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Tag: #news

  • On the Heels of ANI, Indian Book Publishers have Filed a Lawsuit Against OpenAI

    Indian book publishers and their foreign counterparts have accused OpenAI of utilising proprietary content to train its ChatGPT chatbot in a copyright case they filed in New Delhi, according to a group’s spokesperson.

    According to a media outlet, the complaint was brought in December at the Delhi High Court by the Federation of Indian Publishers, which has members including Bloomsbury, Penguin Random House, Cambridge University Press, Pan Macmillan, Rupa Publications, and S. Chand and Co. A similar complaint against OpenAI, filed by the Indian news service ANI, is also pending in court. The complaint demands reimbursement for its use and attempts to prevent OpenAI from gaining unauthorised access to copyrighted content, according to Pranav Gupta, general secretary of the federation.

    In an interview, Gupta stated that the federation had asked the court to prevent OpenAI from accessing its copyrighted material. They should remove datasets used for AI training and specify how the federation will be paid if they choose not to engage in licensing with the federation. Creativity is impacted by this, he added further.

    The case joins an increasing number of international legal actions taken against tech companies that are allegedly training generative AI systems with copyrighted material. Authors, singers, and news organisations are bringing claims to courts all over the world to defend their intellectual property.

    Supported by Microsoft and credited with sparking interest in generative AI with the 2022 release of ChatGPT, OpenAI has refuted claims of copyright infringement, claiming that its systems use publicly accessible data fairly. According to the federation’s lawsuit, ChatGPT’s book summaries are detrimental to the publishing sector. Using copyright limitations as an excuse, an international media agency’s report showed that ChatGPT could produce thorough chapter-by-chapter summaries of Harry Potter and the Philosopher’s Stone without actually reading the book.

    “Why would people purchase books if this free tool generated book extracts and summaries?” Gupta stated. “All of our members are worried about this because it will affect our sales.”

    What are OpenAI’s Recommendations?

    OpenAI has maintained that Indian courts lack jurisdiction since its servers are situated overseas and that any court order to remove training data could breach its legal responsibilities in the US. The federation responds, however, that OpenAI’s activities in India are governed by regional legislation.

    By including disclaimers in its books that forbid utilising any portion of them for AI training, Penguin Random House has already taken action to safeguard its content worldwide. A judge is scheduled to hear the lawsuit on January 28 after the Delhi High Court registrar requested OpenAI to reply to the federation’s argument.

    In 2023, OpenAI hired Pragya Misra, a former WhatsApp executive, to manage partnerships and public policy in India, demonstrating the company’s considerable progress in the country. With 1.4 billion people and a fast-expanding internet user base, India is an important market for tech companies.

    ChatGPT Faces Worldwide Outage, Affecting Thousands Globally
    ChatGPT experiences a worldwide outage, disrupting services and impacting thousands of users globally. The AI platform’s downtime sparks widespread attention.
    StartupTalkyNitin Konde

  • Perplexity AI Suggests a $300 Billion Strategy for TikTok

    ByteDance, the parent company of TikTok, has received a revised proposal from Perplexity AI that calls for the formation of a new firm that would combine Perplexity with TikTok’s US operations. The US government would be able to own up to 50% of the organisation under this new structure, according to an AP investigation. According to the source, the revised proposal, which was filed last week, expands upon a previous one that was given to ByteDance on January 18, the day before the US law that banned TikTok went into force.

    The initial plan included a structure for combining Perplexity, a San Francisco-based company, with TikTok’s US operations and obtaining more capital from investors. The plan provides ByteDance with a compromise that permits it to keep some ties to TikTok without completely cutting them off. ByteDance would have to cede control to a board that is entirely based in the US, though.

    According to the updated plan, upon an initial public offering (IPO) of at least $300 billion, the US government might purchase up to half of the new company’s shares. According to media reports, the US government would not be granted a seat on the company’s board or have voting rights over these government-owned shares.

    Crucially, the deal states that the US business that ByteDance provided would not include TikTok’s secret technology, which forms the basis of the app’s content recommendation engine.

