unicorns joined the coveted $1 Bn valuation club during the pandemic.

However, the party didn’t last long, and the year 2022 is turning out to be a tough year for edtech founders. With the opening of schools and colleges following a decrease in Covid-19 cases, many edtech startups have seen a decline in the number of students using their platforms. Besides, fear of a global recession amidst the ongoing Russia-Ukraine war, rising inflation and tightening of monetary policies have led to a sharp decline in funding.

As the cash-burning edtech startups failed to secure funding, many of them resorted to cost-cutting and employee layoffs to extend their runway. The Indian edtech startups have laid off around 4,000 employees in 2022 so far. 

While many edtech startups are looking at potential acquisitions by bigger firms to remain afloat, two of them, Udayy and Crejo. Fun, shut their operations in 2022.

Besides layoffs, many edtech startups, like BYJU’S, Unacademy and PhysicsWallah, also forayed into offline or hybrid learning centres to gain further market share.

Many edtech startups have also come up with new products, like Unacademy’s Relevel, to achieve profitability. However, only time will tell if these efforts will be enough to heal the woes and yield results or if the edtech startups would have to resort to more drastic measures.

The post How Much Do India’s Top Edtech Founders Get Paid? appeared first on Inc42 Media.

Amid a ban on open source software VLC Media Player in India, the multimedia player and its parent company VideoLan have reportedly said they have not received any information from the Indian government on the reasons for the ban.

VLC Media Player and VideoLan tried to reach out to the Ministry of Electronics and Information Technology (MeitY) to understand the reason for the ban but to no avail, the Economic Times reported.

Following a 10%-15% drop in its website impressions, the ban on the app and website in India was first noticed on February 13 this year, Felix Paul Kühne, a board member of VideoLan, said. However, it never received any communication from Indian authorities on the ban, Kühne claimed.

“Also, please note that VLC is safe and the Chinese hacking part reported elsewhere is a misunderstanding of a security report. VLC is not controlled by the Chinese nor it is unsafe,” Jean-Baptiste Kempf, president and lead developer at VideoLan, was quoted as saying. 

Last week, VLC said in a tweet that it has been banned in India since February 13. There have been different views on when it was banned.

VideoLAN’s twitter handle tweeted, “If you are in India, please help us.”

According to several media reports, the ban on VLC was imposed around the time when 54 Chinese apps, including Garena Free Fire, were banned by authorities in February this year.

On the other hand, some reports also suggested that VLC was banned after hackers (Cicada) associated with the Chinese government were unearthed using the software to launch a custom malware loader, around two months ago.

Meanwhile, the MeitY denied having any information about the ban on VLC website in response to an RTI query filed by Delhi-based Software Freedom Law Centre (SFLC) India in June.

Last month, Krafton’s popular battle royale game Battlegrounds Mobile India (BGMI) was pulled down from Google Play Store and Apple Store on government orders over its links to China. 

The government has banned many apps over the last couple of years, particularly those with Chinese links, after the border clashes between soldiers of India and China in eastern Ladakh in 2020.

The government has so far blocked 348 apps for allegedly collecting user information and transmitting it in an unauthorised manner to servers outside the country, Minister of State (MoS) for Electronics and Information Technology (MeitY) Rajeev Chandrasekhar informed the Parliament earlier this month. 

In February this year, 54 apps were banned in India, including another popular battle royale game Garena Free Fire.

VideoLan, VLC Media Players’ parent company, first noticed the ban on its app and website in India on February 13 after a 10%-15% drop in its website impressions.

The post VLC Had No Communication From Indian Govt Regarding App Ban appeared first on Inc42 Media.

The Delhi government launched a draft policy paper of Delhi Motor Vehicles Licensing of Aggregators Scheme 2022 on Thursday (August 18) to provide premium app-based bus aggregator services for inter-city travel. 

Under the scheme, the state government will introduce premium app and web-based bus aggregator services in the National Capital Region (NCR). It will privatise inter-city bus transportation and permit private players to run air-conditioned electric and CNG buses in the region. 

The objective of the scheme is to encourage a modal shift in public transport by promotion of efficient premium bus services, as per the draft paper. 

The state government also aims to reduce traffic congestion, improve urban transport, enable better utilisation of transportation assets, and improve air quality in the NCR.

“The idea is that if we are able to provide two-wheelers and personal vehicle users some kind of premium service, in which they book like an Uber, which picks them up from where they are and drop at their workplace, people are willing to pay a premium for fixed, comfortable seats rather than trying to drive in the traffic,” Ashish Kundra, principal secretary of the Delhi government told the Economic Times. 

The draft paper states that every aggregator should operate a fleet of at least 50 premium buses within 90 days of getting licence from the competent authority. 

The aggregators will have to create bus routes for itinerary and update those routes on the mobile app. The aggregators will be allowed to decide the fare structure for itineraries.

“Any registered company, partnership firm, LLP registered in India or a consortium comprising these shall be eligible to apply for the license for an aggregator under this scheme,” the draft said.

The draft policy comes almost a month after the Delhi government came out with the final draft of policy for tech companies, like Uber, Ola, Zomato, Flipkart which have vehicle fleets, operating in the NCR region. 

The state government proposed forming sector-specific regulations for aggregators under the policy. It also relaxed EV adoption goals for vehicle aggregators and extended the deadline for aggregators to electrify their fleet by 2030. 

In addition, the state government asked cab aggregators to train its low-performing drivers and to share quarterly reports of drivers, including their ratings and complaints made against them, with the state transport department. 

Besides this, the ride-hailing aggregators were also asked to set up a 24-hour control and command centre in the national capital.

The post Delhi Govt Releases Draft Policy To Start Premium App-Based Bus Aggregator Services appeared first on Inc42 Media.

Reliance Industries-owned SaaS startup NowFloats has converted itself into a public company, according to the startup’s regulatory filings.

Following this, the startup has changed its name to NowFloats Technologies Ltd from NowFloats Technologies Pvt Ltd earlier.

NowFloats converted into a public company to comply with markets regulator Securities and Exchange Board of India’s (SEBI’s) regulations which require subsidiaries of a listed company to convert into a public company. However, NowFloats has no immediate plans to list on the stock exchanges.

The development comes almost 20 months after Reliance Industries Ltd (RIL) acquired a 85% stake in NowFloats for $20 Mn.

Apart from NowFloats, RIL has acquired many other tech startups, such as omnichannel fashion platform Fynd for $42.33 Mn and chatbot startup Haptik. 

Besides, NowFloats has also appointed Ronak Kumar Samantray, Nitin Jain and Ravi Karia as directors of the company, as per the filings. 

Founded in May 2012 by Neeraj Sabharwal, Nitin Jain, Ronak Samantray, and Jasminder Gulati, NowFloats helps small and medium businesses (SMBs) build online presence in the market. 

It offers a slew of services such as an online business management suite, local content platforms and marketing solutions, among others. 

In 2017, NowFloats secured $10 Mn in its Series B funding round from investors – Pillar Capital, IIFL’s Seed Ventures Fund, Blume Ventures and Omidyar Network. Excluding RIL’s investment, the startup has raised a total of $17.4 Mn funding. 

In the financial year 2020-21, NowFloats posted a consolidated loss of INR 3.89 Cr as against a loss of INR 11.57 Cr in the previous fiscal year. Meanwhile, its operating revenue declined to INR 9.61 Cr in FY21 from INR 22.29 Cr in FY20, according to Tofler.

As per a report, India’s deeptech market is gradually expanding and the number of startups operating in the sector has surged 3.5X since 2017. Besides, the sector is also witnessing a positive investor sentiment as fundraising activities have grown by 2X since 2017. 

The post Reliance-Owned SaaS Startup NowFloats Converts Into A Public Company appeared first on Inc42 Media.

