Moving Tech Innovations Ltd., the company behind community-led mobility apps Namma Yatri and Yatri Sathi, has raised $11 million (INR 92 crore) in a pre-Series A funding round. Google and a number of other investors joined Blume Ventures and Antler in leading the round.
The money will be put into research and development, new products, and technology so that drivers can be more empowered, public transport can be more integrated, and the customer experience can be better.
Through direct-to-driver and multimodal transportation models, Moving Tech aims to increase driver earnings while providing reliable, affordable, seamless, and sustainable mobility solutions for all, according to a statement from the company.
The mobility division of Juspay, which was backed by Softbank, was spun off into Moving Tech in April 2020. Former Juspay employees Shan M S and Magizhan Selvan are at the forefront of the newly formed mobility company.
Magizhan Selvan and Shan M S, Co-founders of Moving Tech, said, With our people-first approach, our goal is to build empathetic products and tech that are 10x better. By collaborating with Samaaj (Community), Sarkar (Government), and Bazaar (Business), we aspire to create an impact similar to UPI in India and Linux worldwide. This funding will enable us to innovate and grow further.
So, What Exactly is Namma Yatri?
Namma Yatri, which began its operations in November 2022, is a transportation app that competes with Rapido, Ola, and Uber. Drivers could retain the whole fee on Namma Yatri, in contrast to rivals, who usually take a 30% cut.
However, drivers who wished to list their services on the app started to pay a monthly fee in 2023. Up to 10 journeys each day cost the drivers INR 3.5 per trip, while an unlimited subscription costs INR 25. According to the company’s accessible dashboard, Namma Yatri has 73.9 lahks registered consumers and 4.19 lakh drivers who have earned INR 714.03 crore from 4.63 crore trips completed thus far.
Namma Yatri, Accelerating Growth by Dogging Sector Giants
Namma Yatri became the first to implement the direct-payment concept in Bengaluru. Afterwards, other major ride-hailing companies including Rapido, Ola, and Uber have shown interest in implementing this strategy to save GST fees.
Namma Yatri first appeared in Bengaluru, Mysuru, Tumkur, and Kochi when it was introduced as the Yatri app. In Kolkata, it was initially introduced as Yatri Saathi. The business has just extended its operations to Chennai, where it now lets users order “metro tickets” online.
The edtech company BYJU’S expressed optimism that it and the Board of Control for Cricket in India (BCCI) may come to a mutually agreeable resolution after the latter filed a petition to initiate insolvency proceedings due to unpaid dues. Recently, the National Company Law Tribunal (NCLT) Bengaluru court accepted BCCI’s arguments in opposition to BYJU’S.
Our goal has always been to resolve the matter amicably with BCCI, and we remain optimistic that this ruling will not derail our efforts.” Meanwhile, a representative from BYJU’S stated that their legal team is now examining the order and would proceed with the appropriate measures to safeguard the company’s interests.
In October of last year, BCCI filed the plea in response to INR 158 crore in overdue payments. The Indian cricket squad was sponsored by BYJU’S under an agreement with the BCCI. A subsequent hearing was scheduled for November 15th, last year.
The NCLT acknowledged the plea and stated that it is indisputable that BYJU’S parent company, Think & Learn Private Limited, had used the BCCI’s services but had not paid.
BYJU’S Multiple Bankruptcy Cases
BYJU’S is currently involved in several bankruptcy lawsuits, both domestic and international, including the one initiated by the BCCI. The decision said that the Corporate Debtor (Think & Learn) admitted in these emails that they owed money and that default had already happened due to numerous requests for extensions of time.
The ruling permitting bankruptcy proceedings against Think & Learn imposes certain restrictions, including a 180-day embargo on the sale, transfer, or disposal of any of the company’s assets.
IBC Procedure
If a business files for bankruptcy protection under the Insolvency and Bankruptcy Code (IBC), its creditors will gain control. While BYJU’s is amid the Corporate Insolvency Resolution Process (CIRP), all of its debts, including interest, will be frozen, and the transfer of any of its assets will be impossible. IBC also forbids the continuation of pending lawsuits against BYJU’S.
