Ola Electric's IPO Plans and India's EV Industry Developments

States lure Tesla component suppliers; bumper exit for Snapdeal founders

Happy Thursday! Tesla's suppliers are looking for locations to double down on their India operations. This and more in today's ETtech Morning Dispatch. Also in this letter: ■ Fintechs lend a hand to banks ■ Karnataka's job quota bill on hold ■ ETtech Done Deals A number of Tesla Inc's component suppliers are scouting for the right location to start their operations in India, people aware of the matter said, even as the US car maker's plans to manufacture in the country remain fluid. Driving the news: While the Centre continues to woo Tesla, state governments including Gujarat and Tamil Nadu are luring the EV maker's suppliers, believing that "Tesla would be more likely to go where its supplier ecosystem is," sources said. Separately, two other European suppliers of the EV maker are eyeing plans to expand operations in Tamil Nadu, which already has some of Tesla's suppliers based there. Quote, unquote: Experts say Tesla's supply chain is highly intricate, characterised by partnerships with multiple tier I and tier II suppliers across different regions, aimed at the timely delivery of high-quality products. "For instance, Tesla has partnered with BYD and CATL in China for batteries, and with Panasonic and LG Energy in the USA for the same purpose," said Soumen Mandal, senior research analyst at Counterpoint Research. Shift from China: India is also gaining from a shift away from China by global manufacturers. "The reduction of US (manufacturers) dependency on China has brought India closer as a reliable partner to meet growing demands," Ashwin Amberkar, automotive analyst at Canalys, said. Titan Capital cofounders Rohit Bansal (left) and Kunal Bahl Kunal Bahl and Rohit Bansal, who founded ecommerce marketplace Snapdeal, and now run Titan Capital, have clocked a bumper win by exiting at-home services platform Urban Company. Deal details: Bahl and Bansal have snagged a nearly 200 times return on their nine-year-old seed cheque, according to people in the know. The duo invested Rs 57 lakh in 2015 in Urban Company and have made a full exit with aggregate proceeds to totalling to Rs 111 crore, according to people aware of the transaction. Secondary investment: They sold their stake to Vy Capital's offshoot, Dharana Capital which closed a $50 million secondary deal at the Gurugram-based firm. Some employees also offloaded their stock options as part of the secondary transaction. Return multiple: Last year, the duo sold shares worth around Rs 78 crore through the initial public offering (IPO) of Honasa Consumer, the parent company of Mamaearth. At the issue price of Rs 324 per share, Bahl and Bansal saw a return multiple of over 100 times on the per share weighted average acquisition cost of Rs 3.21 per share. Past record: Some of the other investments that have clocked a return of 100 times or more for Titan Capital include Ola Cabs, OfBusiness, and Credgenics. Fintech startups have helped grow consumer loans, stock markets, and the digital payments sector. Now a bunch of them is trying to make fixed deposits (FDs) attractive again. Driving the news: Bengaluru-headquartered Stable Money has started selling FDs of small finance banks (SFBs) and other medium-sized private lenders. Eventually, they intend to expand into bonds and other fixed-income investment options. Mumbai-based Fixerra and Upswing are building pipelines to connect banks with consumer-facing applications to sell such products. Straight off the shelf: While FDs are among the most popular products sold by banks as a fixed-income investment, fintechs are helping sell recurring deposits (RDs), credit cards backed by FDs, and such products. Eventually, such products can be sold on ecommerce portals and payment applications as more and more banks start distributing them through third-party applications. Market opportunity: Industry estimates suggest that the overall FDs parked with banks stood at Rs 110 lakh crore. Of this, around Rs 25,000 crore is sold through digital channels, including around Rs 5,000 crore through third-party platforms. These volumes are being reported within about a year of third-party apps joining the fixed-income bandwagon. Also read | Take KYC seriously: RBI's clear message to fintechs Karnataka CM Siddaramaiah Amid backlash from all fronts, the Congress government in Karnataka has put the controversial job reservation bill on hold. Damage control: Karnataka chief minister Siddaramaiah