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  • Zomato Adds 4.17 Cr Stock Option to its ESOP Pool

    With the distribution of approximately 1.2 Cr in stock options to qualified employees, foodtech giant Zomato has increased the size of its employee stock option plan (ESOP) pool. The company, managed by Deepinder Goyal, announced in an exchange statement on October 2 that its board has approved the issuance of 1,19,97,768 stock options under various ESOP schemes. 116 stock options under the Foodie Bay ESOP 2014 plan and 1.19 Cr stock options under the Zomato ESOP 2021 scheme have been given by the meal delivery and fast commerce behemoth. Under its ESOP schemes, each stock option is convertible into a single fully paid-up equity share with a face value of INR 1 each. These options can be exercised within 10 years of the options’ vesting date or 12 years of Zomato’s public listing date, whichever comes first. According to the filing, lock-in will not apply to the equity shares that will be distributed following the exercise of the stock options. According to the stock’s most recent opening price, the freshly allotted shares are worth a total of INR 328.91 Cr.

    The Move to Retain Top Executives and Allure Fresh Talent

    Zomato has floated new ESOPs many times this year in an effort to draw in talent from international startups and to retain top executives. Zomato distributed about 35.17 lakh stock shares in August. The foodtech giant had previously announced that it had won approval from shareholders to adopt and execute Zomato ESOP 2024, a new employee stock option plan that would award 18.26 Cr in stock options to employees. The changes coincide with Zomato’s steady increase in profit margins due to the company’s robust business growth, especially in its rapid commerce vertical, Blinkit. While Zomato’s operating revenue increased 74% year over year (YoY) to INR 4,206 Cr in Q1 FY25, the company’s consolidated net profit increased multifold year over year (YoY) to INR 253 Cr. By concentrating on going-out business, the company hopes to further stabilise its revenue.

    Adding New Feature for Further Expansion

    In addition to launching the “Book Now, Sell Anytime” functionality for tickets purchased for any live event on the Zomato app, Zomato has also acquired Paytm’s movie and events ticketing businesses. Additionally, Zomato has been dropping unsuccessful products and introducing new features to attract users. In order to facilitate the control of food expenses for corporations and their registered personnel, Zomato recently launched “Zomato for Enterprise” (ZFE). But the foodtech major’s tax problems are getting worse. The company was hit with a new goods and services tax (GST) demand and penalty order for more than INR 17.70 crore by West Bengal GST officials last month. Authorities in West Bengal and Tamil Nadu fined Zomato INR 4.59 Cr in August for GST violations.

    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

  • Perplexity Offers IIT Madras Students Free Subscriptions

    According to Aravind Srinivas, creator and CEO of Perplexity AI, the AI search engine offers its premium subscription plan to staff and students at his alma mater, IIT Madras, for free. All IIT Madras instructors, staff, and students, where the CEO completed his undergraduate studies, have received complimentary Perplexity Pro from the company. In an X post, Srinivas stated that he was “extremely excited to start there as the brand begins its expansion for Indian campuses.” This is consistent with remarks made by Srinivas in December 2024, in which he stated that he was amenable to “figuring out” an economic arrangement with Prime Minister Narendra Modi in order to provide Perplexity Pro to Indian academics, faculty, and students.

    He also met with Prime Minister Modi in New Delhi last month to talk about the prospects for AI adoption in India and globally. Srinivas stated that he is prepared to devote $1 million personally and five hours per week to a “group of people” who will make India “great in the context of AI” in a different post on X on January 22. Srinivas added that he is prepared to personally invest $1 million (sic) and five hours per week in the most capable team that can achieve this at this moment to restore India’s greatness in the context of artificial intelligence. Think of this as a promise that is irrevocable. The team must open source the models under an MIT license and be as fixated on it as the DeepSeek team.

