StartupTalky

Tag: #news

  • India to Grow at 6.5% in 2025, Retains Lead as Fastest-Growing Major Economy

    The latest UNCTAD report sees India positioned to remain the fastest-growing major economy in 2025. It sees India growing by 6.5% in 2025, continuing from about 6.9% in 2024. But UNCTAD sees the global economy struggling with growth and only managing to generate a paltry 2.3% in 2025. And a slowdown of that magnitude is in sharp contrast to what UNCTAD observes as a slight deceleration of the Indian economy, which seems to be mainly driven by domestic demand.

    The world economy is moving ever closer to recession, and the international trade that is so vital to every country’s economy is stagnating. Trade and Development Foresight 2025 is a Ministry of Commerce publication that tries to grasp in what direction the world will be heading in terms of trade, development, and investment from now to the year 2025. It is no cheerleading pamphlet.

    Public Spending and Policy Easing Support Growth

    According to the UNCTAD analysis, India’s resilience is based on stable public spending and a newly initiated monetary policy. The Reserve Bank of India slashed the repo rate in early 2025, cutting it by just 25 basis points. This was the first rate cut in five years, and it, along with some other moves, is intended to get household consumption cranked up again. Very much on the side of investment, the steps are meant to get businesses hungry again for more infrastructure and capital investment.

    In addition, the accommodating policies made possible by a more flexible monetary stance are well suited to the kind of complex situation that combines global uncertainty with domestic growth opportunities. This mix provides exactly the right kind of space for the Indian economy. Meanwhile, in the backdrop, inflation is coming off. The ease in inflation enables a downward shift in policy rates.

    South Asia Outlook and Regional Challenges

    The South Asia region is also likely to do fairly well, with an overall growth forecast of 5.6% for 2025. As inflationary pressures ease across the region, most economies are expected to follow a somewhat synchronized path of monetary loosening. However, the report adds a note of caution, making it clear that not all countries in the region are equally resilient. Protracted problems with food prices, along with very complicated debt situations, keep Bangladesh, Pakistan, and Sri Lanka on the list of nations at risk. These three countries could seriously impair the region’s recovery.

    UNCTAD stresses that even though India is at the forefront of regional performance, there are still vulnerabilities in other areas that need to be addressed. It wants those areas to pay closer attention to fiscal sustainability and food security.

    Call for Global Coordination Amid Uncertainty

    The report cautions that trade policy unpredictability has now reached an all-time high. Measures taken to protect domestic economies, along with increasing tariff rates, are disrupting global supply chains and causing a slowdown in investment across many sectors. For developing countries, the added risk of protectionism is worsened by already fragile external financing and increasing debt burdens.

    Yet, South-South trade growth offers a glimmer of hope. Nearly a third of global trade is already between countries of the Global South, and steps toward deeper economic integration among these nations could help shield them from the adverse effects of the downturn. UNCTAD called on developed and developing countries to hold much more regular and meaningful dialogue and coordinate policy if the aim is a stable global economy that serves development, especially in vulnerable regions.

  • Market Trading: 5 Stocks to Watch Today Based on Technical Breakouts

    The Indian equity market on Wednesday continued its winning streak, for the third day in a row, propelled by a rally in the BFSI and FMCG sectors. The BSE Sensex surged 309.40 points to close at 77,044.29, while the Nifty increased with more ease, tacking on 108.65 points to settle at 23,437.20. 

    According to technical analysts, the Nifty managed to reverse early weakness and close above the 100-day exponential moving average (EMA) for the second consecutive day. Early weakness was reversed, support is near 23,300, and as long as the index holds above this level, the sentiment update is bullish. On the upside, resistance is pegged around 23,650.

    Axis Bank: Breakout Signals Bullish Continuation

    An emerging trend in Axis Bank has been characterized by strong volume. Traders seem bullish. The stock remains above both the 21-day and 50-day EMAs, evidencing good strength. Technical indicators such as the RSI are retracing upward after a brief pause, and the MACD has very recently shown a bullish crossover. This combination of signals points to higher prices in Axis Bank. Traders might consider going long with a stop-loss under the last swing low and with a reasonable price target of going back to test the all-time highs.