Amazon India has landed in controversy once again as a Bengaluru-based seller on the ecommerce platform has been accused of selling an obscene image of Radha-Krishna on the occasion of Janamashtmi.

A complaint was filed against the seller and the ecommerce giant in Bengaluru by the Hindu Janajagruthi Samithi.

In the complaint, the outfit said that the picture being sold on the ecommerce platform under the title ‘INKOLOGIE Hindu Gods Fine Arts painting’ hurt the religious sentiments of hundreds of millions of Hindus in the country. The poster was also being sold on a separate ecommerce website called Exotic India Art.

Inkologie, the Bengaluru-based seller, has been delisted by Amazon India, as per Inc42’s investigation. However, there are calls for an unconditional apology by Amazon India, and #Boycott_Amazon is trending on Twitter.

This is not the first time that Amazon has landed in such a controversy. In 2019, two separate occasions saw the #BoycottAmazon trend on Twitter. The first one involved shorts and briefs being sold with the print of Shri Ganesha on them, causing mass outrage.

The same year, Amazon India again came under fire for allowing the sale of toilet seat covers and doormats with images of Hindu deities printed on them.

Amazon’s OTT platform, Amazon Prime Video, was also accused of Hinduphobia last year. Several religious and political organisations alleged that the drama ‘Tandav’ deliberately mocked Hindu gods. Its competitor Netflix was also accused of Hinduphobia in 2020 over a Telugu feature film titled ‘Krishna and His Leela’ and a Hindi TV show ‘Bulbul’.

Besides, Amazon India has also been accused of disrespecting India’s national flag on two occasions.

In 2017 and 2022, Amazon India was accused of allowing the sale of products which defamed India’s national flag and were in violation of the Flag Code of India. In 2017, the product in question was a doormat resembling the Tricolour, while in 2022, there were face masks, clothes, keychains and so on.

Amazon follows a largely automated process for listings, allowing bulk listings. The algorithms used to check the listings check image attributes such as resolution and density per square inch (DPI) and not the contents of the images, which causes such products to pop up regularly.

Though Amazon took down all of the sellers and products within hours after the outrage, it raises questions about the listing process and how such instances continue to happen.

The post Complaint Filed Against Amazon India For Hurting Religious Sentiments appeared first on Inc42 Media.

The Indian Railways Catering & Tourism Corporation Limited (IRCTC) is likely to reverse its decision and scrap its earlier plan to monetise users’ data to earn additional revenue, news agency PTI reported quoting sources. 

The development comes amid criticism and data privacy concerns raised around IRCTC taking such a step.

Earlier this week, IRCTC floated a tender to hire a consultant for monetising its passenger, freight and parcel business data as it envisaged generating a potential revenue of INR 1,000 Cr.

“IRCTC wishes to engage a consulting firm to help in identification, design, and development and roll-out of data monetization opportunities,” the company noted in its tender.

Following the announcement, the company’s shares surged over 3% to INR 735.10 on Friday (August 19).

However, in the absence of a data protection law in the country, the company’s move faced a lot of criticism and raised concerns.

The Internet Freedom Foundation (IFF) raised concerns on the move on Twitter. “Hey train travellers, your data will soon be monetised by the govt. & that too, in the absence of a data protection legislation!”, the non-governmental organisation tweeted. 

However, the IFF also noted that given contrasting official and unofficial statements based on news reports, it will formally write to IRCTC seeking clarity and a recall of the tender that “threatens the privacy of over 10 Cr users”.

As per the PTI report, sources told the news agency that IRCTC does not “sell its data and neither has any intention to do so”. Moreover, the consultant is being hired to advise IRCTC on improving its existing business and plan out strategies to monetise future businesses. 

“While the Railways has not officially commented on the tender, highly placed sources said it will be withdrawn considering the fact that the Data Protection Bill has not been finalised,” the news agency reported.

“IRCTC will also develop new businesses on its own platform and will need assistance from market leaders. IRCTC does not store any financial data of its customers at its end, as at the time of online payment for its various services, control is passed on to the respective payment gateway or bank for the payment,” sources were quoted as saying.

Move To Augment Revenue

In the tender, IRCTC said that the bidder shall keep in mind the IRCTC envisaged revenue potential for three years while setting up the vision for data monetization, development strategy, implementation plan and execution of the plan thereupon.

Besides, the bidder will have to advise IRCTC how to monetize the available data and implement strategies while staying within the existing laws and Supreme Court judgements.

As per the tender, the customer data to be studied includes ‘basic data’ of individual passenger/customers of freight, parcel and other public facing applications like name, age, mobile number, gender, address, email id, number of passengers, class of journey, payment mode, login/password, among others. The consultant would also study digital data systems that generate behavioural data.

Replying to a clarification sought by exchanges on the matter, IRCTC said, “As a commercial entity, the company explores the business opportunities for new areas. As other business tenders, this tender has also been floated merely to appoint a consultant.” 

“The consultant will guide IRCTC and lndian Railways on monetization activities and advise on monetization value of Digital Assets observing various Acts or laws including lT Act 2000 and its amendments, User data privacy laws including GDPR (General Data Protection Regulation) and current ‘Personal Data Protection Bill 2018 of lndia,” it added. 

Being a government company, it is a regular practice to float tenders, IRCTC said.

Concerns Around Data Protection

The absence of a data protection law has raised concerns in the country given various data collection measures the government has taken in recent days.

From the central government mandating virtual private network (VPN) service providers to collect and hold their user data to Bangalore Metro Rail Corporation (BMRCL) enabling face recognition technology (FRT) at its metro stations to replace smart cards, the government measures have raised questions on the safety of the collected data.

Earlier, this month, the government withdrew the Personal Data Protection Bill, 2021, which was in the making for years. The Bill covered data protection, along with other areas like cybersecurity, national data governance policy, data management and safety.

While the government is planning to introduce a new Bill in the next Parliament session, experts believe that like the earlier Bill, it would have to go through a long process which would further increase the wait for a robust data protection law in the country.

The post IRCTC To Drop Plan To Monetise User Data Following Criticism: Report appeared first on Inc42 Media.

Online pharmacy giant PharmEasy has shelved plans for its initial public offering (IPO) for the time being and withdrawn the draft red herring prospectus (DRHP) it filed with the Securities and Exchange Board of India (SEBI) last year, sources told Inc42.

They cited valuation mismatch and market volatility as the reason behind the deferment of IPO.

In a notice to its shareholders, the epharmacy unicorn also said that it is mulling a fundraise via ‘rights issue’ to fuel its ‘immediate expansion and growth plans’.

“The rights issue will be open for a period of 30 days, starting from on or around the first week of September,” PharmEasy said.

The startup plans to raise the funds through issuance of compulsorily convertible preference shares (CCPS) which would be priced at around INR 100 per share. 

“Shareholders of the company will receive the letter of offer inviting them to participate in the rights issue on the terms which will be approved by the board,” the notice said.

PharmEasy, founded in 2015 by Dharmil Sheth and Dr Dhaval Shah, offers a range of services such as medicine deliveries, teleconsultations and sample collections for diagnostic tests. PharmEasy merged with its investor entity Ascent Health to form API Holdings back in 2019. 

API Holdings, the parent company of PharmEasy, filed the DRHP with the markets regulator in November last year. 

The unicorn planned to raise close to INR 6,250 Cr via a fresh issue of shares. It planned to spend the capital raised largely on payment of certain outstanding borrowings as well as to fund organic and inorganic growth initiatives.

It even received the SEBI nod for the listing in February this year. However, things only went downhill from there.

As headwinds such as rising interest rates and market volatility emerged in the early months of the year, the pharmacy unicorn considered slashing its IPO valuation. 

