Mastercard-backed fintech startup Instamojo has shut down its core payments business after the Reserve Bank of India rejected its application to operate as a licensed payments aggregator in September, citing non-compliance with eligibility criteria.

Consequently, Instamojo has shifted its focus away from payments following the regulatory setback, The Morning Context reported.

Instamojo has promptly ceased its business operations after the RBI rejected its payment aggregator application. While payment companies typically have 180 days to wind down operations following a rejection, Instamojo has chosen an immediate shutdown, indicating that they would not reapply as well.

According to the report, InstaMojo is actively seeking a potential buyer as its founders aim to exit the business. Additionally, the startup has faced challenges in securing funding over the past few months, encountering difficulties with both existing and new investors.

Founded in 2012 by Sampad Swain, Akash Gehani and Aditya Sengupta, Instamojo is an ecommerce platform for independent businesses, direct-to-consumer (D2C) brands and micro, medium and small enterprises (MSMEs) that enable them to start, manage and grow their business online.

In early 2019, the startup raised INR 50 Cr as a part of its Series B funding round from Gunosy Capital, Japanese payments firm AnyPay and existing investors. It also counts Kalaari Capital and Blume Ventures among its investors.

Queries sent to Instamojo did not elicit any response till the filing of this article.

Introduced by the RBI in March 2020, the payment aggregator framework requires all payment gateway operators to obtain a license for acquiring merchants and implementing digital payment solutions.

Payment aggregators (PAs) facilitate merchants and ecommerce platforms in accepting payments by providing their technological infrastructure for streamlined online transactions. However, the licensing process, initiated three years ago, has become challenging and cumbersome procedure for payment solution providers.

Strict regulations from the central bank have resulted in numerous PA applications, including those from Paytm and LivQuik, remaining in a state of uncertainty. Even prominent names like MobiKwik’s Zaakpay faced delays and had to submit multiple applications before obtaining their licenses.

Earlier in February, RBI granted in-principal authorisation to 32 existing payment aggregators (PAs) to act as online PAs.

Amazon (Pay) India Pvt Ltd, Paymate India Ltd, Razorpay Software Pvt Ltd, Pine Labs Pvt Ltd and Zomato Payments Pvt Ltd were among the PAs that had been granted in-principle authorisation.

As per a report, the Indian payment gateways market is projected to grow to $2.68 Bn by 2027.

The post Mastercard Backed Instamojo Shuts Core Payments Biz After RBI Rejects Its Application appeared first on Inc42 Media.

BYJU’S-owned upskilling platform Great Learning’s India business net loss soared 1.2X to INR 357.3 Cr in the financial year 2022-23 (FY23) from INR 307.1 Cr in the previous fiscal. However, excluding the “exceptional items” worth INR 120.6 Cr, the edtech startup’s FY23 loss would be INR 221.7 Cr, a 27.8% markdown from FY22.

The platform’s revenue from operations jumped 1.3X to INR 391.4 Cr in FY23 from INR 307.1 Cr in FY22, as per its filings with the Ministry of Corporate Affairs. Total income grew 1.2X to INR 392.9 Cr in FY23 from INR 316.1 Cr in FY22.

Meanwhile, Great Learning was able to control the rise in its expenses. Total expenses declined to INR 614.5 Cr in FY23 from INR 633.1 Cr in FY22. In FY23, the edtech firm’s top expenditure was on employee benefits, although it decreased to INR 327.8 Cr from INR 345.6 Cr in FY22.

Advertising promotional expenses, another significant portion of overall expenses, decreased to INR 159.1 Cr in FY23 from INR 170.5 Cr in FY22.

On a unit economics level, the expenditure was INR 1.57 to generate one rupee of operating revenue.

Founded by Arjun Nair, Hari Nair, and Mohan Lakhamraju in 2013, Great Learning offers comprehensive, industry-relevant programs across various technology, data and business domains.

Earlier, it was reported that the founders of Great Learning, the platform acquired by BYJU’S in 2021 for $600 Mn, are reportedly in talks with investors to raise funds to buy the company back from the Byju Raveendran-led embattled decacorn.

Last month, lenders of BYJU’S appointed risk advisory firm Kroll to protect the “charged assets” of both Great Learning Pte and the edtech firm’s Singapore entity Byju’s Pte. Ltd.

The main objective of the appointment was to safeguard and maintain the assets and businesses belonging to Great Learning, which includes its subsidiary, Northwest Education Pte. Ltd., and Byju’s Pte. Ltd., Kroll said.

Recently, BYJU’S released a part of its FY22 numbers. Without disclosing net loss, BYJU’S said the standalone EBITDA loss declined to INR 2,253 Cr in FY22 from INR 2,406 Cr in FY21. On the other hand, total income jumped to INR 3,569 Cr from INR 1,552 Cr in FY21.

While the complete financial statements for FY22 are yet to be disclosed, BYJU’S co-founder and CEO, Byju Raveendran said in an internal mail sent to employees the company is set to initiate the audit process for FY23 soon.

The post BYJU’S Owned Great Learning’s Net Loss Swells 1.2X To INR 357.3 Cr In FY23 appeared first on Inc42 Media.

In an attempt to replace the existing Cable Television Networks (Regulation) Act, the Ministry of Information and Broadcasting (MIB) has floated the much-anticipated draft Broadcasting Services (Regulation) Bill, 2023, for public consultation.

This move is expected to be a game changer for over-the-top (OTT) platforms in India as this bill seeks to take all such platforms under its purview. Notably, OTT platforms are currently regulated under the IT Act, 2000.

“The bill streamlines regulatory processes, extends its purview to cover the OTT content and digital news, and introduces contemporary definitions and provisions for emerging technologies,” the ministry said in a statement.

MIB added that it addresses a long-standing need to consolidate and update the regulatory provisions for various broadcasting services under a single legislative framework. This move streamlines the regulatory process, making it more efficient and contemporary, it added.

How Does The Broadcasting Bill Define OTT?

As per the draft Bill, “OTT broadcasting service” refers to a broadcasting service that provides on-demand or live content to subscribers in India through the internet or a computer resource. This includes a curated catalogue of programmes that are either owned, licensed, or contracted for transmission, excluding closed networks.

The definition also extends to cases where accessing content on non-smart televisions or viewing devices requires additional hardware or software, or a combination thereof, such as a set-top-box, dongle, or software keys.

OTT broadcasting shall not include social media intermediaries and their users, as defined by rules under the Information Technology Act, 2000, or any other entities notified by the government, the bill added.

Moreover, for OTT broadcasting services, compliance responsibility with all requirements under this bill lies with the operator providing the programme or content, not with the network operator or internet service provider.

Key Details On The Regulation

While the majority of broadcasting network operators must obtain a licence from the Centre, streaming platforms are only required to “intimate” the government if they surpass a specified subscriber or viewer threshold. To prevent “genuine hardship” for OTT broadcasters, the central government holds the authority to grant exemptions from the Act’s provisions through guidelines.

“Any person providing an OTT broadcasting service in India, with such number of Indian subscribers or viewers as may be prescribed, shall, within one month from the notification of this act or its meeting the prescribed threshold, provide an intimation to the central government of its operations,” the draft said.

Furthermore, the bill introduces a differentiated approach for programme and advertisement codes, tailored to different services. It mandates self-classification by broadcasters and enforces robust access control measures for restricted content.

In case of any violation of the programme or advertising code, OTT platforms will also be required to pay a penalty. The penalty for the initial violation is a fine of up to INR 20,000, while subsequent contraventions may incur a penalty of up to INR 1 Lakh.

The Indian OTT market is a bustling segment, including domestic players like Zee5, SonyLIV, and JioCinema alongside international majors such as Disney+ Hotstar, Amazon, and Netflix.

Revenue of the Indian video over-the-top (OTT) market is set to double from $1.8 Bn in 2022 to $3.5 Bn by 2027, according to PwC’s latest report. Further, the Indian OTT market is expected to grow at a CAGR of 14.32% over the next five years against the global OTT segment’s rate of 8.4%.

The post New Broadcasting Bill Taking OTTs Under Its Ambit Extended For Public Consultation appeared first on Inc42 Media.

The Indian government is considering the possibility of implementing tax reductions on imported fully assembled electric vehicles (EVs) for a duration of up to five years. This strategic move aims to attract companies such as Tesla to not only sell but also potentially manufacture its electric cars within the country.

The government is formulating an EV policy designed to enable global car manufacturers to import electric vehicles at reduced duty rates, provided they commit to eventually manufacture EVs in India, Bloomberg reported.

However, a final decision on the policy’s outline is yet to be made.

In 2021, Tesla sought a reduction in import duties for its EVs. Tesla was seeking to lower the rates from the existing 70%-100% range to 40%, depending on the import value of its vehicles.

Tesla CEO Elon Musk is expected to meet with Commerce and Industry Minister Piyush Goyal later this week to have discussions about the company’s plans to establish a factory in India. Goyal is currently in San Francisco for ministerial engagements related to the Indo-Pacific Economic Framework and the Asia-Pacific Economic Cooperation.

Tesla is actively pursuing entry into the Indian market, one of the most promising automotive markets globally, driven by the increasing demand for EVs among India’s expanding middle class.

On the other hand, Tesla’s potential investment holds the promise of supporting the government’s agenda to boost manufacturing’s contribution to India’s GDP and simultaneously generate employment opportunities.

Tesla plans to source components worth $1.7 Bn to $1.9 Bn this year from local vendors after buying $1 Bn worth of components last year, Goyal said earlier.

“…Tesla already last year bought $1 Bn of components from all of you sitting here. I have a list of companies who supplied to Tesla. This year their target is nearly $ 1.7 bn or $ 1.9 bn…,” said Minister Goyal.

It was reported earlier that the Indian government is working to expedite approvals for Tesla’s potential entry into the country, with a goal of providing all the necessary clearances by January 2024.

A recent meeting conducted by the Prime Minister’s Office reviewed the upcoming phase of EV manufacturing in India, which includes Tesla’s investment proposal.

India’s growing demand for EVs has garnered interest from both international and local tech firms, as well as emerging startups. Acer, the Taiwanese tech giant, has recently made its foray into the Indian EV market by licensing its brand to eBikeGo, a mobility startup.

Meanwhile, VinFast disclosed intentions to invest between $150 Mn and $200 Mn in India, aiming to establish a completely knocked-down (CKD) assembly unit in the country.

Alongside Tesla, automotive giants such as Audi and Mercedes-Benz are also eagerly positioning themselves to seize opportunities within the burgeoning Indian EV ecosystem.

Overall, total EV registrations in India across categories grew to 1.32 Lakh units in October from 1.28 Lakh units in September. As of now, a total of 12,27,195 EVs have been registered in India in 2023.

The post India Contemplates Five-Year Tax Cut On EV Imports To Attract Tesla appeared first on Inc42 Media.

While Fintech unicorn Razorpay plans to relocate its parent company to India through a cross-country merger, this move could incur a tax payment of $250 Mn – $300 Mn in its current domicile, the United States.

This plan involves a merger between its US-registered entity and its Indian arm.

Razorpay and its investors are contemplating a merger at a reduced valuation from its peak of $7.5 Bn in 2021. Despite this, advisors on both sides of the deal, including those in the US and KPMG and Deloitte in India, are hesitant due to the paced growth trajectory of the payments processor over the past two years, ET reported.

A reduced valuation would proportionally decrease the tax liability; however, a significant reduction might face challenges in obtaining regulatory approval.

“Yes, there have been discussions to value the company at $3 Bn – $4 Bn, but external advisors are of the view that it may not be cleared by US authorities because of the company’s steady growth over the last year or so, even as peers in the US have seen correction in their valuations,” a source said as quoted in the report.

Razorpay is set to pursue approval from the National Company Law Tribunal (NCLT) within the next two months for the merger. Additionally, the company will appoint an auditor for the valuation discussions.

The fintech unicorn is also looking at raising a new round of funding from investors in 2024 to cover the tax payout. The uncertainty surrounding the duration of NCLT approval has prompted this strategic move.

Razorpay’s decision to relocate is primarily motivated by its goal to list on Indian stock exchanges within the next two to three years. This strategic move is also aimed at enhancing the company’s ability to navigate the regulatory landscape more effectively.

Razorpay has reportedly held discussions with government officials as well regarding the requisite approvals needed for the relocation process.

