Indian Startup Information Tales Of The Week [July 27-Aug 1]

We carry you the newest version of the information roundup: Indian startup information tales of the week!

The spotlight of the week was Reliance’s digital enterprise Jio Platforms reporting an INR 2,520 Cr internet revenue within the first quarter of fiscal yr 2021, which ended on June 30, noting a 182.8% hike from INR 891 Cr recorded in Q1 FY2020. This after the corporate had raised round $20 Bn in a strategic stakes sale in Jio Platforms during the last three months, attracting international tech giants equivalent to Fb and Google for large investments within the firm’s digital choices. Reliance’s Jio Platforms worth of providers additionally elevated on the similar charge from INR 14,593 Cr to INR 19,513 Cr final quarter.

In the meantime, the spree of investments into Reliance’s varied subsidiaries is probably not over. Based on stories, Qatar’s sovereign wealth fund, the Qatar Funding Authority might make investments $1.5 Bn within the firm’s Infrastructure funding belief (InvIT), which holds its fiber-optic belongings. The proposed funding by Qatar would monetise the fiber belongings held by Jio Digital Fiber Pvt. Ltd.

Final week, Jio additionally made information for the launch of the cellular software of its grocery supply platform, JioMart. Reliance chairman Mukesh Ambani can also be reported to be planning JioMart’s partnership with messaging software WhatsApp to carry the smaller kirana shops into India’s ecommerce provide chain. Maybe taking a cue from the way in which WhatsApp’s use instances are being utilised by Jio, Fb CEO Mark Zuckerberg, in the course of the firm’s second-quarter earnings name, stated that India has an enormous alternative to allow small companies and people to purchase and promote issues by means of Whatsapp. Zuckerberg stated that this chance has been created as a result of nation’s inhabitants and WhatApp consumer base. India is the most important marketplace for WhatsApp with greater than 400 Mn customers. Curiously, it makes up for 80% of the Indian web customers of 500 Mn.

Unicorn Roundup

Swiggy Lays Off 350 Executives

Indian foodtech unicorn Swiggy has laid off 350 executives in what known as a ‘final realignment exercise’ necessitated by the monetary disruption brought about as a result of Covid-19 pandemic. The layoffs come two months after the corporate laid off 1100 staff throughout departments. Through the months of the lockdown, the corporate tried to diversify its income streams whereas its core enterprise of meals supply witnessed a hunch in demand. The corporate provided its fleet of drivers and autos to ecommerce shops for last-mile connectivity and logistics help. The corporate additionally scaled up its grocery supply platform and Swiggy Genie, which permits prospects to order objects from the close by retail shops on the Swiggy portal, and to even ship or obtain packages throughout town.

“In May, we began the exercise of realigning resources to create capacity in higher potential areas with the optimism of the business attaining pre-Covid levels in the near-term. However, with the industry still only having recovered to about 50% of its peak, we have to, unfortunately, go ahead with this final realignment exercise, which will result in the net loss of 350 jobs. We are concluding the exercise we began late May and there are no plans for any further restructuring,” a Swiggy spokesperson informed Inc42.

OYO Founder Ritesh Agarwal Units Up Funding Agency

Ritesh Agarwal, the founding father of hospitality chain startup OYO, has arrange an funding agency in Singapore known as Aroa Ventures to spend money on early-stage startups working throughout client, expertise and leisure infrastructure sectors. The factors for startups to obtain funding from Aroa Ventures consists of confirmed unit economics, 20% year-on-year (YoY) development charge, and $1 Mn-$10 Mn in annual income, amongst different issues. Apart from Agarwal, Snapdeal co-founders Kunal Bahl and Rohit Bansal additionally arrange an funding car known as Titan Capital final yr, to spend money on seed and early-stage startups. Titan Capital has reportedly invested in 70 startups to date, which embrace feminine hygiene model Sanfe, an expert community platform for ladies Leap.Membership and on-line recruitment platform JobSquare, amongst others.

