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  • The Third Cohort of a Women-Focused Fintech Program is Launched by RBIH and IIMA Ventures

    The third cohort of India’s women-focused fintech program was jointly launched by the Reserve Bank Innovation Hub (RBIH) and IIMA Ventures. Fintech innovators can use SwanariTM TechSprint 3.0 as a platform to design, create, and scale solutions that cater to the particular financial needs of women. According to Aakarsh Naidu, head of fintech and startups at the Reserve Bank Innovation Hub, the cohort seeks to amplify effective solutions that not only improve women’s financial inclusion but also propel their economic empowerment by encouraging innovation and empowering fintech firms.

    Through financing awards, professional mentoring, and other support, the initiative gives companies the chance to develop, improve, and scale their gender-inclusive financial solutions. Applications from entrepreneurs offering gender-focused financial solutions are presently being accepted into the program. In addition to having pre-seed to pre-Series A funding or quantifiable traction, eligible entrants must have a minimal viable product.

    Collaboration Aims to Strengthen Fintech Startups

    RBIH and IIMA Ventures are working together to support fintech companies in their efforts to develop solutions that will support women’s financial inclusion in India. 556 million women are intended to be impacted by the initiative. Startups like Kaleidofin, Merakal, Vitto, Anniyam Payment, MaksPay, and Manipal Business Solution are among the previous program winners. The fintech industry has seen numerous advancements in recent years. For example, digital payment aggregator PayU and Amazon Web Services (AWS) introduced inFINity 2.0, a fintech-focused accelerator program for early-stage Indian startups, in December.

    Other Investments Porgammes

    The business incubator India Accelerator launched its Cohort25 for IT startups, with intentions to invest $8–10 million in the flagship initiative. Accel, a multi-stage venture capital firm that has unicorns in its portfolio that includes Moneyview, Flipkart, Swiggy, and Moglix, announced the fourth batch of its flagship pre-seed investment program, Atoms, earlier in September. Funding raised by domestic fintech firms fell 19% to $2.5 billion in 2024 from $3.1 billion in the same period last year, according to Inc42’s Annual Funding Report, 2024.

    Despite advancements in financial inclusion, women in India continue to encounter barriers to getting financial services that are suited to their needs. “Whether it’s inactive bank accounts, limited savings options, or the difficulty women entrepreneurs have getting credit, the Swanari TechSprint is a call to action for fintech innovators to address these gaps,” said Supriya Sharma, Partner – Insights, IIMA Ventures.

    Previous Cohorts

    Previous cohort winners have included Kaleidofin, Merakal, Vitto, Anniyam Payment, MaksPay, Manipal Business Solutions, Sampatti Card, Haqdarshak, and Agripal. A fully owned subsidiary of the Reserve Bank of India, the Reserve Bank Innovation Hub (RBIH) focuses on harnessing innovation and technology to give Indians convenient access to financing.

    Centre to Launch MSME Loan Guarantee Scheme Worth INR 100 Crore
    The Centre will soon introduce an MSME loan guarantee scheme of up to INR 100 crore to boost small and medium enterprises and enhance credit access.
    StartupTalkyNitin Konde

  • The Centre will Shortly Establish an MSME Loan Guarantee Scheme up to INR 100 Crore

    On January 9, M Nagaraju, the secretary of financial services, announced that the Union government would shortly introduce a new credit guarantee program for the MSME sector that would cover loans up to INR 100 crore.

    He stated on the last day of Grameen Bharat Mahotsav that the centre is likely to implement a plan that was revealed by the Finance Minister, Nirmala Sitharaman at her most recent budget session and that might offer loans up to INR 100 crore without guarantee if they already have the business. According to the official, 50 million people are employed in the Micro, Small, and Medium Enterprises (MSMEs) sector. It is anticipated that the plan would shortly be presented to the Union Cabinet for approval.

    Sharing his views on the development, Amit Sarda, Co-founder & MD, Soulflower stated, “For Soulflower, this initiative represents an opportunity to accelerate our mission of delivering sustainable, innovative, and high-efficacy personal care solutions. With access to affordable financing, we can expand our operations to new markets, invest in cutting-edge R&D for preservative-free and clinically proven products, and enhance our commitment to sustainability through biodegradable packaging and eco-friendly production methods, and most importantly, access to cheaper working capital as compared to venture capital funds.”

