Indian Tech Landscape: From Startup Successes to Regulatory Challenges

Swiggy shares a hit in unlisted market; ED crackdown on betting app

Ahead of its much-anticipated IPO, Swiggy shares have seen a 40% surge in the unlisted market since July. This and more in today's ETtech Top 5. Also in this letter: ■ Musk criticises OpenAI ■ Tata-PSMC semicon fab partnership ■ Meta's Connect event Sriharsha Majety, founder, Swiggy Public markets-bound Swiggy has seen its shares shoot up by nearly 40% in just two months in the unlisted market, going from Rs 355 in July to around Rs 490 at present. High demand: In these two months, the market value of the Softbank and Prosus-backed company rose from Rs 70,000 crore to Rs 1.16 lakh crore. The current lot size of Swiggy shares is around 100 in the unlisted market. Analysts attribute this heightened demand to the company's growth, with operating revenue increasing by 36% to Rs 11,247 crore and net losses reducing by 44% to Rs 2,350 crore in FY24. IPO approval: ET reported on September 24 that the food delivery company has received approval from the market regulator for its proposed $1.25-billion public issue. Swiggy will now need to file an updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi). Big names: Around 2 lakh pre-IPO shares have been actively traded in the unlisted market, ET had reported. Entertainment and sports personalities including Rahul Dravid, Amitabh Bachchan and Karan Johar have picked up a piece of the company ahead of the listing. This number is expected to rise before the expected IPO in November. Expert take: "Swiggy stands out as a strong investment opportunity in India's unlisted market due to its growing trade volume and increasing demand. With its potential for significant growth, it is considered one of the top shares to trade in the unlisted market," Krishna Patwari, founder and MD of Wealth Wisdom, noted. In a major crackdown against illegal online applications linked to Chinese nationals, the Enforcement Directorate (ED) has attached assets, including those parked in wallets of cryptocurrency major Binance, sources in the know told us. Driving the news: The ED investigation found that Chinese nationals allegedly operated the illegal betting/gaming application Fiewin, with the assistance of their Indian accomplices. The app was projected as a fast and easy money maker and was marketed through YouTube, Facebook and other digital modes. According to sources, funds from users were funneled into Indian "recharge persons", who converted the money into cryptocurrency for transfer to Chinese wallets on Binance. Also Read: ED investigates Indian links of foreign gambling apps, suspects over Rs 1 lakh cr bets Financial implications: The ED estimated that approximately Rs 400 crore was generated from this scheme, with funds transferred to seven Binance wallets operated from China. The agency issued a provisional attachment order for properties worth Rs 25.78 crore, including Rs 24.9 crore in cryptocurrency linked to Chinese nationals. Telegram involvement: Despite Firewin being banned in India, new apps quickly emerged. The players were directed to install these apps and join Telegram groups for updates on earning strategies. Once users recharged their accounts, funds were sent to designated recharge persons, who received a commission for their services. Sam Altman, CEO, OpenAI, Elon Musk, CEO, Tesla Microsoft-backed OpenAI is working on a plan to restructure its core business into a for-profit benefit corporation that its non-profit board will no longer control, Reuters reported, a move which has rubbed Elon Musk the wrong way. Tell me more: Sam Altman, the company's chief executive officer (CEO), is set to receive equity for the first time in the for-profit company, which could be worth $150 billion after the restructuring as it also tries to remove the cap on returns for investors. Musk Reaction: Musk, who was among the founders of the artificial intelligence (AI) startup in 2015, took to X saying, "You can't just convert a non-profit into a for-profit. That is illegal," after a user questioned OpenAI's move. Legal battle: Earlier this year, the Tesla CEO sued OpenAI claiming the organisation breached contractual agreements established when he cofounded the ChatGPT maker. He ultimately withdrew the lawsuit. However, he revived a lawsuit against OpenAI and Altman stating that the firm put profits and commercial interests ahead of the public good. CTO exit: Open AI chief technology officer (CTO) Mira Murati announced her departure on Thursday from the startup in a post on X. Her exit marks the latest in a series of executive departures this year. In August, OpenAI cofounder John Schulman announced on X that he had joined rival AI company Anthropic. Chief scientist Ilya Sutskever also departed to start his own AI company Safe Superintelligence Inc (SSI) just a month after leaving OpenAI. Tata Electronics on Thursday said it has completed the Definitive Agreement with Powerchip Semiconductor Manufacturing Corporation (PSMC) wherein the Taiwanese major