Within one week of receiving the NCLT bench’s order, Pankaj Srivastava must provide written permission for his appointment as Interim Resolution Professional (IRP). As per Section 17 of the IBC Act, 2016, if Srivastava’s nomination is confirmed, he will have complete control over the management of Think & Learn’s operations. The company’s board of directors would also be suspended. The bench of the NCLT issued an order directing the IRP to form a Committee of Creditors within 30 days of his appointment, after the compilation of all claims received against Think & Learn.
At the same time, in the fiscal year of 2024, tech investor Prosus spun off its 9.6% ownership in BYJU’S.
Peak XV Partners, General Atlantic, and Prosus are among the investors that have launched an “oppression and mismanagement” lawsuit against BYJU’S.
The Ministry of Defence’s Department of Defence Production (DDP) has released the fifth Positive Indigenisation List (PIL) in an effort to achieve Aatmanirbharta or self-reliance, in the defence sector and decrease imports by Defence Public Sector Undertakings (DPSUs).
Raw materials, components, systems, sub-systems, assemblies, spares, and components are among the 346 strategically vital goods listed by the Ministry of Defence in their most recent declaration. These goods are thought to have a substitute value of INR 1,048 crore when imported.
Aligning With PM’s Vision of Atmanirbhar Bharat
This action is in line with the goals of ‘Aatmanirbhar Bharat,’ as outlined by Prime Minister Narendra Modi, and the Ministry of Defence’s continuous initiatives, spearheaded by Raksha Mantri Rajnath Singh, to promote defence industry self-sufficiency.
Launched in 2020, the SRIJAN PORTAL allows DPSUs and SHQs to submit defence items for indigenisation. It targets companies such as startups and Micro, Small, and Medium Enterprises (MSMEs).
Much progress has been made in indigenising defensive products as a result of this project.
DSPUs Contributing to Indigenisation
Several of the DPSUs, including HAL, BEL, BDL, BEML, IOL, MDL, GSL, GRSE, and HSL, will indigenise the items in the fifth PIL in their own manner.
Some of these paths include working with industry partners, such as MSMEs, or developing internally through the “Make in India” approach. The goal of this strategy is to lessen reliance on foreign imports, increase investment in defence, and boost economic growth.
Working in tandem with educational and scientific organisations, it will also improve the home defence industry’s design capabilities.
The DPSUs have started posting Expressions of Interest (EoIs) and Requests for Proposal (RFPs) on their websites, with links given on the Srijan Portal Dashboard, to help in this process. According to the official statement, industry players, MSMEs, and startups are all urged to actively engage.
Progress Report
Out of the 4,666 goods listed by the DDP for DPSUs in four PILs, 2,972 have been indigenised, with an import substitution value of INR 3,400 crore.
In addition to the five DPSU lists, the Department of Military Affairs (DMA) has notified five positive indigenisation lists totaling 509 items. These lists contain goods such as highly sophisticated systems, sensors, weapons, and ammunition.
More than 36,000 military goods have been made available for indigenisation by DPSUs and SHQs as of June 2024. Over the course of the past three years alone, more than 12,300 goods have been indigenised, which has led to DPSUs making orders with domestic suppliers totaling INR 7,572 crore rupees.
A total of 23 innovation projects valued at INR 43.87 crore have been granted to startups by Indian Railways with the aim of improving services. Elastomeric pad design, lightweight wagons, track inspection technology, and rail stress monitoring are some of the issues that solutions aim to address.
A news source reported that out of 28 problem statements put up on an innovation portal for gathering ideas from companies, the Railways received 423 submissions. To support qualifying firms working on ongoing innovation projects, the Indian Railways have distributed approximately INR 10.52 Cr in funding.
In addition, it will simplify the design of OHE cantilevers, create rapid point locking clamps/systems, and install sensor-based fire/smoke detection systems with wireless networking for Indian Railways coaches. In power vehicles, these selected startups will be constructing load-counting devices with audio-visual alerts.
Initiated on June 13, 2022, the ‘Startups for Railways’ programme sought to enhance operational efficiency and safety within the railway network by using the talents of Indian startups, MSMEs, individual innovators, R&D companies, NGOs, and entrepreneurs.