    Similar thoughts were echoed by Abdul Nasir Shaikh, founder and CEO of Total Coaching and Mentoring Collective LLP (TCMC India); he said, “This scheme not only promises to bridge the financial gap but also instills confidence in entrepreneurs to pursue bold ideas and scale operations. By reducing the perceived risk for financial institutions, it paves the way for more inclusive credit disbursement, particularly for first-time entrepreneurs and businesses in underserved sectors. As someone deeply engaged in coaching and mentoring MSMEs and startups, I see this as a significant enabler of growth. The availability of guaranteed credit can allow businesses to invest in technology, enhance operational efficiency, and expand their market presence.”

    “Well, it is a transformative step for small businesses and startups in India. Access to credit has long been a major hurdle for MSMEs, with many struggling to secure funding due to a lack of collateral or perceived risks. This initiative could provide the much-needed financial support to help these enterprises scale operations, invest in innovation, and navigate market challenges. For startups, this scheme opens doors to more robust growth opportunities, and it will allow them to focus on product development and market expansion. Moreover, it could encourage more and more entrepreneurs to enter the ecosystem, promoting job creation and contributing to the economy,” opined Tanay Sharma, Co-Founder & COO, CITTA.

    Facilitating Term Loan for MSME

    Sitharaman declared in the Union Budget 2024–2025 that a credit guarantee program will be implemented to enable MSMEs to get term loans for the acquisition of machinery and equipment without the need for collateral or third-party guarantees. According to her, each applicant will receive a guarantee cover of up to INR 100 crore from a separately established self-financing guarantee fund; however, the loan amount may be higher.

    In addition to a yearly guarantee cost on the lowered loan balance, the borrower will be required to pay an upfront guarantee fee. From INR 3.95 lakh crore in 2020–21 to INR 12.39 lakh crore in 2024–25, MSMEs’ exports have increased dramatically.

    “As India takes significant steps to strengthen its MSME ecosystem, the Loan Guarantee Scheme plays a crucial role in promoting financial inclusivity and growth,” said Nilesh Dungarwal, Co-founder & CEO, WorkIndia.

    MSME Showing Remarkable Performance

    Over the years, the MSME sector in India has made a substantial contribution to the GDP of the country by continuously exhibiting exceptional resilience and adaptability. MSMEs’ Gross Value Added (GVA) as a percentage of India’s GDP was 29.7% in 2017–18 and 30.1% in 2022–2023.

    Nagaraju emphasised the significance of connecting microenterprises, self-help groups (SHGs), and rural producers with banking services and market prospects. India is a village-based country. “A lot of things in the country are actually driven by Grameen Bharat,” he remarked. And all around the nation, villages are the new hubs of development.

    He praised the government’s main efforts to promote financial inclusion, pointing out that the Pradhan Mantri Jan Dhan Yojana (PMJDY) opened over 53 crore new bank accounts, with women from rural regions making up the bulk of the beneficiaries. Nagaraju further emphasised how SHGs help rural communities develop economic resilience and entrepreneurship.

    The Scheme Aligns with Government’s Vision

    The program supports the government’s goal of boosting rural entrepreneurship. In order to realise the Vikshit Bharat goal, Nagaraju stressed the significance of concentrating on quality, export connections, capacity growth, and all-encompassing support.

    The declaration emphasises the government’s dedication to supporting sustainable economic growth and boosting MSMEs. The industry is well-positioned to boost local wealth and India’s standing in international trade with an emphasis on innovation and growth.

    AIOCD Opposes RailTel’s Online Pharmacy Bid Proposal
    AIOCD disapproves of RailTel’s plan to invite online pharmacy bids, citing concerns over its implications for the pharmaceutical industry.
    StartupTalkyNitin Konde

  • The Startup Revolution in Uttar Pradesh Is Fuelling India’s Innovation Boom

    In a recent Rajya Sabha session, Union Minister of State for Commerce and Industry Jitin Prasada revealed that Uttar Pradesh (UP) has become a notable state, home to about 9% of all startups in India. To encourage creative business endeavours and strengthen the startup ecosystem, the Uttar Pradesh government has contributed INR 1,000 crore to the UP Startup Fund. Paytm, Paytm Mall, India Mart, Moglix, Pine Labs, Innovaccer, InfoEdge, and Physics Wallah are eight of the 108 unicorns in India that are based in Uttar Pradesh. With firms dispersed throughout all 75 districts, the state has surpassed its initial 2025 target and established 10,000 startups by mid-2023.