    Trump Supporting Musk to Crack TikTok Deal

    In the past, US President Donald Trump has spoken out in favour of Tesla CEO Elon Musk purchasing TikTok, proposing an innovative deal whereby the US government would control 50% of the company in return for operating licenses.

    At a press briefing on January 21, Trump responded, “I would be, if he wanted to buy it, yes,” in response to a question regarding Musk’s potential interest in the platform. Additionally, he named Larry Ellison, the chairman of Oracle, adding, “I’d like Larry to buy it, too.”

    TikTok Restores Services in USA

    Following U.S. President Donald Trump’s announcement last week that he would restore TikTok’s access in the nation if he regained power, the app’s services were resumed. Due to a law citing national security, TikTok blocked its app for users in the United States.

    President Donald Trump stated on 25th January that he was in discussions with several parties about purchasing TikTok and that he would probably make a decision regarding the future of the well-known app within the next 30 days.

    Growth of Perplexity AI

    Over the previous 12 months, Perplexity AI has grown significantly. The company was valued at approximately $500 million at the beginning of 2024. By year’s end, the figure had risen to $9 billion. This expansion was greatly aided by the generative AI boom, as more investors recognised the potential of AI search tools as a significant threat to Google. Nevertheless, Perplexity hasn’t had an easy time. The business has occasionally been in the news for the wrong reasons due to criticism it has received for alleged plagiarism.

    Perplexity Provides Free Subscriptions to IIT Madras Students
    Perplexity offers free subscriptions to IIT Madras students, enhancing their access to AI-powered tools and resources for academic and research purposes.
    StartupTalkyNitin Konde

  • Wingify, a Bootstrapped SaaS Major, will be Acquired by Everstone for $200 Million

    For over $200 million, private equity firm Everstone has concluded an agreement to purchase the bulk of the bootstrapped SaaS company Wingify. Paras Chopra, a co-founder, will remain a shareholder and serve on the board, Wingify stated. Wingify is certain that Sparsh and the Everstone team have the know-how and vision to guide the company through its next stage of expansion and success, said Chopra. He is eager to continue serving as a board member and stakeholder, offering direction and assistance to guarantee the business’s ongoing success.

    Sift of Roles in Wingify

    For roughly $200 million, private equity firm Everstone is purchasing the majority of the bootstrapped SaaS giant Wingify. CEO and cofounder Sparsh Gupta will retain a “significant” share in the business, while cofounder Paras Chopra will leave. According to people acquainted with the situation, Gupta will also stay in his current position, a media outlet reported. Wingify is a SaaS startup based in Delhi that specialises in website optimisation and was founded in 2009 by Chopra. Visual Website Optimiser (VWO), its main product, is an A/B testing tool that helps businesses increase conversion rates. One notable user experience research technique is A/B testing, which contrasts two or more iterations of a variable to ascertain which works best.

    Wingify is one of a small number of extremely successful software businesses that are coming out of India and have established a strong global presence, according to Sandeep Singh, Managing Director of Everstone Capital. In the last 18 months, Everstone has made two large investments in marketing technology. Everstone Capital congratulates Paras and Sparsh, the founders, on their accomplishments and looks forward to collaborating with Sparsh and his group as Wingify enters its next stage of expansion.

    Indian SaaS Market is Witnessing Consolidation

    Due to investor interest and pressures from the global economy, the aforementioned acquisition occurs at a time when the Indian SaaS sector is undergoing major consolidation. As strategic assets with reliable recurring revenue models, large private equity and venture capital organisations are increasingly purchasing mid-sized and bootstrapped SaaS businesses.

    With businesses like Salesforce, Microsoft, and private equity firms undertaking strategic acquisitions to broaden their product portfolios, break into new markets, and realise economies of scale, this trend is picking up speed on a global scale. With a $50 billion market value, the Indian SaaS ecosystem is a good target for consolidation tactics because of its strong product development capabilities, affordable personnel, and growing global competitiveness.

    Eka Software Solutions, a commodities trading and risk management (CTRM) software company based in Bengaluru, was purchased by the US-based private equity firm Symphony Technology Group (STG) last year.

