StartupTalky

Tag: #news

  • Sales of Premium Products on Amazon India Increases Significantly during Festival Season

    According to a senior corporate official on 2 November 2024, the Diwali season sale during the Amazon Great Indian Festival (AGIF) 2024, which started on September 27, was driven by demand for high-end products across a variety of categories, including televisions, smartphones, and major appliances.

    During the Amazon Great Indian Festival (AGIF) 2024, the business saw a ten-fold increase in sales of Apple iPads and a five-fold increase in sales of Samsung tablets, according to Amazon India Vice President Saurabh Srivastava, who spoke to a media agency.

    Premiumization was one obvious trend that existed. Upon closer inspection, a distinct tendency of premiumization is seen in everything from televisions to fashion and beauty items, gaming laptops, and kitchen and household appliances. Consumers are favouring more high-end goods. Srivastava reiterated that this is not exclusive to major cities.

    Sale of Television Sets Dominated AGIF 2024

    About 30% of the segment’s total unit sales were large-screen TVs, and demand for these devices increased tenfold year over year, with Samsung, Xiaomi, and Sony emerging as the most popular TV manufacturers.

    Apple and Samsung are high-end tablet manufacturers. Samsung tablets increased five times year over year (YoY), whereas Apple tablets increased ten times. Large appliances include washing machines, refrigerators, and air conditioners, of course, but high-end models like front-loading washers, side-by-side refrigerators, and air conditioners larger than 1.5 tonnes increased 30% year over year, according to Srivastava. Watches, perfumes, handbags, Korean beauty, jewellery, luggage, and other luxury categories saw a 400% increase in the fashion and beauty sector.

    Comparison of AGIF 2024 with AGIF 2023

    The Amazon Great Indian Festival 2024 received 140 crore customer visits, the biggest ever. According to Srivastava, more than 85% of clients came from non-metropolitan cities. Amazon India reported a 50% year-on-year increase in B2B clients making their first purchase from Amazon Business.

    AGIF 2024 has set new milestones for seller success, with more than 70% more vendors achieving a crore in sales than the previous year. The online marketplace expanded its rapid delivery capabilities, delivering over 3 crore products to Prime members across India on the same or next day, a 26% rise from the previous year.

    Amazon Raises Content Creator Commission During the Festive Sale

    Earlier, Amazon in order to further increase it awareness among the Indian masses, it had increased its normal commission earning rates for select categories within its network of over 50,000 influencers ahead of the festive sale.

    According to its site, for active creators who collaborate with Amazon, the updated commission structure offers influencers a significant rise ranging from 1.5x to 2x across a wide range of product categories, including fashion, beauty, and personal care products.

    At that point, Director of shopping initiatives for India and emerging markets, Zahid Khan stated that Amazon is giving creators the tools and incentives they need to succeed during the festive season and beyond by drastically raising commission rates across important categories, the company is providing additional incentives through various programs to further back these creators.

    In an Antitrust Investigation, Former Amazon Merchant Appario Retail Has Sued CCI
    According to court documents, Appario Retail, the former biggest seller on Amazon India, in which the e-tailer had a shareholding, has filed a lawsuit in the Karnataka High Court against the Competition Commission of India (CCI).
    StartupTalkyNitin Konde

  • In October, UPI Registered a 10% Month Over Month Growth

    Between September and October of 2024, the volume and value of transactions using the Unified Payments Interface (UPI) increased fairly. According to figures released by the National Payments Corporation of India (NPCI), the digital payment network logged 16.58 billion transactions in October, a 10% rise from 15.04 billion in September.

    From INR 20.64 lakh crore in September to INR 23.50 lakh crore in October, the transaction value increased by 14%. A 37% increase in transaction value and a 45% increase in transaction quantity year over year drove this gain.

    Average Daily Transaction Grows to 535 Million in October

    Additionally, from September to October, the average daily transaction volume climbed from 501 million to 535 million, with the daily transaction amount reaching INR 75,801 crore, a significant rise from INR 68,800 crore the month before.