    Growth of Startup Sector Reflects State’s Proactive Measures

    This impressive expansion of UP’s startup scene is evidence of the state’s proactive efforts to create an atmosphere that is conducive to business. The Uttar Pradesh government has put in place a number of laws and initiatives to assist entrepreneurs and position the state as an innovation hub because it recognises the potential of startups to spur economic growth and job creation.

    Through the creation of strong infrastructure, guaranteeing policy support, and encouraging innovation across industries, the state’s extensive StartInUP program seeks to create a world-class startup ecosystem. Creating one million square feet of incubation and acceleration space, supporting the growth of 10,000 companies (achieved before the deadline), building eight Centres of Excellence (CoEs) in high-potential regions, and constructing 100 incubators—one in each district—are just a few of its ambitious objectives.

    Supporting New Businesses in Tier 2 and Tier 3 Cities

    With almost half of the state’s startups originating from Tier 2 and Tier 3 cities, UP has concentrated on empowering entrepreneurs in these areas in an effort to decentralise startup growth. The state is facilitating economic growth in all 75 districts by encouraging innovation outside of large urban hubs. Around one lakh jobs have been created in the state as a result of this expansion, demonstrating the important role entrepreneurs play in fostering livelihood possibilities and enhancing local economies.

    UP is working to create agri-tech companies that tackle issues including low agricultural yields, poor food processing, and waste in rural areas. To assist businesses in cutting-edge fields including artificial intelligence (AI), drones, medical technology, blockchain, 5G and 6G, quantum computing, additive manufacturing, and space technology, the state government has donated ₹1,000 crore to the UP Startup Fund.

    Drafting Policies that Further Fuel the Growth

    In order to encourage innovation and entrepreneurship, the state has implemented regulations that provide incentives like tax breaks, seed money, and infrastructure support. The Mukhyamantri Yuva Udyami Vikas Abhiyan (MYUVA) plan was introduced in early October 2024 with the goal of empowering young entrepreneurs by offering interest-free loans up to INR 5 lakh, with the goal of developing one lakh young entrepreneurs yearly. Similar to this, the Uttar Pradesh government has given the IT and IT-enabled services sector industry status in an effort to draw in multinational tech companies. This will allow these businesses to purchase property at industrial prices and strengthen UP’s standing as a major IT hub in North India.

    The state’s industrial potential has been highlighted in large part by events like UPITS 2024, which give business owners a chance to connect, look for collaborations, and enter new markets. An agreement to build a semiconductor production plant in Jewar, Uttar Pradesh, was inked in September 2024 between the United States and India. An important turning point in India’s technical development will be reached with the opening of this state-of-the-art facility, called “Shakti,” which will be the first of its type in the nation.

    NRAI to Take Zomato and Swiggy’s 10-Minute Apps to CCI
    NRAI plans to approach the CCI regarding Zomato and Swiggy’s 10-minute delivery apps, citing concerns over market practices and competition.
    StartupTalkyNitin Konde

  • Regarding Zomato and Swiggy’s 10-minute Delivery Apps, NRAI Plans to Approach CCI

    The National Restaurant Association of India (NRAI) is expected to petition the Competition Commission of India (CCI) for intervention about the launch of the 10-minute meal delivery standalone apps, Bistro and Snacc, adding to the problems caused by Zomato and Swiggy’s anti-competitive conduct. According to a media story that quotes Sagar Daryani, the founder and CEO of Wow Momo, as well as the president of NRAI, NRAI is seriously considering pursuing legal action against both businesses. Daryani further stated that NRAI is not comfortable with Zomato and Swiggy selling food directly through Blinkit’s Bistro app and Swiggy’s Snacc app for speedy meal delivery, as well as with the two companies allegedly hiding consumer data.