    Government Issues Draft Guidelines to Boost E-commerce Accountability
    The government releases draft guidelines to improve e-commerce accountability, focusing on transparency and consumer trust in online platforms.
    StartupTalkyNitin Konde

  • AITMC Ventures and DroneAcharya Sign a Merger Agreement

    In a regulatory filing, DroneAcharya announced that it has inked a term sheet for a “strategic company merger” with agri-drone business AITMC Ventures. DroneAcharya did not, however, provide any other information regarding the deal. The two businesses will collaborate to provide their clients with industrial, enterprise, defence, and spacetech solutions, according to a LinkedIn post by DroneAcharya. Additionally, it stated that these solutions will include industry-leading software, hardware, automation, capacity building, and skill development products. According to DroneAcharya’s post, this proposed merger is a game-changer for both businesses and will allow India to establish new industry standards on the world map.

    DroneAcharya’s Order Book

    Additionally, the board of the publicly traded drone firm authorised the implementation of an Employee Stock Option Plan (ESOP) policy. DroneAcharya stated earlier this week that it has secured a contract with the defence ministry for INR 7.53 lakh to offer training courses focused on drones. Eight Indian Army officials will receive drone pilot training and drone construction training from the company in accordance with the contract. In addition, the business released many important announcements in December. This included partnering with Canada’s drone startup Volatus and establishing a new subsidiary as part of a strategic move into the Middle East.

    Financial Outlook of DroneAcharya

    In terms of finances, DroneAcharya’s profit for the six months ending in September 2024 (H1 FY25) decreased by 62.1% to INR 1.50 Cr from INR 3.96 Cr during the same time the previous year. Nonetheless, operating revenue increased 28.8% to INR 26.90 Cr in the reviewed year from INR 20.88 Cr in the first half of FY24. The agri-drone company AITMC Ventures, run by AVPCL, is present in 12 states and has 50 Global Incubation and Skill Hubs (GISH) and 20 World Incubation and Skill Hubs (WISH) that are only focused on the drone and agricultural industries. The company, which was founded in December 2016 by Deep Sisai and Preet Sandhuu, provides drone training as well as other agricultural skill development programs. In October 2023, the business submitted its draft red herring prospectus (DRHP) to NSE Emerge for an IPO. Nevertheless, there have been no further developments about the IPO.

    Performance of Drone Startup Sector in India in 2024

    Due to rising demand from a variety of industries, including e-commerce, defence, and agriculture, the drone market in India is expanding quickly. The sector has grown even more as a result of encouraging government policies and programs like the Drone Shakti plan. Investments are booming, with large sums of money going to R&D and startup ecosystems that focus on cutting-edge drone technologies.

    At a compound annual growth rate (CAGR) of 17.0%, the India drone market is expected to increase from USD 654 million in 2024 to USD 1,437 million by 2029. It is anticipated that the number of drones in the Indian drone market will increase from 10,803 units in 2024 to 61,393 units in 2029.

    This includes improvements in battery life and long-range capabilities, both of which are essential given India’s enormous and varied geography. Additionally, the market is changing from mainly military applications to a wide range of commercial purposes, such as healthcare for the delivery of medical supplies, urban planning for smart city projects, and agriculture for crop assessment. Due to their creative approaches to drone technology, many firms have emerged as frontrunners in the dynamic entrepreneurial landscape.

    Dixon Plans $3 Billion Display Fabrication Plant in India
    Dixon Technologies plans to build a $3 billion display fabrication plant in India, boosting local manufacturing and self-reliance in the tech sector.
    StartupTalkyNitin Konde

  • ChatGPT’s Worldwide Outage Impacts Thousands

    ChatGPT from OpenAI is back up following a significant outage that lasted for roughly forty minutes. The Microsoft-backed software giant revealed that it experienced a 37-minute major outage and a nearly two-hour partial outage on 23 January.  The GenAI chatbot experienced higher error rates as a result of a problematic gateway fault issue. At 7:13 PM IST, the business determined the underlying source of the problem and, in roughly one and a half hours, put a solution in place.

