StartupTalky

Tag: #news

  • The CCPA Has Issued a Show Cause Notice to Ola Electric Due to Deceptive Advertising

    Following the Central Consumer Protection Authority’s (CCPA) show-cause notice to the business on 7 September 2024, shares of newly listed Ola Electric Mobility dropped 6.17 percent in intraday trading to INR 85.21 on 8 September 2024.

    In an exchange filing, Ola said that the CCPA has given the company 15 days to reply to the show-cause notice. The business promised to reply to the notification and provide the necessary documentation within the allotted period.

    The CCPA has issued a show-cause notice for suspected unfair trading practices, deceptive advertising, and violations of consumer rights.  The company will respond to the CCPA’s show cause notice. At the moment, the Show Cause Notice has no bearing on the business’s operations, finances, or other activities. Additionally, the management of the company stated in an exchange filing that the notice did not impose any penalties or monetary fines. 

    One of India’s leading EV companies, Ola Electric, is committed to building vertically integrated technology and production capacity for EVs and their parts, such as battery cells. At the Ola Future Factory, it manufactures EVs as well as necessary parts like motors, battery packs, and vehicle chassis.

    Company’s Recent Market Performance

    The Indian electric two-wheeler company recorded its lowest monthly sales of the year in September as its dominance faded due to new competition from smaller firms and issues with the servicing network. In September 2024, Ola Electric sold 23,965 units, marking the second consecutive month that the company’s month-over-month (M-o-M) sales have decreased. According to research, its market share dropped from above 50% in April to 27% in September for five consecutive months due to its declining M-o-M sales.

    Bajaj Auto and TVS Motor both reported increases in their market shares for five consecutive months during this time, closing the sales gap.

    Ola’s declining sales and frequently undercutting prices present additional difficulties for the business’s financial performance. It hasn’t made any money yet.

    Kamra and Aggarwal Locking Horns on X

    Now, the issue has gone to X, where stand-up comedian Kunal Kamra has questioned Ola’s service by using a tweet from Ola CEO Bhavish Aggarwal that included an image of the Ola Gigafactory.

    In the tweet, Kamra asked if Indian customers had a voice. Are they deserving of this? Is this how Indians will adopt EVs? Two-wheelers are the livelihood of many daily wage labourers. If you have a problem with OLA Electric, please share your tale here, tagging everyone. The result was a prolonged verbal sparring match between comedian Kunal Kamra and Ola CEO Bhavish Aggarwal. Kamra didn’t stop here; he went further and tagged Nitin Gadkari, Union Minister for Road Transport & Highways, Government of India, in the tweet. 

    Bhavish Aggarwal: Education | Personal Life | Success Story
    Explore the inspiring journey of Bhavish Aggarwal, the founder and CEO of Ola, as he navigates the dynamic world of technology and transportation. Discover about Bhavish Aggarwal’s education, parents, age, and more.
    StartupTalkyTejas Mundhada

  • The Total Mall in Bengaluru Will Soon Become Zepto’s New Workspace

    A report from a media house stated that Zepto, an Indian startup known for its 10-minute grocery delivery service, has reportedly acquired a deal to transform Total Mall in Sarjapur into its Bengaluru office space.

    Zepto’s sector peers, Swiggy and Flipkart, as well as giant corporations like Walmart, Adobe, and Rubrik, are located on Sarjapur Road.

    Transfer of Staff to Bengaluru

    The fast-commerce behemoth reportedly gave its employees until February 2025 to pack up and relocate to Bengaluru, extending the deadline by a few months. The startup had previously given its staff members until November to move from Powai, Mumbai, to Sarjapur, Bengaluru. However, because it took longer than expected to find a suitable office location, the deadline was later extended.

    Zepto has started relocating certain positions to a temporary office in the city, with plans to start operations on 11 November 2024. Zepto’s development and product teams already operate out of Bengaluru, while the company’s business operations are headquartered in Mumbai. According to the source, all important departments would be consolidated in the new Bengaluru headquarters by February.

    Budget Projections for the Bengaluru Relocation

    As mentioned in the repot, the one-time cost of moving Zepto’s headquarters from Mumbai to Bengaluru is anticipated to be approximately INR 3–4 crore. However, by moving from Mumbai to Bengaluru, the Aadit Palicha-led company anticipates saving about INR 40–50 lakh in rent each month, offsetting this expense.