     Daryani further emphasised that although these platforms have access to important customer data, they do not provide restaurant partners with this information. All of our data is at their disposal, yet they choose not to share it with us. There is total consumer masking for us. “Whether it’s data from a tea brand, biryani, or momo, we have no reason to believe they are not migrating our customers to the products they sell as private labels on their apps,” the journal said, quoting Daryani. The NRAI is concerned that Zomato and Swiggy may use this information to entice users to buy their goods via these apps.

    The startup led by Sriharsha Majety launched a new app earlier this week called “SNACC,” which aims to provide a 15-minute meal delivery service in a few areas of Bengaluru. Zomato then introduced its 15-minute meal delivery service. It is important to remember that in addition to being outspoken about its concerns about Zomato and Swiggy‘s business practices, the NRAI is also pursuing two lawsuits against the companies, claiming they have engaged in anti-competitive behaviour. In an effort to create a level playing field and safeguard eateries, delivery partners, and customers from potentially exploitative platform activities, NRAI requested just a day ago that the government provide industry status to the food services sector.

    The food delivery giants were accused by the association of anticompetitive activities in the past, including service bundling, excessive commissions, delayed payment cycles, and the imposition of one-sided terms. According to reports, the CCI discovered a few months ago that foodtech giants Swiggy and Zomato had violated competition regulations by favouring certain eateries through their relationships.

    Why there is a Need of Strict Guidelines

    Based on a complaint submitted by the National Restaurant Association of India (NRAI) in 2021, the CCI had previously investigated both businesses in 2022. This is the main reason why many consumer service and e-commerce businesses are either trying to enter or are already in the rapid commerce market. This trend reflects the shifting preferences of consumers, who now want their purchases delivered quickly. Amazon, Flipkart, JioMart from Reliance, and Tata BBNow are just a few of the companies that have recently entered the market. Better anti-competition policies and procedures are therefore required in order to guarantee these restaurant partners—particularly the smaller ones—fair play.

    Swiggy to Launch Instamart as a Stand-Alone App
    Swiggy plans to release Instamart as a stand-alone app, focusing on enhancing user experience and streamlining grocery delivery services.
    StartupTalkyNitin Konde

  • Swiggy will Release Instamart as a Stand-Alone App

    Group CEO and co-founder Sriharsha Majety told a media outlet that Swiggy, a food and grocery delivery service, plans to release its rapid commerce offering, Instamart, as a stand-alone app as part of its multi-app strategy in response to changing consumer preferences.

    Instamart will undoubtedly be available on the main Swiggy app. The business is aiming to target clients who are solely interested in a specific offering by releasing a different app. This strategy is similar to that of Chinese internet giants like Meituan and Alibaba, who combine a single app with a number of stand-alone apps designed for particular use cases.

    Swiggy is taking a zero-based approach to the market and is operating in an unknown area. Cross-pollination continues to have a significant impact on the Swiggy app thanks to its integrated membership program, card, etc. However, Swiggy co-founder and group CEO Sriharsha Majety told a media outlet on January 9 that Instamart has the ability to surpass food delivery in terms of user base.

    Swiggy developing several applications isn’t necessarily a novel tactic, Majety continued. The business has never referred to itself as a superapp. According to him, it is expanding on its strategy of having Supr Daily, Insanely Good, and Dineout as distinct apps.

    App to go Live in Few Weeks

    In a few weeks, a different Instamart app will launch. Majety added further, “In the early years, we did not see a world with more than 150 million users. Thanks to rapid commerce, we’re now looking at 300–500 million users.”

    75 cities now have Instamart, along with new categories. Items are selling more and more when more categories are added. However, even for the rapid commerce category, the organisation has only completed 5–10%. Majety further stated that if fast commerce is to surpass the food delivery industry in terms of user base, the brand wants to gain an early understanding at the 5-10% stage.

    According to Majety, the company’s plans for separate apps won’t have a big impact on its efforts to improve consumer recall. With this choice, the corporation is rarely making any new ground. There are numerous templates and businesses, and launching a distinct app is not a particularly novel experience. It is the same tool that customers are familiar with in a certain industry.

    Continue to Roll More Apps

    Snacc, Instamart, and Dineout will remain separate apps, according to Swiggy, but they will also coexist with the main app. According to media reports, Swiggy plans to release Pyng and another app for Rare in addition to these four.