    Investing 10 Million More in Indian Startups

    The cofounder of Perplexity added that he would put an additional $10 million into the Indian business if it could “rigorously” outperform DeepSeek R1 on all metrics. Large language models (LLMs) have been created by the Chinese AI startup DeepSeek, which is regarded as a serious rival to OpenAI. To compete with platforms like OpenAI-o1, DeepSeek introduced its newest reasoning models, DeepSeek-R1 and DeepSeek-R1-Zero, earlier this week with less than $4 million in funding.

    Motivating the AI Sector of India

    Pratyush Kumar, a cofounder of SarvamAI, an LLM maker with an Indic focus, responded to the Perplexity cofounder’s post by pitching his own firm. Aravind is creating sovereign models at @SarvamAI, a brand that combines deep reasoning with proficiency in the Indic language. I hope you will join this expedition! Kumar said. This occurs one day after Srinivas caused a stir in the Indian AI community by stating that Indian businesses had to concentrate on building their models from the ground up rather than optimising pre-existing basic models. Srinivas urged Indian businesspeople to demonstrate to the world that they can develop AI with ISRO-like capabilities, despite pointing out that training thinking models is expensive. He was alluding to the Indian space agency’s economical strategy.

    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

  • Trump Says the US Would Invest $500 Billion on AI Infrastructure

    On January 21, three leading IT companies announced that they would form a new business, Stargate, to expand artificial intelligence infrastructure in the US. The business, which President Donald Trump referred to as the “largest AI infrastructure project in history,” was announced by Oracle Chairman Larry Ellison, SoftBank CEO Masayoshi Son, and OpenAI CEO Sam Altman at the White House on January 21 afternoon.

    With plans to invest up to $500 billion in Stargate over the next few years, the firms will first invest $100 billion in the project. According to Trump, the project is anticipated to generate 100,000 new employment in the US. According to Trump, Stargate will construct data centres across the nation as well as the physical and virtual infrastructure needed to support the next generation of AI. According to Ellison, work is already underway in Texas on the organization’s first data project, which will span one million square feet.

    Fulfilling the Long Standing Demand

    In order to power their aspirations for artificial intelligence in the upcoming years, AI leaders have been stressing for months that more data centres, along with the processors, electricity, and water resources to run them, are required. Altman stated, “I believe this will be the most significant project of this era.” “Without you, Mr. President, we could not accomplish this.”

    One of the largest operators of data centres in the United States is Oracle. Additionally, SoftBank has the kind of large financial resources required to finance the anticipated billion-dollar cost of expanding AI infrastructure. Given that AI has the potential to affect everything from the economy to military capabilities, Altman has previously pushed US leaders to support that infrastructure buildout in order to guarantee that the US stays ahead of China in the AI arms race. According to reports, the CEO of OpenAI met with Masayoshi Son, the CEO of Softbank, last year to ask for funding for new semiconductor facilities that would produce AI chips.

    Altman, who was present at Trump’s inauguration, told a news agency last month that he looks “forward to working with his administration on it” and that he thinks Trump will “be very good at” luring investments in AI infrastructure to the US.

    Holding the Upper Hand in the AI Race

    OpenAI urged the US government to develop a foundational strategy to ensure that infrastructure investment benefits the greatest number of people and maximises access to AI. The policy white paper was released last week and stated that investment in US AI infrastructure can guarantee that US AI tools outperform Chinese technology, as well as create new US jobs and economic opportunities. According to the brief, there are $175 billion in worldwide funds that are ready to be invested in AI initiatives. “Those funds will flow to China-backed projects if the US doesn’t attract them, strengthening the Chinese Communist Party’s global influence,” the company stated.

    Oracle claimed in a statement that the Stargate project “will secure American leadership in AI, generate massive economic benefit for the entire world, and create hundreds of thousands of American jobs.” 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.

    OpenAI will be in charge of operations, while SoftBank will be in charge of finances for Stargate. MGX, a fourth partner, is also providing financial support. According to OpenAI, the chairman of Stargate will be the son of SoftBank. To encourage a purported revival of American industry, new presidents and presidents-elect have frequently announced large US investments in conjunction with businesses. However, their success record is distinctly uneven.