    Approximately 1,000 of Zepto’s 1,700–1,800 workers are presently situated in Mumbai, 400 in Bengaluru, while the rest 300 are dispersed among different areas for city operations. Interestingly, the study also stated that almost 90% of the employees based in Mumbai are already willing to go to Bengaluru, Karnataka.

    Further Expansion

    In addition to the move, Zepto intends to increase its workforce. According to Aadit Palicha, co-founder and CEO of Zepto, the company plans to add 500 more workers for its corporate operations, bringing its overall workforce to between 2,200 and 2,300.

    Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto has raised more than $1.5 billion from investors, including StepStone Group and Nexus Venture Partners. The business, which is currently valued over $5 billion, is regarded as one of the quick commerce industry’s fastest-growing businesses.

    Zepto was previously welcomed by the Karnataka government to the capital city, and the government encouraged other start-ups to consider Bengaluru for their primary operations. Begaluru city, which ranks 18th in Asia Pacific, is also the most millennial-friendly in India in terms of jobs and education. It is a hub for innovation, home to over 3,600 funded tech firms and the greatest proportion of employable female talent. Welcome, @ZeptoNow! Karnataka IT Minister Priyank Kharge said. “I invite more startups to join us and flourish in the best startup ecosystem in India,” he added further.

    Zepto Success Story: Owners | Growth | Funding |Challenges
    Zepto is a grocery delivery app that delivers groceries to your home in ten minutes. Learn more about Zepto, its founders, funding, growth, challenges, etc. Explore how this $5 billion unicorn leads in quick commerce.
    StartupTalkySarika Anand

  • Unlocking the Financial Power of Rent: RentenPe Introduces Groundbreaking Rent Credit Score

    Mumbai, October 2024: In a pioneering step set to transform India’s rental landscape, RentenPe is introducing the country’s inaugural Rent Credit Score and Residence Card (R-Card). This trailblazing initiative, endorsed by market research from the global consultancy firm Ernst & Young, seeks to fill a notable void in the financial ecosystem by acknowledging and rewarding tenants for their reliable rent payments—a vital yet often undervalued financial responsibility.

    Transforming the Rental Sector

    With almost half of India’s population under 40, a significant number of young professionals are moving from smaller towns to major urban centres, significantly contributing to the national economy. These individuals typically allocate a considerable portion of their earnings— up to 30% towards rent, while also aspiring to achieve homeownership, which is highly valued in Indian culture.

    Despite the importance and regularity of these rent payments, they have been largely ignored by traditional financial assessments. Unlike credit card payments or loan instalments that positively influence credit scores, rent payments have historically been disregarded, leaving renters without proper financial acknowledgement.

    Harnessing the Potential of Rent

    RentenPe aims to address this issue by launching the Rent Credit Score, a groundbreaking metric tailored for the residential rental sector. Utilizing an advanced algorithm, this score evaluates a range of financial, qualitative, and quantitative factors. It allows tenants to establish a credit profile based on their rental history, potentially leading to improved rental agreements, rent-related loans, pre-approved home loans, and potential savings on rent.

    Sarika Shetty, Co-Founder & CEO of RentenPe, comments, We believe that rent, a major monthly financial obligation, should receive the same recognition as EMIs and credit card payments. Our Rent Credit Score and R-Card are designed to empower tenants by acknowledging their financial commitment and supporting their long-term goals, including homeownership. While we do not engage in property listings, our initiative will be advantageous for prop-tech companies as well.

    Global Validation and Impact

    RentenPe’s approach is backed by extensive research conducted in partnership with Ernst & Young, which revealed the potential of integrating rent payment data into financial assessments. It is a point of pride for India that RentenPe is the first in the world to recognize the importance of including rent in credit scoring. The company began its research and development in 2021 with EY Parthenon.

    Three years later, the Canadian government acknowledged the same issue and proposed measures in their budget to incorporate rental payment history into credit scores and mortgage evaluations based on rental payment patterns.

    The R-Card: India’s First Digital Rental Identity

    Complementing the Rent Credit Score is the R-Card, India’s first digital rental identity. Unlike a payment card, the R-Card acts as a digital ID, functioning as your rental passport with a verified profile and Rent Credit Score, enabling tenants to access better rental deals, quicker approval processes, and potential rent discounts. For landlords, it provides instant access to verified tenant profiles, early rent facilities, and more, streamlining the rental process and fostering trust.