    Chola Fin: Cup and Handle Pattern Breakout in Play

    Chola Financial Holdings has shown a classic breakout from a Cup and Handle formation, a textbook bullish indicator. The move was confirmed by volume that was better than average, showing strong interest from buyers. At this point, the stock is not only above the 21-day and 50-day EMAs, but it also looks better in terms of upside potential.

    RBL Bank, Indian Bank, and IEX: Gaining Traction

    RBL Bank shows signs that it is reversing a trend, having formed a base and broken above its 20-day EMA. Also confirming the bullishness and momentum is the RSI, which is forming higher lows. The stock is targeting a price around 194, and an investor could use a stop-loss around 174.

    On the other hand, Indian Bank has broken out of a consolidation phase. A strong bullish candle on the daily chart and a sustained position above the key EMAs indicate that there is a potential for upside momentum. A probable move toward INR 598 is on the radar, with key stop loss level acting at INR 545.

    Finally, the Indian Energy Exchange (IEX) has broken above a falling trendline and is now trading comfortably above its 20-day EMA. A crossover in the RSI adds to the strength of this setup, which has a tentative price target at INR 196 and a safety net at INR 178.

    These stocks have solid technical setups and are ones to keep a close watch on for potential short-term trading opportunities.

  • Nothing Before Coffee Brews $2.3 Million to Stir Tier-II Growth, Eyes 150+ Stores by FY26

    India’s dynamic and fast-growing QSR coffee chain, Nothing Before Coffee (NBC), has raised $2.3 million in a Pre-Series A funding round led by Prath Ventures. The round also saw participation from SYL Investments. This marks a major milestone in NBC’s journey as it continues to redefine India’s café culture by focusing on Tier-II and Tier-III cities—a segment largely untapped by premium coffee players. Additionally, NBC is pleased to report its “Best-ever Fiscal year 2025.” Fueled by new store launches, innovative offerings, and growing brand loyalty. The brand’s seasonal offerings and unique brews have been particularly well-received, contributing to this growth. 

    Founded in 2017 in Jaipur by Ankesh Jain, Anand Jain, Akshay Kedia, and Shubham Bhandari, Nothing Before Coffee has rapidly evolved from a small, cozy café into a national brand with a footprint of 85+ outlets across India. At the heart of NBC’s success is its mission to serve high-quality, affordable coffee in vibrant spaces that resonate with India’s youth. 

    While most players are concentrating on Tier-I cities and premium offerings, NBC is disrupting the market with accessible pricing, India-centric coffee innovations like the ‘Shrappe’ (a desi twist on a frappe), and aspirational café spaces that serve as community hubs for young consumers. 

    This funding milestone is a strong validation of our vision and operating model. At Nothing Before Coffee, we’ve built a brand that combines affordability, quality, and deep cultural resonance—especially in India’s Tier-II and Tier-III markets. With strong unit economics and consistent consumer love, we are now well-positioned to scale rapidly. The capital will help us deepen our presence, invest in technology and talent, and unlock the next phase of growth as we work towards  becoming India’s most loved and accessible coffee chain, said Ankesh Jain, Co-founder, Nothing Before Coffee.

    In a market traditionally dominated by premium global chains and metro-centric models, NBC is carving out its niche with a “youth-first” approach, offering high quality, affordability, cultural relevance, and beverages served in aesthetically designed, vibrant spaces. These outlets are designed to serve as social hubs for India’s growing aspirational class. 

    Commenting on the fund raise, Piyush Goenka, founder of Prath Ventures, said, “As a fund, we’ve long believed in the growing demand for coffee and vibrant café experiences across India — not just in metros but well beyond Tier-1 cities. In all our research, NBC consistently stood out for the vibrance in their cafés, the affordability of their pricing, and the quality of their offerings. What truly sealed the deal was the passion and  drive of the founding team, which made this a compelling and exciting opportunity for us, as we love to  partner with enthusiastic like-minded founders.” 