Founded by Shashank Kumar and Harshil Mathur in 2014 as a payment gateway platform, the startup has branched out into SME payroll management, banking, lending, payments, insurance among others, over the years.

In 2021, Razorpay bagged $375 Mn in its Series F round from Lone Pine Capital, Alkeon Capital, and TCV, among others, at a valuation of $7.5 Bn. Razorpay entered the unicorn club in 2020 after bagging $100 Mn from Singapore’s GIC and Sequoia Capital, among others.

Razorpay’s standalone net profit widened 20% to INR 7.3 Cr in the financial year 2021-22 (FY22) from INR 6.1 Cr in FY21 due to a strong growth in its business.

The startup’s revenue from operations surged 76% to INR 1,481 Cr from INR 841.2 Cr in FY21.

A growing trend among major players in the Indian startup scene is the consideration of “reverse flipping” — relocating their headquarters back to India. Triggered by PhonePe’s shift, which paid INR 8,000 Cr to shift domicile, for a potential public listing, this move has encountered challenges.

As per an Inc42 survey published earlier this year, over 77% venture capital funds and 65% angels said that after the SVB collapse, founders are rethinking overseas registration, with tax implications deterring a return to India for startups registered in the US.

The post Reverse Flip: Razorpay’s Cross-Country Merger May Incur $250-300 Mn Tax appeared first on Inc42 Media.

The Indian online real money gaming industry is used to being in the eye of the storm. From periodic bans by various state governments to uproar from a section of society, the homegrown online gaming industry has somehow always endured and made its way through choppy waters.

While the regulatory shenanigans are nothing new, what came as a bolt from the blue was the GST Council’s decision to impose 28% Goods and Services Tax (GST) on the sector, sending all stakeholders in a tizzy.

The move thrusted the entire online real money gaming ecosystem in a state of flux as the focus suddenly turned from fearing adverse regulations to a long bill of tax evasion. What followed was a bloodbath that left many jobless and brought down the shutters on many gaming companies.

The aftermath was largely in line with what industry stakeholders predicted as the looming taxation challenges and a flurry of notices took the sheen away from a sector that once basked in glory. And all of this happened in a span of a few months, courtesy a single order from the GST Council.

The Council, in July this year, announced its decision to impose a 28% GST on the amount being paid at the entry level for online gaming. In August, amendments to the Central Goods and Services Tax (Amendment) Bill, 2023 and the Integrated Goods and Services Tax (Amendment) Bill, 2023 were approved by the GST Council. Later, the Parliament approved these amendments.

Finally, real money gaming platforms entered the new tax regime on October 1. While some states are yet to amend the GST law, they would apply the amendment retrospectively from October 1.

In line with the predictions, the increase in taxation seems to have an immediate impact on the online real money gaming industry and startups in the sector are reeling due to squeezed margins, decline in user spending, and no clarity about the future path.

Poker Bears The Brunt – Most Impacted Sub-Segment 

While at least a full quarter is needed to understand the complete impact of the changes in GST law, its effects are visible in the revenue margins and user spending of gaming platforms within a month of the changes coming into effect, according to industry stakeholders.

Platforms that offer online poker games are the most impacted by the changes in taxation, as per industry sources. The reason behind this is that the platform fee for poker used to be lower, at around 3-4%, as against 10%-15% for rummy and above 15% for many fantasy gaming leagues. 

While poker platforms are absorbing some of the impact of the increase in GST rate for now, they have started passing on some of the increase to the users by charging 4%-5% higher platform fee. As a result, many of the platforms have not only seen a 10%-20% decline in their user base but also a 20% fall in their user margins.

It must be noted that online poker platform Spartan Poker  fired 125 employees or 40% of its total workforce after the new tax regime kicked in. It was not immediately clear which departments were impacted by the company’s retrenchment move. 

Rummy is the second most affected segment in real money gaming, as per the industry sources. 

Meanwhile, the ongoing men’s cricket World Cup seems to be acting as a shield for fantasy gaming platforms, as they have not seen any impact of the new tax regime so far. However, it seems it is only a matter of time before these platforms too begin to feel the heat. For now, the prominent fantasy platforms, many of which are well funded, are absorbing the increase in cost, but this is, of course, not a long-term solution.

Disappearing Offers & Bonuses Impact User Sentiment

An official of an online rummy platform pointed out that the current practice of absorbing the increase in costs is not a sustainable solution.

The decision to tax online real money gaming platforms at 28% on full face value will hit the bottom line of all the players in the industry, no matter how well funded they are, he explained. He added that the impact of the new tax regime is already visible as not only has the number of users depositing money on these platforms decreased but also the quantum of deposits for the platform he works with.

To recap, under the new regulations, a flat 28% tax applies to the total value of bets for online games, irrespective of whether they are games of skill or chance. Previously, a lower 18% GST was levied, specifically on the platform fee for skill-based games. For instance, with a platform fee of 20% on a INR 100 bet, the GST under the previous tax regime would be INR 3.6 (18% of INR 20), which has now shot up to INR 28.

“There is a percentage of users out there who are just not happy with this new regime. If we are subsidising this 28% tax, the kind of offers and bonuses that the industry used to provide players cannot be provided any more. Users are not happy with this and there is a clear drop there,” the aforementioned official said.

Revenue Estimates Revised Downwards

The real money gaming sector has been a key revenue driver for the overall Indian gaming industry. However, as the new GST regime begins showing its impact on the online real money gaming sector, the overall growth projections for the Indian gaming industry are being revised downwards.

In a recent report, Lumikai, a gaming-focused venture capital fund, which last year said the Indian gaming industry would have a revenue of $8.6 Bn by the end of FY27, said it now expects this number to be at $7.5 Bn by the end of FY28.

The Indian online real money gaming industry, which generated a revenue of $3.1 Bn in FY23 and grew at a robust 33% during the year, is likely to see a sharp slowdown in growth as recent taxation policies are anticipated to impede further expansion, it said.

“Growth in RMG over the coming years is expected to be muted due to recent tax policies and industry consolidation,” the report added. 

Inc42 earlier reported that a consolidation wave in the online gaming industry is expected due to the new tax regime. However, the landscape has shifted, with major industry players now facing show-cause notices for alleged tax evasions. 

Such has been the impact of the move that Dream Sports, which runs fantasy gaming platform Dream11 and is among the few profitable players in the segment, is also considering diversifying into sectors like sports commerce, content, fitness, among others. 

Additionally, there has been no update on the regulatory front so far despite the industry filing applications for self-regulatory organisations (SROs) in July. As such, the future of the sector seems to be hanging in balance.

The post Doom And Gloom In Real Money Gaming Industry As New GST Regime Begins To Show Effects appeared first on Inc42 Media.

The Ministry of Information & Broadcasting (MIB) has approved a new digital advertising policy, under which websites with a minimum of 2.5 lakh unique users per month, along with other digital platforms like OTT and podcasts, can now be enlisted for publicity campaigns.

In a statement, the MIB said that the new policy will help the Central Bureau of Communication (CBC) reach a wider audience by leveraging the increasing digital media consumption in the country.

Besides rationalising the process of empanelling websites, the CBC now for the first time will also be able to channelise its public service campaign messages through mobile applications, the statement said.

With this, the government is looking to tap into the growing base of mobile users in the country. As per a report, in 2022, Indian users downloaded over 28 Bn apps on their phones, accounting for 5% of the 625 Bn global downloads, according to a report by analytics firm Data.ai, formerly known as App Annie.

The CBC operates under the MIB and is responsible for creating awareness and disseminating information about various programmes, schemes, and policies of the Government of India.

The ‘Digital Advertisement Policy, 2023’ also has a competitive bidding mechanism for rate discovery to enhance transparency and efficiency. Rates determined through this process will remain valid for three years and will be applicable to all eligible agencies.

The huge subscriber base in the digital universe, coupled with technology enabled messaging options through digital advertisements, will facilitate effective delivery of citizen centric messages in a targeted manner, resulting in cost efficiencies in public oriented campaigns, the statement added.

In recent years, the way audiences consume media has witnessed a significant shift towards the digital space, the MIB said. The Centre’s ‘Digital India’ programme has led to a huge growth in the number of people in the country who are now connected to the internet, social and digital media platforms.

The new policy was formulated after discussions with multiple stakeholders, the government said.

With the rise in internet penetration and improving accessibility of smartphones, digital consumption in the country has gone through the roof. India currently has 759 Mn internet users and this number is expected to rise to 900 Mn by 2025. As per a report, Indians spend 194 minutes on social media, 44 minutes on OTT, and 46 minutes online gaming daily.

The government is targeting to reach this increasing internet-savvy population with the new advertising policy.

The post Government Unveils Digital Advertisement Policy To Reach Wider Audience appeared first on Inc42 Media.

OpenAI, the leader in AI innovation, continues to revolutionise the tech landscape with each new update. Following its recent high-impact keynote event in San Francisco, the tech world finds itself in a state of both anticipation and apprehension.

During OpenAI’s DevDay organised on November 6, the Sam Altman-led company unveiled a series of new updates. It released GPT-4 Turbo, boasting a remarkable context length increase to 1,28,000 markers, 16 times that of GPT-4. New speech synthesis and image processing features were also introduced. Moreover, the company initiated copyright protection for API and ChatGPT Enterprise Edition for users, committing to customer support in legal matters.

Moreover, an Assistants API, offering session thread support, code interpretation, and a sandbox environment was also introduced during the event. The ChatGPT product now includes GPT-4 Turbo, streamlining interactions by removing the model selector and allowing web browsing, code execution, data analysis, and image processing.

Furthermore, OpenAI also said that over 100 Mn users are now using their tools weekly. Additionally, the company revealed that their API has attracted over 2 Mn developers who are actively building innovative solutions and applications using OpenAI’s technology. The numbers underscore the impact OpenAI has had on today’s tech landscape.

However, post the event, numerous industry experts raised concerns globally, expressing apprehensions that the new updates could spell trouble for smaller AI startups, potentially jeopardising their competitive standing in the field.

The updates introduced by OpenAI may pose challenges for smaller companies in the AI sector, making it imperative for them to constantly adapt or innovate to stay relevant.

Now, before we dive any deeper into discussing opportunities and threats, here is a quick sneak peek into OpenAi’s key updates.

GPT-4 Turbo

OpenAI introduced the GPT-4 Turbo during its developer event, offering an enhanced version of the popular GPT-4 model. This release comes in two variants, one for text analysis and another for understanding both text and images.

The pricing structure for the text-only model of GPT-4 Turbo is set at $0.01 for every 1,000 input tokens and $0.03 for every 1,000 output tokens. Additionally, for image processing, GPT-4 Turbo is available at $0.00765 per 1080×1080 pixel image.

While these developments are impressive, industry experts see OpenAI becoming a threat to smaller AI startups. This is because the pricing structure and capabilities of GPT-4 Turbo have the potential to outdo anyone in the competition.

The larger context window and updated knowledge cut-off give OpenAI a significant advantage, potentially making it harder for smaller players to carve out their space in the AI market.

Text-to-Speech APIs

OpenAI introduced an Audio API for text-to-speech conversion, offering six preset voices and two generative AI model options. Pricing starts at $0.015 per 1,000 input characters. This feature promises more natural and accessible app interactions, with applications spanning language learning and voice assistance.

Unlike some tools, OpenAI doesn’t provide direct emotional control over the generated audio, as factors like capitalisation and grammar can influence the voice’s emotional tone. However, results vary based on internal tests, the company clarified. According to industry experts, this may impact many startups that are working in the Speech-AI domain.

GPTs For Users And A New GPT Store

OpenAI has unveiled GPTs, enabling users to create their own versions of ChatGPT. “GPTs are tailored versions of ChatGPT for a specific purpose,” OpenAI CEO Sam Altman said at the OpenAI DevDay event in San Francisco.

Beyond personal use, there’s a plan to introduce the GPT Store, allowing users to publish their creations and potentially earn income.

“We designed GPTs so more people can build with us. Involving the community is critical to our mission of building a safe AGI that benefits humanity. It allows everyone to see a wide and varied range of useful GPTs and get a more concrete sense of what’s ahead,” OpenAI said in a blog post.

Assistants API

During OpenAI’s inaugural developer day event, the company introduced the Assistants API, enabling developers to create their own “agent-like experiences”.