    DeHaat Acquires AgriCentral to Expand Farmer Network
    Agritech firm DeHaat acquires AgriCentral, aiming to broaden its farmer network and enhance agricultural solutions for better connectivity and support.
    StartupTalkyNitin Konde

  • DeHaat, Agritech Firm, Purchases AgriCentral to Broaden its Farmer Network

    Through an all-cash business transfer agreement, agritech startup DeHaat has acquired Olam Agri’s farm consultancy portal AgriCentral. DeHaat hopes to strengthen its position as India’s largest full-stack agritech platform, reach a wider audience within the farming community, and offer a wider range of digital services for farmers with this strategic purchase. With more than 10 million users, AgriCentral is an app-based platform for Indian farmers. It was established in 2018 and provides community engagement, health diagnostics, customised agricultural planning, and real-time crop prices. AgriCentral spearheads the shift to digital farming by utilising technology such as GPS, satellite images, big data, machine learning, and image analytics. Through a network of more than 15,000 DeHaat Centres, DeHaat has effectively built strong supply chain capabilities to provide 360-degree agricultural solutions to Indian farmers in more than 120,000 villages, according to cofounder and CEO Shashank Kumar.

    DeHaat’s attempts to reach millions of underserved farmers with its full-stack agri-value chain services will be aided by AgriCentral’s affordable digital capabilities. In order to improve farmers’ livelihoods, it will also allow DeHaat to implement a number of value-added services, like precision advice, mechanisation, insurance, and cattle advisory, Kumar continued.

    Now, 12 Million Farmers are Connected with DeHaat

    Through the agreement, DeHaat will now provide services to more than 12 million farmers across the country, with the goal of surpassing its 2024 farmer network target. DeHaat is a comprehensive agritech platform that offers farmers end-to-end agricultural services. It was founded in 2012 by Kumar and Amrendra Singh. This includes market linkages to sell their produce, financial access, individualised farm assistance, and high-quality agricultural inputs. Temasek and Prosus Ventures are among the investors that have contributed $221 million to the business, which was once valued at $700 million.

    DeHaat Expanding its Network

    With more than 15,000 DeHaat centres spread across 11 states, the company has grown its digital network to provide 2.7 million farmers with individualised crop advising and digital farmer services. In order to promote sustainable agriculture, DeHaat has established exclusive distribution agreements with over ten international bio-agri-input innovators and distributes over 3,000 agricultural inputs through these centres. Due in significant part to an increase in total expenses, the Gurugram-based startup’s consolidated net loss increased by 3.76% to INR 1,133.1 Cr in the fiscal year 2023–24 (FY24) from INR 1,094.4 Cr the previous year. It was on course to reach breakeven by the final quarter of the current fiscal year (Q4 FY25); nevertheless, it reduced its operational losses by 42% YoY in FY24.

    With the use of alliances with more than 1,000 agricultural organisations, such as input producers, produce purchasers, warehouse managers, and financial institutions, the platform’s supply chain capabilities extend throughout 120,000 communities.

    Government to Launch Regulatory Sandbox for Electric Air Mobility
    The government is planning a regulatory sandbox to support advanced electric air mobility solutions, fostering innovation and streamlined regulation in the sector.
    StartupTalkyNitin Konde

  • For Advanced Electric Air Mobility Solutions, the Government Planning a Regulatory Sandbox

    According to reports, the civil aviation ministry is looking at creating a regulatory sandbox for advanced electric air mobility options in India in an attempt to address the problem of increasing urban congestion. According to a media report, Vumlunmang Vualnam, the secretary of civil aviation, stated, “We are ready to encourage and assist advanced air mobility.” He was giving a speech at the Greater Noida International Conference on Air Mobility. In addition to developing new solutions for the future, the centre anticipates that the move will help enhance efforts in the research and development of advanced mobility solutions. According to the article, representatives from the Directorate General of Civil Aviation (DGCA) have already begun touring possible field locations for advanced air mobility testing trials and other associated activities.