will provide design and construction support to build India's first AI-enabled greenfield fab in Gujarat. Technology licensing: PSMC will license a broad portfolio of technologies and provide engineering support to successfully transfer licensed technologies to the Gujarat fab. It will have a manufacturing capacity of up to 50,000 wafers per month and will include next-generation factory automation capabilities. In March, Frank Huang, chairman of PSMC, exclusively told us that the first semiconductor chip from the new plant will be ready to roll out by the end of 2026. Market demand: The company said the semiconductor fab will manufacture chips for applications such as power management ICs, display drivers, microcontrollers (MCUs) and high-performance computing logic, addressing the growing demand in markets including AI, automotive, computing and data storage, and wireless communication. Mark Zuckerberg, CEO, Meta At its annual Connect conference, Meta launched multiple products including Orion, its augmented reality (AR) glasses, which CEO Mark Zuckerberg said were the most advanced the world has ever seen. He also unveiled new AI tools to bulk up its chatbot. Introducing Orion: Meta introduced its AR glasses Orion, which would weigh less than 100 grams. The see-through glasses allow users to see virtual objects superimposed on their environment. Wearers can access WhatsApp and Messenger, and make video calls. Orion is powered by a custom chip. Meta also unveiled an affordable Quest 3S mixed reality headset, its models priced at $299.99 and $399.99. AI tools: Meta AI will now support voice, with an option to select celebrity voices such as those of Judi Dench and John Cena. The company will also add AI video capability and the ability to perform real-time language translation later this year. Competition: Meta's affordable goggles will take on a product launched by Apple in this space earlier this year, which costs about $3,500. Similarly, the Meta AI voice support comes as OpenAI added a similar ability to ChatGPT a few months ago. Today's ETtech Top 5 newsletter was curated by Riya Roy Chowdhury and Vaibhavi Khanwalkar in Bengaluru.

Discount brokers' new revenue channels; Comeback Kid winner interview

Happy Thursday! As brokerage fees shrink dramatically due to regulatory scrutiny, many discount brokers are set to enter the bank-dominated traditional margin trade funding business. This and more in today's ETtech Morning Dispatch. Also in this letter: ■ Nvidia MD interview ■ Whatfix raises $125 million ■ Zerodha's FY24 financials Margin trading funding (MTF), which used to be the exclusive domain of large bank-backed brokers and some traditional brokers, is now being eyed by new age tech-first platforms as well. Driving the news: Zerodha is looking to launch MTF as a product for its users, while Groww has recently launched margin funding for its clients. Fyers is testing the product in the beta stage but wants to scale it up cautiously. Some early movers: Some new-age brokers jumped onto the MTF bandwagon earlier than others. Mirae Asset-backed MStock, which offers a zero-brokerage platform, has already built a Rs 2,000 crore book on MTF in two years and is looking to double it in the next year. Angel One has a client funding book of Rs 3,400 crore, which has grown quickly over the last one year. Also Read | How Sebi action will impact profits of discount stock broking firms like Zerodha and Groww Quote, unquote: "It has now been illustrated that distribution and convenience are equally important to the speculative customer, who is primarily active on the discount brokers. As illustrated by the continued high market share in MTF of some of the non-bank brokers, now tech-first brokers also want to get into this business opportunity," said Prateek Mehta, founding partner India at South Park Commons, a venture fund. Prior to this, Mehta was the chief business officer at Angel One. Also Read | Zerodha eyes greater synergies between trading, wealth apps Rentomojo founder Geetansh Bamania After an unprecedented downturn during the Covid-19 pandemic, Accel-backed furniture and electronics rental startup Rentomojo has scripted a noteworthy comeback. This journey made Rentomojo the winner in the Comeback Kid category at the ET Startup Awards. IPO plans: Rentomojo is gearing up to file for an initial public offering (IPO) in the next 18 months, the company's founder and CEO, Geetansh Bamania, said. Rentomojo turned profitable in FY23 and has stood out among competitors that have faced difficulties in making unit economics work in a sector that Bamania says is akin to "trekking and not a marathon" because of the depth of the industry. Also Read | ETSA 2024: Haqdarshak takes government schemes to the needy via consultants Financials: Rentomojo is estimated to have closed FY24 with nearly Rs 200 crore in revenue, Bamania said, with a profit after tax (PAT) of around Rs 22 crore. In FY23, it registered revenue of Rs 121 crore and net profit of Rs 6.2 crore. He also pointed out that the company's growth will be linked to the