OpenAI’s Assistants API will enable customers to construct customised “assistants” with precise instructions, the ability to access external information, and the capacity to use OpenAI’s generative AI models and tools for various tasks.

The potential applications are wide-ranging, from creating natural language-based data analysis applications to developing coding assistants.

OpenAI has launched the beta version of its Assistants API, which is now accessible to all developers. Usage of the API will incur charges based on the selected model’s per-token rates, with “tokens” representing individual components of raw text.

Why Startups And VCs Are Seeing Troubles Brewing For Startups

OpenAI’s introduction of smaller, specialised GPT models poses a threat to small AI startups that have built products by wrapping OpenAI’s API, according to many experts. These startups may find themselves outpaced and overshadowed by OpenAI’s similar offerings.

Moreover, the growing use of OpenAI’s GPTs may divert search traffic from Google and niche websites for specific queries, potentially impacting these platforms’ user engagement and revenue.

OpenAI’s plans to launch a GPT marketplace and a feature to create a GPT are expected to further intensify the above trends. This development could empower users to access and deploy GPTs with even greater ease.

Startups and venture capitalists speculate about changes in the SaaS landscape as well. They anticipate more cost-effective challenges emerging in various verticals, potentially reducing organisations’ reliance on SaaS for certain functions.

While some foresee the demise of numerous AI startups, others view OpenAI’s developments as an opportunity to unlock new possibilities for entrepreneurs. These tools could significantly lower the barriers to entry, making it more affordable to launch businesses that leverage AI.

Who Is Set To Gain?

OpenAI’s advancements are indeed poised to reshape the AI landscape. While they present a formidable challenge to foundational model providers, they are likely to catalyse the proliferation of consumer-based AI products, according to industry experts.

OpenAI is gradually becoming a foundational platform akin to Android, Apple, or web browsers. Startups focussing on consumer products seem poised to thrive, benefiting from OpenAI’s robust technology stacks. In contrast, those building foundational models, such as an API for image-to-text recognition, may face risk, as OpenAI’s advancements render their offerings less competitive. However, consumer-facing products like a PDF-scanning app appear less vulnerable, indicating a potentially prosperous future for consumer-centric AI innovations.

“OpenAI is a threat to other companies building similar stuff. That is because they have a superior product and most others will not have access to the resources and databases that OpenAI has,” Swapnil Vats, founder of AI-based femtech platform SocialBoat said.

As per an Inc42 report, “India’s Generative AI Startup Landscape, 2023”, the generative AI market in India is poised to see a substantial increase from $1.1 Bn in 2023 to over $17 Bn by 2030, growing at a CAGR of 48%.

India currently boasts over 70 generative AI startups. These startups have collectively secured more than $440 Mn in funding between 2019 and the third quarter of 2023.

The post OpenAI Levels Up; Should Indian AI Startups Be Worried? appeared first on Inc42 Media.

Tata Group has completed the acquisition of Wistron’s manufacturing facility in Karnataka, marking its foray into assembling Apple iPhones.

Tata Electronics, a Tata Group subsidiary, has acquired 100% equity stake of Wistron InfoComm Manufacturing (India) through a Share Purchase Agreement with SMS InfoComm (Singapore) and Wistron Hong Kong.

“Signing of the Share Purchase Agreement to acquire Wistron InfoComm Manufacturing (India) Private Limited is an important milestone for us. The EMS (Electronic Manufacturing Services) industry in India is poised for growth given the strong support from the Government, and we are happy to be participating in this growth story. We are focused on strengthening our capabilities in the manufacturing sector,” Randhir Thakur, CEO and managing director of Tata Electronics, said.

The next step involves seeking the required approvals for the deal to move forward.

With this deal, Tata Group becomes the first Indian company to enter iPhone production. Last month, it was reported that Tata Electronics was set to acquire Wistron Corp’s iPhone manufacturing unit.

However, this is not the first association of the Tata Group with iPhone production, as it already manufactures the metal body at its Tamil Nadu plant.

“PM @narendramodi Ji’s visionary PLI scheme has already propelled India into becoming a trusted & major hub for smartphone manufacturing and exports. Now within just two and a half years, @TataCompanies will now start making iPhones from India for domestic and global markets from India,” Minister of State for Electronics and Information Technology Rajeev Chandrasekhar said.

The minister also assured full support to boost the growth of global Indian electronic companies, which “will in turn drive global electronic brands to lean towards India as one of their trusted manufacturing and talent partners”.

This comes at a time when iPhone maker Apple is planning to ramp up production by more than five times the current levels to around $40 Bn by 2027. During the last financial year, Apple manufactured products worth more than $7 Bn, per government officials.

Analysts predict that Apple’s manufacturing partners, including Foxconn, Pegatron, and the Tata Group, may start production of the iPhone 17 in India in the latter half of 2024.

As per a recent study, Apple is poised to conclude 2023 with a 7% market share in India, a market predominantly dominated by Android smartphones.”

The post Tata Electronics Completes 100% Stake Acquisition Of Wistron India Marking Its iPhone Production Foray appeared first on Inc42 Media.

In the burgeoning eyewear market of India, organised players such as Lenskart, Fastrack, and Titan Eye Plus have been gaining ground on the back of a diverse range of stylish and high-quality eyewear solutions. Despite this, a stark visual disparity persists throughout the country.

A significant portion of India’s population, particularly those from low-income communities and from Tier III parts of the country and beyond, have vision impairment and hardly any access to affordable eyewear. It is worth noting that an estimated 270 Mn people in the country face vision issues, with up to 40% lacking access to a basic pair of spectacles.

Interestingly, Ghaziabad-based ClearDekho has been addressing this issue since 2017. It offers affordable glasses and eye check programmes via its stores in small towns and cities to address the scarcity of eye care facilities and essential vision care services.

The Vision Behind ClearDekho

Before starting ClearDekho, founder and CEO Shivi Singh worked with VisionSpring, a programme aimed at delivering affordable and high-quality eyewear services across Southeast Asian markets, including India.

During his tenure with VisionSpring, where he managed the supply side and sourcing for Warby Parker’s social initiative, he recognised that low-income families were not getting access to affordable eyewear.

“At the time, LensKart was doing very well and I was inspired by their growth and their disruption in Tier-I cities. Then I recognised a significant gap in the eyewear market at Tier III & IV levels. That’s when ClearDekho was born, and the idea behind its incorporation was to standardise eyewear accessibility for consumers in smaller towns and cities, providing a value-for-money experience,” Singh said.

ClearDekho started its journey focussing on online presence, and as it aspired to offer a cost-effective eyewear experience, it realised the importance of reliable eye testing and also looked at offline expansion in 2018. Due to financial constraints, they had to engage in frugal marketing activities.

Navigating The North

The eyewear startup, which commenced its journey from Ghaziabad, has been focussed on the North Indian market since inception, particularly Uttar Pradesh (UP).

This is because the state (UP) lags in the number of total optical stores, Singh said. Recognising the untapped potential in the state, the founder has solidified ClearDekho’s presence across Ghaziabad and Noida, and smaller towns like Meerut, Hardoi, and Moradabad where larger brands are not present.

Currently, ClearDekho operates in 100 stores across India under the franchise-owned company company-operated (FOCO) model. Of these, a total of 50 stores are in UP and Delhi NCR region.

ClearDekho also has its presence in northern states, including Punjab, Haryana, Madhya Pradesh, and Rajasthan. It is now looking to establish its footprint in states like Bihar, Chhattisgarh, West Bengal, and Assam.

“This is again a market where you will not find many of the eyewear brands. We look at small pockets and small towns to deliver eyewear experience and leverage the first-mover advantage,” Singh said.

The key USP of ClearDekho lies in its affordable price range for eyeglasses and sunglasses, ranging from INR 200 to INR600. However, Singh emphasises that pricing is not the sole dimension, as the business model focusses on delivering high-quality products in the convenient vicinity of small towns.

Singh gave an example of the Saharanpur district, which has a dearth of eyewear brands. “In a district where over 5 Lakh people lacked access to optical stores, ClearDekho became the first to deliver eyewear services,” he added.

Balancing Margins, Quality & Profitability

Speaking with Inc42, Singh emphasised that ClearDekho never compromised on profit margins while offering budget-friendly glasses.

Despite the high cost typically associated with eyewear, ClearDekho aimed to provide a quality product priced at 500 rupees.

For Singh, the focus isn’t solely on maximising profit margins; the primary objective is to encourage widespread adoption of the product, thereby organically expanding the user base.

With a staggering 600 Mn Indians requiring eyeglasses, the fact that 50% of this demographic lacks access to affordable eyeglasses highlights the enormous opportunity for ClearDekho.

Additionally, there is a growing demand in the kids’ eyewear and protective eyewear segments. Currently, protective eyewear contributes 10% to the total eyewear business in India, Singh added.

In FY22, ClearDekho reported an operating revenue of INR 7.5 Cr, marking a 1.7X year-on-year increase from INR 4.4 Cr in FY21, according to Tofler. However, the company incurred a loss of INR 6.4 Cr in FY22, compared to INR 3.4 Cr in FY21. The financial results for FY23 are yet to be disclosed.

Meanwhile, Singh is confident that the company will achieve profitability in the next two years.

The eyewear market in India is projected to reach $5.58 Bn in 2023, with prescription glasses dominating at an expected $2.52 Bn. Notably, 94% of sales are anticipated in the non-luxury category, indicating the country’s increasing demand for affordable yet stylish eyewear, including frames and prescription lenses. This presents significant tailwinds for startups like ClearDekho going ahead.

The post How Eyewear Brand ClearDekho Is Becoming The Lenskart For Tier III & IV Indian Cities appeared first on Inc42 Media.

The Madras High Court, on Thursday (November 09), overturned the Tamil Nadu government’s ban on online rummy and poker. The court said that while the ban can be applied for games of chance, it should not apply to rummy and poker, which are considered games of skill.

The verdict came in response to a legal challenge brought by numerous gaming companies before the Madras High Court (HC), contesting the Tamil Nadu Prohibition of Online Gaming and Regulation of Online Games Act, 2022.

The All India Gaming Federation (AIGF), Gameskraft, Games24x7, Junglee Rummy, and A23 were among the petitioners. They cited a Supreme Court judgement that recognises rummy as a game of skill to validate their appeal.

The HC ruled in favour of gaming companies, saying that while the state has the authority to oversee online games, it cannot enforce a complete prohibition.

The Tamil Nadu Prohibition of Online Gaming and Regulation of Online Games Act, 2022, which was notified in April last year, categorised engaging in or providing games such as poker or rummy for real money as prosecutable offences. In response, gaming companies contended that the Tamil Nadu government should only have the authority to regulate online games, rather than impose an outright ban.

Commenting on the court verdict, AIGF CEO Roland Landers said, “By reiterating that online rummy and online poker are games of skill, this decision by the Madras High Court is yet another validation of what the online skill gaming industry has always maintained in relation to online skill games being a legitimate business activity protected under the Constitution of India. This also adds to a long line of judgments from the Supreme Court, Karnataka, Kerala and Madras High Courts upholding the legitimacy of such games.”

The Tamil Nadu government had earlier told the Madras HC that addiction to online gaming was affecting the families and it was necessary to ban all forms of online games.

Online rummy and poker companies have immediately resumed offering services in Tamil Nadu, as per sources.

While the full copy of the judgement is awaited, the order is a reiteration of the well-established principle and several recent judgement by various HCs which said that games of skill, whether played online or offline and with stakes or otherwise, cannot be banned by states.

The Tamil Nadu government has the option to file an appeal in the Supreme Court against the HC’s judgement.

The post Madras High Court Overrules Tamil Nadu’s Ban On Online Rummy, Poker appeared first on Inc42 Media.

InCred Holdings Limited, the holding company of fintech startup InCred Financial Services Ltd, has secured commitments worth INR 500 Cr ($60 Mn) in its Series D Funding round. 

The startup said it has received interest from various investors, including a global private equity fund, corporate treasuries, family offices, and UHNIs for the funding round, which will turn it into a unicorn.

The fresh capital will be strategically deployed across InCred’s core business verticals – consumer loans, student loans, and MSME lending.