The projects also centre on solar power generating systems that use flexible solar PV panels on the roofs of LHB coaches, warning systems for loco pilots, and guards for the initiative’s second phase.
Preventing Human Incidents: Indian Railways Seeks Innovations to Enhance Safety
Along with the existing collaborations, 59 innovators are being considered for potential solutions to six concerns. Some of these pressing problems include finding non-invasive technical ways to detect drugs and explosives in delivery vans and goods rakes and avoiding human runovers on trains.
Preventing human accidents on rails is a major task for several reasons, such as trespassing, safety violations, and diversions. The rail company sent an invitation to tech companies to suggest solutions that may detect when people are nearby and react accordingly. The railways are now finalising their choices after eight businesses were shortlisted in the initial stage of screening.
Startups for Railways
A decentralised strategy, the “Startups for Railways” concept gives authority to divisional levels to speed up product development and reduce delays. The Ministry has established an open, unbiased, and user-friendly platform for promoting partnerships and pushing technological progress to transform the future of Indian Railways through the establishment of the Indian Railway Innovation Portal.
With a network size of approximately 123,542 km of tracks and 7,300 stations, employing nearly 1.2 million people, the Indian Railways (IR) is on the verge of embracing cutting-edge technology, environmentally friendly practices, and vast operations. IR is also the largest railway network in Asia and the fourth largest in the world. Aiming to complete manufacturing of India’s debut hydrogen train, wholly built within the nation, and witnessing the introduction of the indigenous high-speed train, Vande Bharat Express, 2023 was a critical year for the Indian Railway.
The exciting annual Tech Summit will showcase the future of technology on November 25–26, 2024, starting at 8:00 AM at Marina Bay Sands in Singapore.
Themed “Transforming Tomorrow,” this year’s summit promises to be a two-day extravaganza of innovation, knowledge-sharing, and unparalleled networking opportunities. With over 75 distinguished speakers, the event is set to exceed the success of the previous years, where more than 3,000 attendees delved into over 200 insightful sessions. Tech Summit has a history of hosting industry luminaries, and this year is no exception. Previous speakers have includedPinterest’s Tech Lead Thothathri Srinivasan, YouTube CEO Susan Wojcicki, and Guy Kawasaki, former Chief Evangelist at Apple.
Attendees can expect a diverse range of perspectives and expertise from some of the most influential names in the tech world.
“We are thrilled to present Tech Summit Asia 2024, a dynamic platform where industry leaders, professionals, and enthusiasts converge to explore the transformative power of technology,” said Nicole, CTO at Tech Summit.
“The Tech Summit Asia will be the epicenter of groundbreaking discussions and innovations that will shape the future of the tech industry.”
For registration and more information about Tech Summit Asia 2024, please visit: techsummit.tech/asia/
About Tech Summit
Tech Summit is an annual gathering of thought leaders, professionals, and enthusiasts from the technology industry. With a focus on innovation and collaboration, the summit provides a platform for exploring the latest trends and advancements in the tech world.
As a result of unapproved related party transactions of INR 324 crore and INR 36 crore with Paytm Payments Bank (PPBL) in FY 2021-22, One 97 Communications (OCL), the parent company of Paytm, was warned by SEBI. Noncompliance was highlighted in the letter dated July 15, 2024. When responding to SEBI’s concerns, Paytm emphasised that it follows SEBI Listing Regulations, maintains high standards, is transparent, and confirms that there would be no financial impact.
In the letter, it was said that the company would also provide a response to SEBI and that it would adhere to the highest compliance standards.
There were certain non-compliances found during the examination, according to SEBI. The company and its subsidiaries engaged in excessive related party transactions (RPTs) with PPBL in FY 2021-22 without obtaining the necessary clearance from the audit committee or the shareholders.
Transactions between OCL subsidiaries and PPBL did not qualify as RPTs during FY 2021-22, and the company claimed that it had provided a cumulative numerical value of the transactions with PPBL for shareholders to reference.
Nevertheless, these transactions were deemed material RPTs by the company’s Board and Audit Committee, which resolved that RPTs involving PPBL would remain within the specified limitations.