    Use of Funds and Strategic Roadmap 

    The freshly infused capital will be utilised to: 

    • Aiming to establish 150+ NBC stores across India by FY2026, with a strong focus on expanding into emerging Tier-II and Tier-III markets. 
    • Strengthen the brand’s digital platforms to drive enhanced customer experience and loyalty.
    • Invest in supply chain optimization and talent acquisition to support scale and consistency across locations. 
    • Experiment with new store formats, including compact kiosks and premium high-street cafes in smaller cities.

    The Indian café market is ripe for innovation, and emerging brands like NBC are leading the way. As bankers, our role is to back such disruptors with the capital they need to scale. NBC has built strong brand recognition in a short time, and  we wish them success in becoming India’s most loved coffee café brand – said Shikha Toshniwal, Co-Founder and Investment Banking Head, Pareto Capital.

    NBC’s ambitious roadmap aims to solidify its position as India’s most beloved homegrown café brand,  particularly in markets often overlooked by established chains. The QSR chain is on a fast-paced growth trajectory, aiming to establish 150+ NBC stores across India by FY2026, further strengthening its presence in metropolitan hubs and expanding deeper into Tier-I and Tier-II markets. These new openings will mark an important milestone for the brand, demonstrating its continuous efforts to cater to the growing demand for premium coffee experiences. The new outlets are designed to offer a welcoming and exceptional coffee experience, building on the brand’s commitment to quality and customer satisfaction.

    Previous Funding Details

    As per Tracxn, Nothing Before Coffee successfully raised $313k in an Angel round in September 2023, which valued the company at $6.0 million pre-money and $6.3 million post-money. This investment, led by Vibha Jain, supported the brand’s growth and expansion plans.

    About Nothing Before Coffee

    NBC was founded in 2017 with the goal of sharing the enticing aroma of freshly brewed coffee with everyone. There’s always been a missing piece in the puzzle of our coffee experience, and  NBC have often pondered over what it could be until the team of experts finally found the answer by brewing their own perfect cup. NBC believe that coffee is not just a beverage but a way of life. The brand has made it a mission to source the best essence of coffee beans and brew them using the latest and most innovative techniques to ensure that every cup of coffee served under NBC is of the highest quality. As a QSR model, NBC specialises in serving varieties of beverages with exceptional quality.

    Top Coffee Startups in India: Brewing Innovation & Growth
    Discover the top coffee startups in India that are redefining the coffee experience with unique brews, sustainable practices, and innovative business models.
    StartupTalkyVivek Dev Jacob

  • MS Dhoni-Backed Garuda Aerospace Secures INR 100 Crore at $250 Million Valuation

    Garuda Aerospace, India’s most valuable drone startup, has successfully raised INR 100 crores in its Series B funding round from Venture Catalysts (VCAT) at a valuation of $250 million. This strategic infusion of capital marks a major milestone in Garuda Aerospace’s mission to bolster indigenous drone manufacturing and innovation. The fresh funds will significantly enhance the company’s capabilities in producing drone systems. The funds will also be allocated to scaling up its current production facility and fast-tracking the completion of a cutting-edge R&D and testing center dedicated to advanced defense drone design. This development not only strengthens Garuda Aerospace’s position in the Indian aerospace ecosystem but also aligns with the nation’s broader vision of achieving self-reliance in high-tech defense manufacturing. 

    Currently holding a robust portfolio of over 20+ patents, Garuda Aerospace has demonstrated a strong commitment to innovation and technological excellence in the fast-evolving drone sector. A dedicated portion of the newly secured funds will support the expansion of its intellectual property portfolio, further solidifying its position as a trailblazer in drone innovation and utilizing the funds towards producing a new design facility as well. This initiative underscores Garuda Aerospace’s strategic role in enhancing India’s defense and security capabilities through the development of cutting-edge, domestically engineered drone systems. Garuda Aerospace will continue to contribute meaningfully to the Atmanirbhar Bharat mission.