country's macroeconomic growth, which results in job creation and urbanisation. On industry challenges: "This business is definitely tough. It's a combination of three different infrastructures - ecommerce (to have warehousing, logistics, and delivery); lending (we have to collect the monthly subscription fees while working on NPAs and recover products); and the soul of our business is refurbishing (which you would find in companies that resell used smartphones)," he said. Also Read | ET Startup Awards 2024: Lenskart bags top honours, a look at the winners India has the potential to become the "intelligence capital of the world", where AI research, development, and deployment can flourish, Vishal Dhupar, managing director, Asia South, Nvidia, said. India's AI blueprint: "India, with its large population, digital infrastructure, and growing tech talent pool, is poised to become a significant player in the AI landscape. This would involve leveraging India's strengths in data, talent, and computational resources to address grand challenges and create global impact," he said. Path to global leadership: "India's IT industry, while significant, is predominantly export-oriented and software-focused, maybe around $200 billion. With a domestic IT spending of only about 1% of the global total, the country lacks the necessary computational infrastructure to compete effectively in the AI race." AI for India: As an overall strategy, India should focus on identifying grand challenges that AI can help address at scale, solution & use case development, and building a robust ecosystem and accelerated computing infrastructure, Dhupar said. Vara Kumar (Left) and Khadim Batti, founders, Whatfix SaaS startup Whatfix raises $125 million from Warburg, SoftBank; valuation hits $900 million: Software-as-a-service (SaaS) company Whatfix has closed a $125 million funding round led by private equity firm Warburg Pincus. The New York-based fund invested $100 million while existing investor SoftBank put in another $25 million. After this round, the company is valued at around $900 million. Zerodha clocks Rs 4,700 crore in profits for FY24; expects new F&O rules to dent revenue by 30-50%: Nithin Kamath | Stock broking platform Zerodha has crossed Rs 8,370 crore in revenue and around Rs 4,700 crore in profits in FY24, said cofounder and chief executive Nithin Kamath in a blog post on Tuesday. While the business has shown strong growth over the last few years, Kamath reiterated that Sebi's regulatory changes will adversely impact the company's topline. HomeLane buys DesignCafe; raises Rs 225 crore from Hero Enterprise, Ranjan Pai: Home interior services startup HomeLane has acquired smaller rival DesignCafe in a share-swap deal that values the combined entity at Rs 3,000 crore. After the acquisition, HomeLane raised Rs 225 crore from new investors, including Sunil Kant Munjal's Hero Enterprise and Claypond Capital, the family office of Manipal Group's Ranjan Pai, with participation from existing investors such as WestBridge Capital and others. ■ Silicon Valley steps up staff screening over Chinese espionage threat (FT) ■ Google paid $2.7 billion to bring back an AI genius who quit in frustration (WSJ) ■ Google is 'thinking through' how to make the Pixel Watch repairable (Wired)

Whatfix's $125-million fundraise; Zerodha logs profit rise in FY24

SaaS startup Whatfix has secured $125 million in funding from Warburg Pincus and SoftBank at a $900-million valuation. This and more in today's ETtech Top 5. Also in this letter: ■ HomeLane acquires DesignCafe ■ Celebrities grab a share of Swiggy's pre-IPO pie ■ Airtel launches AI-powered spam detector L-R, Vara Kumar and Khadim Batti, cofounders, Whatfix Software-as-a-service (SaaS) company Whatfix has closed a $125-million funding round led by private equity firm Warburg Pincus. Details: Warburg invested $100 million while existing investor SoftBank put in another $25 million. The company is now valued at around $900 million, compared with $568 million in 2021 following a $90-million funding round led by SoftBank. ET on June 19 reported about Warburg leading the new round -- $70 million of primary fundraising and secondary deals by existing investors accounting for the rest. Early investors Helion Venture Partners and Eight Roads Ventures part-sold stake in this round. Fund utilisation: Whatfix founder and chief executive Khadim Batti told ET that the company plans to use the proceeds from the primary deal for acquisitions as well as to double down on existing products, GenAI use-cases and expand its presence in the US, EMEA and APAC regions. Revenue numbers: The company said it "grew by over 45%" in FY24. It had recorded revenue of Rs 304 crore and a net loss of Rs 328.3 crore for FY23. A 45% increase would take its FY24 revenue to Rs 441 crore. Whatfix is said to be on an annual recurring revenue of $75 million. Stock broking platform Zerodha clocked Rs 8,370 crore in revenue and Rs 4,700 crore in profit in FY24, cofounder and chief executive Nithin Kamath in a blog post on Tuesday. He added that