Paytm Going Through Trouble Waters
Just days ago, news broke that Japanese internet investor SoftBank lost $150 million in the first quarter of the current fiscal year when it allegedly pulled out of ailing financial firm Paytm.
Since February, when the Reserve Bank of India (RBI) announced restrictions on Paytm Payments Bank, the stock price of Paytm has been under pressure. As a result, Paytm’s net loss in Q4 FY24 increased to INR 550.5 crore, from INR 167.5 crore in the corresponding period of the previous year, which was a threefold rise. The company also had a 2.9% year-on-year decline in revenue to INR 2,267.10 crore during the quarter.
Paytm affirmed its dedication to the highest compliance standards in a filing with the stock exchange and promised to respond in detail to SEBI’s concerns about the issue.
Paytm has reassured its stakeholders that the monetary, operational, or any other aspect of its business will be unaffected by this administrative warning. In response to SEBI’s concerns, the company is enhancing compliance standards and taking other measures to ensure this doesn’t happen again.
From Highs to Lows: Paytm’s Compliance Problems and RBI Scrutiny
In India, the digital revolution began with Paytm. It eventually became the most popular payment app in India. Paytm has enabled digital payment acceptance for over 20 million merchants and companies worldwide.
However, with the implementation of strict regulations issued by the Reserve Bank of India (RBI), Paytm Payments Bank (PPBL), the brainchild and much-loved unicorn success story of India, has recently put founder and CEO Vijay Shekhar Sharma through a serious crisis.
Due to compliance problems, related party transactions, and violations of KYC (Know Your Customer) standards, the RBI slapped Paytm with a heavy fine. Worries about illicit financial dealings involving large sums of money (in the crores of rupees) prompted the intervention. Red flags were raised due to accounts that did not comply with KYC regulations and cases where the same PAN was used for many accounts.
After hundreds of thousands of accounts were discovered to have been created without sufficient identity, PPBL came under examination from the RBI, according to various media reports. Because of the suspicious activity in the PPBL accounts, the Reserve Bank of India (RBI) notified the Enforcement Directorate (ED) and other relevant government bodies.
Zomato and Swiggy, two of the largest food delivery companies in the world, shocked consumers in important cities like Bengaluru and Delhi by increasing their platform costs by 20%, to Rs 6. Both sites gradually raised their order fees from Rs 2 to Rs 6 over several months.
Delivery companies rely on platform fees to boost their take rates, which dictate how much money they make from each order. Zomato and Swiggy have been exploring the possibility of using platform fees to increase their total revenues and profits because they have formed a pair of monopolies. Compared to the Rs 3 that many users were paying at the time, Swiggy’s January platform charge of Rs 10 was significantly higher. During checkout, users were shown the higher fee of Rs 10, however, they were only charged Rs 5 after a discount. This was just to tease them.
In several important cities, such as the National Capital Region, Bengaluru, Mumbai, Hyderabad, and Lucknow, Zomato raised its platform cost from Rs 4 to Rs 5 for each order in April.
These companies are attempting to boost their business revenue in several ways. One is by charging greater platform fees; another is by increasing their ad revenue. Platforms, especially those involved in food delivery, are struggling to raise the commissions they charge restaurants without displeasing them, thus this becomes important.
Moving Away From Earlier Statement
The increase contradicts Swiggy‘s previous claims that it had no intentions to significantly raise the platform price. Analysts believe that both businesses will keep raising rates until they see customer pushback and a decline in order volumes.
At this time, the platform charge is only applicable to Swiggy’s and Zomato’s food delivery services; neither company has expanded it to cover their quick commerce businesses, Instamart and Blinkit. But in March 2023, a rival in the fast delivery industry named Zepto introduced a platform fee. With a daily order volume of approximately 5.5 lakhs, Zepto’s Rs 2 platform fee brings in an extra Rs 11 lakh in revenue. Zepto doesn’t have a meal delivery service like Zomato or Swiggy; it focuses solely on fast commerce.
Cut Back Expenses
There may be a way to cut down on operational expenses associated with delivery services by using the platform charge. Expenses like these pay for things like delivery workers, app infrastructure, and fast customer service. Without significantly diminishing the quality of their primary offerings, Zomato and Swiggy may be attempting to strike a compromise between these operational costs by raising the platform fee.