    PhonePe continued to hold the top spot in the UPI market in India in September, accounting for 48% of all transactions. Second place went to Google Pay with 37.4%, and third place went to Paytm with 7%. The October market share figures are still pending.

    New Adjustments Made by the NPCI

    The parent firm of Paytm, One97 Communications Limited, was recently given permission by the National Payments Corporation of India (NPCI) to onboard new users onto its UPI network. It is anticipated that the Noida-based company will benefit from the new authorisation by increasing its user base and market share in the cutthroat UPI industry.

    Significant adjustments to UPI transaction restrictions have been made by NPCI in recent weeks. The restrictions for UPI Lite Wallet and UPI 123Pay have also been lifted, and the maximum amount for some UPI payment types has been raised to Rs INR lakh. With these changes, the Indian government hopes to support its ambitious aim of 1 billion transactions per day by 2026–2027 by promoting a higher use of digital transactions.

    How UPI has Become a Game-Changer in India’s Financial Market?

    The Unified Payments Interface is a ground-breaking technology that has completely changed the financial scene in India. It has greatly simplified digital transactions and increased the accessibility and convenience of money transfers.

     Additionally, UPI is essential for strengthening the Indian economy. This payment interface is equipped with a cutting-edge payment system, and it examines its features, advantages, and noteworthy influence on India’s economic development. The National Payments Corporation of India (NPCI) created the real-time payment system known as UPI. It makes it possible to combine several bank accounts into one mobile app. Fund transfers are made quick and simple by combining a number of banking functions.

    With more than 100 banks providing UPI-based services, UPI has gained widespread acceptance in India and enables instantaneous, round-the-clock interbank transactions.

    RBI Predicts UPI Daily Transactions to Hit 1 Billion Soon
    RBI Governor Shaktikanta Das expects daily UPI transactions to reach 1 billion soon, up from 500 million. Extensive testing is planned before any CBDC rollout.
    StartupTalkyNitin Konde

  • In FY24, Google India Reported INR 5,518 Cr in Revenue

    With a 26% increase in operating income and a revenue of over INR 5,500 crore in FY24, Google India has maintained its growth trajectory in the most recent fiscal year. However, in the fiscal year that ended in March 2024, Google India’s earnings after tax climbed by just 6% to INR 1,424 crore.

    According to its financial statement obtained from the Registrar of Companies (RoC), Google India’s operating revenue climbed from INR 4,504 crore in FY23 to INR 5,518 crore in FY24.

    In the meantime, the company’s other revenue increased by 106% to INR 403 crore from INR 195 crore in FY23. As a result, Google India’s overall revenue for FY24 increased from INR 4,700 crore to INR 5,921 crore.

    The Revenue Model of Google India

    Three main sources of income for Google India are enterprise products, IT-enabled services, and advertising. FY24 saw a 16% growth in revenue from IT-enabled services, reaching INR 2,389 crore. A sizeable amount of Google India’s revenue, the net sale of advertising space, increased 27% to INR 2,954 crore. Enterprise product revenue increased from INR 111 crore in FY23 to INR  174 crore in FY24, a 57% increase. This varied revenue stream highlights Google India’s growth into enterprise and IT services as well as its leading position in digital advertising.

    Finance expenditures increased slightly by 6.4% to INR 142 crore, while employee benefit expenses increased by 10% to Rs 1989 crore. As a result of effective asset use, depreciation and amortisation expenses decreased marginally by 11.6% to Rs 277 crore from Rs 314 crore the previous year. At INR 1774 crore, other expenses—which include operational and administrative costs—saw a notable 31% increase.  In FY24, Google India’s total expenses were INR 4,184.4 crore, up 16% from INR 3,609.4 crore in FY23.

    Google’s Counterparts Giving a Tough Fight  

    Social media and e-commerce sites like Amazon, Meta (Facebook and Instagram), and local advertising companies compete with Google. By utilising its brand and wide range of products, including as search, YouTube, and Google Ads, which continue to generate substantial user engagement and income, Google sustains a strong market presence in spite of severe competition.