Later in July, PharmEasy was reported to be in talks with investors to raise $200 Mn at a valuation of $3.8 Bn. This was in contrast with its previous funding round when it raised $350 Mn at a reported valuation of $5.1 Bn-$5.6 Bn. 

The deferment comes at a time when Indian new-age tech stocks have been under intense selloff pressure. The Russia-Ukraine war and tightening global liquidity have raised fears of an impending recession, which has made investors’ wary and focus on profitability.

While shares of foodtech giant Zomato have fallen by more than 63% from its record high of November, fintech major Paytm’s shares have plummeted 60% from an all-time high of INR 1,961.05.

PharmEasy currently has a presence in more than 1,000 cities and towns across 22,000 pin codes in the country. 

The Mumbai-based online pharmacy giant is backed by big investors such as Prosus Ventures, Temasek, TPG, Amansa Capital, among others.

According to a report, the Indian epharmacy market was pegged at around $344.78 Mn in the financial year 2020-21 (FY21) and was expected to surge to $1.13 Bn by FY2027 at a compounded annual growth rate (CAGR) of 21.28% during the period.

The post PharmEasy Withdraws DRHP, Mulls Fundraise Via ‘Rights Issue’ appeared first on Inc42 Media.

The Indian Computer Emergency Response Team (CERT-In) has issued a warning about vulnerabilities in Google Chrome browser that allow hackers to bypass security systems on computers.

“Multiple vulnerabilities have been reported in Google Chrome which could allow a remote attacker to execute arbitrary code and security restriction bypass on the targeted system,” CERT-In said in a note.

It advised users to apply patches urgently to avoid being exploited. Essentially, the agency directed users to update their Chrome browsers.

Tagged ‘High’ on the severity rating, the agency said that a remote attacker could exploit the vulnerabilities by sending specially crafted requests on the targeted system. 

“These vulnerabilities exist in Google Chrome due to use after free in FedCM, SwiftShader, ANGLE, Blink, sign-in flow, Chrome OS shell; Heap buffer overflow in downloads, insufficient validation of untrusted input in intents, insufficient policy enforcement in cookies and inappropriate implementation in extensions API,” CERT-In noted while drawing a description of the vulnerability. 

It also advised users against vulnerabilities in Apple iOS, iPadOS and macOS. Tagged ‘High’ on the severity list, these issues could allow a hacker to execute arbitrary code on the targeted systems. 

“This vulnerability exists in the Apple iOS, iPadOS and macOS due to out-of-bounds write in the Kernel and WebKit component. A remote attacker could exploit this vulnerability by enticing a victim to open a specially-crafted file,” the agency said. 

Users have been directed to apply necessary patches and upgrade their softwares to avoid any fallout from the issue. 

This comes days after a researcher claimed that sensitive data of 28 Cr Indians was leaked by hackers from the website of Employees Provident Fund Organisation (EPFO). Leaked data ranged from Aadhaar card details to bank account details of the enrolled users.

Last month, fintech player Policybazaar’s IT systems were subjected to illegal and unauthorised access. In July, the Securities and Exchange Board of India (SEBI) also witnessed a cyberattack involving its email system, after which the market regulator lodged an FIR in the matter. 

Over 14 Lakh cybersecurity incidents were reported to CERT-In last year. 

The post CERT-In Cautions Users Against Vulnerabilities In Google Chrome, iOS appeared first on Inc42 Media.

Apple’s laptop and PC shipments to Indian enterprises grew 50% year-on-year (YoY) in the first half of 2022, according to industry tracker Counterpoint. 

Counterpoint, however, added that Apple still accounted for less than 5% of the overall Indian enterprise personal computer (PC) market. 

“While the Apple brand has been enjoying strong traction in the consumer space for MacBooks, Apple’s market share across larger enterprises has also been rising along with the mindshare,” Neil Shah, vice president of research at Counterpoint Research, was quoted as saying.

He added that MacBooks are witnessing strong traction among enterprises, likely on the back of its secure and privacy-first operating system and ‘coolness quotient’ attached with the products. 

“The key reasons being, enterprises are seeing MacBooks as a longer term investment from getting regular updates for even more than five to seven years, stable, privacy and secure OS, growing MDM (mobile device management) support, improved performance from computing as well as battery life perspective with the new ARM based M-series SoCs (system on a chips), overall reduced total cost of ownership and increasing attraction and retention tool for younger employees to use and sport Apple devices with a coolness quotient attached to it,” he added.

Shah also argued that Apple’s increasing footprint across Tier-I and Tier-II towns as well as strong supply chain management are some of the major drivers of enterprise sales. 

Meanwhile, IDC struck a cautious tone on overall sales, and said that slowing demand was a cause of concern for commercial and consumer segments. 

“Increased channel inventory and slowing demand is a matter of concern in both the consumer and commercial segments. High inflation, fear of recession, and dollar price fluctuations might slow PC procurement, especially among startups,” said IDC India’s associate vice president of devices research Navkendar Singh

Singh, however, also opined that the enterprise segment was still the silver lining amidst the current scenario.

“Big enterprises are buying but delaying their purchases…the strong momentum in the government segment and the existing pipeline in the enterprise segment are something to look up to in the commercial segment”, added Navkendar Singh.

The sentiment was echoed by other industry watchers as well such as Prabhu Ram, head of Industry Intelligence Group, CyberMedia Research (CMR).

“With its ever-expanding bouquet of hardware and software services, along with strong focus on security and privacy, Apple is uniquely positioned for growth in its enterprise business in India,” Ram told the Economic Times.

Apple also appears to be focused on capturing a greater share of the enterprise PC market. 

During its earnings call in late July, the Cupertino-based tech giant’s chief financial officer (CFO) Luca Maestri said, “In the enterprise market, our customers are increasingly investing in Apple products as a strategy to attract and retain talent.” 

Maestri also touted home-grown consultancy firm Wipro as one of its large global clients. Wipro has partnered with Apple to provide MacBook Air and MacBook Pro to new university hires 

“Earlier this year, we made the decision to provide our new university hires with MacBook Air or MacBook Pro, which we believe will add to employee experience…We’re still in the early days of the programme but indications are that it’s improving employees’ onboarding and experience at Wipro”, the IT company’s chief information officer (CIO) Anup Purohit told ET.

The tech giant has doubled down on its India strategy, targeting an aggressive retail campaign and India-focused offers to attract customers.

This was evident when Apple reported that its revenue nearly doubled in India in the June quarter of the financial year 2022-23 (FY23). 

Overall, the Indian market has begun to feel the brunt of the raging inflation. According to IDC, 3.7 Mn PC and laptop units were shipped to India in the second quarter of the financial year 2022-23 (FY23). While the numbers grew 17.8% year-on-year (YoY), the total shipments were the lowest in the past four quarters. Even the growth rate hovered at its lowest levels in the last eight quarters. 

The post Apple’s PC Shipments To Indian Enterprises Grew 50% YoY In H1 2022: Report appeared first on Inc42 Media.

Even when the craze for 10-minute deliveries and quick commerce one-upmanship was at its peak in late 2021 and early 2022, startups in this space could not answer one fundamental question: was it really needed?

And as predicted by many months ago, including us, the hype has died down. Swiggy, Zepto, Dunzo, Blinkit & Co are actually embracing the idea that delivery time is not the only way to win the battle. Now the tune has changed towards inventory, private labels and delivery efficiency.