    According to OpenAI, the chatbot’s issues have been resolved as of now. Between 5:53 PM and 8:40 PM, there was an outage. “This problem has been fixed. Customers encountered higher problems on ChatGPT between 4:23 am and 7:10 am PST (5:53 pm and 8:40 pm IST), according to the company.  Additionally, OpenAI’s API experienced a significant one-hour outage today. By 6:13 PM, a solution to the problem was put into place.

    What Exactly Happened on 23 January 2025?

    Users who had been accustomed to ChatGPT‘s fast fixes were in a panic when the largest GenAI chatbot in the world went down worldwide on January 23. About 4,000 Indian users reported that ChatGPT was down for the last hour, according to the outage tracker website Downdetector. It is important to note that 300 million people use ChatGPT every week worldwide. A poor gateway error with reference code 502 was reported by the web server on the website. Usually, the technical issue occurs when a server receives an invalid answer from another server. Server overload, network issues, configuration mistakes, or brief outages on upstream servers are the usual causes of the problem.

    On January 23, the firm announced that ChatGPT was experiencing a “Partial Outage” and that it was looking into the matter. For ChatGPT, “we are currently seeing high mistake rates. We’re looking into it right now,” stated Status of OpenAI.

    OpenAI Founding Members of Stargate Project

    With a plan to invest $500 billion over the next four years to construct new AI infrastructure for OpenAI in the United States, the Microsoft-backed business announced that it will be one of the founding members of the Stargate Project. Oracle, Microsoft, NVIDIA, and Arm will also serve as the organisation’s “initial technology partners.” In a formal declaration on January 22, OpenAI announced that it would start deploying $100 billion right away. In addition to aiding in the United States’ reindustrialization, this project will give the country and its allies a strategic capability to safeguard their national security. This was the fifth significant outage for ChatGPT since December. On December 11, ChatGPT experienced the longest outage, remaining unavailable for 4:10 hours.

    Government Issues Draft Guidelines to Boost E-commerce Accountability
    The government releases draft guidelines to improve e-commerce accountability, focusing on transparency and consumer trust in online platforms.
    StartupTalkyNitin Konde

  • Nykaa Establishes New Oman-Based Subsidiary

    The parent company of the massive beauty e-commerce company Nykaa, FSN E-Commerce Ventures, has established Nysaa Cosmetics SPC as a new wholly owned subsidiary in Oman. The new company would engage in the “international and domestic” sale and trade of beauty and personal care (BPC) products, such as cosmetics, fragrances, and other associated items, through both online and offline channels, according to a filing Nykaa made with the exchanges. Nessa International Holdings Limited, a step-down subsidiary of the corporation, has established a new wholly owned subsidiary in Oman, Nysaa Cosmetics SPC, the company said. OMR 30,000 (INR 6 lakh) was used as the initial share capital to establish the new subsidiary. Nessa International, a subsidiary of Nykaa, will own a 100% share in the recently listed business.

    Nykaa’s Global Expansion Plan

    The opening of Cosmetics SPC in Oman is consistent with Nykaa’s objectives to expand globally, with a particular emphasis on the Middle East. The company entered the Gulf Cooperation Council (GCC) area in 2022 by partnering with Apparel Group, one of the biggest omnichannel retailers in the United Arab Emirates. Since then, Nykaa has established subsidiaries in a number of GCC nations in an effort to reach new clientele and serve the local Indian expat community. The massive beauty e-commerce company established a wholly owned subsidiary in Qatar in July of last year. In response, the business established Nysaa Trading LLC, a new wholly owned subsidiary, in Saudi Arabia. Last year, it also opened the first Nysaa physical store in Dubai.

    Financial Outlook of Nykaa

    Over the next four years, Nykaa hopes to open 70 outlets under the Nysaa brand across the GCC, aiming for a 7% market share in the GCC beauty industry. In the second quarter (Q2) of the fiscal year 2024–25 (FY25), Nykaa’s consolidated net profit increased by 66.3% to INR 12.97 Cr from INR 7.8 Cr in the same period last year. Operating revenue increased 24.4% from INR 1,746.11 Cr in Q2 FY24 to INR 1,874.74 Cr in the reviewed quarter. Nykaa’s stock ended the trading session on the BSE 3.3% higher, at INR 170.73, on 23 January.