    Agnishwar Jayaprakash, Founder and CEO of Garuda Aerospace, said, “This Series B funding is a defining milestone in Garuda Aerospace’s growth journey. It not only strengthens our capacity to scale manufacturing and innovation but also positions us to accelerate the development of next-generation drones technology. As we prepare for our global growth expansion journey, this investment reinforces our commitment to building world-class, indigenous drone technologies that contribute to India’s economic progress, self-reliance in defense, and technological leadership on the global stage.”

    Dr. Apoorva Ranjan Sharma, Co-founder and Managing Director of VCAT, said, “We are immensely proud to lead this landmark Series B funding for Garuda Aerospace. This investment is closely aligned with our strategy of supporting homegrown champions that have the potential to transform India’s technological landscape and create significant socio-economic impact. The role Garuda is playing in strengthening India’s indigenous defense manufacturing ecosystem, while also creating a global footprint, is something that truly excites us. We firmly believe that in the years to come, Garuda Aerospace will emerge as a global leader in drone technology, making India the drone hub of the world by 2030.”

    Garuda Aerospace’s successful Series B funding of INR 100 crores signifies strong investor confidence in the company’s vision, technological prowess, and growth potential within the burgeoning Indian drone market. The Indian drone market is experiencing exponential growth, driven by increasing applications across agriculture, infrastructure, logistics, surveillance, and defense.

    With the government’s strong emphasis on promoting drone adoption and indigenous manufacturing through initiatives like the Drone Rules 2021 and the Production-Linked Incentive (PLI) scheme, the market presents a substantial opportunity. Garuda Aerospace has established a robust business model encompassing drone manufacturing, drone-as-a-service (DaaS) offerings, and pilot training. The company caters to a wide array of clients, including government agencies, agricultural enterprises, infrastructure companies, and defense establishments, providing tailored drone solutions for diverse needs. Garuda Aerospace continues working with local partners like Tata, HUL, Reliance etc. for indigenization of drones.

    MS Dhoni Backed Garuda Aerospace Invests in Zuppa
    India’s most valuable drone startup, Garuda Aerospace, announces a strategic investment in Zuppa, an indigenous deep-tech startup specializing in cyber-secure drones and advanced autopilot systems.
    StartupTalkyMuskaan Kapoor

    Financial Performance and Previous Funding

    In FY24, Garuda Aerospace’s revenue more than doubled to INR 110 crore, up from INR 47 crore in FY23. The company achieved a net profit of INR 16 crore, reflecting a 2.7x increase year-on-year, with an EBITDA margin of 22.5%.

    Prior to the current Series B round, the company raised INR 25 crore in a venture round in October 2023 led by Venture Catalysts and We Founder Circle, with participation from six investors. In February 2023, Garuda secured $22 million in a Series A round led by Sphiticap.

    About Garuda Aerospace 

    Garuda Aerospace is India’s leading Drone tech startup focused on disrupting two major multi-billion-dollar sectors, Precision Agri Tech and Industry 4.0 upgradation. Garuda Aerospace is asset-light, recession-proof, and agnostic and focuses on eliminating labourers in the agricultural field with drones focusing on designing, building, and customising of Unmanned Aerial Vehicles (UAVs). Founded in 2015 with a team of 5, Garuda has scaled to a 200+ member team, having the largest drone fleet in India with over 400 drones and 500 pilots operating in 84 cities. Garuda Aerospace manufactures 30 types of drones and offers 50 types of services.

    Having served over 750 clients, including TATA, Godrej, Adani, Reliance, Swiggy, Flipkart, Delhivery, L&T, Survey of India, SAIL, NTPC, IOCL, Smart cities, Intel, Amazon, Wipro, IISC, MIT Boston, and NHAI for various projects, the company recently partnered with global giants such as Lockheed Martin, Cognizant and Elbit Systems. Hon’ble Prime Minister Shri Narendra Modi Ji launched the drone yatra, where 100 drones were flagged off simultaneously across 100 villages in India.