This Sunday, we are looking at the changing face of quick commerce in India through the lens of a few recent developments and taking stock of this evolving segment. But first, here are the top stories this week:

• Ola Vs Drivers: Amid the legal tussles with drivers that had leased cars from the company, Ola is eyeing an out-of-court settlement to end the fracas. Read this Inc42 exclusive
• Zomato’s Experiment: The foodtech giant is testing an intercity food delivery service, which seems riddled with challenges from the outset. Is this set to be another doomed experiment by Zomato?
• India@75: Indian startups have come a long way since 2015 and now that we are in the age of tech, this is the time to clear the hurdles and hit the accelerator. Read our I-Day special

The Changing Face Of Quick Commerce

Move fast and break things may be true for many startups and many sectors, but this has been most evident in the quick commerce battle where startups seemed to be gearing up overnight to expand and grab market share.

After their marketing blitz with inane ad setups fuelling the ten-minute delivery craze and social media games, quick commerce platforms are coming back down to reality.

Given how rapidly this segment expanded — at least in the metros — and the spate of new competitors, it was no surprise that much of the early battle was fought on the marketing front.

Zepto was the first startup to promise 10-minute delivery which then prompted the likes of Blinkit, Swiggy and Dunzo to join the race. New startups such as Warpli, founded by Grofers (Blinkit) cofounder Saurabh Kumar, have had to take a breather from this race, while Ola has pulled out quickly after joining the bandwagon.

Quick commerce shutdowns have made headlines across US, Europe, Asia and soon this bitter reality might hit Indian startups too.

Ten minute deliveries were never the reality. Even in the initial days, only a fraction of orders would actually be delivered in that promised time, with most other orders taking twice as long.

Anecdotally speaking, it’s always taken more than 20-25 minutes for most Swiggy Instamart, Blinkit or Zepto delivery in Delhi, even when delivery riders of these platforms are seen pretty much in every block. But the gap between the promised time and the actual delivery is not due to inefficient systems, but down to availability of the right products at each dark store.

Models Evolve With Scale

Delivery time was a marketing play. Plain and simple, and now all that bluster is being toned down. Dunzo’s Kabeer Biswas had also said that quick commerce platforms can penetrate beyond metros, but the promise will change. Which is another way of saying quick commerce will be relatively quicker than alternatives in those locations currently.

In the metros too, quick commerce models are evolving faster than ecommerce because user behaviour is being shaped on a daily basis. As users matured and became familiar with these platforms, their order patterns changed and more and more products were added to baskets, according to the founder of a quick commerce platform.

This meant that the closest dark store might not have that exact combination of products available, so the order is directed to the nearest dark store with the right products. So only some very specific product combinations could be delivered within 10-15 minutes.

But even so, consumers were never using these apps for the delivery time promised, but for the convenience. A delay of a few minutes is tolerable if the right products are available and that’s how the delivery apps hope to survive despite the steep competition.

“Like Zomato and Swiggy, most people use the app that has higher discounts, but in quick commerce, people will use the app that has the right products they want,” the founder mentioned above said.

Users will compromise on time by a few minutes for critical purchases, so Zepto, Dunzo, Swiggy and Blinkit will coexist on the phone. User behaviour will be critical to study and will be key for retention, as users will switch to the one that has the right inventory, as they are doing already.

Focus Back On Tech

But nevertheless the spending spree of quick commerce apps in terms of promotions and marketing has changed. Discounts are being offered more intelligently for the right incentives, plus the likes of Swiggy Instamart chart a minor delivery fee for faster fulfilment. It does make a big difference in solving unit economics in smaller orders.

User experience and inventory management will become key battlefronts and again the conversation might turn to tech rather than tall promises. Marketing battles are fun but tech is the real deal. UX will be down to smarter product suggestions and easier discovery of the right products within the app, while inventory management might require companies to figure out logistics between dark stores to accommodate changes in demand on the fly.

Who among Blinkit, Zepto, Swiggy, Dunzo and the other quick commerce players will win on these fronts?

The answer might not exactly be Blinkit’s printouts delivery, but it’s some version of it. It’s about seeing spikes or changes in demand and being agile enough to move there.

Unit Economics Puzzle

Zomato sure is bullish about quick commerce. “We expect the overall customer base, average order value as well as monthly order frequency to be higher than food delivery,” CFO Akshant Goyal said in the company’s Q1 FY23 investor presentation.

The big focus area for all players will indeed be improving the unit economics to stay the long haul. Dunzo is reportedly doing this by clearly focussing on shorter trips for its riders to fulfil more deliveries per hour and therefore spread the driver cost across more orders.

At the same time, it is also moving to group deliveries to average out the low margin in certain other orders. In essence, five or six customers would be paying for one delivery trip. And this can help offset the lower margins on other orders where customers have been given discounts or where the delivery cost cannot be recouped. Whether this will work in many locations within a city is yet to be seen.

But that’s the nature of quick commerce — turns out the quick is not about timing, but about how quickly things are changing.

Tech Stocks & Startup IPO Tracker

• Digit Files DRHP: The insurtech unicorn has filed its draft red herring prospectus and is likely to go for an IPO later this year
• State Of Digit: Diving deeper into the Digit DRHP, we were able to ascertain the key challenges for the company and the leaders taking it towards the IPO. Here’s a look 
• SEBI’s New Exchange: Will the SEBI-regulated Social Stock Exchange change the game for social impact startups?
• Paytm Under Pressure: CEO Vijay Shekhar Sharma addressed shareholder concerns at the company’s AGM and reiterated the company’s focus on profitability. Will it be enough to bring stability to Paytm’s stock price?

Here’s how the past week has been for the listed tech companies we are tracking:

Startup Funding Tracker

• Weekly Funding Crashes Again:  After showing some signs of growth in the previous week, Indian startup funding has crashed again. Total funding this past week (Aug 14-20) was $185 Mn across 23 deals, a sharp drop from the $440 Mn invested in startups in the previous week
• New Unicorn: Shiprocket became India’s 106th unicorn after raising $33.5 Mn from Lightrock India. As per our calculations, Shiprocket raised the funds at a valuation of $1.2 Bn and joined Delhivery, Xpressbees, and BlackBuck in the logistics tech unicorn club

UPI In The UK & Other Top Stories 

• Pune Police Books BitConnect Founder Satish Kumbhani In Cryptocurrency Fraud Case
• Can Pan-India Regulations End Policy Flux For Online Gaming Startups?
• Uni Succumbs To RBI’s Norms For Non-Bank PPI Issuers; Suspends Card Services
• NPCI Partners PayXpert For Acceptance Of UPI, RuPay Cards In The UK
• SEBI Drops Indian Connection Clause; Allows AIFs, VCs To Go ‘Truly’ Global
• How The RBI’s Digital Lending Guidelines Will Change The Fintech Game

That’s all for this Sunday. We’ll see you next week with another roundup.

The post Quick Commerce’s 10-Minute Delivery Hits Dead End appeared first on Inc42 Media.

The new-age tech stocks had a weak week, with the majority of them ending lower on a week-on-week basis. Except for Delhivery, IndiaMart, and Nazara, which ended the week slightly higher, the rest of the tech stocks were under pressure.

Shares of Zomato, which were on an uptrend this month, began the week with gains, but slipped into red on Friday, giving up the weekly gains.

Meanwhile, Paytm parent One 97 Communications’ performance was largely flattish during the week, but the stock ended almost 2% lower on Friday at INR 771.85 on the BSE, as the uncertainty over Vijay Shekhar Sharma’s reappointment as the company CEO kept investors cautious.

On the other hand, shares of MapmyIndia parent C.E. Info Systems fell for four straight sessions during the week, becoming the biggest loser among the new-age tech stocks. The stock fell over 4% on a week-on-week basis.

The stock exchanges were closed for trading on Monday (August 15) on account of the Independence Day.

Meanwhile, EaseMyTrip, which has performed better compared to the other new-age tech stocks since its listing, continued last week’s downward trend this week. However, Delhivery, after being the biggest loser last week, ended this week up 2.6% at INR 569.60 on the BSE.