said in a post on X, "The bill approved by the cabinet to provide reservation for Kannadigas in private sector organisations, industries, and enterprises has been temporarily put on hold." "This will be revisited and decided in the coming days," he added. Contentious provisions: As per the Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024, "Any industry, factory, or other establishment shall appoint 50% of local candidates in management categories and 70% in non-management categories." If there is a lack of local candidates, then companies may apply for relaxation from the provisions of this Act to the government, it said. Industry response: The industry criticised the bill, calling it a regressive move and short-sighted decision. The National Association of Software and Service Companies (Nasscom) raised concerns over the bill, saying, "The restrictions could force companies to relocate as local skilled talent becomes scarce." Biocon managing director Kiran Mazumdar Shaw, TV Mohandas Pai, former chief finance officer of Infosys, and Assocham's co-chairman RK Misra were among those who spoke against the bill. Low-cost hydrogen cell startup Protonas bags undisclosed amount of funding: Protonas, a startup specialising in low-cost polymer electrolyte membrane (PEM) hydrogen fuel cell solutions, has secured an undisclosed amount of funding in a round led by Transition VC. NBFC Seeds Fincap raises over $8.5 million funding: Non-banking financial company (NBFC) Seeds Fincap has raised over $8.5 million in a Series A funding round led by Lok Capital and Z47 (formerly Matrix Partners India). Consumer lighting startup Corvi LED bags $8 million: Mumbai-based consumer lighting startup Corvi LED has raised $8 million (Rs 65.6 crore) from Enam Investments as part of its Series B funding round. Edtech startup ByteXL raises $5.9 million: Edtech firm ByteXL has raised $5.9 million in a funding round led by early-stage venture capital firm Kalaari Capital as the lead investor, along with the Michael and Susan Dell Foundation. Watertech startup Boon secures $5 million in funding: Watertech startup Boon has raised $5 million in a mix of equity and debt in a funding round that marked the first investment in India by Roca Group Ventures, the investment arm of Spanish bathroom products firm Roca Group. Nitish Mittersain, CEO, Nazara Technologies Nazara Tech's subsidiaries get Rs 1,120 crore GST demand notice: Online gaming and sports company Nazara Technologies' two subsidiaries have received show cause notices in relation to Goods and Services Tax with a total liability of Rs 1,120 crore, the company stated on Wednesday. LTIMindtree Q1 net profit up 3.1% at Rs 1,135 crore: LTIMindtree's net profit grew 3.1% sequentially to Rs 1,135 crore but missed ET's estimate of Rs 1,150 crore. Lower margins compared to the corresponding quarter of last fiscal also impacted its net profit, which was 1.5% down on a year-on-year basis. ■ These AI models are pretty mid. That's why companies love them. (WSJ) ■ Struggling bitcoin miners seek deals with AI companies (FT) ■ The real problem with TikTok's 'fruity' boy trend (Wired)

Subject: Ola Electric IPO; Insolvency order against Byju's

Ola Electric's initial public offering (IPO) may hit the market at 30% below its last valuation. This and more on today's ETtech Top 5. Also in the letter: ■ Paytm gets Sebi notice ■ Micron CBO on India facility ■ Namma Yatri raises $11 million Ola Electric IPO pricing likely at 30% lower than private valuation: sources Electric vehicle (EV) firm Ola Electric's public offering is likely to be priced at a valuation of around $4 billion, 30% below its last private funding round. Tell me more: The Bhavish Aggarwal-led EV firm is expected to raise Rs 5,500 crore in capital via the IPO, aside from an offer-for-sale (OFS) component. At a valuation of $4 billion, Aggarwal could make around $52 million from the share sale. "The valuation expectation has undergone readjustment since the EV major first filed its draft IPO papers. The founder has agreed to a 25-27% discount to its last round pricing," a person aware of the matter said. Sebi nod: Ola Electric secured markets regulator Sebi's nod for its IPO last month, we had reported. The company, per its December draft red herring prospectus (DRHP), is also facilitating an OFS of 95.2 million shares. Context: The Bengaluru-based company was initially aiming for a $6-7 billion valuation but has tempered it since then. Its plan to hit the market comes amid recent launches from Bajaj Auto and TVS Motor, which