    About Nykaa

    In addition to redefining the art of e-retailing beauty and personal care in India since its introduction in 2012, Nykaa asserts that it has played a significant role in supporting the development of an ecosystem that was only just getting started. With over 72 Luxe and On-Trend and Kiosk Stores, an ever-expanding online community for beauty enthusiasts, a beauty helpline, and a variety of domestic and international brands, luxury and prestige brands, premium brands, niche and cult brands, as well as expert advice and videos, Nykaa goes above and beyond to provide its customers with only the best. With over 2400 brands that are 100% genuine, Nykaa provides a carefully chosen assortment of products in the areas of makeup, skincare, haircare, bath and body, fragrance, grooming tools, personal care, and health & wellbeing.

    Government Issues Draft Guidelines to Boost E-commerce Accountability
    The government releases draft guidelines to improve e-commerce accountability, focusing on transparency and consumer trust in online platforms.
    StartupTalkyNitin Konde

  • AWS will Construct Data Centres in Telangana at an Investment of INR 60,000 Cr

    Amazon Web Services (AWS) has reportedly agreed to investing INR 60,000 Cr (about $7 billion) to establish data centres in Telangana, which would significantly strengthen the state’s IT economy. With plans to invest an additional INR 60,000 Cr, AWS will be significantly growing its data facilities in Hyderabad. As a result, the Hyderabad AWS region will be crucial to AWS’ future expansion of cloud services in India, including AI, a chief minister’s (CM) office official told a major media house. The news report further states that AWS asked the state authorities for a second piece of land for the expansion plans, and the government granted the request.  Following a meeting with Amazon executives on the outskirts of the World Economic Forum’s annual summit in Davos, Switzerland, a delegation led by Chief Minister Revanth Reddy and State Industries Minister D Sridhar Babu made the commitment.

    Telangana Chief Minister praised the significant investment decision, saying the government is thrilled that international companies like Amazon are becoming more confident in the state and making larger investments than ever before. The past year’s efforts have really paid off, he added.

    Tillman Global Holdings and Blackstone Following the Footsteps of AWS

    In addition to AWS, Tillman Global Holdings and Blackstone also committed INR 20,000 Cr to establishing data centres in Telangana alone. Blackstone agreed to invest INR 4,500 Cr to build a 150 MW data centre in Hyderabad, while Tillman Global Holdings, a US-based company, will invest INR 15,000 Cr to build a 300 MW data centre in Hyderabad. Telangana has signed agreements totalling INR 80,000 with the three businesses. The most recent development occurs five months after Amazon revealed plans to construct a new, hyperscale data centre in Hyderabad, which is reportedly essential for services enabled by machine learning (ML) and artificial intelligence (AI).

    AWS Network in the State of Telangana

    According to reports, Amazon also revealed plans to invest an extra $2 billion in Telangana in September of last year in order to increase the state’s capacity for data centres. AWS has invested about $1 billion in Telangana and currently runs three data centres there. AWS is actively growing its footprint in the nation. For more than INR 450 Cr, it allegedly purchased a 38.18-acre plot of land in Palava, close to Mumbai, from Lodha Group in December of last year with plans to construct a hyperscale data hub. In addition to Amazon, several major IT companies are constructing data centres in the nation. Google and real estate developer Anant Raj inked a memorandum of understanding (MoU) last year to provide cloud computing services and data centre infrastructure to businesses. Additionally, Oracle announced in May of last year that it intends to treble its expenditures in India, concentrating on data and artificial intelligence.

    Trump Announces $500 Billion US Investment in AI Infrastructure
    Former US President Donald Trump announces a $500 billion investment plan to strengthen AI infrastructure and advance the country’s technological edge.
    StartupTalkyNitin Konde

  • The government Releases Draft Guidelines to Increase the Accountability of E-commerce

    In order to safeguard customers against dishonest activities in the quickly growing online retail industry, the Centre has put up draft guidelines for e-commerce platforms that need self-regulation measures. Under the direction of the Ministry of Food and Consumer Affairs, the Bureau of Indian Standards (BIS) created the draft rules, titled “E-commerce Principles and Guidelines for Self-Governance,” and requested feedback from interested parties by February 15.