“This funding commitment marks a significant milestone in our journey and takes us into the ranks of unicorns. With our ‘Risk First’ approach, cutting-edge technology, and class-leading management team, we are well positioned for sustained growth in the business over the years to come,” Bhupinder Singh, founder and group CEO of InCred, said. 

“Our goal is to make InCred a central part of every Indian family’s financial aspirations, in line with the powerful growth seen by the Indian economy, and to eventually list the business unlocking significant value for all our shareholders,” Singh added.

InCred Finance claims to have built a INR 7,500 Cr loan book within six years, and a growth over 50% CAGR over the last three years. 

On completion of the funding round, InCred will become only the second Indian startup to join the unicorn club in 2023. Zepto is the only Indian startup to join the coveted club this year. 

(The story will be updated soon.)

The post InCred Closing $60 Mn Series D Round, To Be Second Unicorn Of 2023 appeared first on Inc42 Media.

Accel-backed SaaS startup OSlash is shutting down operations by the end of this month. The startup will stop accepting new OSlash registrations effective immediately.

Founded in 2020 by Ankit Pansari and Shoaib Khan, OSlash offered an enterprise productivity tool to enable employees to access information across an organisation using everyday keywords. Naming URLs and files – a practice common in Linkedin, Google, and Meta – creates a single source of truth for everything important, helping teams collaborate seamlessly.

The Bengaluru and San-Fransisco-based startup started with OSlash shortcuts which did not find commercial success, the startup said in a blogpost.

“After a three-year journey, we’re wrapping up operations at OSlash. As a token of our gratitude for your love, we’re making OSlash shortcuts open source and free forever,” the SaaS startup said on its website.

For existing OSlash users, it is releasing an open-source extension where the users will be able to download and export all of their existing shortcuts. The company has given a timeline of 29 November for exporting shortcuts.

In March 2022, OSlash raised $5 Mn at a valuation of $50 Mn in a post-seed funding round from more Kunal Shah (CEO, CRED), Christian Oestlien (VP Product, YouTube), Akshay Kothari (COO, Notion), and Cristina Cordova (partner, First Round), along with other investors from the industry.

Before that funding round, OSlash had raised $2.5 Mn from Accel Partners and multiple angel investors in September 2021.

“While painful, sunsetting OSlash will allow us to return capital to our investors with dignity and humility. More importantly, we will channel lessons learned into our next adventure,” the startup said.

This comes when the Indian SaaS market is projected to become a $50 Bn market opportunity by 2030, quadrupling its current size. Indian SaaS startups have raised more than $899 Mn so far this year, as per Inc42 data.

Amid macroeconomic pressure and funding crunch, the year 2023 has seen many startups shutting their shops or closing down a segment. For example, CarTrade Technologies recently shut down the auto sales division of its acquired business – OLX or Sobek Auto India Pvt. Ltd. Short video platform Tiki, vernacular content platform Bluepad, coworking space provider Friyey, crypto startup Flint Labs are among some startups which winded down their business this year.

The post Accel-Backed SaaS Startup OSlash To Shut Down By End Of This Month appeared first on Inc42 Media.

Telecom giant Jio has introduced an innovative prepaid plan, the Jio-Swiggy Festive prepaid plan, which will offer Jio customers a free three-month subscription to Swiggy One Lite when they recharge their accounts.

“With this recharge, Jio prepaid customers can enjoy seamless connectivity and have great time with friends and family using Swiggy’s on-demand free delivery benefits across food, grocery and other categories,” Jio said in a statement.

Swiggy launched Swiggy One Lite, a cheaper version of its subscription plan Swiggy One, last month. Swiggy One Lite offers benefits, including free deliveries, exclusive offers, and discounts at a launch price of INR 99 for three months.

Jio’s INR 866 plan offers customers a daily data allowance of 2 GB, unlimited voice calls, and an extended 84-day period of 5G data usage.

Using the Swiggy One Lite subscription, customers can avail up to 10 complimentary home deliveries (for food orders exceeding INR 149) and 10 free Instamart deliveries (for orders surpassing INR 199). Furthermore, customers will not be subjected to surge fees for these deliveries.

While partnerships between telecom providers and content platforms are quite common, this collaboration between a telecom company and a food delivery service sets a new precedent.

This new partnership within the broader Swiggy One program is expected to enable the foodtech giant to enhance its platform’s monetisation, especially as Swiggy faces competition from Zomato in the Indian food delivery market.

Last week, Zomato reported its second consecutive profitable quarter, posting a profit after tax of INR 36 Cr. While Swiggy is yet to report its financial statements for FY23, it reported a loss of INR 3,628.9 Cr in FY22.

Swiggy CEO Sriharsha Majety, earlier this year, claimed that the company’s food delivery business achieved profitability (without factoring ESOP costs) as of March 2023.

Amid all these, Swiggy is reportedly eyeing a public listing next year.

The post In An Industry First Move, Jio Bundles Swiggy Lite Subscription With Recharge Plan appeared first on Inc42 Media.

Mumbai-based quick commerce unicorn Zepto raised an additional sum of $31.25 Mn in a Series E funding round from Goodwater Capital, Nexus Venture Partners.

Additionally, angel investors such as Oliver and Lish Jung, and Mangum II LLC also participated in the round, according to the company’s filings with Singapore’s Accounting and Corporate Regulatory Authority (ACRA).

In August, the quick commerce unicorn Zepto raised $200 Mn in its Series E funding round at a valuation of $1.4 Bn valuation, becoming the first and only unicorn of 2023. The startup kept its plans for the newly raised funds under wraps, yet it disclosed its intention to pursue an initial public offering by 2025.

Founded in 2021 by Aadit Palicha and Kaivalya Vohora, Zepto seized the opportunity created by the increased demand for rapid ecommerce delivery during the Covid-19 pandemic. The startup gained attention when it secured $60 Mn in funding in November 2021, with investors including Glade Brook Capital, Nexus, and Y Combinator.

Zepto competes against the likes of Swiggy’s Instamart, Zomato-owned Blinkit, and Reliance-backed Dunzo.

According to industry experts, Zepto may need to raise funds approximately every 12-15 months to accelerate its revenue growth and remain competitive with players like Zomato’s Binkit, and Swiggy’s Instamart, as they benefit from a similar revenue mix advantage.

The recently turned unicorn saw its net loss surge 3.35X during the year ended March 31, 2023. The quick commerce startup reported a net loss of INR 1,272.4 Cr in the financial year 2022-23 (FY23), an increase of 226% from INR 390.3 Cr in the last financial year, as per the company’s claims.

Its revenue from operations ballooned 14.3X to INR 2,024.3 Cr in FY23 from INR 140.7 Cr in FY22. Total income, including other income, jumped to INR 2,077.6 Cr from INR 142.3 Cr in the last fiscal year.

Zepto is still experiencing increasing losses despite revenue growth which indicates its profit margins will not increase unless a substantial portion of the dark stores becomes profitable or it diversifies into other business verticals.

The post Quick Commerce Unicorn Zepto Secures Another $31 Mn In Series E Round appeared first on Inc42 Media.

Logistics unicorn Xpressbees has secured $80 Mn from Teachers’ Venture Growth (TVG), the late-stage venture and growth investment arm of the Ontario Teachers’ Pension Plan. This marks Ontario Teachers’ first investment in India from the TVG arm.

The logistics major will utilise the funding to help drive further growth for the Xpressbees platform. This announcement comes after the Competition Commission of India (CCI) gave its nod to the Ontario Teachers’ Fund’s proposal last month to acquire a minority stake in the logistics giant.

Amitava Saha, founder and CEO of Xpressbees said, “We believe the logistics sector is at the cusp of technological disruption and this is the right time to expand service offerings to address the growing needs of businesses and consumers. We are elated to partner with the TVG team who bring rich experience and a vast global network which will help  as we scale our end-to-end platform to cater to the next level.”

Teachers’ Venture Growth (TVG) focuses on late-stage venture and growth equity investments in tech companies globally. TVG is part of the Ontario Teachers’ Pension Plan Board.

Kelvin Yu, senior managing director, Teachers’ Venture Growth, said “Xpressbees aligns with our TVG thesis for Asia, of partnering with exceptional management teams looking to leverage technology to accelerate growth in an attractive end market that has a long runway for innovation and development. India is a critical market for our TVG Asia strategy, where we look to lead or co-lead rounds, and Xpressbees is a culmination of one such proprietary opportunity.”

Xpressbees, founded in 2015 after being spun off from ecommerce giant FirstCry, delivers goods to over 20K pin codes in the country. The logistics startup entered the coveted unicorn club in January 2022 after raising $300 Mn from Blackstone Growth, TPG Growth, among others.

The startup offers supply chain solutions, including B2B, B2C express delivery service, cross-border logistics, and warehousing services, to ecommerce players.

Xpressbees reported a net loss of INR 180.4 Cr in FY23, an increase of 566% from INR 27.1 Cr in FY22. The Supam Maheswari-led startup’s operating revenue grew 33% to INR 2,531.5 Cr during the year under review from INR 1,904.4 Cr in FY22.

Meanwhile, Indian startups raised about $8.3 Bn from January to October 2023, nearly matching the $8.7 Bn raised during the same period in 2020, as per Inc42 analysis.

The post Logistics Unicorn Xpressbees Secures $80 Mn Funding From Teachers’ Venture Growth appeared first on Inc42 Media.

Troubled edtech giant BYJU’S is reportedly in advanced negotiations to sell its US-based children’s digital reading platform Epic for an estimated $400 Mn to private equity fund Joffre Capital.

BYJU’S is considering this sale as a means to alleviate financial challenges, Bloomberg reported.

The potential sale of Epic could provide the edtech company with the necessary funds to address its contested $1.2 Bn term loan, according to the report. Additionally, other interested parties, such as Duolingo, which specialises in creation and development of mobile learning platforms, have also shown interest in acquiring Epic.

BYJU’S acquired Epic in a $500 Mn deal in May 2022.

Moelis & Co. is overseeing the sale process for Epic, and a potential agreement could be reached by the end of this month. However, no final decision has been reached regarding the deal, and BYJU’S may choose to retain the assets for an extended period, the report said.

It was reported earlier that BYJU’S has put two of its subsidiaries, Epic and Great Learning, on sale and is looking to raise between $800 Mn and $1 Bn from it. BYJU’S was expecting to raise $400-$500 Mn from the sale of Epic.

Inc42 has reached out to BYJU’S and will update the copy on receiving a response.

BYJU’S is reportedly also exploring the sale of Aakash Educational Services Limited to tide over the financial challenges. The edtech company has engaged in discussions with private equity firms, including Bain Capital and KKR, regarding the potential sale of Aakash.

Furthermore, private equity firms like Carlyle have also shown interest in supporting Aakash Chaudhry, the former CEO of Aakash, and his family in their efforts to repurchase the company from Think & Learn Private Limited (parent of BYJU’S).

BYJU’S is involved in a confrontation with its lenders over the repayment of its $1.2 Bn Term Loan. The edtech major has been fighting a legal battle with its lenders over the repayment of its term loan.

Meanwhile, after multiple delays in releasing its financial statements for the financial year 2021-22, BYJU’S recently released some numbers for its core operations.

BYJU’S said excluding all acquisitions, Think and Learn Private Ltd (TLPL) – the parent entity of BYJU’S – reported an EBITDA loss of INR 2,253 Cr in FY22 as against an EBITDA loss of INR 2,406 Cr in FY21.

Cofounder and chief executive officer (CEO) Byju Raveendran said BYJU’S will ‘soon’ commence the audit process for FY23. In an internal mail sent to employees and seen by Inc42, Raveendran said the company expects the audit process for FY23 to complete in the coming months.

The post BYJU’S In Advanced Discussions To Sell Epic For $400 Mn To PE Firm Joffre appeared first on Inc42 Media.

Pune-based gaming studio SuperGaming is set to launch the Indian-made battle royale game, Indus, to a global audience through an integration with the popular multiplayer game, Fortnite.

With this integration, players will be able to explore Indus’ gameplay, map, modes, and a plethora of additional features, in Fortnite for PC and macOS.

“This will allow us to test Indus’ gameplay with external audiences faster and give more gamers a chance to experience Indo-Futurism through their game of choice — Fortnite,” Christelle D’cruz, cofounder of SuperGaming, said.

While Indus is gearing up for its mobile debut with a closed beta during the festive season, the Indus experience within Fortnite, especially designed for PC and macOS in Fortnite Creator Mode, will be released on a separate date.