It May Lead to a Change in Market Dynamics
As customers seek out more cheap solutions, newer or smaller platforms may see an increase in subscribers, leading to more competition in the meal delivery sector. As a result of the charge increase, eateries may have to adjust their prices to absorb the added costs without driving away consumers. To attract budget-conscious consumers, they may either raise menu prices gradually or provide more deals and discounts. The overall cost and service arrangement of the food delivery industry can be affected by these changes in the long run.
Startups in agriculture and related industries will soon have access to direct equity funding through the government’s ‘Agri Fund for Start-Ups and Rural Enterprises’ (AgriSURE), which will also invest in debt Alternative Investment Funds (AIFs) that are either sector-specific or sector-agnostic.
The creation of a Category-II Alternative Investment Fund (AIF) with a capital of INR 750 crore is part of this initiative’s plan to encourage innovation and sustainability in India’s agricultural industry. Targeting high-risk, high-impact initiatives in the agriculture value chain, the fund will provide both equity and financial backing.
The development was announced during a pre-launch meeting of stakeholders at NABARD’s Mumbai headquarters. A total of INR 750 crores would be used to establish the fund, with INR 250 crores allocated by NABARD and the Ministry of Agriculture, as well as INR 250 crores from other organisations.
Funding priorities include agricultural innovation, value chain enhancement for farm produce, rural infrastructure development, job creation, and FPO support. Information technology (IT) solutions and rental services for agricultural machinery will also be supported by the fund. The management of the AgriSURE Fund will be carried out by NABVENTURES, a fully-owned subsidiary of NABARD. The initial term of the fund is ten years, with two more extensions possible.
Additionally, NABARD launched the AgriSURE Greenathon 2024 to emphasise its dedication to encouraging innovation. It attempts to resolve three critical issues: “Smart Agriculture on a Budget,” which addresses the exorbitant cost of advanced agricultural technologies that hamper the success of small and marginal farmers; “Turning Agri-Waste into Profitable Business Opportunities,” which concentrates on the conversion of agricultural waste into profitable ventures; and “Tech Solutions Making Regenerative Agriculture Remunerative,” which attempts to overcome economic obstacles to the adoption of regenerative agriculture approaches.
In 1982, an Act of Parliament established NABARD as India’s top development bank with the goal of fostering equitable and environmentally responsible agricultural practices and rural infrastructure development.
By involving stakeholders in financial and non-financial interventions, innovations, technology, and institutional development, NABARD seeks to ensure agricultural and rural development that is both sustainable and equitable.
NABARD with the Government of India
By subsidising a portion of the total project cost, the Indian government encourages farmers to take up projects in specific locations. In sectors of critical national importance, all of these projects seek to improve capital investment, sustained income flow, and employment.
Throughout the government’s many projects and initiatives, NABARD has played a pivotal role in order to rightly execute these schemes and policies.
Schemes for the Farm Sector
New Agricultural Marketing Infrastructure (AMI) sub-scheme of ISAM
Agri Clinics and Agri-Business Centres Scheme (ACABC)
Scheme for Extending Financial Assistance to Sugar Mills for Enhancement and Augmentation of Ethanol Production Capacity
Interest Subvention Scheme
National Livestock Mission – Entrepreneurship Development & Employment Generation (NLM-EDEG) (Closed/Temporarily Closed)
Dairy Entrepreneurship Development Scheme (DEDS) (Closed/Temporarily Closed)
Commercial production units of organic inputs – National Project on Organic Farming (NPOF) (Closed/Temporarily Closed)
Schemes for the Off Farm Sector
Stand-Up India
Special Credit Linked Capital Subsidy Scheme (SCLCSS)
Farmers must be treated with the utmost care and given the resources they require because they are the backbone of the agri value chain. Agricultural problems cannot be resolved by the use of credit alone. Innovations necessitating public-private partnerships will drive the next level of growth. The government of India and related institutions are hoping to provide farmers with practical, long-term technological solutions by investing in early-stage innovators.