have challenged Ola Electric's market share in the first half of July, per Vahan data. Run up to IPO: In a bid to rein in costs, Ola Electric let go of around 600-800 employees, along with making internal transfers within the group as part of a business restructuring. On June 29, CEO Aggarwal said he plans to invest $100 million (about Rs 834 crore) in the first phase of building its Gigafactory for producing lithium-ion battery cells. Byju Raveendran, founder, Byju's The National Company Law Tribunal (NCLT) on Tuesday admitted troubled edtech Byju's parent company Think and Learn into insolvency over unpaid sponsorship dues of Rs 158 crore to the Board of Control for Cricket in India (BCCI). Details: The tribunal detemined that Byju's fulfilled the criteria for insolvency due to an outstanding debt and failure to make payments. Challenge: Sources told us that Byju's plans to challenge the order at NCLAT. "As we have always maintained, we wish to reach an amicable settlement with the BCCI and we are confident that, despite this order, a settlement can be reached," a spokesperson said. Case history: Byju's initially signed a jersey sponsorship agreement with the BCCI in March 2019 for three years, which was extended by one year. The company made payments till September 2022. The case pertains to dues from October 2022 till March 2023. BCCI initiated insolvency proceedings against the firm in September 2023. Byju's later sought arbitration on the matter. Also read: Explainer: How Byju's went from startup star to facing insolvency In other news: Byju's has troubles on other fronts as well. ET reported on June 24 that Dutch-listed technology investment firm Prosus has written off its 9.6% stake in the cash-strapped firm, marking a $493 million loss. Vijay Shekhar Sharma, CEO, Paytm Paytm received a warning letter from the Securities and Exchange Board of India (Sebi) stating that transactions in FY22 between Paytm and the now defunct Paytm Payments Bank occurred without approval from the company's audit committee or its shareholders. Tell me more: Sebi's warning focuses on related party transactions worth Rs 360 crore. These deals, conducted during FY21-22, lacked necessary approvals from both the audit committee and shareholders. Taking a servious view on the violations, the stock market regulator has warned Paytm parent One97 Communications to improve its compliance systems. Company statement: Paytm said it has consistently adhered to all listing regulations and will address Sebi's concerns with a detailed response. This comes at a time when the listed fintech firm has been facing regulatory scrutiny across multiple businesses. Corporate misconduct: Industry insiders said such related party transactions need to be conducted as per legal procedures, and lapses do not hold the company in good stead. A senior lawyer who specialises in corporate law said while it might be a genuine oversight, such cases always raise queries. This could invite further scrutiny from the markets regulator going forward, he said. Impact: Paytm has seen a massive value erosion over the last six months. Back in January, before the Reserve Bank of India cracked down on PPBL's business, Paytm was trading at around Rs 761. The stock closed down 2% on Tuesday at Rs 469. Bengaluru-based ride-hailing app Namma Yatri has raised Rs 92 crore ($11 million) in a funding round led by Blume Ventures and Antler. Tech giant Google was also among the investors who participated in this pre-Series A round. Tell me more: Namma Yatri gained traction over the past couple of years in Bengaluru as it offered its services to auto drivers for zero commissions. But from September last year, the ride-hailing platform kicked off subscription fees for drivers. Quote, unquote: "We were amazed by the simplicity of what the tech and a robust product can do to solve mass mobility. We are glad to partner with an exceptional team and back their grand vision," Karthik Reddy, partner at Blume Ventures, said about the latest funding. Also read: Namma Yatri launches cab services in Bengaluru, says no subscription fees till October Healthcare finance startup Icanheal raises Rs 15 crore funding from IvyCap Ventures: Icanheal, a healthcare financing startup, has raised Rs 15 crore from early-stage venture capital firm IvyCap Ventures. The funds will be used to scale operations, recruit more employees, invest in technology, and expand geographically. Also read: EV ride-hailing company BluSmart raises $24 million in funding Sumit Sadana, chief business officer, Micron