regulatory changes by the market regulator will adversely impact the company's topline. Driving the news: The true-to-label rules issued by the Securities and Exchange Board of India (Sebi) to ensure transparency in the market infrastructure institutions (MIIs), will result in a 10% drop in revenue for the company. Rules surrounding the index derivatives will bring down the revenue between 30-50%, Kamath said. In an interview with ET in April last year, Kamath had cautioned about a 30-40% revenue decline for FY24. In FY23, the company reported overall revenue of around Rs 6,875 crore and a net profit of Rs 2,900 crore. Competition heats up: Kamath said growth had been steady in the last fiscal, but the sector has become crowded and highly competitive. The 14-year-old platform has seen a slowdown in business with the entry of rivals Groww and Angel One. Also Read: Zerodha's Nithin Kamath sees end of road for zero brokerage model after new Sebi rules IPO plans: On the stock broking major's public listing, Kamath said Zerodha is profitable and there is no pressing need to raise fresh funds, and that he would prefer to remain private. L-R, Tanuj Choudhry, Srikanth Iyer, cofounders, HomeLane and Shezaan Bhojani, Gita Ramanan, cofounders, DesignCafe Home interior services startup HomeLane has acquired its smaller rival, DesignCafe, in a share-swap deal that values the combined entity at Rs 3,000 crore. Capital infusion: Following this merger, the company has raised Rs 225 crore from new investors, including Sunil Kant Munjal's Hero Enterprise and Claypond Capital, the family office of Manipal Group's Ranjan Pai, with participation from existing investors such as WestBridge Capital and other angel funds. We had written about the likelihood of the merger in February. Revenue projections: Subject to regulatory approval, the joint entity is on track to hit Rs 1,000 crore revenue in FY25, up from Rs 761 crore in FY23. The company is also targeting profitability at the Ebitda (earnings before interest, taxes, depreciation and amortisation) level, Srikanth Iyer, cofounder of HomeLane, told us. What next? Despite the merger, both HomeLane and DesignCafe will continue operating as independent brands, each targeting distinct market segments. The fresh capital infusion will be used to drive its growth and technology investments, with a focus on profitability. The company is also eyeing an initial public offering (IPO) within the next 9-15 months. Sector revival: The consolidation between these two firms comes on the back of slowing business volumes in the home services sector and a funding freeze. Ikea-backed Livspace - the largest player in the home decor space - is also considering an IPO by 2026. The Health Factory raises $3.5 million: Health-focused bread brand The Health Factory has raised $3.5 million in a seed funding round led by Surge, Peak XV's scale up programme for early-stage startups. Jhana. ai raises $1.6 million: AI-driven legal-tech startup Jhana. ai recently closed a $1.6-million seed funding round, led by venture capital firm Together Fund. Sports and entertainment celebrities, and enterprises are showing major interest in food delivery company Swiggy through the unlisted market, ahead of its much-anticipated initial public offering (IPO). Trading high: In a recent round, Swiggy's pre-IPO shares were actively traded in the unlisted market, with nearly 2 lakh shares already acquired by prominent individuals, people in the know told ET. But, why? Experts say this is part of a broader trend of high-net-worth individuals adding tech startups to their portfolios. Celebrities are drawn to pre-IPO rounds as they offer a significant upside potential once the company goes public. Rival Zomato had seen similar demand back in 2021 when it was listing on the bourses. Recap: ET reported on September 24 that Swiggy has received Sebi's approval for its proposed $1.25 billion public issue, according to sources. Swiggy will now need to file an updated draft red herring prospectus (UDRHP) with the market regulator. Bharti Airtel launched India's first network-based, AI-powered spam detection solution to address the issue of spam calls and messages for its customers. How does it work? The tool will alert customers to all suspected spam calls and SMSes in real-time. The spam detection solution is designed as a dual-layer protection. It has two filters - one at the network layer and the second at IT systems. Every call and SMS passes through this dual-layered AI shield. "The solution is free of cost and will get auto-activated for all Airtel customers without them having to raise a service request or download an app," the company said in a statement. CEO speak: Gopal Vittal, managing director and chief executive officer, said, "Spam has become a menace for customers.......we launch the country's first AI-powered spam free network that will shield our customers from the continuous onslaught of intrusive and unwanted communications". Today's ETtech Top 5 newsletter was curated by Vaibhavi Khanwalkar and Riya Roy Chowdhury in Bengaluru.