    According to the draft, the growth of e-commerce has brought forth new difficulties, especially with regard to consumer trust and protection. In this context, it is impossible to overstate the significance of effective and transparent regulations and standards for self-governance in e-commerce. For e-commerce operations, the framework presents three-phase principles that address the pre-transaction, contract generation, and post-transaction phases. Prerequisites for the transaction Businesses should, therefore, perform comprehensive KYC on their business partners, particularly third-party suppliers. In order to assist customers in evaluating the features and usefulness of products, the draft also requires comprehensive product listings that contain the title, identification number, seller contact information, photo, and videos.

    Bringing More Transparency in the Sector

    According to the draft, all e-commerce businesses must document customer consent, permit transaction review, and uphold clear cancellation, return, and refund policies in order to preserve openness. All e-commerce platforms must offer a variety of payment methods, such as bank transfers, e-wallets, mobile payments, and credit/debit cards, in order to ensure safe and equitable payment procedures. Platforms for imported items must prominently disclose information about the importer, packer, and vendor. Platforms are required to document customer permission throughout contract formation, permit transaction scrutiny, and uphold clear cancellation, return, and refund rules.

    Additionally, the proposed regulations require safe payments through the use of two-factor authentication and encryption in payment systems. Additionally, cash-on-delivery needs to be handled according to customer preferences. After the transaction The proposal states that the platform must have distinct policies for counterfeit goods and clearly define the timeframes for exchanges, refunds, and replacements. Additionally, the plan suggests banning the sale of things that are prohibited.

    Giving More Clarity to Seller and Customers

    Along with seller onboarding, the e-commerce company must compile and distribute a list of prohibited products. In addition to the aforementioned recommendations, the document also includes general guidelines, such as conducting business fairly and without giving any seller on the platform preferential treatment. Customers should be made aware of any promotional agreements the e-commerce company may have with brands.

    Amazon and Flipkart, two of the biggest online retailers, are currently at odds with the Competition Commission of India (CCI), which has accused them of engaging in anti-competitive behaviour. Furthermore, both businesses have been bypassing laws by using proxy vendors to manage inventories and monitor listings on their platforms, according to the Confederation of All India Traders (CAIT). Additionally, it said that whereas independent traders are forced to pay much higher costs, which distort the competitive landscape, these sellers get lower fees and access to exclusive product launches.

    Dixon Plans $3 Billion Display Fabrication Plant in India
    Dixon Technologies plans to build a $3 billion display fabrication plant in India, boosting local manufacturing and self-reliance in the tech sector.
    StartupTalkyNitin Konde

  • Dixon wants to Construct a $3 Billion Display Fabrication Plant in India

    Dixon Technologies, an electronics company, is in talks to establish a $3 billion display fabrication plant in India as part of its expansion into the electronics components market. During the Q3 results call, Dixon’s managing director, Atul Lall, made the announcement. He claimed that the giant from Noida is in negotiations to develop this facility with a multinational tech company. According to Lall, the company is actively negotiating with a worldwide technological partner to establish a top-tier display factory, which is a crucial component in the consumer electronics, IT hardware, and mobiles sectors. The industrial giant hopes to reduce costs, gain control over the supply chain, and localise output via this entity. In order to proceed with this initiative, Dixon is also awaiting the center’s guidelines for the India Semiconductor Mission (ISM) phase 2.

    How Firm Plans Utilise Funds?

    Regarding the capital investment, Lall stated that approximately $3 billion will be invested in the project at first, with 60% going towards televisions and 15%–12% going towards the production of mobile phones. It’s important to remember that the business wants to use government funding to support this endeavour. In terms of finances, Dixon reports that its consolidated revenues were INR 10,461 Cr at the end of the December 2024 quarter, up 117% from INR 4,821 Cr in the same quarter of the previous fiscal year.

    More Details About the Proposed Manufacturing Unit

    When it comes to producing devices and products, India’s electronics manufacturing sector has matured. A robust component ecosystem is necessary to maintain and expand. In addition to mechanical and other modules, the company has also introduced a display module that will be operational in the upcoming two to three quarters, according to Lall.