Flipkart To Start Providing Hyperlocal Supply Companies

Ecommerce large Flipkart has begun providing hyperlocal providers in Bengaluru, taking over Google-backed Dunzo, which is the largest participant within the section in India. Flipkart will likely be utilising its in depth provide chain infrastructure to ship greater than 2000 merchandise throughout classes grocery, contemporary, dairy, meat, mobiles, electronics equipment, stationery objects and residential equipment, within the first section of the launch in Bengaluru. It is going to even be onboarding neighbourhood or kirana shops onto its community. The service is presently accessible in Bengaluru however will develop to 6 undisclosed cities within the coming six months. Using superior applied sciences for location mapping, a supply time of 6 am to midnight, and enabling prospects to choose a 2-hour slot for the supply of their merchandise are among the options provided as a part of Flipkart Fast Companies.

Fintech Roundup

NPCI Asks Govt To Carry Again MDR Levy For Digital Funds

The Nationwide Funds Company of India (NPCI) has requested the federal government to carry again the Service provider Low cost Price (MDR), a price beforehand levied on digital transactions. MDR was a price collected by banks and levied by retailers processing the transactions. The quantity was shared amongst buying financial institution, fintech associate and issuing financial institution, with 10% of the quantity paid as switching charges to NPCI. Whereas the price was waived off final yr on the UPI community and for funds made by means of the RuPay debit card modes to encourage adoption of digital funds amongst small companies, a current Inc42 evaluation revealed how funds processors equivalent to Google Pay and Cellphone Pe have been incurring losses on digital transactions.

The push by NPCI for bringing again the MDR comes amid rising issues that the losses incurred by banks and retailers as a result of absence of MDR would decelerate the deployment of digital infrastructure wanted for the expansion of digital funds. It stays to be seen if bringing again MDR for digital funds might curb losses for UPI cost processors.

In one other measure which might hamper the expansion of the varied gamers in India’s digital funds sector, the NPCI this week, put a cap on UPI transactions for funds processors, asking all cost apps to restrict the transactions on their platform earlier than they exceed 50% of all UPI transactions within the nation, failing which, they must face penalties. The NPCI has determined to place a cap on UPI transactions to restrict the harm to the cost ecosystem in India in case the system collapses. Although the transaction restrict will hamper the expansion of the gamers working within the section, it should be certain that there is no such thing as a main influence on the Indian funds ecosystem in case UPI collapses.

Mobikwik Launches Single Funds Hyperlink MPay

Indian digital funds soonicorn MobiKwik has launched its UPI-powered cost hyperlink service, MPay.me, to permit customers to create their private cost hyperlink and obtain funds whatever the app getting used to make the cost. The brand new service will operate as a single built-in cost platform for making and receiving funds by means of any UPI funds processor equivalent to Google Pay, PhonePe, Paytm or MobiKwik. The corporate has famous that the function would seamlessly work on desktop and cell phones.

MobiKwik lags behind Google Pay, Cellphone Pe and Paytm within the digital funds sector, however might acquire a couple of yards with its newest providing. Based on a just lately printed Mint report, Google Pay makes up for practically 42% of all UPI transactions, adopted by Flipkart-owned PhonePe with 35% transactions. With Amazon and WhatsApp additionally set to launch their UPI-powered digital funds apps, the digital funds section may have a variety of gamers vying for a share of the Indian market, which accounted for 1.34 Bn transactions value INR 2,61,835 Cr on the UPI community in June 2020.

Ecommerce Roundup

On-line Sellers Affiliation Approaches CCI In opposition to Flipkart-Walmart Acquisition

Whereas Flipkart’s ‘reverse acquisition’ of its mother or father firm Walmart’s B2B wholesale enterprise ‘Best Price’ might have impressed varied memes on social media, the All Indian On-line Distributors Affiliation (AIOVA) will not be laughing. The affiliation, representing the pursuits of greater than 2000 sellers, has approached the Competitors Fee of India (CCI) and stated that the Flipkart-Walmart acquisition will not be tenable, given the truth that a CCI inquiry in opposition to Flipkart for abuse of dominant place is presently underway.

Earlier this yr, the Nationwide Firm Legislation Appellate Tribunal (NCLAT) initiated an investigation in opposition to Flipkart, because it was alleged that the ecommerce large was promoting items by means of its B2B channel to an online of preferential sellers like WS Retail and Tech-Join Retail, amongst others, at large reductions.