    Garuda Aerospace is the first drone company to get DGCA approvals for Type Certification and Remote Pilot Training Organisation. Garuda is on a mission to impact 1 billion lives positively using affordable precision Drone Technology. Mahendra Singh Dhoni has invested in the company and is the Brand Ambassador.

    List of MS Dhoni Investments: From Cricket to Business – A Look at His Strategic Moves
    MS Dhoni is not only famous for ruling the cricketing world but is also known for his great investment skills. Explore the list of Dhoni’s investments in companies. Check out MS Dhoni’s investment portfolio.
    StartupTalkyMuskaan Kapoor

  • US-China Trade War Escalates as Beijing Halts Boeing Jet Deliveries

    In a clear uptick in trade tensions, China has told its domestic airlines to stop receiving new planes from the U.S. aerospace giant Boeing. This order, as reported by Bloomberg News and our sources close to the situation, seems to be a direct answer to the recent tariff hikes that the Trump administration has imposed on Chinese imports. Boeing is the top exporter from the United States to China and, until now, has been mostly immune to the spreading economic conflict.

    This is not a single decision. It goes along with the deliveries of aircraft. The Chinese authorities have also advised carriers to stop buying American aviation components and equipment. This is aimed at the whole aviation sector, which seems to be a sector Beijing is trying to use to counter the pressure coming from Washington.

    Tariffs Driving the Divide

    The tensions began ramping up after President Donald Trump took office in January and reignited a tariff-war fight. The U.S. administration has since taken to imposing tariffs as high as 145% on a broad range of Chinese imports. China, in turn, has a set of its own tariffs that hit U.S. goods with duties as high as 125%.

    Beijing has been assertive in expressing its disapproval, calling Washington’s moves aggressive and uncalled-for. In response, authorities in Beijing called off any further talks over rising tariffs, saying they were counterproductive and doing just what they were meant to do i.e. slowing down the economy. The more pressing matter of Boeing deliveries adds a dimension of real-world impact to the dispute, one that could reach into not just the aviation industry but also economic ties between the two countries.

    Financial Impact on Airlines and Manufacturers

    A halt to the deliveries could impose serious financial strains on Chinese carriers, especially those that operate leased Boeing jets. Airlines that rely on imported U.S. aircraft to expand or maintain their fleets might soon find themselves in a tighter financial situation due to tariff-driven higher import costs. In any case, the halt to deliveries may compel some in the industry to make some hard choices.

    For Boeing, the shift signifies a substantial misstep in one of its prime overseas marketplaces. With Washington’s and Beijing’s relations spiraling downward, the aviation giant now faces a foggy forecast for future international sales and for its components supply chains.

    Uncertain Outlook for Global Trade

    Last week, President Trump’s unexpected halting of further tariff increases provided a momentary flash of optimism regarding de-escalation. But it wasn’t packaged with any obvious payoffs for Beijing. It’s true that some allowances were made for certain types of high-tech items like smartphones, semiconductors, and computers. But most of the trade atmosphere is still too cloudy for anyone to see a clear path toward stability.

    There is no resolution in sight to ensure business and market stability, and this all adds up to a high-stakes situation for both economic and diplomatic relations across the globe. If the next few months promise one thing, its volatility.

  • India Becomes First Global Market to Recover from Trump Tariff Shock

    On Tuesday, India’s equity markets surged, marking a remarkable recovery as trading resumed after an extended weekend. The NSE Nifty 50 Index rose 2.4% and is currently above where it was earlier this month. This brings it to a place where it’s not just recovering from recent declines but is now outperforming most other equity indices across the globe. So, it’s safe to say that India has fully recovered from the market losses triggered by the new wave of U.S. tariffs under President Donald Trump. Brace yourself, because the Nifty is busting out to the up side.

    Global investors are recognizing how resilient the Indian markets are compared to worldwide volatility. Despite a broader sentiment of caution in Asia, India’s ability to pay off in a very short amount of time has added to its aura as a relatively safe investment destination in a very uncertain worldwide environment.