The Biden administration released updated details about the International Entrepreneur Rule (IER) last week. The IER permits foreign entrepreneurs to remain in the nation for a maximum of 5 years, provided their enterprise is determined to be significantly beneficial to the public. The entrepreneurs can be granted a first parole of 2.5 years, and if they meet additional funding, job creation, or revenue targets, they can be granted a second parole to extend their stay for up to 5 years.
According to the official statement, the International Entrepreneur Rule (IER) allows the Department of Homeland Security (DHS) to grant authorised stay periods to noncitizen entrepreneurs on an individual basis. These entrepreneurs must demonstrate that their business venture would significantly benefit the public and that they deserve a favourable exercise of privacy.
Entrepreneurs who are granted parole will be limited to working solely for their startup business under this provision. The parole eligibility of the noncitizen entrepreneur’s spouse and children can be extended as well.
“The Biden administration’s revival of the International Entrepreneur Rule (IER) program provides great potential for Indian startups aiming to set up in the U.S. market,” said Siddharth Ugrankar, Founder & CEO at Qila.io. “Originally released by the Obama administration, it was shelved by the Trump administration. IER offers a way for foreign workers to obtain temporary residence in the U.S. through ‘parole,’ if their business venture can demonstrate significant benefits to American citizens and the nation.”
Frequently Asked Questions and Official Answers on Startup Requirements
What responsibilities and degrees of ownership are necessary for a startup?
At the time of the initial application’s determination, you must have a central and active involvement in the operations of the startup business and a considerable ownership stake (at least 10%).
For a startup, what are the necessary conditions?
The startup, which must be a lawfully operating U.S. corporate entity, must submit its initial parole applications within five years of its formation. It also needs a lot of room to expand quickly and generate new jobs.
Is it possible to apply for parole while not in the US?
Yes, provided that both you and the startup satisfy all the requirements for consideration. To apply for an initial parole period under the International Entrepreneur Rule while outside the US, you’ll need to provide biometrics, which includes a photo and fingerprints. Officials will notify you of the location to submit your biometrics once they have coordinated with the relevant Department of State or international USCIS field office.
Additional Requirements
Startup entities must show evidence of at least $264,147 in qualified investments from qualifying investors, or at most $105,659 in qualified government awards or donations, or alternative evidence that demonstrates substantial potential for rapid growth and job creation.
“The intended benefits of IER are substantial and resonate with the American dream, attracting entrepreneurs across the globe to become part of the U.S. growth story,” Ugrankar added. “Under IER, entrepreneurs receive authorisation to work at their startup and their spouses are eligible for employment in the U.S. The Rule has specific criteria to qualify, such as the venture demonstrating a $246,147 investment or $105,659 grants or rewards from the government.”
National Foundation for American Policy statistics show that US Citizenship and Immigration Services has only received 94 IER applications since FY21.
The US government’s tweak to the International Entrepreneur Rule (IER) is great news for Indian entrepreneurs, especially in tech. For Indian tech entrepreneurs, the rule’s requirement of $264,147 in investments or $105,659 in grants is a reachable benchmark, opening doors to vast opportunities in innovation and job creation. As Indian startups flourish in the US, it can attract more foreign direct investment (FDI) back to India. Successful Indian entrepreneurs in the US often reinvest in their home country, funding new ventures and supporting local startups. Additionally, this can also strengthen economic ties between the two countries, stated Edul Patel, CEO and Co-founder, Mudrex.
According to immigration experts, the IER has not seen a significant increase in enrollment just yet because applicants are confused by the back-and-forth between administrations.One participant stated that the program does not lead to permanent residency, but rather to five-year temporary parole. This insecurity about the future could be a big turn-off. If an entrepreneur’s startup fails, they will find themselves compelled to continue working for that company.
If an entrepreneur wants to stay in the country for more than five years, they will need to apply for a visa or green card from another country. Entrepreneurs from India face even more uncertainty about their long-term prospects in the US due to the decades-long green card backlog.
There have been a range of opinions on the revised US government regulation affecting foreign entrepreneurs. Some think it’s a fantastic chance for Indian business creators, but others don’t believe it will work. Issues of long-term stability and a clear route to permanent residency rank high on the list of worries.