A decade of The ET Startup Awards; Social Enterprise winner Haqdarshak's interview

Happy Wednesday! Ahead of The Economic Times Startup Awards ceremony on October 5 in Bengaluru, we recap a decade of honouring the brightest startup stars. This and more in today's ETtech Morning Dispatch. Also in this letter: ■ Foxconn to pump $1 billion in TN ■ Swiggy gets Sebi nod for IPO ■ IT hiring shows revival signs As The Economic Times Startup Awards (ETSA) gears up to celebrate its 10th edition, we look back at how the awards have recognised the best of entrepreneurship over the last decade and chronicled the ebb and flow of the industry. Biggest startup gathering: The star-studded ceremony scheduled to be held on October 5 in Bengaluru will see the guest of honour, Union commerce and industry minister Piyush Goyal, engage with the present and past winners and the who's who of the technology and startup world. The journey of ETSA has mirrored the growth of the Indian startup ecosystem across various cycles. Winners turn jury members: This year's elite jury consisted of previous ETSA winners -- Blinkit's Albinder Dhindsa, BrowserStack's Ritesh Arora, and Zerodha's Nikhil Kamath -- highlighting how the awardees have scaled the heights over the years. While Dhindsa won the Comeback Kid award for Grofers (now Blinkit) in 2018, BrowserStack and Zerodha were winners of the Bootstrap Champ award in 2015 and 2016, respectively. The latter two went on to be nominated for the coveted Startup of the Year award, with Zerodha claiming the crown in 2020. Spotting them young: Electric two-wheeler maker Ather Energy, which won the Best on Campus award back in 2016, has not only become a large business that clocked over Rs 1,700 crore in revenue last fiscal but has also filed for a Rs 3,100 crore initial public offering (IPO). Similarly, other startups such as Atomberg Technologies (winner of the Best on Campus category in 2019) and other winners and nominees in the Top Innovator category such as GreyOrange (winner in 2015), Qure.AI (nominee in 2021), and Innovaccer (nominee in 2018) have racked up big funds showcasing how they have grown in size. This underscores the ability of ETSA to recognise winners in their early stages. Also Read | ET Startup Awards' greatest hits: a decade of spotting winners Bengaluru-based Haqdarshak is creating a network of agents who can offer knowledge about social welfare schemes of the government and also help bottom of the pyramid Indians access them. Haqdarshak was picked by the elite jury of The ET Startup Awards 2024 as the winner of the Social Enterprise category, which recognises a startup that best embodies the 'double bottomline' model of combining profit and public good. Decoding the business model: The startup works with around 150 large corporations, NGOs, and family offices to help their blue-collar workers, employees, and farmers in their network and help them access social welfare schemes. The company charges a service fee to the corporate. Currently, Haqdarshak is also working on a payment card, which can add financial services margins to the business. Financials: The startup has secured grant funding from multiple government schemes and has also raised equity money from venture investors. It ended FY24 with total revenues of Rs 35 crore and a small profit of Rs 47 lakh. It has a target of achieving an overall revenue of Rs 55-75 crore in FY25. Founder's vision: Aniket Doegar founded Haqdarshak with a vision to create a pan-India network of 'scheme consultants'. These agents will be trained about the various government schemes that are available for the poor, and they can help take these services to the people in need and create a layer of social security for them. Also Read | ET Startup Awards 2024: Lenskart bags top honours, a look at the winners Foxconn is evaluating an investment of about $1 billion to set up an assembly unit for smartphone display modules in Tamil Nadu, according to people aware of the developments. This will be the first such facility to be set up by the Taiwanese contract manufacturer in India to assemble display modules for the iconic Apple iPhone. Apple and beyond: The facility will primarily serve Apple's iPhone but will also cater to other customers. Foxconn's model allows other contract manufacturers to use the components assembled here, reducing their reliance on imports. Boosting domestic value: While phone assembly gives you a local value add of about 5%, display assembly will give additional value add of around 2-3%. The new unit will contribute to India's domestic value addition in the electronics manufacturing sector. The India way: While India faces challenges in terms of component supply and skilled labour, this investment represents a significant step towards