    Domestic Strength Shields India from External Shocks

    One of India’s main strengths is its large, consumption-oriented economy. This makes it relatively insulated from the sort of economic slowdown that might befall countries more reliant on exports, particularly to the U.S. In India, domestic demand has been strong; inflation, thanks to some easing in commodity prices, is showing signs of stabilizing.

    India’s careful diplomatic stance has brought it success. At a time when the U.S.-China trade tensions are reaching new heights, India has chosen to keep an open dialogue with Washington and is working toward a potential trade agreement. The same holds true for India and Europe. This is the way to tout a central-staging area in the Median-South route and place both India and the U.S. on a strategic, economic, and trade win-win path.

    Investor Sentiment on the Mend

    Even with a shaky first few months that saw the Indian stock market shed a whopping USD 16 billion in foreign investment, new developments are giving the economy reason to smile. For one, the Reserve Bank of India seems poised to cut interest rates, which should boost domestic demand. Crude oil prices have also fallen so far that the finance ministry is now expecting a 25 percent savings over last year’s costs. That should also help consumer spending.

    Valuation factors are working favorably for the Nifty 50, which is now trading at a lower multiple than its own recent past. Indian equities, as represented by the Nifty 50, have an earnings yield that is above the yield on 10-year government bonds, and this risk premium is the widest it has been for quite some time. Both factors combined are driving the sharp turnaround in investor sentiment.

    The minimal direct trade with the United States—accounting for just 2.7% of U.S. imports last year—has helped insulate India from the global trade fallout. By way of comparison, China and Mexico together represent 14% and 15% of U.S. imports, respectively. India’s direct trade exposure is a fraction of that, and thus it isn’t affected nearly as much. So long as oil prices stay in check and policy support is unabated, India seems likely to stay a standout performer in the global investment landscape.

  • India’s Retail Inflation Hits 5-Year Low, Paving Way for Further Rate Cuts

    In March, India recorded a significant drop in its retail inflation. It zoomed all the way down to its lowest point since August 2019. The country’s annual Consumer Price Index (CPI) now reports a number of 3.34%. That is well below the market’s forecast of 3.60%. This number, of course, is lower than the number recorded in February, which was at 3.61%. There’s a look going back to the late 3s from late last year.

    The softening inflation we see today is mostly due to the consistent easing of food costs. In fact, when we look at the overall Consumer Price Index (CPI), markedly food prices have been the main areas driving that index down. They have been. So, when we break down inflation, food inflation has dropped fairly dramatically. March saw food inflation drop to 2.69% from 3.75% in February. This is the lowest reading in food inflation since November 2021. And it is occurring while we are also seeing some pretty remarkable decreases in food prices, most notably vegetable prices, which are down 7.04% year-on-year.

    Food Prices Offer Crucial Relief

    The overall retail price pressure has been reduced by the steady drop in food inflation. This is mainly due to better climatic conditions and improved agricultural outputs, which have loosened long-standing supply-side constraints. Wheat prices fell 5.46% in March, while pulses saw prices drop 8.34%. These drops in food prices have helped reduce overall inflation.

    This moderation is especially welcome after last year’s unrelenting upswings in staple food prices that strained household budgets and pushed inflation above the RBI‘s target range. Stabilizing food costs offer beleaguered consumers some breathing room and give policymakers a chance to regain lost leeway in supporting economic momentum.

    RBI Poised for More Rate Cuts

    The RBI has already reacted to the forecast of falling inflation by cutting its key interest rate for the second time this year. With inflation now comfortably below its 4 percent target, with projections calling for it to hold around 3.5 percent for the next couple of years, the central bank seems ready to do more, if necessary, to keep growth on track.

    Experts believe that India might get to see a minimum of two more rate cuts before the end of 2025, and this is contingent upon both domestic and international circumstances. If external factors, like the protracted U.S.-China trade spat, impact global growth even more severely, then another rate cut could come into play. Indeed, a third rate cut is very much a possibility under this set of circumstances.

    The next monetary policy review by the RBI is set for June, and the market’s eyes will be fixed firmly on it. We want to know where the central bank is headed, and how it plans to tackle the mix of a global economy that is slowing and a domestic one that is recovering.