In the broader market, the benchmark indices NSE Nifty50 and BSE Sensex rallied for the first few sessions this week but ended Friday’s session in the red zone.

Nifty50 closed at 17,758.45, down 198 points, on Friday, while Sensex fell about 652 points from Thursday’s close to 59,646.15. However, the indices rose 0.3% on a weekly basis.

Let’s take a look at the weekly performance of the listed new-age tech stocks from the Indian startup ecosystem and their key trends this week:

The 11 new-age tech stocks ended the week with a combined market cap of around $34.2 Bn.

Zomato Shares Give Up Gains On Friday

After a losing streak of more than a month, Zomato shares started their northward journey in August after the food tech startup published its Q1 FY23 results and issued a clarification on concerns around its Blinkit acquisition. 

However, after gaining for seven straight sessions since last week, Zomato shares slumped as much as 8.4% to INR 61.4 on the BSE on Friday. On a weekly basis, shares fell marginally this week.

While profit booking was seen as the reason behind the slump in share prices on Friday, the slump came at a time when the startup is again experimenting with new features for its food delivery app.

Zomato has introduced intercity food delivery under the branding of Intercity Legends. A Zomato spokesperson told Inc42 that the service is still in the early stages of testing. Zomato hasn’t yet revealed the cost structure of the service or about its logistics strategy.

There is a possibility of the shares falling to around INR 55 level, said Mehul Kothari, AVP of technical research at Anand Rathi. However, he said that any such fall would be a buying opportunity as the stock is likely to reverse from there.

“However, the supports are a bit weak for the stock, that is below 50 odd levels, and if that holds for a few months or so, then the support is at 40,” he added.

Zomato listed in July last year at INR 115 and INR 116 per share on the BSE and the NSE, respectively. The food delivery startup’s shares are currently trading about 46.6% lower from their debut price on the BSE.

MapmyIndia The Biggest Loser

Shares of MapmyIndia parent C.E. Info Systems slumped during the week, making it the biggest loser among the listed new-age tech stocks. MapmyIndia ended the week over 4% lower at INR 1,300.05 on Friday.

However, as per analysts, there are no fundamental drivers for the loss. “Fundamentally, MapmyIndia has a strong and long-term order book, which is going to stay,” said Srishti Jain, research analyst at Monarch Networth Capital. 

While there could be volatility in weekly trading, the stock is likely to rise further in a year’s time, she added.

Meanwhile, Anand Rathi’s Kothari said that the current price of the stock is near to the support of INR 1,280. The price action is indicating weakness, and the possibility of a breakdown below INR 1,280 is quite high.

“The stock is looking weak and below 1,280 it can further weaken,” said Kothari.

MapmyIndia shares are currently trading 17.7% lower than their debut price of INR 1,581 on the BSE. Its current market cap stands at INR 6,975.45 Cr.

Nykaa’s Struggle Continues 

Nykaa was one of the favourite new-age tech stocks of investors since its stellar debut on the exchanges in November last year. However, sentiment around the beauty ecommerce platform seems to have weakened in recent days.

After a major correction in share price in May, the stock has remained range-bound. After gaining marginally last week, Nykaa shares fell again this week.

On Friday, shares close 1% lower from Thursday’s close at INR 1399.75. On a weekly basis, they fell marginally.

The stock is bereft of any momentum on the technical charts and is likely to trade sideways in the coming weeks.

“If we break 1,360, which is its Friday’s low, then we could see some downside in the stock. But as of now, it is completely sideways, no momentum at all,” Kothari said.

He added that since the shares are trading at the lower end of the range, this could be a buying opportunity, but not for any immediate major upside.

Last year, Nykaa shares listed at INR 2,018 on the NSE, at a premium of 80% over the issue price. On the BSE, the shares listed at INR 2,001 apiece. Currently, Nykaa shares are trading over 30% lower from their debut price on the BSE.

The post A Meek Week For New-Age Tech Stocks; MapmyIndia Biggest Loser, Delhivery Gains appeared first on Inc42 Media.

The Indian consumer internet market, poised to be a $1.6 Tn opportunity by 2025, has seen investors flocking in over the years to grab a share in the startups operating in the fast-growing segment. Yet, between Q3 2021 and Q2 2022, a visible slowdown has been identified within the sector, with only $9.9 Bn raised in 440+ deals between January and June 2022.

Notably, the overall funding is not the only parameter to have taken a hit. According to Inc42’s ‘State Of Consumer Internet In India, Q3 2022’ report, the average funding ticket size has continued to fall over the last four consecutive quarters. 

At its peak in Q3 2021, the average funding raised by a consumer internet startup stood at $59 Mn. The fall was steeper than expected in the following quarters, particularly in Q2 2022. Indian consumer internet startups raised an average of $25.7 Mn in funding in the June 2022 quarter, a 56% decline.

Besides, the average ticket size for late stage funding has also taken a significant hit, falling by more than 60% between Q3 2021 and Q2 2022. According to Krishna Vinjamuri, partner at Kae Capital, the economic slowdown and rationalisation of valuations in the public market had a direct impact on investment in growth stage firms. 

“Late stage investors have become cautious and are taking a closer look at the sustainability of business models,” he said.

Echoing similar sentiment, Anjna Bhati, director of data analytics and AI at BluePi, said that the mid to large startups were stalling their business plans and taking time to close their future funding rounds. 

Besides, the average ticket size for seed and growth stage startups also took a hit over the last four quarters, with growth stage consumer internet startups having the lowest average ticket size of $18.7 Mn in Q2 2022. 

The average ticket size rose only in bridge stage funding, rising to $4 Mn in Q2 from below $3 Mn in the preceding quarter. 

Why Does Average Ticket Size Matter?

The increase in the amount of an average cheque pumped within startups resounds the maturity of the ecosystem, but it does not necessarily have to mean that the funding within the ecosystem has fallen. It could also mean that the number of deals has risen. 

For instance, in the scenario of the consumer internet startups, late stage startups raised over $3 Bn in funding in 33 deals in Q2 2022, as opposed to over $5 Bn in around 55 deals in Q1 2022. While the averages of both quarters are nearly equal, the funding amount and number of deals are not – implying that a higher funding amount may not necessarily mean a higher average ticket size.

Primus Partners’ Kanishk Maheshwari believes that the current rate of rising inflationary pressures has automatically led to a drying up of funds, but this helps the businesses to bring back focus on the core aspects of their business models. 

“This will enable these organisations to be able to course correct and drive growth through holistic measures supporting their internal, external stakeholders, and even the society as a whole. To drive long-term growth, it is important to reinvent, and such cycles take place every 5-7 years to help businesses resurface their focus to serve their various stakeholders.”

On the flip side, a lower average ticket size means a lower entry barrier into the ecosystem. It showcases that the ecosystem needs the money or investors are evaluating the quality of the startup they are likely to put their money into. 

India is home to more than 2.6K unique, funded consumer internet startups, and the inflow of $84 Bn in funding between 2014 and H1 2022 underlines that investors have been betting big on this segment. The ecosystem also houses 60 unicorns out of the total 106 unicorns and eight of the 12 listed startups. 

Major sectors like fintech, ecommerce and consumer services have witnessed enhanced investor interest during this period. As the country prepares to roll out 5G services, with 500 Mn subscribers expected to join the 5G bandwagon by 2027, India’s internet ecosystem is poised to grow significantly. It will witness the emergence of many more startups.

Thus, it has become imperative to understand the key reasons behind the fall in average ticket size funding, and what the future holds. 

Reasons Behind The Decline & What Startups Can Do

While India added about three unicorns every month in 2021, the VC funding for the consumer internet segment in 2022 significantly slowed down. 