    Observing Other International Players

    Six working groups pertaining to different facets of advanced air mobility have also been established by the regulating body. The nation is currently investigating the work being done in the areas of airspace management, infrastructure development, and regulatory framework for advanced air mobility by other nations, including the US, EU, Singapore, and Dubai. The ePlane Company, an air mobility startup, teamed up with TCS this month to create electric air mobility solutions for both passenger and freight transportation. The business raised $14 million in its Series B fundraising round two months ago in order to accelerate its commercialisation goals and acquire international regulatory approvals. Electric Vertical Take-Off and Landing (eVTOL) aircraft and associated solutions are developed by the startup.

    A Sector with Bundle of Opportunities

    With its ability to reduce carbon emissions, ease traffic, and offer quicker, more effective means of transit, advanced air mobility has the potential to completely transform urban transportation. India is in a unique position to gain from these technologies because of its quickly growing metropolitan centres. India’s aviation infrastructure is growing, as Vualnam pointed out. There are already more than 150 airports in the nation, and by 2047, there will be 350. India is expected to carry 3.5 billion passengers a year by that point, solidifying its position as one of the aviation economies with the greatest rate of growth in the world. Advanced air transportation solutions could be included in this ecosystem to solve important urban issues and boost economic growth even further.

    Major Challenges to Address

    Although the future looks bright, there are many obstacles in the way of the broad use of sophisticated air mobility. It takes a lot of money and careful planning to build the required infrastructure, such as charging stations and vertiports. To meet the special needs of eVTOLs and other AAM technologies, airspace management will also need to be rethought. A proactive strategy to address these obstacles is the creation of a regulatory sandbox, which offers a framework for innovation while guaranteeing public safety and regulatory compliance. India may establish itself as a world leader in advanced air mobility by encouraging cooperation between industry participants, legislators, and regulatory agencies.

    Zepto Plans to Increase IPO Size to $1 Billion
    Zepto plans to increase its IPO size from $800 million to $1 billion, signaling strong growth ambitions and confidence in its market strategy.
    StartupTalkyNitin Konde

  • Zepto Aims to Raise the IPO Size by $800 Million to $1 Billion

    According to a media outlet report, Zepto, a quick commerce startup, is thinking of raising the amount of its initial public offering (IPO) to between $800 million and $1 billion, including secondary shares.

    The company’s intentions for a public offering, which include an expected $5.5 billion in gross sales for the last quarter of FY26 with positive EBITDA (excluding ESOPs), were recently discussed by CEO Aadit Palicha with large mutual funds. According to the article, which cited brokers, this estimated amount is approximately equal to the rapid commerce industry’s total gross sales for the prior calendar year.

    In mid-2024, the corporation started preparing for its initial public offering (IPO), initially aiming for $450 million in primary capital. The business is considering a range of at least $800 million or more, according to a source cited in the paper. This includes an enhanced primary fundraise and the possibility of selling at least $300–400 million worth of shares in an Offer for Sale (OFS).

    Zepto Writing a New Success Story

    By surpassing 900 dark stores, Zepto has surpassed expectations and is aiming to reach 1,000 locations. This development is a component of a larger plan to concentrate on growing the company and guaranteeing profitability. At the moment, Zepto receives between 1.1 million and 1.3 million orders every day. Sales of non-food items such as clothing, electronics, and miscellaneous merchandise now account for INR 200 crore of the company’s monthly revenue.

    Increasing its domestic ownership is one of Zepto’s other main objectives. Prior to filing for its IPO, the company wants to have at least 40% of its shares held domestically. Zepto is moving its domicile to India as part of this process by combining its Singaporean parent business with an Indian organisation.

    Zepto’s IPO

    With plans to add more firms closer to the offering, Goldman Sachs and Morgan Stanley are among the lead banks for Zepto’s initial public offering. As it competes with rivals like Flipkart Minutes, Blinkit by Zomato, and Swiggy Instamart in the quickly expanding industry, Zepto secured $350 million in a financing round in November 2024, increasing its total cash reserves to almost $1.4 billion. Although Zepto’s IPO pricing is still up in the air, the firm is thinking of comparing its KPIs to those of Blinkit.