reducing the country's reliance on imported display modules. Foxconn's expansion aligns with Apple's diversification away from China and contributes to India's domestic manufacturing capabilities. Swiggy CEO Sriharsha Majety Food and grocery delivery platform Swiggy has received approval from the Securities and Exchange Board of India (Sebi) for its proposed $1.25 billion public issue, according to sources. The Bengaluru-based company had filed draft papers for the IPO with the market regulator through the confidential filing route in April this year. What's next: Swiggy will now need to file an updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi). A 21-day period will be provided for the public to give feedback on the updated DRHP before launching the IPO. IPO in numbers: Swiggy is expected to raise Rs 3,750 crore ($450 million) in fresh capital, along with an offer-for-sale (OFS) component of up to Rs 6,664 crore ($800 million). Prosus, Swiggy's largest shareholder with a 33% stake, and SoftBank are likely to sell part of their holdings through the OFS. Catch up quick: Swiggy may increase the fresh issue component of its upcoming IPO to Rs 5,000 crore, and will seek the approval of its shareholders for the same at an extraordinary general meeting (EGM) on October 3, it said in a notice to shareholders. Swiggy recorded a 36% growth in its operating revenue for the year ended March 31, 2024 to Rs 11,247 crore, while managing to reduce its net loss to Rs 2,350 crore 44% lower than a year ago. IT hiring shows revival signs with 10-12% H2 demand pickup | The upcoming two quarters of the ongoing fiscal year ending in March are seeing a boost for technology talent. Demand from most software service providers for hiring has shown a pickup of 10-12% for the second half of FY25 ending March next year. Delaware Supreme Court says Byju's defaulted on $1.5 billion loan, favours US lenders: The highest court in the US state of Delaware has upheld a ruling by a lower court that held edtech firm Byju's to be in default of a $1.5 billion loan. Following the decision of the Delaware Supreme Court, lenders to the edtech firm can now demand full repayment, take control of Byju's US entity, Byju's Alpha Inc., and appoint Timothy Pohl, Alpha Inc.'s court-appointed CEO, as its sole director, the US lenders said. ■ Intel's long-shot turnaround hits a critical stage (FT) ■ TikTok to shut down short-lived music-streaming service (WSJ) ■ Generative AI hype feels inescapable. Tackle it head on with education (Wired)

US Supreme Court holds Byju's in default; at the heart of India's AI machine

The top court in Delaware has held that Byju's defaulted on a $1.5-billion loan from US lenders. This and more in today's ETtech Top 5. Also in this letter: ■ Digital company Pratilipi plans 2026 IPO ■ ETtech Done Deals ■ India impact of Samsung's Sriperumbudur strike Byju Raveendran, founder, Byju's The highest court in the US state of Delaware has upheld a ruling by a lower court that held edtech firm Byju's to be in default of a $1.5 billion loan. Lenders demand: Following the decision of the Delaware Supreme Court, lenders to the edtech firm can now demand full repayment. They can take control of Byju's US entity Byju's Alpha Inc and appoint Timothy Pohl, Alpha Inc's court-appointed CEO, as its sole director, the US lenders said. This is the second public statement from the lenders reinforcing that Byju's and Raveendran must repay the outstanding loan. Court statement: According to the court, the edtech company must be held accountable for its financial defaults and cannot distance itself from conceding to those defaults and their consequences, the lenders said. Byju's statement: "Byju's wants to emphasise that the recent conclusion reached by a Delaware court has no bearing on the ongoing legal proceedings in India. In any event, the Delaware Supreme Court has merely upheld a limited ruling by the Chancery court on the validity of one of their nominees as the director of the shell company, Byju's Alpha Inc," the edtech firm said in a statement. Recap: On September 17, Glas Trust, the trustee for lenders to whom Byju's owes $1.2 billion, moved the Supreme Court challenging its removal from the committee of creditors (CoC) of the debt-ridden Think & Learn Pvt Ltd, the edtech firm's parent, by the interim resolution professional (IRP). The US lender had also called for the removal of Pankaj Srivastava, the IRP of Think & Learn. Thousands of women and men in India are building generative AI (GenAI) in India. They collate voice datasets, label images and videos, and translate and transcribe speech to text to train AI models that in turn power apps and chatbots. Main players: Several companies have hired thousands of staff to contribute multimodal