global American technology firm Micron is hoping to start its India facility by 2025, which will complement a part of its global sales given its AI-led products are sold out till 2025, chief business officer Sumit Sadana told ET in an interview. He also spoke of expensive AI products, investment in Indian startups, and more. Edited excerpts: On upcoming India facility: We have been working with various organisations in India to make this project a reality and we expect it to be operational in 2025. We expect to start shipping volume from there as the largest semiconductor back-end manufacturing facility, assembly, packaging in India. Startups keeping up: The data centre infrastructure needed to train these models is quite expensive and not easy for startups to afford. Startups that have a good value proposition for new capabilities can certainly partner with large companies and can create a win-win solution because the large companies do put up these massive data centres and put that infrastructure in there. Infographic insight | Who are the big guns fuelling AI? Generative artificial intelligence (GenAI) startups are attracting attention from companies and venture capitalists (VCs), drawing investments across fields like healthcare, finance and robotics. A report shows that private investment in GenAI has increased to $25.23 billion in 2023 from less than $5 billion in 2022. Also read: Indian AI startups funding plunges 91% to $8.2 million in Q2 Today's ETtech Top 5 newsletter was curated by Riya Roy Chowdhury and Vaibhavi Khanwalkar in Bengaluru.

Subject: Ola Electric IPO; Insolvency order against Byju's

Ola Electric's initial public offering (IPO) may hit the market at 30% below its last valuation. This and more on today's ETtech Top 5. Also in the letter: ■ Paytm gets Sebi notice ■ Micron CBO on India facility ■ Namma Yatri raises $11 million Ola Electric IPO pricing likely at 30% lower than private valuation: sources Electric vehicle (EV) firm Ola Electric's public offering is likely to be priced at a valuation of around $4 billion, 30% below its last private funding round. Tell me more: The Bhavish Aggarwal-led EV firm is expected to raise Rs 5,500 crore in capital via the IPO, aside from an offer-for-sale (OFS) component. At a valuation of $4 billion, Aggarwal could make around $52 million from the share sale. "The valuation expectation has undergone readjustment since the EV major first filed its draft IPO papers. The founder has agreed to a 25-27% discount to its last round pricing," a person aware of the matter said. Sebi nod: Ola Electric secured markets regulator Sebi's nod for its IPO last month, we had reported. The company, per its December draft red herring prospectus (DRHP), is also facilitating an OFS of 95.2 million shares. Context: The Bengaluru-based company was initially aiming for a $6-7 billion valuation but has tempered it since then. Its plan to hit the market comes amid recent launches from Bajaj Auto and TVS Motor, which have challenged Ola Electric's market share in the first half of July, per Vahan data. Run up to IPO: In a bid to rein in costs, Ola Electric let go of around 600-800 employees, along with making internal transfers within the group as part of a business restructuring. On June 29, CEO Aggarwal said he plans to invest $100 million (about Rs 834 crore) in the first phase of building its Gigafactory for producing lithium-ion battery cells. Byju Raveendran, founder, Byju's The National Company Law Tribunal (NCLT) on Tuesday admitted troubled edtech Byju's parent company Think and Learn into insolvency over unpaid sponsorship dues of Rs 158 crore to the Board of Control for Cricket in India (BCCI). Details: The tribunal detemined that Byju's fulfilled the criteria for insolvency due to an outstanding debt and failure to make payments. Challenge: Sources told us that Byju's plans to challenge the order at NCLAT. "As we have always maintained, we wish to reach an amicable settlement with the BCCI and we are confident that, despite this order, a settlement can be reached," a spokesperson said. Case history: Byju's initially signed a jersey sponsorship agreement with the BCCI in March 2019 for three years, which was extended by one year. The company made payments till September 2022. The case pertains to dues from October 2022 till March 2023. BCCI initiated insolvency proceedings against the firm in September 2023. Byju's later sought arbitration on the matter. Also read: Explainer: How Byju's went from startup star to facing insolvency In other news: Byju's