Furthermore, players will have the opportunity to express their opinions on different facets of the game and influence the course of SuperGaming’s development for its upcoming title.

“At SuperGaming we firmly believe that India’s culture and talent demands the biggest possible stage for the world to see and play in. With Fortnite having an estimated 220 Mn monthly players globally, there’s no better way to bring Indus and Indo-Futurism to the world,” said Roby John, cofounder of SuperGaming.

Set up in 2017 by Roby John, Navneet Waraich, Sanket Nadhani, Christelle D’cruz, and Sreejit J, SuperGaming is building mobile games such as MaskGun, Silly Royale, and Tower Conquest. It is also building its own gaming engine called SuperPlatform for running hyperscale, real-time multiplayer games.

SuperGaming, backed by investors including Bandai Namco, Akatsuki Entertainment Technology Fund, Skycatcher, BAce Capital, and Dream Incubator, unveiled Indus in January 2022. The company has plans to release the game on various platforms, including mobile, consoles, and PC.

For Indus, the startup is focussing on creating a futuristic society against the backdrop of Indian civilisation, and art and culture to offer gamers a fresh yet relatable and immersive experience.

Recently, SuperGaming said its battle royale game Indus surpassed the 7 Mn pre-registrations mark.

This comes at a time when the Indian gaming industry reached 568 Mn gamers in FY23, with 25 percent of them being paying users, as per Lumikai’s report. The number of gamers in India increased by 12 percent compared to the previous year, and the number of paying users experienced even stronger growth at 17 percent, the report added. These statistics clearly indicate that the Indian gaming landscape is maturing and evolving beyond the realm of casual games.

The post SuperGaming Takes Made-In-India Battle Royale ‘Indus’ To Global Stage With Fortnite Integration appeared first on Inc42 Media.

Meta has unveiled a new distribution model for Instant Games (IG) which enables developers to release their games directly to Facebook users, regardless of their games’ developmental stages.

“We are announcing that we will be creating a path for developers of Instant Games on Facebook to launch their games directly to people on Facebook, even if the game is in the early stages of development and historically would have been blocked by the Quality Guidelines,” Meta said in a blog post.

The tech giant also said that it plans to transform how games are distributed across its organic discovery channels.

Under this new process, the tech giant is introducing the Play Lab tier, offering an avenue for games that may not have previously met Quality Review standards to be launched on the platform. This enables them to garner users, gather feedback, and conduct experimentation.

Simultaneously, a new distribution tier, Play Tab, is being introduced for superior-quality and high-performing games. Meta said that instant games in the Play Tab tier will be featured across their organic discovery platforms and made available for promotional placements within editorial units.

Instant Games in the Play Lab tier will find their home on the Facebook Play platform but won’t be incorporated into Meta’s organic discovery or editorial spaces. However, Play Lab IGs will still have the opportunity to establish a game page and expand their player base through methods such as paid user acquisition, social discovery, and community building.

“We are excited about adopting a model that will help gamers on Facebook more easily discover and engage with the highest-quality games on our platform, while still allowing for a larger variety of games to be hosted on our platform and grow via social and paid discovery methods. Overall, we believe that these changes will create more opportunity for developer partners as play on Facebook continues to grow,” Meta said.

India’s gaming industry has witnessed a meteoric rise, boasting 568 Mn gamers in FY23. Yet, despite this burgeoning consumer base, the nation trails in game development globally. The reasons are multifaceted, encompassing inadequate infrastructure, constrained investment, and a limited talent reservoir.

Nonetheless, a cohort of developers is navigating these hurdles. Their primary struggle now pivots to visibility. An initiative aimed at these developers, particularly those in the nascent stages who lack the resources for marketing and customer acquisition, could prove pivotal.

Such support would not only enhance their exposure but also aid in cultivating a dedicated player community and honing their games for broader appeal.

While the Play Lab tier presents a platform for Indian developers, it might not offer the same revenue generation potential as its higher-quality counterparts.

Developers could encounter challenges in monetising their games within this segment. Additionally, as Play Lab becomes more accessible, it’s likely to attract a multitude of developers, both from India and abroad. This influx could lead to an oversaturated market, making it difficult for any single game to distinguish itself and capture audience attention.

For Meta, gaming emerged as a prominent factor driving year-over-year growth within ad revenue, closely following the online commerce and CPG vertical, Meta said in an earnings call. The gaming sector particularly thrived due to robust ad spending from advertisers in China targeting customers in other markets.

During the third quarter, the advertising revenue across Meta’s suite of apps, including Facebook, Instagram, Messenger, and WhatsApp, reached an impressive $33.6 Bn, marking a substantial 24% increase compared to the previous year.

Meanwhile, Facebook India Online Services, the Indian arm of global social media giant Meta, reported gross advertisement revenues of $2.2 Bn (INR 18,308 Cr) in FY23, up 13% year-on-year from $1.9 Bn (INR 16,189 Cr) in FY22.

The post Meta Allows Creators To Publish Instant Games Directly On Facebook appeared first on Inc42 Media.

The year so far has thrown many challenges at Indian startups, yet founders have emerged more powerful than ever in the face of adversities.

Well, speaking about adversities, the startup funding has regressed to 2020 levels. The $8.3 Bn raised in 2023 so far is nearly one-fourth of what the Indian startup ecosystem had raised during the same period in 2021.

From a macro lens, things may look quite challenging for Indian startups and new-age sectors, however, a closer glance would unravel the dark horses of the Indian startup realm. 

One such example is the Indian SaaS market, which is scaling quite impressively and is projected to become a $50 Bn market opportunity by 2030, quadrupling its current size. Notably, Indian SaaS startups have raised more than $899 Mn so far this year. 

Not only this, even though the funding winter engulfed most of 2023, the month of October infused some hope, as Indian startups raised $1.1 Bn during the month, up from $846 Mn raised in the corresponding month last year. 

While this was hardly any respite for Indian startups, who continue to see a funding famine, we decided to stick to our tradition of bringing some of the most past-breaking startups to the fore every month.

In this edition of ‘30 Startups To Watch’, we have endeavoured to shine the spotlight on SaaS startups, accounting for the maximum number of startups in the list, followed by AI, edtech and fintech startups.

Amid the current scheme of things, we yet again raise a toast to Indian founders for their resilience as we bring you the 41st edition of ‘30 Startups To Watch’.

Editor’s Note: The list below is not a ranking of any kind. We have listed the startups alphabetically.

AccioJob

Unlocking India’s Tech Potential

In today’s tech-driven world, data analysts and software developers are in high demand. This is because businesses have increased their reliance on data-driven strategies and software-powered solutions. These fields offer promising career prospects, luring a significant number of undergraduates to seek and cultivate the requisite skills.

Based in Gurugram, AccioJob has positioned itself to cater to this burgeoning market by providing structured online learning programmes, which are tailored to help recent college graduates launch their careers in software development and data analytics.

At the heart of its offerings are comprehensive, live training courses in areas like Java full-stack development, MERN full-stack development, and data analytics.

Established in 2018 by Yashwardhan Burad, Priyanshu Agarwal, Vishu Bansal, and Harsh Sharma, AccioJob has plans to include high-demand domains such as DevOps, Testing, and Data Science by 2024.

AccioJob’s vision for the future includes exploring opportunities in formal education. This entails potential collaborations with colleges to integrate their programmes into undergraduate and postgraduate degree curricula. Additionally, AccioJob is considering establishing its proprietary degree offerings, either in partnership with institutions or with its physical infrastructure.

Algomage

The AI-Powered Photography Companion

In a bid to help fellow photographers ease their workloads and deliver images to their clients faster and with greater efficiency, Anand Rathi, Canon India ambassador, founded Algomage in 2021.

The startup, which also made an appearance on Shark Tank India, has three flagship products – AlgoCull, AlgoEdit and AlgoShare.

AlgoCull automates the culling and rating of thousands of images within an hour, based on user-defined parameters. AlgoEdit, on the other hand, uses AI to edit images in Lightroom, learning a photographer’s style and preferences over time as it receives user input. AlgoShare employs facial recognition to ensure that all event attendees receive their images.

The startup monetises its products through a freemium subscription model, allowing photographers to subscribe to any of Algomage’s three apps on a monthly or annual basis. Algomage also offers a free plan with limited features.

Altitude

Invest In Modern Assets With Mutual Funds-Like Ease

While there is a growing number of Indians who are making investments across a wide variety of assets, alternative assets like private credit, agronomy, real estate and private equity remain one of the most attractive classes of assets. While they promise high returns, only a few have the acumen to invest in such assets.

The gap in knowledge and the absence of a platform to help users invest in such assets prompted Krisha Maggo to build Altitude, a fixed-income platform enabling investments in alternative assets. The startup is set to soon launch its first investment opportunity, Prism Fund, on the National Stock Exchange.

The fund is a multi-asset structured investment opportunity designed as a diversified basket of 10+ modern assets, including real estate, private credit, litigation, inventory and revenue-based finance, structured notes, and private equity, among others. Altitude is also in the middle of establishing thematic investment schemes within the alternative asset category.

While Altitude has yet to receive SEBI’s approval for the Prism Fund, it claims to have 35K+ investors waiting for the fund launch.

It is looking to reach INR 100 Cr ($12 Mn) in assets under management (AUM) by November 2023, with an eye on scaling the number to $30 Mn (INR 250 Cr) AUM by December 2024.

AuditCue

Streamlining Audits With Flexible Solutions

Effective solutions for risk and audit programs have often proven elusive for many companies. Legacy options tend to complicate processes, while other established players often offer one-size-fits-all solutions that fail to address specific challenges.

AuditCue aims to disrupt this paradigm by delivering tailor-made solutions that boost process resiliency and agility for its clients. Founded in 2022 by entrepreneurs Gaurav Kulkarni and Naren Janakiraman, AuditCue wants to redefine the audit experience for both auditors and auditees.

What sets this Chennai-based startup apart is its flexible and modular platform. AuditCue understands that each organisation has unique challenges and needs, and it is committed to tailoring its services to meet those specific requirements.

AuditCue’s SaaS solution not only streamlines audit lifecycles but also enhances process resiliency and agility. It accelerates audit cycles, allowing organisations to stay ahead of the ever-evolving risk landscape.

Avidii

On-Demand Personalised Learning Platform

Amid the rapid growth of edtech platforms in India over the past five years, Switzerland and Bengaluru-based Avidii, which is now expanding in the Indian market, distinguishes itself through its unique approach. Avidii offers immediate, personalised, and commitment-free educational services, catering to individual preferences and needs, setting it apart from the crowd of other edtech platforms.

Founded in 2021 by Deepak Subbarao, Avidii claims to have onboarded over 400 expert tutors across India and has garnered more than 5,000 downloads within a short period. Avidii, which is active in four countries, has plans to reach 1 Mn users and downloads in India by the end of the year.

Avidii’s core offering is a 24×7 on-demand learning service, providing customised support in subjects such as mathematics, physics, chemistry, biology, commerce, and arts, primarily aimed at students aged between 11 and 18.

The platform operates with two primary business models. While its B2B segment focusses on partnerships with educational institutions to enhance the learning experience within schools and colleges, the startup’s B2C segment enables direct one-on-one interactions between students and tutors, creating a personalised deep-learning experience.

BellyRubs

Comprehensive Pet Supply With Care

In a country like India, where pet ownership is on the rise, the pet care industry plays a pivotal role. The significance of this industry extends beyond convenience; it underscores the bond between humans and their pets. The growing awareness of pet care reflects an evolving society that values its four-legged members as family. BellyRubs understands this shift and stands at the forefront, offering a curated selection of high-quality products sourced from around the world.

BellyRubs, an online pet supply store founded by Shirin Lamba and Ridhi Verma, is a one-stop shop for all your pet-related needs. The startup boasts an extensive array of products, spanning grooming essentials, premium food, engaging toys, and fashionable clothing for dogs.

At BellyRubs, the focus is clear: happy owners, happy pets, and a happier world. It is not just about pet products; it is about improving the lives of beloved animals, ensuring they receive the best care possible.