datasets-text, image, video, and voice-to train AI models. These include: The end use: Most of the data being gathered by these companies is being commissioned by large corporations -- both Indian and multinational -- who want to build their own products and services aimed at the Indian market. End uses of the data that companies collect range from the automobile industry to healthcare, agriculture and construction safety. Tell me more: Chithrakshi K Kotian, a retired teacher in government higher primary schools in the Karnataka villages of Kollur and Karnire for 37 years, is one of the data workers. She contributes voice datasets to AI4Bharat through DesiCrew under the government's Bhashini initiative. Aashish Mishara of Darbhanga, Bihar, works full-time as a loco pilot in the Indian Railways. But he also works with DesiCrew to teach Maithili to computers, motivated by the thought that he would be contributing to the betterment of his language and community. Digital storytelling platform Pratilipi is planning to go public in January 2026, contingent on market conditions, cofounder Ranjeet Pratap Singh told us. Driving the news: The company, backed by Krafton and Nexus Venture Partners, also plans to raise $12 million (about Rs 100 crore) in a pre-IPO round. This will likely be at a lower valuation compared to its previous round, aligning with current market trends, Singh said. In 2021, it raised $48 million from Krafton and others at a pre-money valuation of $215 million. Quote, unquote: "There are two main reasons for pursuing an IPO. First, existing investors will have the opportunity to exit. Second, the company's stock will become liquid, allowing smaller investors-who may not be able to buy large stakes-to purchase smaller portions, which is difficult to do in private rounds," Singh said. Financials: The cofounder said Pratilipi achieved positive cash flow in FY24, and the company is not actively seeking acquisitions but remains open to opportunities. Pratilipi currently hosts around 1.5 million writers and 1.4 million daily active users, with 18% of its users subscribing to monthly paid services. Mohak Nahta, founder, Atlys E-visa startup Atlys raises $20 million: E-visa startup Atlys has raised $20 million in a series-B funding round that was led by existing investors Peak XV Partners and Elevation Capital. Founder Mohak Nahta said the capital will be used to drive the company's expansion, enhance its product and engineering capabilities. CoRover AI secures $4 million in funding: BharatGPT maker CoRover AI on Tuesday announced that it received $4 million in series A funding, led by Venture Catalysts. Other participants in the round included CanBank Venture Capital Fund, IIM Calcutta (Innovation Park), IIIT Delhi (iHub Anubhuti IIITD Foundation), Cogniphy LLC, Karekeba Ventures, and Lead Angels. Tuco Intelligent raises $2 million: Kids personal care brand Tuco Intelligent has raised $2 million in a seed funding round led by Fireside Ventures and Whiteboard Capital. Founded in 2023 by Aishvarya Murali, a former executive at Unilever, Tuco offers a range of natural and sustainable personal care products exclusively for kids. SaaS platform Pepsales raises $1.1 million: Pepsales, a software-as-a-service (SaaS) platform for sales teams, has raised $1.1 million in a funding round led by venture capital firm Chiratae Ventures. The round also saw participation from angel investors. TraqCheck secures funding from Alok Oberoi, others: TraqCheck, an enterprise software startup, has raised an undisclosed amount in a funding round from Alok Oberoi, former head of Goldman Sachs' international wealth management business; Aakash Anand, founder of Bellavita; and Caret Capital, an early-stage venture firm focused on startups in the mobility, distribution and employment sectors. India risks losing significant ground in its quest to become a global manufacturing powerhouse if the labour strike at Samsung's Sriperumbudur plant is not resolved soon, Delhi-based think tank Global Trade Research Initiative (GTRI) said. Tell me more: GTRI suggested India should establish industrial intelligence units to determine whether disruptions are influenced by foreign entities. They have also cautioned that if the Tamil Nadu government does not intervene swiftly, the situation could mirror the closure of Nokia's Sriperumbudur plant a decade ago, resulting in job losses and shifting manufacturing dominance to China. Consequences: The strike could also hinder India's broader goal of becoming a global manufacturing hub. Under the 'Make in India' initiative, the country aims to triple its electronics production to $500 billion over the next six years. Today's ETtech Top 5 newsletter was curated by Vaibhavi Khanwalkar and Riya Roy Chowdhury in Bengaluru.