    A Paradigm Shift in India’s Rental Market

    As RentenPe prepares for its official launch, the platform is set to drive a fundamental shift in how rent is perceived. By turning rent payments into a powerful financial tool, RentenPe is not just launching a new product—it is revolutionizing the rental landscape by making every rent count, and not treating it as an expense but as a step closer to owning a home.

    20 Most Profitable Rental Business Ideas to Start
    Are you planning to start a rental business? Here is a list of the most effective and profitable rental business ideas to make money.
    StartupTalkySouvik Dey

  • Government Investigates INR 2,000 Crore WazirX Hack as Millions Demand Refunds

    The country’s top government agencies are now investigating cryptocurrency exchange WazirX, which experienced a big cyber theft in July that cost INR 2,000 crore, or roughly $234 million. Millions of users are still waiting for their money in digital assets to be returned.

    The government is reportedly worried about the effects on WazirX investors; therefore, representatives from the Financial Intelligence Unit (FIU) and the Indian Computer Emergency Response Team (CERT-In) met with the company’s top executives to enquire about the hacking of cryptocurrency tokens.

    According to a media report, the cryptocurrency exchange has given the requested material, and investigatory teams are going over the specifics. Given the severity of the WazirX cybercrime, legal experts in the nation have already requested that state authorities conduct a comprehensive investigation.

    43% Likely to Lose Money-Claims the Company

    Nearly 43% of WazirX consumers, mostly in India, stand to lose money that has been stolen from their digital assets, as the company has already acknowledged. Meanwhile, the WazirX theft hackers have begun removing their pilfered digital assets through the Tornado Cash platform, an open-source, completely decentralized cryptocurrency mixer platform that operates on networks compatible with the Ethereum Virtual Machine.

    The video of a live town hall meeting where the management promised to share “100% profits from any crypto price appreciation in the future with users” was taken down by WazirX, according to new reports that surfaced last week.

    Developments During the Town Hall Session

    Affected users asked questions during the town hall session, which was attended by George Gwee, director of the Kroll legal company handling WazirX’s restructuring following the hack, and Nischal Shetty, co-founder of WazirX.

    Gwee stated in the video that consumers will receive 100% of any earnings from the increase in cryptocurrency prices during the reorganization process, according to another media report. Subsequently, WazirX management changed the live feed to “private.” In the Townhall event, Shetty asserted that 87% of the 4.4 million users of the exchange have only 8% of their cash in the exchange.

    About WazirX

    WazirX is more than just a digital asset trading platform since its founding in 2018. The path has been driven by enthusiasm, determination, and a desire to provide all Indians with democratized access to cryptocurrency. WazirX is the market leader in terms of transaction volumes, boasting a listing of over 350 cryptos and tokens and over 16 million users. This solidifies WazirX’s position as a reliable leader in the nation’s cryptocurrency market.

    While Wazirx Quickly Processes INR Withdrawals, Customers Must Wait Six Months to Trade Cryptocurrency
    Wazirx, an Indian cryptocurrency exchange, announced on 3 September 2024 through social networking site X that Phase 2 of INR withdrawals had been released ahead of schedule.
    StartupTalkyNitin Konde

  • Union Minister Jitendra Singh Announces INR 1,000 CR Will Be Allocated to Space Startup Venture Funds

    A venture fund of INR 1000 crore has been set up to support space startups. The statement was made by Dr. Jitendra Singh, the Union Minister of State (Independent Charge) for Science and Technology, Earth Sciences, MoS PMO, Department of Atomic Energy, Department of Space, Personnel, Public Grievances and Pensions, and Public Grievances on 7 September 2024. He stated that the decision was made within the first 100 days of the Modi 3.0 government, indicating the high priority that Prime Minister Narendra Modi’s administration places on the space sector. According to him, one of the top three or four sectors that the government has designated as its focus for its third term, 3.0, is space.

    Dr. Jitendra Singh briefed the media, stating that almost four years ago, the decision was made to open the space industry to private actors as a revolutionary step. IN-SPACe India was created as the gateway with the private sector, while New India Space Limited (NISL) was a newly formed PSU.