    It makes sense for Rare to be a stand-alone app given its extremely specialised user base, which, according to a media report, will only make up a small portion of Swiggy‘s total user population. With its most recent launch, Pyng, Swiggy will provide carefully chosen professional services like yoga instructors, certified public accountants, and more. Yello was the original name of Pyng, but Swiggy has chosen to change the product’s name. Justdial and Pyng are comparable, but Pyng takes a more targeted approach.

    Swiggy Launches ‘Snacc’ for 15-Minute Food Delivery
    Swiggy launches ‘Snacc,’ a stand-alone app offering 15-minute food delivery, aiming to revolutionize the quick-service dining experience.
    StartupTalkyNitin Konde

  • Swiggy Introduces Swiggy Serves to Combat Hunger and Food Waste

    In an attempt to cut down on food waste throughout its value chain, listed foodtech giant Swiggy has started a new campaign called “Swiggy Serves.” In an effort to combat hunger nationwide, Swiggy intends to redistribute excess food from its restaurant partners to underprivileged areas, the firm announced in a statement. The non-profit Robin Hood Army, based in Delhi NCR, has partnered with the Sriharsha Majety-led company on the Swiggy Serves project. By the end of 2030, it hopes to deliver 50 million meals to underprivileged communities. With the help of more than 126 restaurant partners, the two have already redistributed 2,000 meals among 33 locations as part of the recently established campaign’s trial.

    According to Rohit Kapoor, CEO of Swiggy’s food marketplace, the brand is already active in 33 cities and intends to expand this program to more locations. According to Swiggy, a number of well-known companies have joined the new effort, including Birayni By Kilo, Dana Choga, Vardhas, B.Tech Momos Wala, Samosa Singh, Babai Tiffins, Dosa Anna, and Urban Tandoor, among others.

    Similar Initiative was Launched by Zomato

    It is important to note that Zomato, Swiggy’s competitor, started a similar campaign in 2019 to combat hunger, malnutrition, and food waste in partnership with the nonprofit organisation Feeding India. The foodtech company led by Deepinder Goyal also purchased Feeding India in the same year. The Swiggy Serves campaign coincides with the foodtech giant’s transition from a single app to launching distinct applications for each of its products under the Swiggy name. Earlier today, a media outlet announced that Swiggy has extended its Instamart rapid commerce solution to 76 Indian cities. Additionally, the business intends to release a stand-alone Instamart app shortly.

    Swiggy Launched Snacc

    Earlier, Swiggy released a new app called Snacc that allows users to order meals, snacks, and beverages in as little as 15 minutes. The debut coincides with a race among Indian food delivery apps to deliver hot beverages and biryani to consumers’ doorsteps in less than ten to fifteen minutes. On January 7, Snacc, which has a bright fluorescent green background and dark blue writing, went online in a few areas of Bengaluru. The sources claim that Swiggy intends to expand the platform throughout the nation.

    Chocolate cookies, Indian breakfast, coffee, tea, eggs, rolls and sandwiches, lunches, cold drinks, egg puffs, and cheese Maggie are among the foods offered at Snacc. Prior to that, Swiggy announced in December that it had expanded Bolt, its 10-minute meal delivery service, to more than 400 cities and towns nationwide. For the first time, fresh food from consumers’ favourite restaurants is being delivered right to their door. According to Rohit Kapoor, CEO of Swiggy’s Food Marketplace, fries are crispy straight out of the packaging, ice creams remain frozen, and idlis arrive warm and fluffy.

    Swiggy Launches ‘Snacc’ for 15-Minute Food Delivery
    Swiggy launches ‘Snacc,’ a stand-alone app offering 15-minute food delivery, aiming to revolutionize the quick-service dining experience.
    StartupTalkyNitin Konde

  • As it Prepares for its IPO, Lenskart Hopes to Attract as Much as $1 Billion from Investors

    According to industry sources, the eyewear company Lenskart has reached out to bankers to make a pitch for its impending IPO, which aims to raise roughly $1 billion. The company intends to go public by the beginning of next year and hopes to be valued at around $7 billion.

    The pitch is scheduled for next month.  Last year, a fund run by the prominent US financial services company Fidelity raised Lenskart’s worth to $5.6 billion. Based on the company’s valuation as of September 30, this indicated a 12% increase in the firm’s fair worth in Fidelity’s books.