“However, the IER program has faced some challenges due to its bureaucratic red tape and cumbersome application process,” Ugrankar noted. “The time for application processing is lengthy and unpredictable. Data from the U.S. Citizenship and Immigration Services (USCIS) shows that out of 94 applications received, many were denied or withdrawn, and only 26 were approved. Unlike the well-established H-1B visa program, the IER will need some simplification and transparency to gauge its success and outcomes.”
Some company owners believe that the US efforts to entice entrepreneurs demonstrate to governments around the world the importance of a strong founder ecosystem. Many, however, have spoken out against this change, arguing that, while appealing in theory, actually qualifying for the programme is a formidable challenge. The IER rule had previously gone into force during Obama’s final days in office, but it has encountered obstacles since Trump took office. This is a huge boon for Indian entrepreneurs with US-based startup roots who want to launch a company in the US.
Countries such as Canada and Germany have come up with similar programs,” Ugrankar continued. “In Canada, under the Start-Up Visa Canada, entrepreneurs are offered permanent residence. Germany provides a range of visa options customised for startup founders, such as the Self-Employment Visa and the startup visa in Berlin. These programs have been more attractive to entrepreneurs due to their clearer guidelines and faster processing times. If the USCIS could make the process more efficient and faster, then it will attract more entrepreneurs to set up shop in the U.S.
The parent company of Google, Alphabet, is reportedly in negotiations to acquire the cyber security startup Wiz for approximately $23 billion. This would be the biggest acquisition that Alphabet has ever made. The talks may not go through because many aspects have not been worked out yet, according to a report from a well-known media outlet. A little over ten years ago, Alphabet paid $12.5 billion to acquire Motorola Mobility.
What is Wiz?
Wiz, with headquarters in New York and founded in 2020, has raised over $2 billion in funding. Assaf Rappaport, an Israeli entrepreneur and former Microsoft executive, is the CEO of this $12 billion firm. Thrive and Sequoia Capital are among its backers. Tel Aviv is home to Wiz’s R&D facilities.
With more and more enterprises storing data and software in the cloud, Wiz assists them in securing their cloud programs. Reports indicate that the company’s yearly recurring revenue has surpassed $350 million.
An agreement to purchase Wiz would rank among the biggest purchases of a company funded by venture capital in history.
This young company claims, on its website, to be “mission-driven to assist organizations in developing safe cloud environments that power their enterprises.” To rephrase, it is a cybersecurity company that aids businesses in protecting themselves from potential dangers when they utilize cloud computing services.
Colgate-Palmolive, AON, IHG Hotels & Resorts, BMW, and many more prominent brands are Wiz customers. In 2023, WIZ introduced its Digital Forensics capabilities, which enable organizations to promptly address threats in contemporary cloud environments by autonomously obtaining forensic-level detail on incidents through a cloud-native approach.
By downloading a forensic investigation package that contains the information needed for the incident’s first evaluation, businesses can quickly access the critical security logs and artifacts of the potentially infected system. Without executing any collection tools or scripts created in-house on the compromised workload, the forensics package is collected in an agentless manner.
Why is Google Showing a Keen Interest in Wiz?
The CEO of Google Cloud, Thomas Kurian, reportedly spearheaded the effort to purchase Wiz, according to a well-known news outlet. According to the article, Kurien and Google are working on a plan to elevate Google Cloud’s cybersecurity offerings.
It is believed that Google would make its largest acquisition to date if the $23 billion deal for Wiz goes through. Before this, in 2011, Google paid an astronomical $12.5 billion to acquire Motorola. The business, however, sold it to Lenovo for $3 billion two years down the road. One such cybersecurity company that Google purchased in 2022 for $5.4 billion was Mandiant.
Not long ago, Alphabet considered acquiring HubSpot, a provider of marketing tools for the web but ultimately opted against it. It looks to be shifting its attention now to strengthening its cybersecurity skills, perhaps through the acquisition of Wiz.
As of yet, neither Alphabet nor Wiz have made any statements about the potential merger. Because of the potential influence on cybersecurity and Alphabet’s bottom line, the IT industry is keeping a careful eye on the outcome of this massive transaction.
Anga Mahatara