    Facebook India Revenue in 2024

    According to data released by Tofler, a market research firm, Facebook India Online Services, the advertising division of social media giant Meta, reported a 43% increase in profit to INR 504.9 crore for the fiscal year that concluded on March 31, 2024. In FY2023, the company reported a profit of INR 352.91 crore.

    The activities of Facebook India Online Services Private Limited include selling advertising inventory to clients in India and offering Meta Platforms Inc. design and IT-enabled support services. In FY24, the company’s turnover increased by 9.33% to INR 3,034.82 crore from INR 2,775.78 crore in FY23. According to a report by Tofler, “the company’s total expenses for the fiscal were reported as INR 2,350 crore.”

    Electric 2W Sales Surge 85% in October: TVS Overtakes Bajaj
    Electric two-wheeler sales surged 85% to 139,000 units in October. TVS overtook Bajaj, while Ola regained its position in the competitive market.
    StartupTalkyNitin Konde

  • October Saw an 85% Increase in Sales of Electric 2W to 139,000 Units, With TVS Overtaking Bajaj and Ola Regaining

    E-two-wheeler retail sales reached their second-best monthly performance, only missing March’s 140,333 units, thanks to festive season demand and alluring OEM discounts. While Ola has recovered to levels above 41,000, TVS and Bajaj are still engaged in a fierce war.

    This segment all set to reach a million sales for the first time in a calendar year in November, as the top six OEMs each surpass their CY2023 retails in the first 10 months of 2024.

    What Spiked the Sales of EV 2Wheeler?

    In spite of the reduced subsidy, the buyer-friendly festive season schemes, attractive deals offered by e-two-wheeler OEMs, and the availability of customised financing, retail sales were the second-highest in this calendar year to date, following the FAME II subsidy-ending month of March 2024 (140,333 units). The new PM E-Drive Scheme went into effect on October 1. The PM E-Drive Scheme aims to assist 24.79 lakh e-two-wheelers, 316,000 e-three-wheelers, and 14,028 electric buses with an expenditure of INR 10,900 crore over two years and subsidy/demand incentives of INR 3,679 crore. The PM E-Drive Scheme, which runs from October 1, 2024, to March 31, 2026, does not apply to passenger cars.

    The largest volume driver of the Indian EV market is the electric two-wheeler market. According to the most recent data accessible on the Vahan websites of the Indian government, it made up 64% of India EV Inc.’s total volumes of 217,621 units in October.

    Ola Electric Back in Form

    Ola Electric will be relieved that it sold 41,605 units in October 2024, following two turbulent months of low sales of fewer than 28,000 units (August: 27,615 and September: 24,716), which caused the company’s market share to drop to less than 30%. This represents a 74% YoY gain and a 68% month-over-month increase. Additionally, the company has sold an additional 96,885 units through the end of October, surpassing its total CY2024 retail sales of 267,376 units.

    Ola experienced a strong month-over-month growth from April through July until the steep decline in August and September. The company had started CY2024 with 32,424 units (up 77%) in January and reached a peak of 53,640 units (up 150%) in March.  Numerous complaints from customers regarding poor service were blamed for Ola’s August and September sales drop. However, sales have increased in October after the recently listed business promised that it has satisfactorily resolved 99.1% of consumer concerns through its redressal procedure.

    TVS Regaining its Spot by Taking Over Bajaj

    In October, TVS Motor Co. reclaimed the second position on the e-two-wheeler podium after being hurt by Bajaj Auto’s September takeover. The iQube producer saw a robust 81% YoY rise with retail sales of 29,890 units (October 2023: 16,507 units), and last month’s market share was 21%. TVS’s market share for the first ten months of this year is 18.41%.