    Zepto has lost a lot of money despite its expansion, spending between INR 1,000 and 1,100 crore in the previous three months to fight with its main rivals. According to the various media reports, Zepto’s high burn rate helped it grow its network of dark stores in both existing and new areas, bringing its gross sales to $3 billion, just below Blinkit’s $3.7 billion. Although it too experienced an adjusted EBITDA loss of INR 103 crore, Blinkit claimed a 120% year-over-year rise in gross order value for the December quarter, hitting INR 7,798 crore.

    Zomato’s Net Profit Falls as Blinkit Dominates Quick Commerce
    Zomato reports a decline in net profit, while Blinkit strengthens its position as a leader in the quick commerce market.
    StartupTalkyNitin Konde

  • Milk Mantra is Purchased by Hatsun Agro for INR 233 Cr

    For INR 233 Cr, or around $26 million, Chennai-based Hatsun Agro purchased Milk Mantra in order to increase its presence in the dairy industry. The board of the company has “approved the acquisition of 100% of the issued and paid-up share capital of the Milk Mantra Dairy Private Limited,” according to a BSE filing from HAP. According to the filing, Milk Mantra, situated in Bhubaneswar, will become a fully owned subsidiary of HAP upon the acquisition. HAP hopes to increase its presence in Odisha and the eastern dairy sector with this agreement. According to the document, it also wants to investigate its current market in north Andhra Pradesh as well as possible markets in West Bengal and nearby states. Following the acquisition, Milky Moo will be a new brand in addition to HAP’s current ones, Arun, IBACO, Hatsun, and Arokya.

    About Milk Mantra

    Milk Mantra was established in 2009 by Srikumar and Rashima Misra, and it started operations in 2012. Moo Shake and Milky Moo are the two brands that the firm offers its goods under. It offers flavoured milkshakes, lassi, paneer, curd, bottled milk, and mishti dahi.  Due to its ability to keep costs under control, the company generated a profit in the fiscal year 2023–2024 (FY24), generating INR 9.8 Cr as opposed to INR 12.3 Cr in the previous fiscal year.

    Indian Dairytech Startups Performance in 2024

    In recent years, dairytech innovators have done everything they can to transform the Indian dairy industry, from utilising IoT (Internet of Things) devices to utilising AI and ML. Today’s farmers are therefore more equipped to keep an eye on the health of their cattle, which results in increased milk quality, better dairy products, and larger yields.

    Additionally, Indian dairytech entrepreneurs are tackling long-standing problems that plague the industry. Poor disease control, inadequate animal healthcare, and low-quality feed are some of the main issues.

    New-age hyperlocal delivery services like MilkBasket, DailyNinja, and Supr Daily (now InsanelyGood), to mention a few, have revolutionised the Indian dairy startup scene by displacing established brands like Mother Dairy and Amul through retail channels. Later, businesses like Country Delight, Milk Mantra, and others arose to solve issues with timely delivery and quality.

    Nevertheless, a number of issues still need to be addressed in spite of the boom of businesses in this field. One of the biggest problems is getting milk from different dairy farms. This has a direct effect on milk quality. Indian companies have responded to this by establishing their own farms and implementing a direct-to-consumer (D2C) business model. Barosi, Happy Milk, Doozy Happy Nature, The Milk India Company, and The Good Cow Company are a few of these names.

    BlackRock and Jio Finance Invest INR 117 Cr in Mutual Funds
    BlackRock and Jio Finance team up to invest INR 117 crore in mutual funds, marking a significant collaboration in the financial investment sector.
    StartupTalkyNitin Konde

  • BlackRock and Jio Finance Jointly Invest INR 117 Cr in Mutual Funds

    Following the revelation that the company and its joint venture partner, US-based BlackRock, have invested INR 117 crore in their mutual fund business, Jio Financial Services (JFSL) will continue to be the focus of attention on January 22. BlackRock and JFSL have each purchased 5.85 crore equity shares in Jio BlackRock Asset Management Private Limited, a 50:50 joint venture between the two companies, at a price of INR 10. According to a regulatory filing, this transaction is worth INR 117 crore in total.