has troubles on other fronts as well. ET reported on June 24 that Dutch-listed technology investment firm Prosus has written off its 9.6% stake in the cash-strapped firm, marking a $493 million loss. Vijay Shekhar Sharma, CEO, Paytm Paytm received a warning letter from the Securities and Exchange Board of India (Sebi) stating that transactions in FY22 between Paytm and the now defunct Paytm Payments Bank occurred without approval from the company's audit committee or its shareholders. Tell me more: Sebi's warning focuses on related party transactions worth Rs 360 crore. These deals, conducted during FY21-22, lacked necessary approvals from both the audit committee and shareholders. Taking a servious view on the violations, the stock market regulator has warned Paytm parent One97 Communications to improve its compliance systems. Company statement: Paytm said it has consistently adhered to all listing regulations and will address Sebi's concerns with a detailed response. This comes at a time when the listed fintech firm has been facing regulatory scrutiny across multiple businesses. Corporate misconduct: Industry insiders said such related party transactions need to be conducted as per legal procedures, and lapses do not hold the company in good stead. A senior lawyer who specialises in corporate law said while it might be a genuine oversight, such cases always raise queries. This could invite further scrutiny from the markets regulator going forward, he said. Impact: Paytm has seen a massive value erosion over the last six months. Back in January, before the Reserve Bank of India cracked down on PPBL's business, Paytm was trading at around Rs 761. The stock closed down 2% on Tuesday at Rs 469. Bengaluru-based ride-hailing app Namma Yatri has raised Rs 92 crore ($11 million) in a funding round led by Blume Ventures and Antler. Tech giant Google was also among the investors who participated in this pre-Series A round. Tell me more: Namma Yatri gained traction over the past couple of years in Bengaluru as it offered its services to auto drivers for zero commissions. But from September last year, the ride-hailing platform kicked off subscription fees for drivers. Quote, unquote: "We were amazed by the simplicity of what the tech and a robust product can do to solve mass mobility. We are glad to partner with an exceptional team and back their grand vision," Karthik Reddy, partner at Blume Ventures, said about the latest funding. Also read: Namma Yatri launches cab services in Bengaluru, says no subscription fees till October Healthcare finance startup Icanheal raises Rs 15 crore funding from IvyCap Ventures: Icanheal, a healthcare financing startup, has raised Rs 15 crore from early-stage venture capital firm IvyCap Ventures. The funds will be used to scale operations, recruit more employees, invest in technology, and expand geographically. Also read: EV ride-hailing company BluSmart raises $24 million in funding Sumit Sadana, chief business officer, Micron global American technology firm Micron is hoping to start its India facility by 2025, which will complement a part of its global sales given its AI-led products are sold out till 2025, chief business officer Sumit Sadana told ET in an interview. He also spoke of expensive AI products, investment in Indian startups, and more. Edited excerpts: On upcoming India facility: We have been working with various organisations in India to make this project a reality and we expect it to be operational in 2025. We expect to start shipping volume from there as the largest semiconductor back-end manufacturing facility, assembly, packaging in India. Startups keeping up: The data centre infrastructure needed to train these models is quite expensive and not easy for startups to afford. Startups that have a good value proposition for new capabilities can certainly partner with large companies and can create a win-win solution because the large companies do put up these massive data centres and put that infrastructure in there. Infographic insight | Who are the big guns fuelling AI? Generative artificial intelligence (GenAI) startups are attracting attention from companies and venture capitalists (VCs), drawing investments across fields like healthcare, finance and robotics. A report shows that private investment in GenAI has increased to $25.23 billion in 2023 from less than $5 billion in 2022. Also read: Indian AI startups funding plunges 91% to $8.2 million in Q2 Today's ETtech Top 5 newsletter was curated by Riya Roy Chowdhury and Vaibhavi Khanwalkar in Bengaluru.