    Favorable Monsoon May Boost Outlook

    Adding to the positive expectations is India’s forecast of above-average monsoon rains this year. A strong monsoon almost always ensures much better agricultural output, which in turn, means easing food prices and sharper increases in rural consumption.

    While inflation is cooling and the macroeconomic situation seems to have stabilized, India currently seems to be in a rare position of strength within an uncertain global landscape. If the recent positive trends continue, this could give the central bank an opportunity to use monetary policy to try to push the economy even further in the right direction.

  • Gensol Promoters Accused of Fund Diversion for Personal Gain

    The swift action taken by the Securities and Exchange Board of India (SEBI) against Gensol Engineering Ltd has led to a ban on the company and its promoter directors from engaging in the securities market. The ruling affects Anmol Singh Jaggi and Puneet Singh Jaggi, who headed the firm until very recently. SEBI’s order follows a formal complaint filed in June 2024 that accused Gensol, its promoters, and some other unidentified persons of potential share price manipulation and misuse of shareholders’ funds.

    SEBI’s interim order has pointed out some very serious governance issues. It has alleged that huge sums of corporate money were diverted for personal gain by the very people who were supposed to be looking out for shareholders. The order has also called for an immediate stop to a proposed stock split. The situation with the company looks pretty bad from a transparency and accountability point of view.

    Luxury Homes and Startups: A Trail of Misused Capital

    The investigation centers on a loan of INR 93.88 crore secured by Gensol from the Indian Renewable Energy Development Agency (IREDA). The loan, which was supposed to be used to expand electric vehicle operations, was mostly transferred to Go-Auto Pvt Ltd and then funneled to CapBridge Ventures LLP — a company that Anmol Singh Jaggi has a strong influence over. Out of the INR 93.88 crore that was part of the scheme, INR 42.94 crore was used to buy a posh apartment in DLF Camellias, Gurugram.

    Additionally, from the same funds, an investment of INR 50 lakh was made in Third Unicorn, a startup launched by Ashneer Grover. The funds were also used for personal expenses, including travel abroad. SEBI’s findings portray Grover as following a pattern of financial self-interest that put him on the fast track to personal wealth while placing company obligations in jeopardy.

    Personal Expenses Funded by Company Loans

    The regulator’s examination of bank records reveals worrisome activities connected to Puneet Singh Jaggi. They show that around INR 13.55 crore from Wellray, another related company, was used to make transfers that profited Jaggi’s family and friends. Among the outflows were these dubious purchases:

     – Foreign currency, INR 66.36 lakh

     – Payments to American Express, INR 49 lakh

     – Other personal expenditures, more than INR 18 lakh

    In sum, the transfers favored Jaggi and his close associates. SEBI claims that these transactions were neither disclosed nor aligned with the firm’s financial objectives. They are systematic misuse of corporate resources.

    Gensol has drawn the ire of the regulator for what it considers a total breakdown of internal controls. Internal emails and conduct letters allegedly were fabricated to mislead stakeholders, including investors, banks, and rating agencies. Gensol supposedly directed its employees to write these misleading documents. And Gensol’s Board of Directors allegedly knew all about it. If the story holds up, SEBI believes it’ll force Gensol to write off those diverted funds, hitting its balance sheet and making life tougher for its employees.

  • Gupshup Lays Off 500 Employees Amid Profit Push

    AI platform Gupshup has axed close to 500 people over the past five months in what it claims is an effort to boost profitability and streamline operations. About 200 were cut off earlier this month, following a larger chop of 300 in December 2024. 

    The rapidly growing company that achieved a unicorn valuation in 2021 stated that the restructuring was intended to eliminate redundant roles and improve operational efficiency. Gupshup maintained that the layoffs were not concentrated among those businesses despite many of the affected employees coming from firms acquired during its expansion phase.