     The effort paid off, as TVS Motor’s October retails are its greatest monthly numbers to date. Like Bajaj Auto, TVS Motor sent the most iQubes to its dealers in October, totalling 28,564 units.

    These two legacy OEMs are still engaged in a fierce struggle; in CY2023, TVS sold 166,581 iQubes, which was 94,641 more than Bajaj Auto’s 71,940 Chetaks. In the current calendar year, such an enormous disparity has significantly decreased to 27,164 units.

    Three battery options are available for the TVS iQube: 2.2 kWh, 3.4 kWh, and 5.1 kWh. The business reports that the market is responding favourably to the complete portfolio. With a 2.2kWh battery, the standard model can travel 75km in real life and takes two hours to fully charge using a 950W charger. At INR 94,999, this base version of iQube is now the most economical. This model comes with a 5-inch TFT display, turn-by-turn navigation, and theft and tow alarms, along with the 3.4 kWh iQube.

    The Future of Electric Vehicles In India
    The electric vehicles market is seeing growth spurge in recent years. Find out what will the future of electric vehicles look like in India.
    StartupTalkyHimangi Khare

  • Cred Enters the Insurance Market Through the Garage Network

    Cred, a fintech unicorn that formerly focused on lending and payments, has now expanded into the distribution of insurance goods, starting with auto insurance.

    According to Akshay Aedula, head of product and growth at Cred, the company is using its vehicle management platform, Cred Garage, to market insurance products to its users. Depending on the users’ credit scores, Cred offers extra discounts to make the product more appealing.

    What is Garage?

    Cred customers can monitor their car expenses, outstanding traffic “challans,” and the dates of their insurance and pollution renewals on the Garage portal. In the event of a roadside breakdown, they can also receive assistance. Cred hopes to make money from the programme by collecting commissions from insurance companies, even though car management is free.

    There are almost 7 million registered cars on the platform, and there are 4.4 million users—some of whom have more than one car registered in their name. Last September, the platform was launched. Approximately 11 million of Cred’s 13 million monthly users engage in active transactions.

    According to Aedulia, Cred’s fundamental belief is to reward good conduct, which is why it has collaborated with three insurance providers to develop an insurance product that gives clients with high credit ratings extra savings on their premiums.

    Working With Three Insurance Companies

    To provide these products to its clients, the company, which holds a corporate agency licence from the Insurance Regulatory and Development Authority (IRDAI), has collaborated with Zurich Kotak General Insurance, Go Digit General Insurance, and ICICI Lombard. A corporate agency is an insurance distributor that has the capacity to collaborate with nine insurance companies. An entity will require the insurance broking licence in order to engage with more.

    According to Aedulia, Cred is expanding this cooperation and is collaborating with a few additional insurance providers. As of right now, the IRDAI has approved the company’s product. Cred’s entry into the insurance market rounds out its range of financial services operations, which began with credit card bill payment and progressed to wealth management, credit, and the Unified Payments Interface (UPI). According to a recent statement from the corporation, payments, credit, and insurance account for 90% of its total revenue.

    In addition to having an internal, non-banking finance company called Newtap Finance, Cred has a significant distribution role in personal financing. In February 2024, Cred bought Kuvera for its money management service. Through Garage, Cred has now established its own insurance distribution company.

    In FY24, the company reported total sales of INR 2,473 crore, a 66% increase over FY15. With its employee stock ownership plans included, its net loss came to INR 1,644 crore, a 22% increase from the previous year. According to Tracxn data, the firm has raised $866 million and was last valued at approximately $6.2 billion in 2022.

    Go Digit Receives a Show-Cause Notice From IRDAI
    IRDAI has issued a show-cause notice to Go Digit, citing concerns over excessive spending. Discover the details of this regulatory action and its potential impacts.
    StartupTalkyNitin Konde

  • Flipkart Logs 7.2 Billion Visits from Customers

    From September 1 to October 28, the e-commerce company Flipkart saw 7.2 billion visits overall in terms of customer engagement during this festive season. The company saw a record 282 million unique visitors during that time, largely due to premiums and individualised preferences, particularly in Metros and Tier-2+ cities, which set new standards for e-commerce in India and reflected a rise in consumer sentiment and digital adoption.