Brown Living

Providing Easy Access To Sustainable Products, Deliveries

With the growing environmental concerns, businesses are increasingly acknowledging the need to minimise their environmental impact and maximise social contributions. However, challenges such as limited capital, small-scale production, and building brand credibility persist in the ever-expanding eco-conscious market, hindering the growth of sustainable businesses.

Established in 2019 by Chaitsi Ahuja, Brown Living aims to bridge this gap by making sustainability a mainstream choice through the doorstep delivery of eco-friendly everyday-use products via its ecommerce platform. The company follows a drop-ship model to ensure plastic-free deliveries and support remote businesses.

The ecommerce startup hosts over 500 brands on its platform, offering more than 65,000 SKUs across various sectors, including fashion, home decor, lifestyle, food, and kitchen essentials. Using its proprietary curation method, The Brown Lens, the company claims to have physically assessed over 1,200 businesses.

Beyond being an ecommerce platform, Brown Living provides knowledge and education to support a sustainable lifestyle through its media service content. According to the company, 78% of its GMV comes from its online platform, followed by B2B orders and offline sales.

ClearFeed

AI-Powered Conversational Support Platform

Incorporated in September 2021, Bangalore-based ClearFeed is a conversational support platform designed to improve customer service and streamline internal communication for enterprises. Cofounded by Ankit Jain, Joydeep Sen Sarma, and Lalit Indoria, the startup leverages the power of AI and deep integration with popular tools like Slack and Microsoft Teams to revolutionise how businesses handle customer and employee requests.

As remote work has become the norm, communication platforms like Slack and Microsoft Teams have become integral to business operations.

ClearFeed recognises the growing need for efficient conversational support tools to bridge the gaps across various departments. The startup uses AI models to track and escalate inquiries and requests. This allows different departments to interact seamlessly, enabling service teams to manage high query volumes and provide quick responses.

ClearFeed has introduced innovative features such as triage channels, one-click ticket filing, and live two-way syncing of data. The startup’s platform also integrates OpenAI’s GPT-4, which indexes product documentation, knowledge bases and wikis. This system can automatically generate answers in response to user queries, assisting agents in resolving user issues.

With a strong focus on product development, ClearFeed has experienced exponential growth since its launch. The platform is now used by over 100 organisations globally, including industry leaders like Atlan Data, Last9, Sprinto, and Plum Insurance.

Clinikally

Expert Dermatology At Your Fingertips

India’s professional skincare market has experienced significant growth, driven by an increasing awareness of the benefits of skincare. While this market initially focused on women, it now attracts a growing number of men who recognise the significance of maintaining healthy skin and addressing skin and hair-related concerns.

Founded in 2021 by Arjun Soin, Clinikally is a healthtech startup that addresses the scarcity of dermatologists in India by offering a comprehensive and convenient telehealth platform. The company connects consumers with licenced dermatology practitioners, who create personalised treatment plans for various skin conditions.

In addition to its core services, Clinikally has expanded into pharma distribution with private-label products under the Clinikally brand for aesthetic conditions and the Soteri Skin brand for chronic skin conditions. The platform offers dermatologist consultations at an affordable rate of INR 199 and presents innovative skincare products to its customers.

Clinikally’s short-term objectives revolve around strengthening its telehealth services, broadening its nutrition and nutraceutical offerings, and increasing the number of private-label partnerships from 175 to 500+ doctor clinics. Looking ahead to 2026, the company aspires to become a comprehensive platform for dermatology and nutrition care, featuring telehealth services, an online pharmacy, premium consumer brands, a nationwide network of dermatology specialists, and offline clinic partnerships.

Contiinex

High-Accuracy Private Cloud Speech AI Platform

In an era of automation, speech AI has a crucial role to play in improving user experiences and aiding data-driven decision-making. Founded in December 2020 by Prateek Mehta and Vijay Krishna BS, Contiinex is looking to target the English-speaking global speech market.

With its proprietary speech-to-text engine and the Contiinex Open Framework for Insights (COFI), driven by Language Model (LLM) technology, the company has already made progress in the healthcare and insurance sectors.

The startup is focussed on transforming customer experience, enhancing business productivity, and optimising costs for companies in India, the US, and Australia. Contiinex’s Speech AI platform can analyse voice files and empower businesses to understand their customers better and make strategic business decisions.

The Bengaluru-based startup is also looking at expanding its Gen AI product offerings to address the space of unstructured data across all mediums like voice, chat, email, videos and visuals. With its in-house LLM capabilities, Contiinex wants to expand its horizons to other verticals like banking, retail and utilities.

DPDzero

Debt Collections Made Stress-Free

In recent years, India has witnessed numerous instances of debt recovery gone awry, leaving both lenders and borrowers in distress. The use of unscrupulous tactics by collection agencies employed by banks and NBFCs has exacerbated the situation, sometimes pushing borrowers to take extreme measures.

Recognising that the tech-enabled intervention in this domain has been limited, Ananth Shroff and Ranjith Ramachandra founded DPDzero, an AI-powered collections and debt recovery platform, in 2020. The startup serves both secured and unsecured products while maximising collection efficiency, especially for unsecured lending products.

In recent months, DPDzero has forged partnerships with major NBFCs, including Tata Capital, KreditBee, Cashe, LazyPay and Snapmint, witnessing an impressive 7X growth in revenue within the past ten months. The startup generates revenue by earning a share of collections.

In the short term, DPDzero aims to assemble a high-calibre team, bolster information security measures, and optimise its processes. By 2026, the company plans to invest in advanced AI models to introduce hyper-personalisation, expedite default prediction, and implement advanced borrower negotiation models.

Dressfolk

Ethical Fashion, Sustainably Sourced

The state of child labour in the fashion industry is appalling at best. According to a report, nearly 60% of the workers in Indian mills were under 18 when they were first hired.

Dressfolk, founded in 2017 by Nitin Mehrotra, specialises in creating traditional Indian dresses from across the country. The startup has partnered with 720+ artisans to empower the local weavers’ community, focussing on sourcing its products responsibly and free of child labour at any stage of its supply chain.

Dressfolk is also focussed on building collaborative relationships with artisans to understand craft regions and traditions.

The startup sells its products across categories such as sarees, blouses, fabrics, dupattas and suit sets via its website and several offline multi-brand and online marketplaces in the premium price category. Dressfolk claims to have a user base in 20 countries and boasts that it has increased the income of its partner artisans by more than 150%.

Equal

Consumer Verification Platform

Founded by Keshav Reddy and Rajeev Ranjan in 2022, Equal is a pioneering startup that envisions a world where access to essential services and opportunities is based on merit, not identity. In a nation as diverse as India, where numerous individuals are denied access to credit, housing, benefits, and products due to various factors, Equal seeks to level the playing field for over a billion Indians.

At the heart of their mission is the Equal ID Gateway, a product that empowers businesses to establish seamless and secure identity-sharing workflows for consumers. Much like a payment gateway facilitates financial transactions, the Equal ID Gateway facilitates the exchange of personal identification information when requested, all while maintaining privacy and security.

It spans a wide array of use cases, from healthcare to education, employment, and travel, essentially anywhere a consumer needs to share their identity with a business.

Equal’s revenue is generated through a pay-per-verification model. It claims to have over 1 Mn consumers currently.

Fairdeal

Revolutionising Retail Distribution With Data-Driven Insights

D2C brands have gained substantial traction in recent years, but expanding beyond online channels has been challenging due to high costs. The primary issue is establishing efficient offline distribution networks.

Fairdeal, founded by Prateek and Yash Bansal, aims to disrupt the retail distribution landscape in India with its innovative data-driven approach. The startup provides comprehensive offline distribution services to D2C brands, enabling them to tap into the vast potential of the Indian market.

Fairdeal connects D2C brands with a network of over 10,000 retailers. Leveraging data, Fairdeal ensures optimal brand-to-retailer matching, resulting in faster and more substantial sales. Additionally, the company helps brands co-create new products and develop pricing strategies. This approach benefits not only emerging D2C brands but also established local brands seeking expansion into new territories.

Figr

Next-Gen Design Tools On Offer

The user interface (UI) is a critical component of app and website design, serving as the initial point of interaction for users. However, many design teams struggle with a lack of inspiration, motivation, resources, or time, resulting in subpar UI and disappointing user experiences.

Founded in 2023 by Chirag Singla and Moksh Garg, Figr aims to address these challenges with its AI-driven tools, including Lookr, Flash UI, and Prokit.

Lookr provides users with a vast database of high-quality design work, helping them find design inspiration through a search-based method and recommendations for needed elements.

Flash UI takes that inspiration and offers editable templates, enabling users to create customised apps or websites. Prokit provides design resources such as icons, fonts, and colour palettes, allowing users to develop a unique design language for their brand.

Figr is also in the process of launching two new products, Identity and Construct, which will enable users to build a brand identity from scratch and visualise concepts in a UI format. The startup operates on a subscription-based model, monetising its platforms through monthly or annual subscriptions.

FlexifyMe

Curing Postural Syndrome With Technology

According to a 2023 report, approximately 19% of India’s adult population is grappling with chronic pain, often stemming from poor postural habits and a sedentary lifestyle. Additionally, India witnesses nearly 2 Lakh cases of spinal injuries every year, with the majority attributed to chronic bad posture and habits.

In response to these pressing health concerns, Manjeet Singh, who successfully recovered from Lumbar Spondylitis in 2016-17, joined forces with his long-time friend and tech veteran, Amit Bhayani, to launch FlexifyMe in 2021.

FlexifyMe is an AI-powered platform designed to assist individuals in correcting their posture and alleviating chronic pain. Utilising advanced AI motion tracking, it can detect postural defects, muscle inflexibility, and musculoskeletal disorders (MSD).

The startup claims its AI motion coach generates the world’s first physical posture analysis report that identifies the root cause of chronic pain and creates a custom plan combining the latest physiotherapy postures with yoga and meditation. FlexifyMe offers personalised subscription plans, with an average cost of INR 16,000 for six months.

Currently, FlexifyMe claims to have attracted 2,000 paying clients from India and 24 other countries. They have ambitious plans to expand their user base to over 10,000 by the end of 2024, establishing partnerships with over 200 doctors in the process.

Giga ML

On-Premise Custom LLMs For Enterprises

One of the biggest problems is that most LLMs are only available as cloud-based services, meaning enterprises need to share data with third parties to use LLMs. That is not a viable option for many enterprises due to privacy concerns or compliance requirements.

Solving these problems is Bengaluru-based Giga ML, set up by Varun Vummadi and Esha Manideep Dinne in 2023. The startup provides on-premise deployment, fine-tuning and privacy for LLMs. Its X1-Large model is currently the most powerful LLM available for on-premise deployment. Giga ML also offers an API compatible with OpenAI’s API, so users can switch to the startup’s API seamlessly without rewriting code.

The startup targets enterprises that need to use LLMs for internal purposes but don’t want to use cloud-based services or share their data with third parties. Giga ML’s on-premise deployment option gives enterprises full control over their data and their LLMs. The startup also offers fine-tuning services for LLMs, so enterprises can train LLMs on their data to perform specific tasks. This allows enterprises to create LLMs that are tailored to their specific needs.

Giga ML’s privacy features are designed to protect the confidentiality of enterprise data. The startup does not use any data its customers upload to its platform. Giga ML monetises its product through a subscription model. Enterprises can pay a monthly fee to use Giga ML’s platform to deploy, fine-tune, and use LLMs on their servers.

Novatr

Empowering AEC Professionals

India has witnessed a significant surge in the edtech sector, primarily focussed on K-12 education, test preparation, and upskilling in areas like data science and marketing. However, Novatr, formerly known as Oneistox, stands out as an educational technology startup with a unique emphasis on transforming the architecture, engineering, and construction (AEC) industry.

Founded in 2021 by a team of architects and engineers, including Harkunwar Singh, Vipanchi Handa, Mehul Kumar, and Chaithanya Murali, Novatr aims to bridge the gap between traditional AEC education and the rapidly evolving technological landscape, equipping learners to become future-ready professionals.

The platform offers a diverse range of courses and programmes, including Building Information Modeling (BIM) and Computational Design, to help learners develop essential skills and stay at the forefront of industry advancements.

Established by accomplished professionals with backgrounds from prestigious institutions such as SPA Delhi and IIT Madras, Novatr empowers learners to become forward-thinking AEC professionals. It achieved remarkable net revenue growth of 30% MoM in FY23 and is projected to experience a 12X revenue growth in FY24.