KYC non-negotiable for fintechs; Ola Electric IPO pricing

Happy Wednesday! The central bank has cautioned fintech startups to adhere strictly to know-your-customer (KYC) guidelines. This and more in today's ETtech Morning Dispatch. Also in this letter: ■ Indian GCCs lead board table ■ ETtech Done Deals ■ Changing scope of IT contracts The Reserve Bank of India (RBI) has conveyed a stern message to fintech startups to take know-your-customer (KYC) guidelines very seriously and enforce the regulatory norms in full. Driving the news: Digital lending startups and digital payment companies have been asked to undertake a complete KYC of their user base, and there seems to be little letdown on those requirements, people in the know told us. Central bank officials have made it clear that fintech companies will need to have video KYC capabilities. Also read | P2P lenders rework products, business to follow RBI diktat Tell me more: These fintechs can use Aadhaar offline KYC or Digilocker as a means to collect documents through government-defined channels. As for the First Loss Default Guarantee (FLDG), the regulator might look into the industry demand for some relaxation in the future, industry insiders told us. Also read | RBI's stricter KYC rules may slow merchant onboarding 90%: experts What more: RBI officials also discussed peer-to-peer (P2P) lending as a sector. While the RBI understands the challenges facing the space, it wants startups to strictly adhere to regulatory restrictions. These meetings have been held across multiple forums, with the latest one taking place last week. This comes at a time when the fintech industry is trying to come together to form a self-regulatory organisation (SRO) to self-regulate itself. Also read | No default loss cover diktat by RBI to hit peer-to-peer lending startups Electric vehicle (EV) firm Ola Electric's public offering is expected to be priced in the range of $4 billion, a discount of around 25% from its last private funding round. IPO details: The Bhavish Aggarwal-led EV maker is set to raise Rs 5,500 crore in capital via the IPO, aside from an offer-for-sale (OFS) component. Aggarwal could make around $52 million from the share sale at the current price. "The valuation expectation has undergone readjustment since the EV major first filed its draft IPO papers. The founder has agreed to a 25-27% discount to its last round pricing," a person aware of the matter said. Sebi nod: Ola Electric secured markets regulator Sebi's nod for its IPO last month, we had reported. The company, per its December draft red herring prospectus (DRHP), is also facilitating an OFS of 95.2 million shares. Background: The Bengaluru-based company was initially aiming for a $6-7 billion valuation but has tempered it since then. Its plan to hit the market comes amid recent launches from Bajaj Auto and TVS Motor, which have challenged Ola Electric's market share in the first half of July, per Vahan data. Run-up to IPO: In a bid to rein in costs, Ola Electric let go of around 600-800 employees, along with making internal transfers within the group as part of a business restructuring. On June 29, CEO Aggarwal said he plans to invest $100 million (about Rs 834 crore) in the first phase of building its Gigafactory for producing lithium-ion battery cells. Global capability centres (GCCs) based out of India are increasingly becoming core to global operational decision making having a larger seat on the board table for several multinational corporations (MNCs). What's the matter: GCCs, which till recently existed as back-office divisions of international firms, are climbing up the maturity model as transformational units with a larger say, experts say. According to data from consultancy firm Zinnov, global roles in India have expanded significantly, from 175 in 2015 to 6,500 by 2023. This trend is expected to continue, with projections indicating an increase to 30,000 global roles by 2030, with an annual growth rate of around 25%. Indian leaders take charge: Sen added that there is also a general career evolution for leaders based in India who are now moving in a global direction. Few executives in such roles include: Read our in-depth coverage on the rise of GCCs: Jay Vijayan, founder, Tekion Corp Tekion Corp raises $200 million in funding: Tekion Corp, which provides cloud-based technologies