    The 11th edition of Flipkart’s The Big Billion Days (TBBD) 2024 sale event kicked off on September 27. Flipkart VIP and Plus customers had early access starting on September 26. The event lasted for eleven days. September 27 also marked the beginning of Amazon’s month-long celebratory sale, known as the Amazon Great Indian Festival (AGIF).

    The Big Billion Days (TBBD) 2024 Sale

    A record 1.4 billion people used Flipkart’s marketplace during TBBD last year. The figures for this year’s TBBD event were not disclosed by the company. Speaking about the increase throughout the festive season, Flipkart’s head of growth (vice president), Harsh Chaudhary, said this year’s response highlights the company’s efforts to bring e-commerce to even the most remote areas of the nation.

     The company has been able to empower an ever-expanding network of merchants and provide millions of customers with improved shopping experiences by leveraging technology and broadening its reach, Chaudhary added. In addition to providing customer satisfaction, this season has become a crucial component of India’s retail scene by boosting economic growth and creating possibilities for local communities all around the nation.

    Growing Popularity of E-Commerce

    Customers from all around the nation, according to Flipkart, depend on online purchasing for a wide range of demands. In comparison to the previous year, the East region of India saw a 14.86% increase in unique visits and a 12% increase in consumers. Growth was comparable in urban and non-metro areas, indicating strong demand overall.

    During this festive season, some sellers also saw an increase of 40–50% year over year. In comparison to the previous year, the marketplace platform’s sellers had a notable increase in sales, greater offers, and increased involvement overall.

     This festive season’s top Flipkart shopping patterns also show how buyers have been flocking towards different categories. Fashion, technology (particularly laptops and tablets), household necessities, appliances, cosmetics, and general goods are among them. The growth of premium and mid-premium Android smartphones was strong, and users were particularly interested in the AI-powered capabilities. Flipkart claimed that its creative affordability structures, created in collaboration with banks and outside partners, were the main factor in this success.

     The eighth iteration of Samarth’s special sale event, Crafted by Bharat, was also successfully concluded by Flipkart. With contributions from hundreds of artisans, weavers, government agencies, non-governmental organisations, LGBTQ+ communities, rural business owners, and female entrepreneurs, more than 25,000 distinctive handmade items were on display. During the sale period, Samarth Sellers’ growth increased by 16%, or 1.6 times. 

    Online Vendors on Flipkart, Walmart’s Indian Subsidiary, Sue Antitrust Regulator
    According to court documents viewed by a media house, three online vendors who operate on Flipkart, owned by Walmart, have filed a lawsuit against the Indian antitrust watchdog following an inquiry that discovered violations of competition regulations by both Flipkart and competitor Amazon.
    StartupTalkyNitin Konde

  • RBI will Implement AI-Powered Real-Time Technologies to Detect Cybercrime

    As per the recent media reports, the Reserve Bank of India (RBI) is developing an AI-enabled system that will alert people in real time about financial scams.

    An AI-based warning system would identify suspicious transactions as they are going to be made, and individual banks will access a central bank data repository that has information on different kinds of frauds and their offenders. In order to lower the danger of cyber fraud, the system will employ AI to gather and evaluate data on possible frauds, identify high-risk platforms, and alert users during transactions. 

    Even while cybercrime is still under control, the RBI believes that taking a proactive stance is essential to tackling new issues in the online financial sector. Indeed, MuleHunter AI, an artificial intelligence and machine learning (AI/ML) model, has already been created by the Reserve Bank of India Innovation Hub (RBIH), a division of the RBI, to assist banks and other financial institutions in identifying so-called mule accounts that fraudsters utilise. In contrast, the new system will protect digital transactions and notify users.