Oyela

Empowering The New Wave Of Digital Entrepreneurs

There is an emerging trend of millennials and Gen Z starting online businesses on social media. Recognising the potential and challenges, two IIT Bombay alumni Rahul Gope and Anjan Kumar Patel launched Oyela in 2021 to empower the creative entrepreneurship explosion in India by providing essential tools and opportunities through social media.

Oyela assists emerging businesses, product creators, and artists in effectively selling their products and expanding their online presence. It offers features such as digital storefront management, collaboration tools for wider exposure, and seamless integration with Instagram for automated sales through social media.

A core focus of Oyela is building trust among Indian consumers by providing transparent ratings and reviews, instilling confidence in sellers’ digital storefronts. Furthermore, Oyela prioritises operational efficiency by offering tools to streamline operations and logistics, ultimately enhancing the overall selling process and delivering a more personalised and efficient shopping experience to buyers.

Oyela currently operates across India, charging a 6-10% commission on orders, thereby facilitating seller collaborations and benefiting them. The platform boasts over 20,000 sellers who have joined at no cost and facilitates more than 1 Mn seller collaborations each month.

This Gurugram-based startup has set its sights on reaching $1 Mn in revenue and empowering 200K social stores by 2024. Its long-term aspirations encompass nurturing entrepreneurship and empowering 2 Mn social stores to capture a substantial market share in the Indian ecommerce and social commerce arena.

Pep

Social-first Content Marketplace

Founded in early 2023 by IIT alumni Nav Agrawal and Swapnil Upadhyay, Bengaluru-based Pep aims to revolutionise the content creation landscape in the era of Gen AI. The rapid evolution of technology has made content creation more accessible, but it has also inundated the internet with a deluge of low-quality content. Pep addresses this challenge through a unique approach, emphasising curation, categorisation, and content credibility.

Pep’s mission is to establish a social-first online marketplace for content that empowers users to explore, purchase, and monetise a wide variety of content and services. The platform offers a one-stop destination, granting users access to live sessions, one-on-one consultations, and the ability to purchase various content formats, including PDFs, videos, and audio.

Recognising content discovery as a major pain point for online users, Pep employs personalised machine learning algorithms to facilitate tailored content discovery at reasonable prices, making it effortless for users to discover valuable and relevant content.

Its core concept revolves around user-generated content, with a focus on micro-courses and micro-payments. The marketplace offers content ranging from INR 29 to INR 2,000, catering to a wide spectrum of user interests, from cooking and DIY crafts to fashion and health and fitness.

Pep empowers users to easily monetise their expertise by selling content through a commission-based model, with fees varying from 20% to 50%, contingent on the content category. With its machine learning algorithms, the startup ensures that customers discover and purchase content at affordable prices, fostering a no-regret approach to content consumption.

Platos

Simplifying Cafeteria Management

Running cafeterias without the use of technology often leads to operational inefficiencies such as manual order processing, inventory mismanagement, and a lack of transparency. To address these challenges, Arjun Subramanian and Raj Jain founded Platos in 2019.

At the heart of Platos’ vision are three distinct applications designed to create a smarter cafeteria experience for customers, food partners, and cafeteria managers. The Platos App empowers customers to effortlessly place orders, track their food, and provide feedback.

The Platos Partner App, tailored for on-site vendors, simplifies inventory management and order cycle control. Meanwhile, the Admin Web Dashboard offers comprehensive real-time data and financial insights, enabling administrators to efficiently manage cafeterias.

The journey of Platos began with thorough market research and hands-on experience running cafeterias without technology. Before the pandemic, the founders operated cafeterias in Chennai which clearly illustrated the imperative need for technological solutions to optimise and elevate cafeteria management.

Platos aims to tackle issues such as high aggregator commissions, cafeteria management inefficiencies, and transparency gaps, ultimately enhancing the cafeteria experience for clients and food partners. With its commitment to seamless technology and professional food partnerships, Platos is set to reshape the corporate catering landscape.

QuriousBit

Redefining Casual Gaming

Casual gaming has gained immense importance in recent years, reflecting the changing dynamics of the gaming industry, which like many other sectors and industries has greatly benefited from the widespread availability of affordable mobile data. Even those with basic smartphones can easily access and contribute to the growing mobile gaming community through app stores.

Founded by Ramakrishna Reddy Y L and Shubham Joshi in 2023, QuriousBit, a gaming studio based in Bengaluru, is on a mission to revolutionise the mobile gaming industry by offering high-quality casual puzzle games. In a genre largely dominated by match3 and blast-themed games, QuriousBit seeks to introduce a fresh and personalised gaming experience.

The founders bring a wealth of experience, having previously developed and managed games for PlaySimple Games, a global leader in word games that was acquired for over $500 Mn in 2021. QuriousBit is fuelled by the ambition to put India on the map of hit puzzle games globally.

With the global mobile casual games market valued at around $18 Bn in 2023 and projected to reach $25 Bn by 2027, QuriousBit is well-positioned to tap into the growing casual gamers of the country.

SYSOTEL.AI

Transforming Hospitality with AI, ML Solutions

Founded in 2021 by Raj Sahu, Kiran and Ravish, SYSOTEL.AI is on a mission to revolutionise the hospitality industry through innovative technological solutions. At the heart of SYSOTEL.AI’s product suite is a platform, Intelligent Booking Engine (IBE), that not only ensures secure online reservations but also simplifies the booking process for guests.

This engine integrates with Google’s extensive travel services, making it the preferred choice for hotels seeking to solidify their online presence.

The company also has a fully automated revenue management system, Intelligent Yield Automation (IYE), that harnesses the power of AI and ML to recommend competitive rates based on real-time market data and native demand trends. It also provides invaluable insights into market dynamics, event planning, and reputation management.

The 1% Club

Helping Indians Achieve Financial Freedom

Today, a majority of Indians are worried about their financial well-being, and there are several reasons behind this. One such reason is that India, despite being a savings-first nation, saw its household savings hit a 47-year low in FY23, according to the RBI data.

Amid the current scheme of things, many individuals get stuck in situations, be it poorly paying investment cycles or even investment scams, which only deteriorate their financial health further.

Having been in this space for a long time, finfluencers Sharan Hegde and Raghav Gupta set up The 1% Club in 2022 to address the challenges budding investors face in their investment journey.

The 1% Club is a members-only financial education platform that offers educational resources, mentorship, entrepreneurial opportunities and networking avenues to its members looking to achieve financial independence.

The platform offers curated courses across personal finance and the stock market. Each module starts with the basics and then goes deeper. For instance, the personal finance segment goes from investments across different asset classes to insurance planning and, finally, tax planning. Similarly, the stock market module starts with the stakeholders and moves to IPOs, financial statements, annual reports and the psychological aspects of investing.

The startup claims to be the first influencer-backed venture to delve into entrepreneurship. In the short term, The 1% Club is looking to get registered with the market regulator SEBI.

The Cube Club

Weights, Workouts, Tech & More

India is fast becoming the world capital for lifestyle diseases such as obesity and diabetes. Despite this, a lack of motivation to pursue a healthier lifestyle continues to grip most individuals.

Having sensed the underlying problem, Pratik Agarwal, Siddhesh Ghuge and Yash Thakur came together to launch The Cube Club in 2020. The Cube Club is an online marketplace from where users can buy fitness equipment and accessories such as dumbbells and weights, benches, pull-up bars, yoga mats, and more.

In October 2023, the startup launched its fitness app, Dopamine, which allows users to embark on their fitness journey with friends from the comfort of their own homes. Users can create workout channels on the app, allowing them to track their progress and stay motivated. The Dopamine app uses AI-based tech to track a user’s workout routine, which then can be shared with friends in a gamified manner.

Currently, The Cube Club generates revenue by selling fitness equipment on its website, Amazon, and over 100 offline stores. Looking ahead, the startup plans to diversify its revenue streams by monetising Dopamine.

Valo

Invest In The Stock Market And Earn Rewards

At the end of January 2023, Indians held more than 11 Cr demat accounts, up from around 8 Cr accounts a year ago. The high number still translates to a mere 3% of India’s total households actively investing in the stock market. The market’s complexity and the lack of substantial returns have made it a daunting prospect for many.

Recognising the challenges, Ayush Agarwal, Mihir Verma, Hemant Patil and Ajay Sharma, all avid stock market investors, seized the opportunity to create a platform that rewards investors for their consistent participation in the stock market. Thus, Valo was born in 2023.

The startup has formed partnerships with numerous brands, including Domino’s, Spotify, Netflix, Swiggy, Zomato, and others, to incentivise users for their stock market investments. Valo also offers a dedicated finance community where investors can engage, learn, and grow together in the personal finance domain. Additionally, it features a finance marketplace similar to the Google Play Store but for finance-only apps.

The platform utilises broker API to access investment data, providing users with rewards and key metrics without the need for email or SMS access, thus safeguarding user privacy.

Valo generates revenue through brand partnerships and commissions from trades, without imposing any charges on its users. Despite its recent launch in September 2023, the platform has already attracted over 1,000 users within a month. Valo’s ambitious plans involve expanding its user base to 10,000+ by the end of 2024.

Vegapay

Streamlining Credit Card Issuance For Enterprises

Credit cards are rapidly gaining popularity in India. This has prompted many companies across segments to launch co-branded credit cards with major banks and networks. However, the process takes anywhere between 12 and 15 months and requires 10+ tech integrations across processes.

With the NPCI and banks targeting 300 Mn credit cards in the next five to seven years, banking and technology veterans Gaurav Mittal, Abhinav Garg, Himanshu Agrawal and Puneet Sharma founded Vegapay in 2022. The startup offers a core Credit Card Management System (CCMS) for both the supply side (banks) and the demand side (co-brand partners).

Vegapay enables hyper-configurable solutions for credit card offerings, alongside white-label dashboards for the issuers to create and manage programmes without any dependency on tech.

Currently, Vegapay has established partnerships with a bank to oversee all aspects of credit card management and aims to onboard four banks by the end of the coming year. Vegapay has also recently introduced a multi-currency card in collaboration with two issuers and a co-branding partner.

Vegapay’s revenue model relies on a one-time fee and subsequent commission from minimum monthly billing done by the user banks. The startup is now working to expand to Middle East and North African regions and reach 15+ banking partners by the end of 2025.

Wootz.work

Custom Engineering Procurement Simplified

Founded by Karan Anand and Himanshu Uniyal in 2023, Wootz.work is a global sourcing platform specialising in custom engineering equipment and solutions. It is dedicated to streamlining the cross-border buying experience for light engineering products through technology and ownership of the entire process, from design to delivery.

The platform not only connects buyers with sellers but also offers a unique capability to link them directly to products and solutions tailored to their specific needs. The startup’s technology leverages an understanding of basic parameters, the buyer’s geography, industry, and application to instantly customise products. This approach reduces the procurement timeline, providing quotations within 24 hours.

In a rapidly evolving engineering equipment industry valued at $1.7 Tn, Wootz.work addresses the challenges faced by Western buyers looking to source from Southeast Asia. The platform simplifies the complex landscape of SME suppliers, overcoming language barriers, long pre-sales times, and other complexities. Wootz.work aims to bridge this gap and create a reliable global procurement channel for SMEs, allowing them to access value-driven capital expenditure.

Wootz.work emphasises value engineering, offering products optimised for easy installation and efficient shipping, with components chosen for end-market serviceability and compliance. The platform also provides virtual factory tours, comprehensive fulfilment dashboards, and round-the-clock after-sales support.

Zeron

Enhanced Cybersecurity For Enterprises

Cybersecurity challenges persist as threats become increasingly sophisticated. Issues such as data breaches, ransomware attacks, and vulnerabilities in technology infrastructure remain prominent. Addressing these challenges demands robust defence strategies, threat intelligence, and innovative solutions.

Founded in 2020 by Sanket Sarkar, Zeron, the cyber risk posture management platform, is working on cybersecurity for enterprises. It offers a comprehensive suite of solutions, following an ABCD framework, to address various aspects of cyber risk management. These modules include attack surface automation, business posture assessment, compliance automation, defence automation, and a cloud monitor.