    Ongoing Financial Developments at Lenskart

    Lenskart‘s operating revenue increased by 43% to about INR 5,427.7 crore in FY24 from around INR 3,788 crore in FY23. The company makes money by selling goggles, lenses, and frames for eyewear as well as by providing extra services like eye checkups. According to a media report, Lenskart’s losses were reduced by 84% to around INR 10 crore in FY24 from about INR 63 crore in FY23 as a result of cost-effective management.

    Temasek, Singapore’s state-owned investment firm, and Fidelity contributed $200 million to Lenskart’s secondary investment in June of last year. Secondary sales provide a means of paying back early investors when new companies’ value increases. In this financing, the company managed by Peyush Bansal was valued at roughly $5 billion. When the company raised $100 million in June 2023, its most recent valuation was $4.5 billion. With about $1 billion in money raised over the last two years, Lenskart is among the biggest growth-stage financings in the world.

    Lenskart Continues to Expand its Footprints

    While expanding its global presence in Asia at a rapid pace, Lenskart is still expanding its market share in India. Its distinctive click-and-mortar business strategy is upending the eyewear market by providing a multichannel consumer experience through mobile apps, online platforms, and physical stores. 2,000 of the company’s more than 2,500 outlets are located in India. 

    Delhi-based Lenskart faces competition from companies like Warby Parker, Specsmakers, Vision Express, Titan Eyeplus, and the Italian eyewear giant Luxottica Group, both domestically and internationally.

    In order to expand its business and obtain access to new technology, the corporation has also been making acquisitions. These include businesses like Tango Eye, a firm focused on computer vision and artificial intelligence. In 2022, Owndays, a Japanese brand, joined the Lenskart group in an estimated $400 million purchase. According to recent reports, if negotiations for a secondary share sale of $200–300 million proceed, Lenskart’s worth might increase by 20% to $6 billion.

    Exploring Southern India for its Mega Projects

    According to a LinkedIn post made by Bansal in April 2024, the company was looking for 25 acres of property to build a “megafactory.” The planned location was within sixty kilometres of Kempegowda International Airport in Bengaluru.

     With an estimated investment of around INR 1,500 crore, Lenskart intends to establish its largest eyewear manufacturing factory in Telangana. A memorandum of understanding (MoU) has been inked by the Telangana government and the Gurugram-based eyeglasses company to develop the facility at Fab City.

    Zepto to Submit IPO Draft Documents by March or April
    Zepto is preparing for its IPO with plans to submit draft documents by March or April 2025, marking a major milestone for the quick-commerce startup.
    StartupTalkyNitin Konde

  • AIOCD Disapproves of RailTels’ Plan to Request Online Pharmacy Bids

    The RailTel Corporation of India’s plans to solicit bids from “illegal” online pharmacies in order to enable the home delivery of medications from hospitals run by the railways have angered the All India Organisation of Chemists and Druggists (AIOCD). The AIOCD warned in a letter to the Railways Ministry that internet pharmacies operating in the nation are in violation of the present laws controlling medicine and could face legal repercussions.

    A media report revealed that the RailTel Corporation’s upcoming intention to solicit bids from many online pharmacies based on the savings offered on the retail price of medications prompted the chemists’ organisation to respond. To put things in perspective, RailTel is a public sector enterprise (PSU) owned by the Union Ministry of Railways.

    Putting his views on the development, Avinandan Choudhary, Founder and CEO of Formis Health, opined, “India’s healthcare landscape is at a crossroads, often framed as a traditional vs. digital standoff. But the real debate is about ensuring control, compliance, and accessibility while embracing innovation. Offline pharmacies are the backbone of our healthcare distribution, but dismissing online platforms entirely would be shortsighted in a world increasingly driven by convenience and digital transformation.”

    “At Formis, we’ve seen how digital health solutions improve access to care—from quick medicine deliveries to personalised health tracking. RailTel’s initiative to explore online pharmacies on railway platforms is a step forward in bridging the urban-rural healthcare divide, enabling people in Tier 2 and Tier 3 cities to access essential medicines seamlessly,” he added further.