Harish Kumar, MD of Protiviti Member Firm for India, said the possibility of an economic slowdown, rising interest rates due to a jump in inflation, increased cost of capital, and supply chain disruptions, among others, can lead to the decline in funding.

However, he said that in such periods, investors look for opportunities in startups facing sharp corrections in their valuation or businesses with innovative ideas or technology in specific low-risk sectors like ecommerce.

Several analysts, experts and investors Inc42 spoke to, following the launch of the consumer internet report for Q2 2022, shared a similar sentiment.

Tough To Monetise Consumer Internet Ecosystem 

India’s consumer internet economy is the second-largest in the world, with the number of users expected to rise to 1.3 Bn by 2030 from over 800 Mn users currently. While the advent of 4G services fuelled the rise of several consumer-focussed startups in the country, the Covid-19 pandemic gave a further boost to the consumer internet ecosystem.

However, according to Vaibhav Domkundwar of Better Capital, one of the reasons for the slowdown in consumer internet spending is that the current user base is not monetisable.

“Even when one can build scale in consumer internet, it has been tough to build a positive unit economics business model. Billions have been poured into the sector, but billions have not been made – far from it. Consumer internet startups that build layers close to a transaction, or lead to a transaction, are likely better segments to find a scalable & profitable business model,” he said. 

VC firm NorthSide’s founder Vidur Vyas also said that over the last 7-8 years, many startups chased scale at the expense of the right business model, which resulted in “dilution”.

He advised startups that should work on getting their business model right along with scale, number of customers, revenue per customer and profitability.

Funding Winter And The General Distress

India Accelerator cofounder Ashish Bhatia attributed the funding slowdown to the funding winter caused due to the rise in interest rates by the US Federal Reserve.“Investors began to tighten the funding tap for Indian startups and there are so many external factors driving this (funding) freeze. It is reasonable to expect it to last another year.”

Concerned about the funding inflow within the funds, Bhatia added that investors who have raised funds cannot continue to wait because startup investments have the longest gestation period before exiting and the deployment clock is also ticking for them.

Meanwhile, according to Vikram Gupta, founder and managing partner, IvyCap Ventures, the funding winter has led the startups to shift their focus to profitability and cost-cutting.

As the startup funding plummeted amid a ‘funding winter’, late stage startups have taken the lead in the unfortunate layoffs in the ecosystem. So far, 11K+ employees have been laid off by 34 startups, which includes unicorns such as Vedantu, Cars24, Ola, Meesho, MPL and Unacademy.

The Post-Pandemic Woes

While the funding crunch is one of the reasons for the decline in average ticket size, another reason is that some of the sectors saw extraordinary growth during the pandemic which is now slowing down.

Protiviti’s Kumar said that specific startups within edtech and gaming witnessed unprecedented demand during the pandemic, attracting a large number of investors. However, the growth has plateaued now, resulting in a fall in valuations and funding. 

“Many startups are taking cost-controlling measures like cutting down on cash burn and downsizing manpower to sustain during this period. This trend is likely to continue for some more time until economic conditions and market sentiments improve,” he said. 

IvyCap Venture’s Gupta also said that amidst the pandemic, virtual product launches and influencer marketing became the key drivers of business models and led to an unprecedented rise of consumer internet companies in the last two years. However, most of the new-tech startups didn’t even consider going for IPO, suggesting investor apprehension in funding these companies, he said. 

However, Kae Capital’s Vinjamuri pointed out that the internet consumption pattern in India continues to show secular growth and the trend is unlikely to change. “Funds have more time to engage the founders and back strong business models with greater conviction. Startups at large should focus on building a strong customer value proposition while ensuring good unit economics,” he advised founders.

The Profitability Approach

Safir Anand, senior partner at Anand and Anand, attributed the decline in average ticket size of funding to investors not paying enough attention to the business models of the startups and valuing them too high. 

Pointing to the financial results of large investors such as SoftBank and Tiger Global, Anand said that private equity players are not playing a fair game with the “excessive valuation” of the startups, and as a result are losing billions of dollars. 

“Since many of these businesses are intangible-centric, even the valuations there overlooked every aspect by benchmarking every new venture with only success stories and not failures or industry averages,” he added.

Several experts have also argued that the drop in average ticket size for funding as against a major decline in the number of deals suggests that investors are in a wait-and-watch mode and demanding long-term sustainability from startups.

“Investors want to focus on profitability and revenues rather than growth. Brands, on the other hand, are reluctant to give away partial control of the business to investors. However, the experienced funding community looks at this as only temporary fluctuations in the market and many investors will remain in acceleration mode and on alert,” Anjna Bhati of BluePi stated.

Key Trends That Will Shape The Consumer Internet Ecosystem

Contrary to the popular opinion of funding winter, early stage VC firm Huddle’s Sanil Sachar told Inc42 that the ‘winter’ hasn’t impacted early stage funding yet. “I am hopeful (that) with the correct action, there can be a correction which helps early stage (startups) to learn from the reasons behind the decline in funding and come out on top.”

As for the consumer internet ecosystem, he added that there seems to be a change in the definition of ‘winning ventures’ in terms of applications. 

“At first it was topline growth which enabled startups to showcase their user base, active user behaviour and downloads. However, the true factor of success is seeing what this user base helps yield in the form of return and revenue,” Sachar said. 

Sanket Sinha, executive director and global head of asset management at Lighthouse Canton, said that investors are looking for companies with strong fundamentals, established product market fit, capital efficiency, a greater value proposition for stakeholders, a well-experienced team, profitable unit economics, and minimal cash burn in the growth spree.

Speaking about the expected changes in the ecosystem going ahead, BluePi’s Bhati said that government schemes will play a greater role in helping startups attract investors, freelance talent recruitment will be preferred over full-time jobs, automation and digital-first interactions with customers will rise, and immersive customer experience and conscious consumerism will gain prominence.

The post Funding Winter Bites Late Stage Consumer Internet Startups; Avg Ticket Size Sees 60% Drop appeared first on Inc42 Media.

Funds help a business grow by allowing it to scale and reach new markets, among other things. These factors boost sales and assist startups in establishing a credible market position. Startups should also try to raise funds regularly, as nearly 38% of startups fail because they either run out of cash or fail to raise funds on time. 

It is especially important in the Indian context because India has the world’s second highest number of startups, with 69% of all startups globally beginning as home businesses. Investment in startups has also increased in India, with Indian companies raising $42 Bn in 2021. As a result, understanding the concept of startup funding has become even more critical. 

The first stage is typically self-funding or bootstrapping, in which an entrepreneur determines how much money he or she can contribute from his or her own pockets and approaches family and friends for lower-interest loans. This stage has fewer complications and documentation requirements.  

The real funding begins in the second stage, the seed stage. This is the stage when entrepreneurs borrow money from incubators, microlenders, and accelerators, among others. The funding raised in this round is used to conduct market research to learn about customers’ demands and preferences. 

Following this stage of funding, venture capital funding is required when a company’s products or services reach the market. There are different rounds of venture capital funding known as Series A, B and C. 

Aside from funding from lenders and incubators, entrepreneurs can also raise funds through an Initial Public Offering (IPO). Through an IPO, a company raises funds from the general public, including institutional investors and individuals, by selling shares. 

The Rights Associated With Startup Funding

The rights of the investors and entrepreneurs in the business are primarily determined by legal agreements in startup funding. Typically, investors gain some rights, such as an equity stake in the company. Entrepreneurs, on the other hand, have the right to receive funding and support from investors within the time frame agreed upon. 