    He reported that the outcome has been remarkable, demonstrating a quick leap from one space sector startup to over 200 in the present day. In addition, he claimed that some of India’s space startups are among the first of their kind and have the potential to be globally successful. He mentioned Vikram-S, the first private rocket in India, as one among them.

    Sharing his thoughts on this development, Varun Chawla, Founder, build3 stated, “Not just space, but many other industries stand to gain from the central government’s plan to earmark INR 1,000 crore for venture funds to space startups. With over 200 startups leading the way in technological improvements, innovations beyond space exploration are also possible. Innovations in satellite communication, earth observation, climate monitoring, and even resource management could result from these endeavours. And these sectors have broad implications for urban growth, agriculture, healthcare, and disaster relief. This step creates an ecosystem that can support India in becoming a global hub for space-tech innovation, drawing in foreign investments and collaboration. This is a fantastic chance for venture capitalists to make early investments in innovations that will influence the economy of the future. At build3, we’re especially passionate about helping entrepreneurs in space technology create impact businesses, making sure that innovation not only spurs economic growth but also improves the environment and communities.”

    India Is Growing Its Muscle in the Space Sector

    Dr. Jitendra Singh emphasized that the ISRO (Indian Space Research Organisation) was established in 1969, a year in which the United States successfully landed its first human on the Moon, which is no minor feat. But in less than 60 years, India’s Chandrayaan 3 spacecraft arrived near the Moon’s South Pole ahead of all other nations, demonstrating that not only is India a front-runner in the space industry, but it can also provide important examples for other countries to imitate.

    According to Dr. Jitendra Singh, the government has permitted 100% foreign direct investment (FDI) in the space sector, which has been very beneficial for new businesses and initiatives. While the number of startups in India has increased from 350 in 2014 to over 1.5 lakh, positioning India as the third largest ecosystem in the world, StartUps in the space sector have also begun to make a significant contribution to the country’s future economy, which is growing quickly from the fragile five to the first five and is expected to rise to the fourth and third places in the coming years.

    The Future of Space Startups in India

    Dr. Jitendra Singh highlighted one distinctive aspect of India’s space industry: even ordinary Indian citizens who have no direct interest in space believe that their country has become a force to be reckoned with.

    He also mentioned that space technology is now playing a significant role in a number of infrastructure and development sectors, such as agriculture, infrastructure, and road construction, smart cities, urban development, land revenue records, health care, etc. We are no longer limited to just launching rockets, he added further.

    India Returns to the Moon, but This Time It Will Land There and Then Return to Earth
    The Chandrayaan-4 expedition to the moon has been given the go-ahead by the Union Cabinet, headed by Prime Minister Narendra Modi.
    StartupTalkyNitin Konde

  • The Calcutta High Court Has Granted Temporary Relief to Nazara’s Subsidiary in Their GST Dispute

    Openplay Technologies, a gaming company subsidiary of Nazara Technologies, was given an interim exemption from the show cause notice issued by the Director General of GST Intelligence, Kolkata, by the Calcutta High Court.

    After being notified in July of a liability of INR 845.72 crore for the years 2017–18 to 2022–2023, Openplay filed a writ suit in the Calcutta High Court contesting the claim. In an exchange filing, Nazara said that the Hon’ble High Court had granted Openplay interim relief, directing that no effect would be given to any ruling passed by the Tax Authority regarding the show cause notice for the aforementioned demand without the Hon’ble High Court’s permission.

    Halaplay Technologies Also Received a Notice

    Another subsidiary, Halaplay Technologies, also received a notification from the GST department, in addition to Openplay, which Nazara purchased in August 2021. After being purchased in several installments, Halaplay has an obligation of INR 274.21 crore from 2017-18 to 2022-2023 years. The affiliates are challenging the GST computation process, claiming that it ought to be rooted in total gaming income instead of the contribution from the player pool.

    Nazara goes on to say that these subsidiaries make up very little of its sales and profit—less than 2% and 1%, respectively, in the quarter that ends in March 2024. A higher 28% tax rate on the total contest entry amounts for online gambling, casinos, and horse racing was imposed in 2023 by the GST Council. Online gaming companies received 71 show-cause notices in the previous year for alleged GST evasion surpassing INR 1.12 lakh billion in the fiscal years 2022–2023 and 2023–2024.