    RBI Shaping the Cybercrime Fee Banking Services

    To identify and stop cyber fraud, the RBI has been developing an AI-enabled fraud information system for some time. Implementing AI that can learn from previous frauds to flag high-risk transactions is one of the proposals made by an expert panel on cyber frauds that the RBI established.

    The method seeks to increase banks’ and payment gateways’ readiness to identify possible fraud while making it more difficult to cash out illicit funds. The frequency and average magnitude of cyber frauds are increasing, despite the fact that current fraud rates are still modest at about one every 114,000 transactions. All of them, then, are a component of the strategies to raise public awareness in order to help stop victimisation.

    In 2015, the central bank formed the Cyber Security and IT Examination (CSITE) cell under its Department of Banking Supervision, in addition to establishing several groups to combat cyber fraud. Additionally, it established a Fraud Monitoring Cell that publishes a list of bank and financial institution officials who are in charge of reporting fraud.

    Making Guidelines More Stringent

    Using information from the Indian Cybercrime Coordination Centre, a government agency tasked with combating cyber fraud, the central bank has also revised instructions for banks. The 2024 Deloitte-NASCIO Cybersecurity Study states that as the digital landscape grows and more personal, health, and financial data is available online, along with critical infrastructure like power, water, and transportation systems integrated with online components, cybersecurity is becoming a top priority for governments, regulators, and corporations. This increases vulnerabilities.

    According to the research, which was published on September 30, governments and regulators are realising more and more how important strong information security is to the dependable running of important government services.The area of attack is expanding. Both the Internet of Things and the Internet itself are generating more information. The public’s financial, health, and other personal information is stored on more servers in more locations than ever before. According to the report, online operational components are connected with more important infrastructure.

    It further stated that state officials are realising that information security is fundamental to the effective operation of vital government services and that all of this leads to an increase in the number of sites of risk.

    Online Fraud Cases are Growing

    The number of banking frauds rose by almost 300% in FY24 compared to the previous two years, according to the RBI’s May annual report. According to the data, public sector banks reported 75% of the total fraud amount in FY24, while private sector banks recorded 67% of the fraud incidents. According to the RBI statistics, the total number of online fraud cases rose by 708% to 29,082 in FY 23 and FY 24.

    RBI Approves Pending Home Loan Disbursements: Navi Finserv
    The RBI permits the disbursement of home loans approved before Oct 20, offering relief to borrowers and lenders like Navi Finserv amid regulatory updates.
    StartupTalkyNitin Konde

  • South Korea’s IMM Investment Has Secured an Anchor Investor for its Inaugural India Fund

    The massive South Korean gaming company Krafton hopes to increase its presence in India by assisting domestic investors in taking advantage of the country’s developing startup scene. The first of these investors is IMM Investment, a multi-asset investment company established in South Korea that manages assets under management (AUM) of around $7 billion in three segments: infrastructure, growth equity, and venture capital. In addition to Korean unicorn businesses Woowa Bros, Bucketplace, Musinsa, and Krafton itself, which is listed on the Korea Exchange, its portfolio also includes NYSE-listed Coupang.

    Krafton and IMM Investment’s Partnership

    IMM Investment and Krafton’s India division announced on October 29 that Krafton would be the anchor investor in IMM’s first India fund. However, the business didn’t reveal any particulars.

    An exciting new chapter in the company’s efforts to support India’s startup ecosystem has begun with Krafton India’s collaboration with IMM. According to Sean Hyunil Sohn, CEO of Krafton India, the company hopes to assist entrepreneurs in vital industries in growing and succeeding by bringing more South Korean capital, knowledge, and international viewpoints to the Indian market. This would ultimately improve India’s standing on the international scene.

    Additionally, he noted that this partnership supports the government’s Invest India drive, improves investor connections between South Korea and India, and speeds up the expansion of Indian businesses.

    Investment Plans

    The IMM India Fund will support entrepreneurs in industries like DeepTech, Software-as-a-Service (SaaS), Fintech, Gaming and Media, and Consumer Brands. Its primary focus will be on growth-stage businesses that exhibit significant IPO potential and stand to gain from connections to South Korean money and experience.