    In collaboration with HKC, the firm has also decided on a location for display manufacture, and it anticipates that production will begin in the first or second quarter of the upcoming fiscal year. Trial production of Dixon’s specialised IT hardware manufacturing facility is scheduled to start in February, and mass production is scheduled for the first quarter of FY25–26. Devices for Asus and HP will be produced in large quantities by the facility. According to Lall, mass production for Acer and Lenovo has already started.

    India’s PLI Scheme Attracting Players

    At the same time, Dixon and manufacturing giant Foxconn have recently exhorted Indian authorities to settle their outstanding dues, which amount to INR 700 crore. This development has occurred recently. These incentives are available to both giants through the Centre’s production-linked initiative (PLI) program. Dixon has recently expressed optimism that the nation’s manufacturing will increase. For example, it signed an agreement with Vivo India last month to establish an OEM plant through a joint venture. Dixon’s subsidiary Padget Electronics and HP India inked a memorandum of understanding (MoU) in September 2024 to produce laptops and personal computers (PCs).

    HUL Acquires 90.5% Stake in Minimalist for INR 2,955 Crore
    HUL acquires a 90.5% stake in skincare brand Minimalist for INR 2,955 crore, strengthening its presence in the personal care market.
    StartupTalkyNitin Konde

  • HUL Pays INR 2,955 Cr to Acquire 90.5% of Minimalist

    On January 22, Hindustan Unilever (HUL) declared that it had finalised a deal to purchase 90.5% of the high-end actives-led beauty brand Minimalist through secondary buyouts at a pre-money enterprise value of INR 2,955 crore, subject to primary infusion and adjustments based on transaction documents.

    According to the conditions outlined in the sale paperwork, HUL stated in its presentation that it will purchase the remaining 9.5% ownership from the founders in two years. According to HUL’s statement, this acquisition represents yet another phase in the transition of its Beauty & Wellbeing portfolio towards changing and higher-growing demand markets. It is anticipated that the deal will be finalised during the first quarter of the upcoming fiscal year (Q1FY26).

    HUL Expanding its Beauty and Wellbeing Portfolio

    The acquisition is another important move to expand HUL’s beauty and wellness portfolio in high-growth, premium-demand areas, according to Rohit Jawa, CEO and MD of HUL. A fantastic brand based on research, product efficacy, and transparency has been established by Mohit, Rahul, and the team.

    In the press announcement, Ritesh Tiwari, executive director of finance and IT and chief financial officer of HUL, added that the company is thrilled to collaborate with the Minimalist team in order to create value through synergies and jointly grow the brand by utilising our complimentary skills. Tiwari added that the affluent and affluent-plus customer segment accounts for half of the approximately INR 68,000 crore beauty market in India.

    The brand Minimalist is firmly positioned in the alluring beauty market. He noted that the company has a strong foundation in customer love and product efficacy. Tiwari went on to say that the premium category becomes crucial to the company’s goal for the market, which is to create the nation’s top beauty portfolio.

    HUL intends to contribute 900 basis points (bps) to its portfolio shift in beauty and wellness over the ensuing years. This upscale and affluent-plus market is served by the brand Minimalist. According to Tiwari, the masstige pricing point provides HUL with an additional weapon to strengthen its premium segment position in the beauty and wellness space.

    About Minimalist

    According to the statement from HUL, skincare brand Minimalist, which was founded in 2020 by Mohit and Rahul Yadav, is one of the fastest-growing digital-first brands that resides at the nexus of active science and beauty. The company has a four-year annual revenue runrate (ARR) of INR 500 crore, and this purchase would be a part of the consumer goods major’s beauty and wellness segment. Harman Dhillon, executive director, beauty & wellbeing, HUL, is in charge of the division. The firm will continue to be run in partnership with HUL by the current Minimalist team, which is headed by Mohit and Rahul.

    Zomato Expands ESOP Pool with 4.17 Crore Stock Options
    Zomato increases its ESOP pool by adding 4.17 crore stock options, aiming to enhance employee benefits and retain top talent in the competitive market.
    StartupTalkyNitin Konde