    Acquisition Spree and the Road to Consolidation

    From late 2021 to mid-2022, Gupshup moved assertively to boost its offerings and expertise via acquisitions. It picked up five companies, Dotgo, Knowlarity, Active.ai, AskSid, and OneDirect. These deals were funded by a USD 100 million Series F round led by Tiger Global, which pushed Gupshup’s valuation to USD 1.4 billion.

    As the firm has moved from being an SMS-based service to being a full-fledged conversational AI platform that leverages WhatsApp, Instagram, and other chat interfaces, its acquisitions have had the aim of “strengthening its position in customer engagement.” But the gig of integrating the acquired companies’ forces into the existing company appears to have created a bit of overlap, resulting in the recent right-sizing.

    In a statement, Gupshup said it is still investing in innovation and AI-driven solutions for businesses, despite the cuts, making tough choices to ensure long-term growth.

    Investor Reactions and Valuation Concerns

    The layoffs come on the heels of a substantial markdown in late 2024 by investor Fidelity, which reduced the estimated value of its stake in Gupshup by 65% compared to 2021. This implied a new valuation for Gupshup of around USD 486 million—down from their prior USD 1.4 billion peak. While Gupshup had reported in earlier FY23 earnings that they were up 55% year-on-year to USD 300 million, they have not yet reported full FY24 numbers, and investor confidence clearly took a hit with this latest valuation.

    Speculation about more job cuts at Gupshup has been played down. The company has stated that it is profitable and has denied that any more rounds of layoffs are coming. But several internal sources say that another wave of layoffs, this time aimed at 100 to 300 employees, could be coming by June. No one is confirming that report, though.

    In recent months, Gupshup has faced challenges, but it still has an eye on a potential public listing. CEO Beerud Sheth signaled this year that interest in the company has been expressed by investors in public markets. However, for an IPO to happen, the company needs to sort out some regulatory and logistical matters that have to do with relocating its headquarters from the U.S. to India.

  • New UPI Regulation: Govt. Plans to Implement GST on Transactions Over INR 2,000

    According to a significant update, the Indian government intends to impose the Goods and Services Tax (GST) on transactions made through the Unified Payments Interface (UPI) that exceed INR 2,000. Since UPI is now widely used in daily life, from paid professionals to street vendors, people across the country are alarmed by this proposed change. If put into effect, this new UPI rule would significantly impair regular digital payments. Especially for middle-class households, freelancers, and small enterprises that depend on UPI for cost-free and convenient transfers. A proposal to impose GST on UPI transactions exceeding Rs 2,000 in a single payment is presently being examined by the government. This approach could increase GST revenues by bringing high-value digital transactions into the official tax system.

    Overview of New UPI Rules

    According to a recent government plan, digital transactions above INR 2,000 may soon be liable to GST. Peer-to-peer transfers and payments to merchants are anticipated to be impacted by the rule. These transactions may be subject to the regular 18% GST rate, which is typical for digital services, if authorised. The proposal is still being reviewed, and the implementation schedule is still pending.

    How it will Impact Users and Business Owners

    Costs associated with regular UPI payments for necessities like food, shopping, and eating may increase. Users may start dividing larger payments into smaller ones in order to avoid the INR 2,000 threshold. Users will need to pay closer attention to transaction values and any additional fees associated with GST. Companies that frequently receive sizable UPI payments would need to register for GST. This could result in additional paperwork and stress for independent contractors and small sellers who are not yet covered by the GST system. Many may raise their pricing a little to cover the additional tax.

    Why GST was Implemented?

    The Goods and Services Tax is referred to as GST. It is an indirect tax that has taken the place of other indirect taxes in India, including services tax, VAT, and excise duty. On March 29, 2017, the Parliament passed the Goods and Service Tax Act, which became operative on July 1st. Stated differently, the provision of goods and services is subject to the Goods and Service Tax (GST). Every value addition is subject to the comprehensive, multi-stage, destination-based Goods and Services Tax Law in India. GST is a single domestic indirect tax law that applies to the entire nation after absorbing the majority of indirect taxes. Every point of sale is subject to taxation under the GST scheme. Both Central GST and State GST are applied to intrastate sales. The integrated GST is charged for all interstate sales.