    It has made its initial investment in Sugar Cosmetics, a beauty and personal care brand based in Mumbai that was established in 2015 by Vineeta Singh (Shark Tank India fame) and her spouse Kaushik Mukherjee.

    IMM Investment’s current India investment lead, Prakhar Khanduja, disclosed that the fund had made a secondary investment of $3 million in Sugar Cosmetics. According to Khanduja, the fund closed for the first time in December of last year and would incorporate funds from the parent fund as well as several other limited partners (LPs). He did not, however, provide precise information about the fund’s size. By the end of the year, the fund intends to close another investment, he added.

    “For the upcoming year, secondary investments will be our primary focus. The secondary market contains some excellent assets. We’ll go primary as well if there’s a primary (investment opportunity) available,” Khanduja stated. According to Khanduja, the IMM India Fund would only support entrepreneurs and business plans that are either profitable, at least operationally, or approaching profitability.

    If a business is successful or on the verge of becoming so, the public market will at least experience some kind of liquidity event within the next three years. “Every time we enter a new market, we have focused on it, and we will continue to do so in India,” he said.

    KRAFTON Establishing R&D Centers in India
    Sean Hyunil Sohn, the CEO of KRAFTON’s India business, & the developer of PUBG and BGMI, plans to establish an R&D facility in India by year-end.
    StartupTalkyNitin Konde

  • RBI’s Prepaid Payment Instrument (PPI) Licence Secured by Cashfree Payments

    The Reserve Bank of India (RBI) has granted Cashfree Payments, a prominent player in the payments and API banking industry in India, a Prepaid Payment Instrument (PPI) licence.

    The RBI has granted Cashfree Payments the Payment Aggregator (PA), Payment Aggregator-Cross Border (PA-CB), and Prepaid Payment Instrument (PPI) licenses, making it one of the first fintechs to attain these licenses. With the use of this licence, the firm will be able to offer improved digital payment options via prepaid instruments, making transactions between companies and their clients easier.

    A new avenue for innovation in the payments industry is made possible by the PPI licence. The company’s goal has always been to give Indian businesses and its clients safe, adaptable, and effective payment experiences. According to Cashfree Payments CEO and cofounder Akash Sinha, the PPI license will assist Cashfree Payments in developing products that enable online companies to maintain and expand their customer base.

    Cashfree Payments Expanding its Operations

    In July, the business acquired a cross-border payment aggregator licence, allowing import and export transactions. It happened after the RBI gave it a payment aggregator licence in December 2023, enabling it to function in the online merchant payment market.

     Cashfree Payments, which was founded in 2015 by Sinha and Reeju Datta, collects payments, pays vendors, disburses wages, reimburses expenses in bulk, and offers loyalty benefits to about 600,000 enterprises in India. The company handles transactions totalling approximately $80 billion yearly. Supported by investors including State Bank of India, Y Combinator, and Apis Partners, the business has also introduced products in eight additional nations, including the US, Canada, and the United Arab Emirates.

    The National Payments Corporation of India certified Cashfree Payments earlier this month for its Unified Payments Interface Switch service, which enables it to interface directly with any bank’s core systems to provide its merchants with greater transaction success rates.

    ‘Piramal Pay’ Likewise Also Received RBI’s Nod

    The Reserve Bank of India (RBI) has also granted permission to Piramal Payment Services Limited, a division of Piramal Capital & Housing Finance Ltd, to launch and run its “Piramal Pay” prepaid payment instrument (PPI) service.

    The company emphasised that this authorisation, which was given in accordance with the Payment and Settlement Systems Act of 2007, is a major step towards providing millions of users throughout India with cutting-edge digital financial products. With this latest accreditation, Piramal Payment Services becomes one of the few RBI-approved Payment System Operators all geared up to improve the nation’s digital transaction environment.