Ecommerce Guidelines In New Shopper Safety Act To Apply To On-line Companies

The newly ratified Shopper Safety Act (CPA) 2019, which got here into impact earlier this month, is known to be making use of to an entire vary of corporations which provide on-line providers. It’s because in keeping with the ecommerce guidelines within the Act, ecommerce is outlined as “buying or selling of goods or services including digital products over digital or electronic networks.” The broad definition means corporations offering ride-hailing, meals supply and on-line ticketing providers, amongst others, are outlined as ecommerce entities beneath the phrases of the act.

Therefore, corporations equivalent to MakeMyTrip, OYO, and on-line ticketing providers provided by airways equivalent to Indigo and Vistara, amongst others, would wish to ascertain an satisfactory grievance redressal mechanism. The foundations mandate that etailers arrange a grievance redressal officer, acknowledge the receipt of a criticism inside 48 hours and resolve the criticism inside one month of the criticism being filed by the shopper.

Worldwide Roundup

Sellers Query Amazon India’s Information Coverage

Amid rising allegations about Amazon India’s preferential therapy for sure sellers, a number of third-party sellers have demanded transparency on Amazon’s information practices and preferential therapy for in-house manufacturers.

The worldwide ecommerce large has for lengthy been accused of utilizing gross sales information for third celebration sellers retailing merchandise on its platform to develop its personal competing merchandise. Whereas the corporate had beforehand denied these allegations, the corporate’s CEO Jeff Bezos, on July 29, informed the US Congress that he can’t assure that the corporate isn’t accessing third-party vendor information to develop its personal competing merchandise. A vendor listed on the platform informed Financial Occasions that if they don’t seem to be spending not less than INR 20Ok monthly on Amazon providers, gross sales simply don’t choose up, and even after that funding, you compete with Amazon’s personal merchandise on worth.

This week, Amazon additionally made information for going all out in preparations for its annual Prime Day sale to be held on August 6-7 this yr, however this time it has extra stress to make up for the misplaced gross sales due the pandemic. And in luring prospects by means of ‘exclusive’ offers, the corporate could also be indulging in unethical practices, even flouting India’s FDI norms.

Chinese language smartphone model OnePlus is all set to launch its mid-range telephones for the Indian market. Puzzlingly although, the corporate has requested all its etailers and offline sellers to carry off on promoting its new merchandise. These merchandise will solely be accessible on Amazon, and never even on OnePlus’ official web site. Even All India Cell Retailers’ Affiliation (AIMRA) and Organised Retailers Affiliation have written to the corporate condemning this transfer.

Google Spying On Information of Indian Customers

Based on inside firm paperwork accessed by The Info, Google might have been discretely amassing information of customers and the way in which they work together with non-Google apps on Android smartphones, to push its personal competing purposes. The report mentions that the challenge, known as ‘Android Lockbox’ throughout the firm, permits the corporate’s staff to entry information concerning the frequency with which a non-Google app is used, and the places of such apps’ customers. Whereas the info collected by Google is anonymised and doesn’t pose any critical threat to information privateness, the purpose of rivalry lies in the truth that utilizing such information to push its personal competing purposes is anti-competitive behaviour on the a part of Google. Based on the report, the info collected by means of Android Lockbox was utilized by the corporate to fast-track the event of YouTube’s different to TikTok, a brief video sharing function known as ‘Shorts’, after TikTok was banned in India final month.

And the way does the Android consumer give his consent for his information to be collected by Google for lockbox? It occurs in the course of the establishing course of for a brand new Android smartphone. Based on the report, the Lockbox program takes impact as soon as customers are establishing Google providers on their Android gadgets. Google tells customers that opting in will give them extra personalised experiences, together with sooner searches. However this information additionally feeds the Lockbox program that has been used for aggressive analysis, in keeping with inside paperwork accessed by The Info. The Lockbox program has been round since 2013.

Twitter Hack Was A Spear Phishing Assault

Earlier this month, Twitter accounts of high-profile celebrities, businessmen and politicians hacked to hawk a cryptocurrency rip-off. The investigation has now revealed that Twitter discovered that the huge hack was the results of a spear-phishing assault. It added that the hack “significantly limited” entry to its inside instruments.

The microblogging platform defined that hackers had entry to one of many staff’ credentials and used it to focus on others as effectively to realize entry to its inside help instruments.

Keep tuned for the following version of Information Roundup!