    In order to obtain approval, Jio BlackRock Asset Management Private Ltd applied to SEBI. An initial investment of INR 82.5 crore each was made in this company by JFSL and BlackRock. ‘Jio BlackRock Broking Private Limited’ is a wholly owned subsidiary of Jio BlackRock Investment Advisers Private Ltd, a joint venture company of the company, which was established on January 20, 2025, to conduct broking activities subject to regulatory approvals.

    Performance of Jio Financial Services in Q3

    For the quarter ending December 31, 2024, Jio Financial Services reported a consolidated net profit of INR 295 crore, which was unchanged from the INR 294 crore reported during the same period last year. In the third quarter of FY25, the Mukesh Ambani-backed company reported total sales of INR 438 crore, a 6% increase over the INR 414 crore reported in the same quarter of the previous fiscal year. As of December 31, 2024, the assets under management (AUM) were INR 4,199 crore, up from INR 1,206 crore in the second quarter of FY25.

    Developments at Jio BlackRock Asset Management Company

    The developments occur at a time when JFS has intensified its fintech strategy. George Heber Joseph was named the first chief investment officer of Jio BlackRock Asset Management Company in December of last year. Additionally, rumours circulated earlier this year that BlackRock and JFS were negotiating the creation of a private lending partnership. By utilising technology, Reliance Jio’s extensive client base, and BlackRock’s experience in the financial services industry, JFS intends to upend the nation’s fintech industry by providing services like digital lending, banking, and insurance, among others.

    India’s Fintech Ecosystem Leading the Global Race

    In spite of this downturn, the Indian fintech ecosystem is one of the top three globally financed fintech ecosystems in H1 2024, after the US and the UK. According to Tracxn’s Geo Semi Annual Fintech India Report for H1 2024, the ongoing funding winter and a number of other geopolitical challenges are to blame for the funding fall. Compared to one in H2 2023, two funding rounds totalling more than $100 million were observed during that time. These include the $120 million Series C funding round raised by lending platform Avanse and the $144 million Series D funding round raised by non-banking lender Credit Saison.

    Ola Electric Begins Manufacturing the “Roadster” Electric Bike
    Ola Electric has started manufacturing its new “Roadster” electric bike, aiming to revolutionize the EV market with cutting-edge technology and design.
    StartupTalkyNitin Konde

  • Ola Electric Commences Manufacturing the “Roadster” Electric Bike

    The manufacture of Ola Electric’s “Roadster” electric bike, which the business unveiled in August of last year, has begun. Ola would like to notify its consumers that the firm has begun the assembly line of its future bike today, January 20, 2025, according to an exchange filing. Bhavish Aggarwal, the founder and CEO of Ola Electric, uploaded a video on X of himself riding the new electric bike at the company’s facility a day later on January 21. “Excited after riding the @OlaElectric Roadster!” was his caption for the video. I can’t wait for everyone to have this experience! In the footage, Aggarwal and a pillion rider were seen speeding through the company’s plant’s hallways. The company also displayed the electric bike at the Bharat Mobility Expo 2025 earlier this month, along with its other products, the Ola Gig and Ola S1 Z. Production has started more than five months after the listed firm unveiled “The Roadster Series” at its annual event on Independence Day last year.

    Future Roadmap of Ola Electric

    With prices starting at INR 74,999, the business announced the release of three new motorcycles under the Roadster X, Roadster, and Roadster Pro series. The bike in the video is probably a Roadster, which has a 13 kW maximum motor output and is available with 3.5 kWh, 4.5 kWh, or 6 kWh of battery. With a top speed of 126 km/h and a range of 248 km, the Roadster variant will cost between INR 1,04,999 and INR 1,39,999. When introducing its line of e-bikes, Ola Electric stated that the Roadster X and Roadster would start to be delivered in Q4 of FY25. The development coincides with the EV major’s recent months-long efforts to put out fires on several fronts. The Central Consumer Protection Authority (CCPA) is now investigating Ola Electric for alleged service and delivery delays, sales of defective vehicles, and other customer complaints.