    The company further stated that “Piramal Pay” is intended to make financial transactions easy, safe, and convenient for both consumers and companies.

    RBI Predicts UPI Daily Transactions to Hit 1 Billion Soon
    RBI Governor Shaktikanta Das expects daily UPI transactions to reach 1 billion soon, up from 500 million. Extensive testing is planned before any CBDC rollout.
    StartupTalkyNitin Konde

  • According to AICPDF, a Rapid Surge in Quick Commerce Resulted in the Closure of 2 Lakh Kirana Stores

    The All India Consumer Products Distributors Federation (AICPDF) reports that over 2 lakh local “kirana” (general) stores have closed in the last 12 months as customers increasingly use fast delivery services like Blinkit and Zepto. According to various reports, the AICPDF blames these closures on the fast commerce industry’s explosive growth and the economic downturn. It plans to present the findings to the Ministry of Commerce and Industry and the Ministry of Finance in the coming days in order to request their action.

    The largest organisation in India, the AICPDF represents 4 lakh distributors of fast-moving consumer goods (FMCG) for well-known corporations like Nestle India Ltd., Dabur India Ltd., and Hindustan Unilever Ltd.

    Major Metro Cities Witness the Worst Impact on Businesses

    Kirana shops in urban areas have been the most impacted, according to the industry group. Metro areas were home to about 45% of the 2 lakh shuttered kirana shops. 30% were Tier 1 cities, while 25% were Tier 2/3 cities.

    According to Dhairyashil Patil, national president of the AICPDF, kirana shops, which have traditionally prospered through competition, including the rise of supermarkets, now face an existential risk as a result of the rise of rapid commerce and the economic slump. He claimed that in order to attract clients, quick commerce companies are using deceptive pricing, which involves offering steep discounts and selling below cost. This has led to an unequal playing field, which is hurting the clientele and financial success of kirana shops.

    Methods Used by Quick Commerce Platforms That Are Anti-Competitive

    The AICPDF requested last week that the Competition Commission of India (CCI) take action against Blinkit and Zepto, two rapid commerce platforms, for engaging in anti-competitive behaviour. They claimed that these platforms participated in unlawful pricing and monopolistic practices, as well as running underground shopfronts to get around inventory rules. Additionally, AICPDF alerted the Ministry of Road Transport and Highways about the use of possibly uninsured private vehicles for delivery by fast commerce enterprises. Furthermore, they expressed their worries to the Ministry of Health and Family Welfare that these activities compromised food safety by breaking the rules set forth by the Food Safety and Standards Authority of India (FSSAI).

    Online Retailers Already Under Competition Commission’s Scanner

    These developments coincide with the Competition Commission of India’s ongoing investigation into online retailers for alleged unfair activities, including predatory pricing. According to an internal study by the CCI, e-commerce giants Flipkart and Amazon India broke antitrust laws by favouring some sellers on their platforms. In a similar vein, the AICPDF requested that the antitrust body look into three rapid commerce companies for suspected unfair pricing: Zepto, Swiggy Instamart, and Blinkit from Zomato. The federation contended in its letter that many consumer goods companies abandon traditional stores in favour of direct ties with these businesses, weakening delivery standards that have been in place for decades. Quick delivery platforms’ “unchecked” growth is making it “impossible for traditional retailers to compete or survive,” the company told CCI.

    The government will “give a serious thought” to protecting the interests of traders hurt by rapid commerce and e-commerce companies’ exploitative pricing strategies, according to Finance Minister Nirmala Sitharaman’s statement on September 17. Similar worries regarding the e-commerce industry were also voiced by Union Commerce and Industry Minister Piyush Goyal, who emphasised the necessity for these platforms to “operate fairly” within the nation.

    Swiggy Tests 10-Minute Medicine Delivery Service in Bengaluru
    Swiggy partners with PharmEasy to launch a 10-minute medicine delivery service in Bengaluru, expanding its offerings and entering the e-pharmacy market.
    StartupTalkyNitin Konde