    Bigger Consequences

    An apt representation of the difficulties facing India’s online gaming industry is the legal dispute over GST estimates. The regulatory burden has increased in tandem with the industry’s growth. A new tax rate of 28% was imposed by the GST Council in 2023 on the total amount of contest entries for online gambling, casinos, and horse racing. Operators are becoming more concerned about compliance and sustainability as a result of this sharp increase in tax rates.

    According to Nazara Technologies, its subsidiaries accounted for less than 2% of its sales and 1% of its profit for the quarter that ended in March 2024, meaning they had a negligible impact on the company’s total financial performance. This background is crucial because it clarifies the difficulties these businesses encounter in a highly regulated setting where tax obligations can have a significant impact on business operations.

    India’s Nazara Tech Acquires UK’s Fusebox Games
    Nazara Technologies recently made the announcement that it has successfully closed a cash transaction of INR 230 crore to acquire Fusebox Games, a company based in the United Kingdom.
    StartupTalkyNitin Konde

  • The Investigation Into Swiggy’s Rs 33-Crore Corruption Complaint Against an Ex-employee Taken Over by the Karnataka CID

    According to a media source, the foodtech giant Swiggy’s cheating complaint against a former employee was recently forwarded to the Karnataka Crime Investigation Department (CID) for additional investigation. The investigation gained momentum once the business said that it discovered the former employee had conspired with 12 other individuals and businesses to steal from Swiggy.

    Swiggy initiated legal action, according to a media report, following the discovery that a former employee had taken away INR 32.67 crore from the company over a period of time. Swiggy first filed a complaint with the Bengaluru Marathahalli Police Station and then assembled an outside team to investigate the situation. Given the amount involved, the Marathahalli Police Station officers transferred the case to the CID after starting an investigation.

    Statement From Officials

    Police officials stated that they had forwarded the case to the Crime Investigation Department because of the significant sum of money involved. They are currently looking into the matter.

    A media outlet received confirmation from CID sources that they have taken over the case. According to a top official, “We are currently investigating, and there will be a breakthrough soon.”

    What Exactly Happened?

    The former employee of Scootsy Logistics Private Limited, a subsidiary of Swiggy, and 12 other people were accused of stealing INR 32.67 crore over a period of time. On November 27, 2023, the FIR was filed. Swiggy’s Scootsy purchases goods from one company and resells them to another.

    Srikhara KM, the primary accused in this case, is accused of defrauding RPGS Associates, Swiggy’s vendor, by fraudulently transferring INR 32.17 crore between August 2021 and February 2022, according to the cheating complaint filed by Scootsy Logistics, Swiggy’s business-to-business (B2B) arm. The complaint further stated that throughout the period, an extra INR 50.06 lakh was transferred to other companies for unidentified work.

    This means that throughout those roughly six months, Swiggy lost a total of INR 32.67 crore. Previously, Srikhara served as the finance manager and later the general manager of Scootsy, according to the FIR. RPGS Associates, Fresh Farm Agro Pvt Ltd, Acuity Stationery Pvt Ltd, First Choice Grocery Ltd, Amaxa Pharma Prvt. Ltd, Packingocity Pvt. Ltd, and “others” are among the companies included in the complaint.

    Executives including Rasitha Prasad, Swara Prasad, and Chackingal Prasad Nair (directors of 360 Fresh Farm Agro Pvt Ltd), as well as Chakingal Prasad Nair (RPGS Associates), are named as co-accused in the FIR. A case has been filed by Indian Penal Code sections 34 (common intention), 408 (criminal breach of trust by employee), and 420 (cheating).

    Shocking Development Before IPO

    All of this is happening just as Swiggy is gearing up for one of the biggest initial public offers (IPOs) in India, which is set to take place later this year when it plans to go public on the stock markets. Swiggy intends to raise $1.25 billion, or INR 10,414 crore, in total.

    Swiggy will issue new shares valued at INR 3,750 crore, while the offer for-sale component would be about INR 6,664 crore (comprising 18.53 crore shares). Swiggy submitted its first updated draft red herring prospectus with the Securities and Exchange Board of India (SEBI) on September 26.

    According to previous media reports, the business is expected to boost the value of its IPO by INR 1,250 crore, or $150 million, bringing the total to INR 11,664 crore, or $1.4 billion.