    Ola Electric Navigating Through Troubled Waters

    The plea to revoke the CCPA’s notice was denied by the Karnataka High Court (HC) earlier this month. In addition, earlier this month, SEBI, the market watchdog, slapped the original equipment manufacturer (OEM) for breaking disclosure guidelines. Ola Electric’s stock has been declining as a result of the negative media coverage. The year-to-date (YTD) decline in the company’s shares is above 11%. The company led by Bhavish Aggarwal was able to reduce its consolidated net loss from INR 524 Cr in the previous quarter to INR 495 Cr in Q2 FY25, a 5.5% decrease. In the meantime, operational revenue increased by over 39% to INR 1,214 Cr in the reviewed quarter from INR 873 Cr in the second quarter of FY24. On the BSE, Ola Electric’s shares closed Tuesday’s trading session 0.2% lower at INR 76.24.

    Rapido Plans Nationwide Expansion to 500 Cities
    Rapido announces plans to expand its operations to 500 cities, aiming to strengthen its presence across India.
    StartupTalkyNitin Konde

  • A Cyber Scam of INR 14.26 Crore Perpetrated Against Sachin Bansal’s Navi Technologies

    According to reports, Navi Technologies, a financial unicorn led by Sachin Bansal, was robbed of INR 14.26 Cr last month.  A media report stated that on January 18, Bengaluru’s Whitefield Cyber Crime Police filed a charge against the unnamed scammers and began an investigation. According to the investigation, fraudsters pretended to be clients and used a flaw in Navi’s technological system to allegedly complete the scam. In his complaint, Srinivas Gowda, the company’s vigilance officer, said that the fintech platform gave users the choice to pay for EMIs, mobile recharges, and other services through a third-party application provider (TPAP) between December 10 and December 24.

    Modus Operandi

    A flaw in the payment procedure made it possible for some criminals to defraud the business. The TPAP gateway offered a mechanism to change the amount due after a consumer made a payment using the Navi app. Naturally, this shouldn’t have been permitted once the payment procedure had begun. By inputting the desired amount (for instance, INR 500 or INR 1,000) on the Navi app and completing the payment process, scammers took advantage of this vulnerability. However, they went to the TPAP gateway and changed the due amount to INR 1 after the payment was processed. Navi Technologies was billed the entire amount that the user had initially chosen, but the system mistakenly reported the transaction as successful for the modified amount (INR 1). This loophole was used by scammers to defraud Navi of INR 14.26 crore.

    It is important to remember that the Reserve Bank of India (RBI) recently became aware of the Navi Group’s violations of various regulations. Because of supervisory concerns, the central bank prohibited Navi Finserv from approving and disbursing loans in October 2024. Excessive interest rates, noncompliance with its rules, and pricing practices that went against the central bank’s directives prompted the RBI to launch its crackdown. Navi Finserv eventually reduced the maximum interest rate on unsecured personal loans from approximately 35% to 26% and implemented additional corrective actions. The RBI then gave Navi permission to start up again in December.

    No Work-From-Home Culture

    Within months of leaving Flipkart, Sachin Bansal established Navi in 2018. He disclosed in April of last year that although he puts in 80 to 100 hours a week, he does not expect others to follow suit. Additionally, he stated that his startup did not permit remote work.

    The corporation makes it very apparent that it prefers its workers to work from home. The brand offers a temporary opportunity to work from home. It was never going to be permanent. The company is focusing entirely on working from the office. Bansal noted that there was no work-from-home option available now.

    RBI Highlights Rising Consumption Driven by E-Commerce and Quick Commerce
    RBI highlights the impact of e-commerce and quick commerce on rising consumer spending and increasing consumption across India.
    StartupTalkyNitin Konde