    Error of Judgment

    The AIOCD called RailTel’s decision an “error of judgement” and pointed to a number of rulings and regulations that showed the internet pharmacy industry was unlawful. First off, the operations of these pharmacies are prohibited by the ongoing 2018 lawsuits of Dr. Zaheer Ahmed v. Union of India and the South Chemists and Distributors Association (SCDA) v. Union of India. The former Joint Drugs Controller of India, P.B.N. Prasad, observed in a similar case in 2020 that Aarogya Setu Mitra’s e-pharmacy services lacked registered or licensed e-pharmacies because the Drugs and Cosmetics Act, 1940, and the Drugs and Cosmetics Rules, 1945, did not contain such provisions.

    Going forward, the AIOCD noted that only neighbourhood pharmacies are eligible for the COVID-19 pandemic-era doorstep delivery of medications. This argument was supported by a number of grounds, stating that the Drugs & Cosmetics Act of 1940 forbids such delivery.

    According to Section 65 of the Drugs and Cosmetics Act of 1940, the prescription must also include the seller’s name and address, the prescriber’s signature, and the date of description. As a result, it is unlawful to sell medications using prescriptions that have been submitted online. Lastly, the group called for the RailTel plan to be immediately withdrawn.

    Strong Regulation is the Need of the Hour

    The Health Ministry published the proposed Drugs, Medical Devices, and Cosmetics Bill in 2022 for stakeholder opinions. Among other things, it included measures for the government to create regulations governing online pharmacies. The government introduced a 2023 version of the law in the Lok Sabha in August, but the regulations have not been issued. The Central Drugs Standard Control Organisation (CDSCO) and the central government have been ordered to create a policy for the online sale of medications on several occasions by the Delhi and Madras High Courts.

    With numerous e-pharmacies referring to themselves as “intermediaries” and asserting protection under the safe harbour concept due to the lack of established legislation to regulate them, the delayed notice is especially troubling. To elaborate, a media report stated that e-pharmacies’ main responsibilities are to distribute and regulate pharmaceuticals, not intermediaries. The report further added that the idea of intermediaries is faulty because internet medication sales do not require the licence needed to sell pharmaceuticals.

    With 85% of the market controlled by PharmEasy, NetMeds, Medlife, and 1mg, the Indian online pharmacy industry is presently valued at $3 billion. In an effort to work with neighbourhood pharmacies, the rapid commerce sector has more recently ventured into 10-minute doorstep medication delivery services with “Flipkart Minutes.”

    Zaggle Partners with Zepto to Deliver SaaS Solutions
    Zaggle inks an agreement to provide Zepto with SaaS solutions, enabling enhanced operational efficiency and technological innovation.
    StartupTalkyNitin Konde

  • Zaggle Inks Agreement To Provide Zepto With SaaS Solutions

    The parent firm of Zepto, a leading player in fast commerce, KiranaKart Technologies, has agreed to purchase solutions from the listed fintech SaaS business Zaggle. According to an exchange filing, Zaggle will give Zepto access to its employee benefits platform, Zaggle Save, and spending management tool, “Zaggle Zoyer Petty Cash.” This is to let the exchange know that KiranaKart Technologies Private Limited and Zaggle Prepaid Ocean Services Limited (Zaggle) have signed a contract, according to the fintech SaaS startup. Businesses can handle little expenses more efficiently and automatically with the aid of Zaggle Zoyer Petty Cash. According to the startup, this software helps businesses with real-time tracking, cash leak prevention, pre-checking expenditures, and high control and transparency. Zaggle Save, on the other hand, is an employee spending management program that offers customisable benefit plans and helps employees save taxes. Additionally, the program assists the business in managing employee perks with a single card, including fuel cards and food allowances.

    The Deal will Further Boost Zaggle’s Order Book

    The customer service contract with Zepto will increase Zaggle’s order volume and give it access to a significant domestic player. This comes shortly after Zaggle raised INR 594.84 Cr last month through qualified institutional placement (QIP). To qualifying institutional buyers, the financial SaaS platform issued 1.13 Cr equity shares. According to a recent media report, the corporation plans to make three investments and acquisitions by March of this year. Notably, Zaggle paid INR 15.6 Cr in September 2024 to purchase a 26% share in Mobileware Technologies.