for automotive retail, has raised $200 million from San Francisco-based Dragoneer Investment Group at an over $4 billion valuation. The US-based firm will use the funds to expand its products which it sells to car dealers and automakers, while also quickening product development, the company said in a statement. AI startup UptimeAI secures $14 million in funding: UptimeAI, an artificial intelligence (AI) startup specialising in the manufacturing and heavy industry sectors, has raised $14 million in a Series A funding round. The round was led by WestBridge Capital, with participation from existing investor Emergent Ventures and new investor Aditya Birla Ventures. Namma Yatri bags $11 million in funding: Ride-hailing upstart Namma Yatri said on Tuesday that it has raised its maiden funding of $11 million at a $55-million valuation. The round was led by venture firms Blume Ventures and Antler. Tech giant Google and several angel investors also participated in the funding, chief executive officer Magizhan Selvan told us. Fintech startup Multipl raises $1.5 million funding: Fintech startup Multipl has raised $1.5 million in a funding round led by early-stage venture capital firm Blume Ventures and MIXI Global Investments. Founded in 2020 by Paddy Raghavan, Jags Raghavan, and Vikas Jain, the platform rewards users for investing to finance future expenses through partnerships with leading brands. Healthcare finance startup Icanheal raises Rs 15 crore: Icanheal, a healthcare financing startup, has raised Rs 15 crore from early-stage venture capital firm IvyCap Ventures. The funds will be used to scale operations, recruit more employees, invest in technology, and expand geographically. ■ Macro uncertainty and GenAI push changes in the scope of IT contracts ■ BPO clients automating ops via AI to raise productivity: Automation Anywhere CTO ■ Paytm gets Sebi notice on unauthorised related party transactions ■ Silicon Valley's tech titans line up to donate to Donald Trump (FT) ■ Apple, Nvidia, Anthropic used thousands of swiped YouTube videos to rrain AI (Wired) ■ Elon Musk has said he is committing around $45 million a month to a new pro-Trump Super PAC (WSJ)

KYC non-negotiable for fintechs; Ola Electric IPO pricing

Happy Wednesday! The central bank has cautioned fintech startups to adhere strictly to know-your-customer (KYC) guidelines. This and more in today's ETtech Morning Dispatch. Also in this letter: ■ Indian GCCs lead board table ■ ETtech Done Deals ■ Changing scope of IT contracts The Reserve Bank of India (RBI) has conveyed a stern message to fintech startups to take know-your-customer (KYC) guidelines very seriously and enforce the regulatory norms in full. Driving the news: Digital lending startups and digital payment companies have been asked to undertake a complete KYC of their user base, and there seems to be little letdown on those requirements, people in the know told us. Central bank officials have made it clear that fintech companies will need to have video KYC capabilities. Also read | P2P lenders rework products, business to follow RBI diktat Tell me more: These fintechs can use Aadhaar offline KYC or Digilocker as a means to collect documents through government-defined channels. As for the First Loss Default Guarantee (FLDG), the regulator might look into the industry demand for some relaxation in the future, industry insiders told us. Also read | RBI's stricter KYC rules may slow merchant onboarding 90%: experts What more: RBI officials also discussed peer-to-peer (P2P) lending as a sector. While the RBI understands the challenges facing the space, it wants startups to strictly adhere to regulatory restrictions. These meetings have been held across multiple forums, with the latest one taking place last week. This comes at a time when the fintech industry is trying to come together to form a self-regulatory organisation (SRO) to self-regulate itself. Also read | No default loss cover diktat by RBI to hit peer-to-peer lending startups Electric vehicle (EV) firm Ola Electric's public offering is expected to be priced in the range of $4 billion, a discount of around 25% from its last private funding round. IPO details: The Bhavish Aggarwal-led EV maker is set to raise Rs 5,500 crore in capital via the IPO, aside from an offer-for-sale (OFS) component. Aggarwal could make around $52 