Zeron’s flagship product serves as the single source of truth for cybersecurity, providing real-time insights into an organisation’s vulnerabilities, strengths, compliance alignment, and defence effectiveness. Zeron’s compliance automation and AI solutions automate workflows, technical evidence mapping, and policy enhancements, reducing compliance time and errors, improving audit readiness, and ensuring proactive policy improvements.

Zeron operates on a subscription-based revenue model, granting clients flexibility in payment terms. The company’s presence extends globally, with its headquarters in Mumbai, India, and outreach in the ASEAN, MENA, the Americas, and the EU regions through strategic partnerships.

In the short term, Zeron aims to onboard 50 customers and strengthen its presence in the MENA and ASEAN regions. In the long term, the company envisions creating an ecosystem for cybersecurity trust among organisations, simplifying their business journey.

Zopnote

Giving A Tech Boost To Local Commerce

India had 2.79 Cr formalised jobs as of August 2023, according to the latest data from the Ministry of Statistics and Programme Implementation. However, this figure represents only about 5% of the 52.4 Cr Indians actively participating in the labour force. The vast unorganised sector is gradually recognising the potential of technology and its transformative capabilities.

At the forefront of this transformative movement is Zopnote, a B2B2C SaaS platform dedicated to local commerce. Founded in 2019 by Rajesh Badgeri and Chengappa Chottera, this innovative startup offers two distinctive apps — a merchant mobile app and a customer app.

The former empowers small local businesses with features like customer engagement, automated billing, online collection, bookkeeping, and business intelligence. The latter enables end customers to discover and purchase products and services in their vicinity, track expenses, and make payments seamlessly. For instance, businesses can list their products and services on the platform, allowing users to explore and place orders directly from the app.

Although currently operational only in Bengaluru, Zopnote has successfully garnered over 52,000 B2C customers across 1,000+ communities in the city, processing more than 2.3 Cr bills each month. The startup monetises its platform through a subscription fee that merchants pay to utilise its services.

In the short term, Zopnote aims to achieve product-market fit (PMF), with long-term plans involving the creation of a decentralised model to leverage the Open Network for Digital Commerce (ONDC) and expand its reach across India.

[Edited by Shishir Parasher]

The post 30 Startups To Watch: Startups That Caught Our Eyes In October 2023 appeared first on Inc42 Media.

Kolkata Police has reportedly summoned officials from the Cricket Association of Bengal (CAB) and an online ticket booking portal in response to a complaint about ticket black marketing for the forthcoming ICC World Cup match between India and South Africa on Sunday.

The notices were sent to both CAB and the online ticket booking portal, asking them to appear on Thursday. However, no representatives from either organisation complied with the summons, a police officer said, as reported by news agency PTI.

On Wednesday, a case was filed at the Maidan Police Station after receiving a complaint from cricket fans, accusing the online portal, along with officials from CAB and the Board of Control for Cricket in India (BCCI), of engaging in ticket black marketing for the India-South Africa match scheduled for Sunday.

“It has been alleged that certain officials of the BCCI, along with officials of the CAB and the online portal BookMyShow, has purposefully put aside a large chunk of the tickets meant for the general public, making those available to the black marketers for the purpose of their personal gains,” a senior police official told the Indian Express.

In response, a senior official from the CAB dismissed these allegations, asserting that their role was solely as hosts for the match and that they were not involved in ticket sales, which were managed by the online portal and the International Cricket Council (ICC).

BookMyShow declined to comment on Inc42’s queries.

Founded in 1999 by Ashish Hemrajani, Parikshit Dhar and Rajesh Balpande, BookMyShow’s cloud-based online ticketing platform for events, movies, sports and plays was launched in 2007. The firm is present in over 650 towns and cities in India.

BookMyShow allows users to book movie tickets from popular multiplexes, including PVR and INOX. The portal also allows customers to book tickets online for sporting events, including IPL, ISL, World Cup, along with music concerts and stand-up events.

Throughout the years, the company has transformed from being solely an online ticketing platform for movies to becoming a comprehensive service provider for the management of live entertainment events, encompassing music concerts, live performances, theatrical productions, sports, and a variety of other offerings.

BookMyShow’s total revenue grew 2.7X to INR 302.9 Cr in the financial year that ended March 31, 2022, compared to the COVID-wrecked FY21. Meanwhile, its total sales (revenue from operations) grew 274% to INR 277 Cr during the period under review from INR 74 Cr a year ago.

This isn’t the first instance where BookMyShow has found itself embroiled in controversies. In September, BookMyShow issued an apology to Trevor Noah’s fans due to a technical glitch that led to the cancellation of both his Bengaluru shows. Despite appearing at Manpho Conventional Centre in Manyata Tech Park, the Emmy-winning US comedian cancelled the performance as the audience couldn’t hear hi

The post Police Complaint Filed Against BookMyShow & CAB For Alleged World Cup Ticket Black Marketing appeared first on Inc42 Media.

The Ministry of Electronics and Information Technology (MeitY) has sent a notice to tech giant Apple concerning the controversial threat notifications received by various opposition Members of Parliament (MPs) and journalists.

These notifications, sent by Apple, cautioned the recipients about potential state-sponsored cyber threats targeting their devices.

S. Krishnan, secretary of MeitY, said that the Indian Computer Emergency Response Team (CERT-IN) is actively investigating the recent case, Moneycontrol reported.

The notice comes in response to allegations made by several prominent opposition MPs and journalists, who claim to have received warnings from Apple regarding suspected state-sponsored actors attempting to compromise the security of their devices.

Earlier, it was reported that the Parliamentary Standing Committee on Information Technology (IT) is planning to summon Apple representatives to address the threat alerts sent by the company to Indian political leaders.

Apple sends threat notifications to alert users who may have become targets of state-sponsored actors. These attackers, often backed by nations with abundant resources and advanced tools, pose a significant threat to compromising the security of targeted individuals’ devices.

Indian opposition leaders, including Mahua Moitra, Shashi Tharoor, Pawan Khera, Sitaram Yechury, and Raghav Chadha, claimed that they received state-sponsored attack alerts on their iPhones on October 31, sparking political controversy and accusations of government surveillance.

“Apple believes you are being targeted by state-sponsored attackers who are trying to remotely compromise the iPhone associated with your Apple ID. These attackers are likely targeting you individually because of who you are or what you do…,” a screenshot of the notification shared on the social media platform read.

Apple’s message to recipients warned of potential remote access by malicious attackers to sensitive data, communications, as well as the camera and microphone of compromised iPhones. While acknowledging the possibility of a ‘false alarm,’ the message strongly advised recipients to treat the warning seriously.

“State-sponsored attackers are very well-funded and sophisticated, and their attacks evolve over time. Detecting such attacks relies on threat intelligence signals that are often imperfect and incomplete. It’s possible that some Apple threat notifications may be false alarms, or that some attacks are not detected. We are unable to provide information about what causes us to issue threat notifications, as that may help state-sponsored attackers adapt their behavior to evade detection in the future,” Apple said earlier.

Meanwhile, Apple’s India business is experiencing notable growth, with increasing sales and an aggressive expansion of its manufacturing operations in the country. In the second quarter of 2023, Apple overtook Samsung to become India’s leading smartphone exporter, contributing to 49% of the nation’s 12 million smartphone shipments during that period.

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Stock broking firm Angel One has acquired the team of Bengaluru-based learning app Dstreet Finance, marking its first acquisition of a tech startup team.

With this move, Angel One intends to boost its market position and improve product offerings for the younger generation by strategically investing in products, technology, and talent, and forging partnerships through acquisitions, the company said in a statement.

Meanwhile, the Dstreet Finance team will lead the acquirer’s content, user engagement, and learning-related efforts.

This development closely follows Angel One’s recent in-principle approval from the Securities and Exchange Board of India (SEBI) to sponsor a mutual fund.

“We’ve acquired the team from Dstreet, which primarily caters to younger audiences, spanning various user segments. In the capital market journey, users go through stages like discovery, decision-making, transaction, and management, all while continuing to learn about managing their finances. The Dstreet team is well-equipped to create engagement solutions, content, and community offerings for these younger audiences,” Prateek Mehta, chief business officer of Angel One, told Inc42.

Founded in 1996 as Angel Broking, the brokerage firm rebranded to its current avatar in 2021. It offers a slew of services, including online stock broking, depository services, commodity trading and investment advisory services.

Mehta explained that their transition to a fully tech-driven company had resulted in substantial growth within their user base, with a particular emphasis on the under-25 demographic and residents of tier-II and III cities. These users are actively engaging with their platform, demonstrating high recency, frequency, and monetisation. The heightened user activity had also positively impacted their app ratings.

Given its massive customer base, Angel One is actively pursuing strategies to expedite the delivery of solutions and enhance customer value. The company has been exploring inorganic initiatives to bolster its go-to-market capabilities, expand its product offerings, and diversify the choices available to its customers.

In line with their aspirations, they were in the process of investigating opportunities in various areas, including manufacturing and distribution platforms, wealth management solutions, content engagement, and learning. Additionally, they were considering acquisitions to access valuable talent and intellectual property.

Founded by Suresh Bavisetti and Paarth Dhar, Bengaluru-headquartered Dstreet Finance specialises in content and creating engaging learning experiences tailored for emerging stock market investors. It claims to have onboarded and served 1 Mn users since its establishment in April 2021.

Talking about what Angel One aims to achieve from the acquisition, Mehta said, “Dstreet team has recently joined us, and we are currently in the stage of defining the problem we aim to solve. Our primary goal is to enhance our customers’ understanding of capital markets and improve their comfort levels in managing their finances. The exact solutions and outcomes will evolve as we work closely with the team.”

Angel One posted a consolidated profit of INR 305 Cr for the quarter ended September 30, 2023, as against a consolidated net profit of INR 214 crore for the corresponding period a year ago. Its quarterly revenue grew 40.7% on a year-on-year basis to INR 1,048 Cr.

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Used- and new-car marketplace CarDekho Group’s consolidated operating revenue increased nearly 1.5X to INR 2,331 Cr in the financial year 2022-23 (FY23) from INR 1,600 Cr in the previous fiscal year.

In a statement, CarDekho credited the increase to the growth in its insurance arm InsuranceDekho, car financing platform Ruppy, and auto and financing business in SouthEast Asia.

It must be noted that InsuranceDekho’s net loss declined 29% to INR 51.5 Cr in FY23 from INR 72.2 Cr in the previous fiscal year, while operating revenue doubled to INR 96.4 Cr.

CarDekho said its revenue grew in FY23 despite the startup discontinuing its used car franchise retail and consumer to dealer businesses last year. This move was driven by inviable unit economics and a strategic shift towards a more prudent capital allocation, focusing on an asset-light business model, it added.

Despite the rise in revenue, CarDekho Group’s net loss rose marginally to INR 562 Cr in FY23 from INR 535 Cr in the previous fiscal year. However, adjusting for the exceptional one-time mark to market gain of INR 290 Cr from investments in associates, the FY23 loss declined to INR 246 Cr, the statement added.

CarDekho said he group’s profitability improved significantly in the second half of FY23 due to the benefits of operational leverage and the reset of the used car business

“A focus on optimising unit economics has also allowed the core businesses to turn EBITDA positive in the first two quarters of FY24 as well as PAT/ net income positive for second quarter of FY24 in its pursuit to drive profitable growth,” it added.

CarDekho said its cash reserve at the group level stands at over INR 1,200 Cr, which it will use for organic and inorganic growth projects. A significant portion of this reserve will be allocated to InsuranceDekho, which has secured more than INR 1,700 Cr in funding since February this year.

Founded in 2007 by Amit Jain, who appears as a judge on reality TV show Shark Tank India, and Anurag Jain, CarDekho operates a range of auto platforms, including Gaadi.com, ZigWheels.com, BikeDekho.com, and PowerDrift.com.

In 2021, CarDekho attained unicorn status after raising $250 Mn in its Series E round, valuing the company at $1.2 Bn.

India’s used-car market, which was already experiencing consistent growth, has seen an increase in the growth following the Covid-19 pandemic. It is now anticipated to surpass the growth rate of the new car market. According to a report, the value of India’s used-car market was estimated to be $23 Bn in FY22, and it is projected to clock a compound annual growth rate (CAGR) of 19.5% until FY27.

The post Shark Tank Judge Amit Jain’s CarDekho Group’s FY23 Revenue Jumps 1.5X To INR 2,331 Cr appeared first on Inc42 Media.