    Swiggy Filed an Updated DRHP With SEBI for Its INR 3,750 crore IPO
    The draft red herring prospectus (DRHP) was submitted to SEBI, the markets regulator, by food aggregation and grocery delivery platform Swiggy on 26 September 2024.
    StartupTalkyNitin Konde

  • Man Arrested for Defrauding 30,000 Individuals Through the HIBOX App Scam

    Five well-known social media influencers, including YouTubers Elvish Yadav and Bharti Singh, have been called by the Delhi Police in a significant crackdown over an extensive app-based scam that robbed investors of about INR 500 crore. The ‘HIBOX’ smartphone application, promised consumers guaranteed returns on their investments but was a platform for unlawful operations.

    Over 500 complaints have been filed against the program, according to a police spokeswoman. The victims claim they were tricked into investing by well-known internet figures who promoted the software on social media. Over 30,000 people were impacted by the scam as they were duped by influencer-led campaigns offering investment opportunities and mystery box shopping with speedy returns.

    A syndicate using the ‘Hibox’ app to deceive almost 30,000 individuals with promises of guaranteed returns on investments was brought down by the Delhi Police’s IFSO squad. Several well-known YouTubers and social media celebrities are said to have promoted the hoax, luring naive people in with their sizable online followings.

    Using Social Media Celebs to Allure Users

    “Hibox” was an app that advertised itself as a place to find investment possibilities and mystery box shopping experiences. A growing trend on e-commerce sites is mystery box buying, which enables customers to buy parcels whose contents are unknown, increasing the excitement of opening them. But the ‘Hibox’ platform, which attracted users with claims of instant earnings and returns, turned out to be a front for dishonest business practices.

    The Delhi Police claims that a large number of victims were made aware of the app by well-known YouTubers and influencers who shared the link with their millions of fans. The list of people under investigation includes comedian Bharti Singh, YouTubers Abhishek Malhan, Elvish Yadav, Lakshay Choudhary, and Purav Jha. Nine influencers in all participated in the app’s marketing campaign.

    An IFSO unit spokesman claimed that by utilizing these social media stars’ power, the syndicate was able to reach a sizable audience. The aforementioned people have received summons letters to participate in the investigation and make statements as part of the ongoing investigation.

    How Did the Scam Unfold?

    When several users came forward to report that they had been duped into paying money for the software only to discover that the promised rewards had never materialized, the scam was exposed. Many of the victims were lured to the platform by influencer-sponsored content, which gave them reason to think the scam was real.

    Growing numbers of people now believe the opinions of social media influencers, often making it difficult to distinguish between paid marketing and sincere suggestions. This instance serves as a warning about the dangers of using internet platforms that mix investment programs with popular practices like mystery box buying.

    The Delhi Police’s IFSO squad is still looking into the syndicate; depending on the investigation’s findings, more action might be taken. Users of social media are being advised to thoroughly investigate platforms before making financial commitments and are being alerted about the possible risks associated with investment plans.

    7 Online Frauds Even the Cleverest Consumers Fall For
    Online fraud is a widespread problem because consumers often believe what they read. Here are the most common frauds you can fall for despite the intensity of your wits.
    StartupTalkyLakshya Singh

  • Nithin Kamath Expects Sebi’s New F&O Standards to Impact Zerodha’s Operations

    According to Zerodha’s cofounder Nithin Kamath, recent actions taken by the Securities and Exchange Board of India (Sebi) regarding futures and options (F&O) trading are predicted to have a nearly 30% negative impact on Zerodha’s business and cut the company’s overall F&O trading volumes by 60%. Kamath further stated that the company will determine its pricing structure following the implementation of the new rules on November 20.

    As it stands, over 60% of all F&O trades and roughly 30% of all orders will be impacted, assuming that those who trade weekly don’t switch to trading monthly. Kamath posted on X. I suppose that as of November 20th, everything will become much more apparent. He continued, “We will then consider the impact on the business when deciding on our change in pricing structure.”

    Market Regulator Releasing Key Directives

    The market regulator acknowledged the speculative nature of index derivatives trading on October 1 and issued a set of instructions aimed at lowering risks for retail traders in the F&O market. One of the main instructions is that option buyers must pay the premiums beforehand; formerly, traders could pay the premium after the trading day. Traders must now pay the entire premium at the time of order placement under the new regulation.