million from the share sale at the current price. "The valuation expectation has undergone readjustment since the EV major first filed its draft IPO papers. The founder has agreed to a 25-27% discount to its last round pricing," a person aware of the matter said. Sebi nod: Ola Electric secured markets regulator Sebi's nod for its IPO last month, we had reported. The company, per its December draft red herring prospectus (DRHP), is also facilitating an OFS of 95.2 million shares. Background: The Bengaluru-based company was initially aiming for a $6-7 billion valuation but has tempered it since then. Its plan to hit the market comes amid recent launches from Bajaj Auto and TVS Motor, which have challenged Ola Electric's market share in the first half of July, per Vahan data. Run-up to IPO: In a bid to rein in costs, Ola Electric let go of around 600-800 employees, along with making internal transfers within the group as part of a business restructuring. On June 29, CEO Aggarwal said he plans to invest $100 million (about Rs 834 crore) in the first phase of building its Gigafactory for producing lithium-ion battery cells. Global capability centres (GCCs) based out of India are increasingly becoming core to global operational decision making having a larger seat on the board table for several multinational corporations (MNCs). What's the matter: GCCs, which till recently existed as back-office divisions of international firms, are climbing up the maturity model as transformational units with a larger say, experts say. According to data from consultancy firm Zinnov, global roles in India have expanded significantly, from 175 in 2015 to 6,500 by 2023. This trend is expected to continue, with projections indicating an increase to 30,000 global roles by 2030, with an annual growth rate of around 25%. Indian leaders take charge: Sen added that there is also a general career evolution for leaders based in India who are now moving in a global direction. Few executives in such roles include: Read our in-depth coverage on the rise of GCCs: Jay Vijayan, founder, Tekion Corp Tekion Corp raises $200 million in funding: Tekion Corp, which provides cloud-based technologies for automotive retail, has raised $200 million from San Francisco-based Dragoneer Investment Group at an over $4 billion valuation. The US-based firm will use the funds to expand its products which it sells to car dealers and automakers, while also quickening product development, the company said in a statement. AI startup UptimeAI secures $14 million in funding: UptimeAI, an artificial intelligence (AI) startup specialising in the manufacturing and heavy industry sectors, has raised $14 million in a Series A funding round. The round was led by WestBridge Capital, with participation from existing investor Emergent Ventures and new investor Aditya Birla Ventures. Namma Yatri bags $11 million in funding: Ride-hailing upstart Namma Yatri said on Tuesday that it has raised its maiden funding of $11 million at a $55-million valuation. The round was led by venture firms Blume Ventures and Antler. Tech giant Google and several angel investors also participated in the funding, chief executive officer Magizhan Selvan told us. Fintech startup Multipl raises $1.5 million funding: Fintech startup Multipl has raised $1.5 million in a funding round led by early-stage venture capital firm Blume Ventures and MIXI Global Investments. Founded in 2020 by Paddy Raghavan, Jags Raghavan, and Vikas Jain, the platform rewards users for investing to finance future expenses through partnerships with leading brands. Healthcare finance startup Icanheal raises Rs 15 crore: Icanheal, a healthcare financing startup, has raised Rs 15 crore from early-stage venture capital firm IvyCap Ventures. The funds will be used to scale operations, recruit more employees, invest in technology, and expand geographically. ■ Macro uncertainty and GenAI push changes in the scope of IT contracts ■ BPO clients automating ops via AI to raise productivity: Automation Anywhere CTO ■ Paytm gets Sebi notice on unauthorised related party transactions ■ Silicon Valley's tech titans line up to donate to Donald Trump (FT) ■ Apple, Nvidia, Anthropic used thousands of swiped YouTube videos to rrain AI (Wired) ■ Elon Musk has said he is committing around $45 million a month to a new pro-Trump Super PAC (WSJ)