Type Of Instruments That Can Be Issued By A Startup To An Investor For Fundraising

These instruments involve: 

Convertible Note

This is an instrument that converts a startup’s debt into equity. If the startup receives additional funding, the person holding this note will be able to convert it into equity.  If the startup does not receive additional funding, the person holding the note is entitled to be repaid for the debt plus interest upon the realisation of the maturity date, as stated in the Convertible Note agreement. 

These notes also include a ‘cap or target valuation’ and a ‘discount.’ The cap or target valuation represents the highest valuation that the startup will pay regardless of the company’s valuation at the time the note is converted, while the discount represents the lowest valuation that the startup will pay. According to the Companies (Acceptance of Deposit) Rules, 2014, startups in India can issue convertible notes to investors in amounts exceeding INR 25 Lakhs. 

Equity: Allotting equity entails determining the company’s valuation and the per-share price based on that valuation, and then issuing those shares to investors. 

SAFE (Simple Agreement For Future Equity): This type of contract, also known as an “equity derivative contract,” converts the initial funds invested in a startup into the future stock of the company. It lacks a maturity date and an interest rate, making it more malleable for negotiation. They also include contingency events, so that based on the occurrence or non-occurrence of certain events, they indicate whether the principal amount should be repaid or converted into stocks is best for the investor’s interests. 

SAFE notes can also be used in India in the form of Compulsorily Convertible Preference Shares (CCPS) as per sections 42, 55 and 62 of the Companies Act, 2013 read with Companies (Share Capital and Debentures) Rules, 2014 and Companies (Prospectus and Allotment of Securities) Rules, 2014.

While raising funds, both founders and investors must understand the complexities of the investment, including each party’s rights, obligations, and involvement. It is important to remember that signing the wrong type of agreement can have far-reaching consequences. 

The post From Seed Funding To IPO: The Ultimate Legal Guide To Startup Funding appeared first on Inc42 Media.

Virtual digital assets have skyrocketed in popularity in recent years, and their trade volume has increased dramatically. A market where a virtual digital asset can be transferred for payment using another one of these assets is also starting to take shape. 

The Finance Minister’s announcement of a 30% tax on revenue from virtual digital assets (VDAs) in her 2022 Budget has recently rekindled attention on this subject. The budget also included a proposal for a tax deducted at source (TDS) of 1% on payments or transfers made using virtual digital assets beyond a certain level of money. 

But what are VDAs? Keep reading this article to know everything about VDAs, including their legal status and investment options, with examples of both international and Indian VDAs. 

What Are VDAs? 

A virtual digital asset is any information, code, number, or token that is generated through cryptographic procedures or otherwise, by whatever name it is called. This provides a digital representation of value and is exchanged with or without consideration, with the promise or representation that it has inherent value, or that it serves as a store of value or a unit of account. This definition also includes its use in any financial transaction. 

A virtual digital asset, to put it simply, is a digital holding that has been encrypted on the blockchain, enabling anyone to confirm its authenticity and determine who owns it. This becomes a unique asset that may be purchased, sold, or transferred to a new owner since it is non-fungible, which means that it cannot be replicated, copied, or hacked. 

Cryptocurrencies, non-fungible tokens (NFTs), and decentralised finance are examples of virtual digital assets. The numerous NFTs in digital assets can be virtual real estate, in-game coins or products, digital art, text, photos, movies, music, or other blockchain assets. As per the broad definition, VDAs may also include coupons, reward points given out by online retailers or credit card firms, airline miles, and so on. 

How To Earn VDAs? 

You must now have a basic understanding of what VDAs are. Let’s look at how one can earn VDAs. 

Virtual Landowners 

You can earn VDA as the owner of virtual land. One way people use VDAs is by buying digital real estate like LAND, a piece of virtual land in the Sandbox. Instead of a tangible deed, these virtual places use NFTs to show ownership of particular locations within a virtual environment. Similarly, if you want to buy Indian VDAs, you can buy virtual land of Indie’s.

Users can combine individual plots of land to form an estate if they own enough of them. The estate on Decentraland known as “The Secret of Satoshi’s Tea Garden,” which consists of 64 different parcels of land, is one example of it. Digital highways encircle the ‘land’ entirely, making it easy to get to. 

Renting And Lending 

People can rent out their NFTs to get passive income based on market demand. Through PARSIQ’s IQ Protocol, a decentralised finance (DeFi) network that offers options for game creators to make money, landowners in the metaverse can do that. 

The IQ Protocol allows virtual landowners to generate yield and rent fees through specified conditions that are negotiated with renters and enforced by smart contracts, simulating the dynamics of traditional property and real estate.

Do Charity To Earn Assets And Rewards 

Projects like Indie’s allow you to perform good deeds to earn rewards. You can plant trees or even practice meditation. You just need to provide proof of your work to receive indicoin that you can use to purchase their virtual lands or NFT avatars. 

Residual Dividends 

NFTs can let investors receive passive dividends in addition to the royalties that creators may be paid when their works are sold or resold on secondary marketplaces. A digitised Monaco racing track section from the F1 Delta Time game, which sold for $222K at auction in December 2020, is just one example of this. 

The owner of the digital track is entitled to 5% profits from all races held on it, including entrance fees for races and payouts from ‘Elite Events’, which require competitors to wager REVV for entry. 

Private Parties And Events 

NFT passes can be used to pay for virtual gatherings such as parties and concerts that are held in various metaverses. Snoop Dog, a rap artist, entrepreneur, and ardent supporter of NFT, teamed up with The Sandbox to hold a private party in September 2021. A total of 1,000 NFT party permits were made available to attend the event, with 650 of them being made available on The Sandbox’s marketplace. The Snoop Private Party Pass essentially provided people access to Snoop Dogg’s unique NFTs, events, and the possibility to have Snoop Dogg play a private concert on their LAND. 

These are only a few of the numerous examples of ways to earn VDAs. Let’s now look at ways to invest in VDAs. 

How Can One Invest In VDAs? 

There are several platforms that help you invest in VDAs. Some of them include : 

Coinbase: Coinbase has consistently ranked among the top cryptocurrency platforms. Although a lot of Coinbase users began staking early, it’s never too late to join in. The idea is straightforward — you register for a Coinbase account, keep your digital currency in the wallet, and do tasks for rewards. 

CoinDCX: The goal of CoinDCX, the most valuable cryptocurrency investment software in India, is to make cryptocurrency easily accessible. With solutions centred around cryptocurrency trading, investing, and education since its establishment in 2018, CoinDCX has addressed many issues that the Indian crypto community faced. 

WazirX: You can buy and sell USDT for Fiat directly with other buyers and sellers using WazirX P2P. It is always safe and legal. 

A quick piece of advice — If you wish to use Fiat to trade cryptocurrencies, purchase USDT via peer-to-peer (P2P), and then use that USDT to purchase other cryptocurrencies on WazirX! 

OpenSea: Users can buy and trade non-fungible tokens on OpenSea, a decentralised marketplace. The NFT exchange, which was established in 2017, started as a market for CryptoKitties but has already extended beyond collectables. 

Legality Of VDAs

Now let’s come to the most important part of the article — what is the legal status of VDAs? Interest in this topic was recently revived with the Finance Minister’s 2022 Budget declaration of a 30% tax on income from virtual digital assets. 

The legal status of VDAs says:

• The term ‘Virtual Digital Assets’ is defined in the Finance Bill’s new clause 47A, implemented in 2022. A virtual digital asset, according to the bill, is any data, code, number, or token generated using cryptography or another method. 
• The Act also declared a 30% tax on the profits of virtual digital assets, whether held for a long or short period of time. Any standard deduction, expenditure, or allowance does not apply to this tax. 
• The government warns individuals against engaging in such transactions even though the virtual digital assets mentioned in the act are now subject to taxation. It can be invested in, transferred, saved, or exchanged electronically due to its significant price volatility and virtual value (as it is impossible to determine the value of a non-physical object). It cannot, however, be utilised as a means of exchange or be a component of any investment scheme. 
• According to standard income tax regulations, any losses incurred by the investor or trade cannot be adjusted against any other revenue. 