    The market regulator has also implemented other significant steps, such as restricting weekly index expiries to a single exchange and raising the minimum contract size for index derivatives, which will make them less available to smaller retail traders.

    93% of Retail Traders Suffered Losses

    93% of retail traders in the F&O category lost money between FY22 and FY24, according to a recent Sebi report, while only 1% of them made earnings of more than INR 1 lakh yearly. 89% of retail traders in the category lost money between FY19 and FY22, according to a previous Sebi survey.

    From 5.1 million retail merchants in FY22 to 9.6 million in FY24, the number of traders on Dalal Street has almost doubled. This sharp rise raised concerns that savings are shifting from safe investments to high-risk ventures in the F&O sector.

    Zerodha’s Additional Concern

    Stricter guidelines regarding the referral program are among the additional threats mentioned by Zerodha. The business announced that it has relied on word-of-mouth recommendations from customers since its inception to run sizable partner and referral programs. When customers brought in new customers, the company rewarded them with a small cut of the broking as a commission.

    These distributions must now halt because the exchanges released new criteria stating that only Authorised Persons (AP) who have registered on the exchanges may receive payouts. As a result, growth will be impacted as thousands of referrers will now be limited to a small number of registered APs.

    Nithin Kamath: Education | Family | Zerodha
    Nithin Kamath is a Co-founder of the brokerage company Zerodha and Rainmatter. Know about Nithin Kamath’s education, family, children, success story, etc. Learn more about him on Nithin Kamath Wikipedia.
    StartupTalkyMegha Rani

  • Upstox Yields 23,000% Profit for Ratan Tata

    On October 3, discount stock broker Upstox announced that it had completed a buyback of 5% of former Tata Sons chairman Ratan Tata’s equity in the business, giving him a 10x return on his initial capital investment as realized.

    Based on our most recent round valuation of $3.5 billion, Mr. Tata’s interest in Upstox has generated an astounding 23,000% return on the initial investment in 2016. According to a press release shared by the company, this accomplishment is a testament to our commitment to creating value for all parties involved, including our partners, investors, and most significantly, users. 

    Upstox Wealth Provides Easy Access to the Best Financial Tools and Advice

    According to Upstox cofounder Kavitha Subramanian, the platform is especially honored that Mr. Tata, a well-known and respected person in India, has played such a significant role in the company’s development. He gave Upstox a lot of early support, which was a major vote of confidence in the company. His challenge to the company was straightforward but impactful: How can the company provide every Indian with the same excellent wealth advice that prosperous folks receive? Everything we’ve done at Upstox has been driven by this question.

    That vision served as the impetus for the development of Upstox Wealth, a platform that is intended to provide all Indians with access to the most effective financial tools and guidance, irrespective of their background or investment size. Firm thinks that everyone, not just the wealthy and privileged few, should have the chance to increase their wealth. Its goal is to provide all of its investors with significant returns, and it is happy to report that it has been able to reimburse a portion of Mr. Tata’s investment.

    Tata Being a Driving Force

    The corporation claims that even after reaching the predetermined targets, Mr. Tata still owns the bulk of his shares in the company, demonstrating his ongoing support for the firm’s goal. His encouragement keeps the company going, and we’re steadfast in our resolve to give every Indian access to excellent financial management. Until everyone gets access to the resources they need to secure their financial future, we won’t give up, the company stated further in the release.

    About Upstox

    RKSV Securities operates the online investment platform Upstox. It is a financial service provider registered with SEBI. RKSV provides online trading for mutual funds, commodities, currencies, stocks, and Demat accounts. Upstox provides traders in the Indian stock market with a quick, dependable, and user-friendly trading platform.

    Upstox provides budget-friendly trading services. The consumer receives the equity delivery (cash & carry) trade at no cost. Orders placed in this sector are not subject to brokerage fees. Upstox imposes a flat brokerage fee of INR 20 per trade for all other trading categories on the exchange. It offers its clients a top-notch trading platform and tools. This covers Algo Lab, Upstox Pro Mobile, Upstox MF, and Upstox Pro Web, among others.

    Upstox | Indian Fintech Company | Company Profile |
    Upstox was established with the objective of making financial investing simple, fair & cheap for all Indian investors. Know more about it here.
    StartupTalkySarika Anand