    About Zaggle and its Current Financial Dynamics

    Zaggle, which Raj Narayanam founded in 2011, offers a platform for corporate employee benefits and spend management. Its products assist companies in issuing prepaid cards and automating their accounts. Payroll and tax applications are also included in its SaaS product line. In the meantime, Zaggle’s consolidated net profit increased from INR 7.58 Cr in the previous year to INR 20.29 Cr in the second quarter (Q2) of the fiscal year 2024–25 (FY25), a 167.67% increase. From INR 184.24 Cr in Q2 FY24 to INR 302.55 Cr in the reviewed quarter, operating revenue increased 64.21%.

    Zepto Going Public

    Zepto is expected to submit its initial public offering (IPO) draft papers in March or April of this year. The delivery company has already obtained the necessary authorisations to relocate its headquarters from Singapore to India.

    The business stated that the IPO’s specifics are still being finalised and that it has scheduled a board meeting for January 19 to talk about the size of the IPO, the selection of independent directors, which bankers to hire, and other specifics.

    Notably, the National Company Law Tribunal (NCLT) is set to hear the case on January 17 even though Singaporean officials have approved the move. After food delivery services Zomato (Blinkit) and Swiggy (Instamart), parent firms of listed competitors, Zepto will become the first rapid commerce start-up to go public if all goes as planned by April.

    Zaggle Prepaid Sets QIP Floor Price at INR 550.73 per Share
    Zaggle Prepaid launches its Qualified Institutional Placement (QIP) and sets the floor price at INR 550.73 per share, aiming to enhance capital inflow.
    StartupTalkyNitin Konde

  • After OYO Flags the Unauthorised Use of its Name, Ghaziabad Police Close More than 50 Hotels

    The Ghaziabad Police have closed more than 50 hotels for “fraudulently” utilising OYO’s name, according to a statement released by the travel booking website. The action follows the filing of a formal complaint by the business and the submission of a police report to the licensing body.

    OYO acknowledged in a statement that it has begun a cooperative operation with the Ghaziabad Police to crack down on unapproved hotels that were deceiving clients by using the OYO name without authorisation. OYO has previously sent legal notifications to several hotels telling them to take down its branding, but many of them disregarded the orders. According to the company’s official letter, police visited the locations that were identified as part of the investigation and warned the management about the legal repercussions of using false OYO branding.

    Special Drive Conducted to Catch Offenders

    The drive was specifically targeted at these unapproved outlets that have proliferated and were abusing the “OYO” brand name on their boards, according to Rajesh Kumar, the acting assistant commissioner of police in Ghaziabad. They lacked authorisation to operate. In accordance with protocol, these businesses were located and sealed.

    Speaking about the effects of these fake establishments, Varun Jain, Chief Operating Officer of OYO India, said that these unapproved hotels frequently mislead guests. To protect OYO’s visitors and the integrity of its brand, the company worked with law authorities to take action against fraudulent hotels that use OYO’s name. This crackdown comes after OYO’s larger initiatives to safeguard consumers from dishonest services and preserve the integrity of its brand. 

    OYO Modifies Check-in Policies

    One of the top travel and hotel booking websites in India, OYO, announced a significant policy change for its partner hotels on 5th January. The new rules state that unmarried couples would no longer be permitted to check in at the establishments. According to the corporation, the new regulation will initially only be in effect in Meerut, Uttar Pradesh.

    According to Pawas Sharma, OYO North India’s Region Head, maintaining responsible and safe hospitality practices is a priority for the brand. In addition to upholding individual liberties, the business must cooperate with law enforcement and local communities to provide a peaceful workplace.

    The business added that unmarried couples might not be accommodated, and hotel partners have the right to turn down reservations in accordance with regional customs. OYO claims that the action is a part of a larger plan to respond to community input and change its reputation as a reliable and secure lodging option for families, business travellers, students, religious pilgrims, and lone travellers.

    OYO’s ruling came after civil society organisations, especially in Meerut, repeatedly called for stronger laws prohibiting unmarried couples from staying. Residents of other cities have submitted similar petitions, so the company decided to test the policy in Meerut and, depending on response, consider extending it to other areas. The policy is now only applicable in Meerut. OYO states that the feedback from the initial launch will determine whether or not the guidelines are extended to more places.

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