Now, let’s undertake a case study of a few international and Indian VDAs. 

Some Global And Indian VDAs 

Here is a list of some global and Indian virtual digital assets that are generating a lot of buzz these days. 

Global VDAs 

Sandbox: Players can create, own, and monetise their game experiences in the virtual world known as The Sandbox using the Ethereum blockchain. 

By giving developers of existing games like Roblox and Minecraft genuine ownership of their works in the form of non-fungible tokens (NFTs), they hope to upend the status quo and encourage their engagement in the ecosystem. 

Indie’s: As the top meta brand, Indie’s is working to build a Massive Multiplayer Online Open-Ended Soul based Non-Game Play2Earn Genre Virtual World/Metaverse where 11,111 Indie’s guild members can purchase a virtual plot in the New Kashi, IndiVerse, using their special Indie’s NFTs. 

They can lease out the land to start a business, a mall, or a theme park or invite their friends over, plan an event, or even work calmly from home.

Doodles: Doodles has evolved into one of the most significant and cherished NFT initiatives ever. The collection of vibrant line-drawn characters has practically taken over the world and is one of the most well-liked and successful PFP (profile-picture) collections. 

CryptoPunks: CryptoPunks, created by Larva Labs, is a two-person development company. They have experience working on a wide range of projects, including mobile games and utilities, online infrastructure, digital design, and art. The team created a pixelated character generator inspired by the London punk scene, cyberpunk literature, and films. 

A few of the global VDAs include Bored ape, Decentraland, Bitcoin, and Ether. 

Indian VDAs 

Indie’s NFT: Indie’s Guild is a closed virtual world community made up of 11,111 NFT Avatars, which are individually created digital valuables. These have been designed and developed by Inditex LLP, with funding from StraightCircle VC. They are introducing their brand-new, 11,111-piece NFT collection. Every Indi is a distinct VRactive avatar that serves as the heart of the online community.

Digital Prateek’s Jorr Token: The fundamental goal of this community-driven NFT project is to create an outstanding community (JorrParivar) around the realities of branding, marketing, and motivation. It consists of 1,254 tokens centred around 22 original intellectual properties that Digital Pratik owns and mints. 

Future Of VDAs 

The technology for securing and storing VDA related-data is still in its infancy stage. In the eyes of the Indian public, they are quickly becoming a gateway for wealth development. According to CREBACO, there is an estimated $15 Bn market value for digital assets in India. This is indicative of the fact that the country has seen notable growth in this area. 

The recent inclusion of clause (47A), under Section 2 of the Income Tax Act, in the Finance Bill 2022 has only increased the credibility of digital assets, thus supporting the use of digital assets. This has increased the confidence of potential stakeholders and customers to invest in cryptocurrencies and other virtual digital assets such as NFT. 

The digital asset economy will continue to change with the change in business tactics and consumption habits in the years to come. There are a few crucial steps, such as capability and skills building, that can be taken right away to capitalise and shape this new era.  

The post Demystifying Virtual Digital Assets & The Tax Implications appeared first on Inc42 Media.

India’s fintech ecosystem has seen a huge upward trend lately, with it becoming the third-largest fintech ecosystem globally. This rapid rise has fueled aspirations that each and every Indian citizen will have access to the financial ecosystem. 

It’s encouraging to see that tech adoption has been much higher, particularly in traditional BFSI settings. New-age platforms have replaced the traditional forms of investing, banking, lending, and trading. The number of fintech adopters in India has soared in the last few years. Currently, it stands at 87%, which is much higher than the global average of 64%. 

Amid all the euphoria, one sector which has gained massively from this digitisation is the capital market sector. The capital market has seen increased retail participation over the last couple of years. This has been primarily due to the digital penetration in tier two and three cities which always had the aspiration but lacked the means to execute things. 

So it would be safe to assume that the capital market, more so, the equity market is on the cusp of a major revolution. This might realise the long-held view that equity investments should surpass FDs.

Retail-Ising The Capital Market 

We can all agree that for a long time, only a few had access to stock markets with the segment being largely concentrated in the big four cities — Mumbai, Delhi, Bengaluru and Chennai. Lack of knowledge coupled with a dearth of effective information about the financial markets has contributed to this.

What has been surprising is how quickly the landscape has changed. Today, more than 80% of new accounts are being opened in tier 2 and 3 cities. The emergence of new-age fintech has democratised the overall market and it is no longer a fiefdom of a selected few. 

India is increasingly becoming tech-savvy, hosting about 655 Mn active internet users. With the growing numbers, majorly led by GenZ and millennials, many financial institutions and broking companies are aggressively adopting digital means to reach out to the masses. 

Interestingly, the fintech and stock market now moves in tandem. They are no longer competitors but work together for enhanced efficiency and accessibility. Today, the stock market is accessible to almost anyone with a smartphone with an internet connection and the necessary KYC documents. 

Changed Demography

In recent years, interest in the stock market has seen a significant uptick. Interestingly, the NSE reported that the share of individual investors in the market has gone as high as 40.7%. The retail participation by GenZ and millennials have risen two-fold. This is majorly accelerated by fintech-enabled solutions provided by companies. They are simplifying end-to-end investment and trading processes. 

Take, for instance, the collaboration between broking companies and fintech solutions. They have streamlined everything, from sourcing market data and analytics to conducting trades for clients. Now, the focus is on automation and providing a best-in-class customer experience throughout the wealth creation journey. For example, integrating AI technology with fintech platforms allows investors to explore different market opportunities, all while in sync with risk aversion. 

From creating a Demat account to learning about financial markets, testing trading strategies, and conducting trades, all can be done within minutes and a few clicks. This is supported by fintech-driven innovation backed by artificial intelligence (AI), machine learning (ML), and data analytics.

The New Face Of The Stock Broking Industry

As with every industry, investor retention is also crucial in the stock market. This has translated to more digital broking platforms leveraging data analytics to provide a seamless wealth creation experience. By tracking users’ interactions on the platform, continuous enhancements are deployed to improve user experience. 

Simultaneously, retail investors now have a more comprehensive range of options for selecting algorithm-based services. It offers accurate market predictions, resulting in better-informed investments and trades. 

In addition, technologies like big data analytics, AI, and ML have made all the processes easier and faster for investors. As a result, trading stocks is no longer about tracking the indices 24*7. With tech-enabled solutions doing it for you in just a few seconds, staying ahead of the curve is much simpler and quicker. 

For investors new to the market, app-based platforms are quite beneficial. It gives real-time market updates and recommendations. At the same time, it allows new investors to learn about strategic investments, stock market jargon, and fail-safe measures. While facilitating informed investments, fintech ushers time-saving and cost-effective stock market participation. 

And how can we not mention the emergence of financial super apps? Let’s park it for some other time. But do keep an eye on it since it’s going to be the next big revolution in the personal finance space.

An Empowered Investor Is Good For Everyone 

Recent fintech innovations are bolstering back-end technology, customer-facing solutions, and automation. They have democratised the stock market, opening it to tech-savvy investors while fostering financial literacy, inclusivity, and increased retail participation. 

With the ongoing fintech revolution, the stock market will have greater participation, especially from the untapped tier 2 and tier 3 cities. Most importantly, fintech-enabled trading and investment companies will continue to strengthen the financial ecosystem in the country. 

This revolution has empowered the new age customers so much that the country is witnessing a trend of do-it-yourself. When the customer demands to do things on her own, you know the change is real!

The post Decoding Fintech’s Role In The Future Of India’s Capital Markets appeared first on Inc42 Media.