StartupTalky

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  • Crafting Bharat’s Season Finale: How AWS is Accelerating Growth of the Indian Startup Ecosystem

    India has the world’s third-largest startup ecosystem and is on track to become the third-largest economy globally. India offers abundant opportunities, and great potential, and is home to disruptive innovators with transformative ideas. Furthermore, it has the second-largest developer base in the world, reinforcing its position as a leading technology and innovation powerhouse.

    The ‘Crafting Bharat – A Startup Podcast Series’ is powered by AWS and is an initiative by NewsReach in association with VCCircle. The podcast aims to uncover the secrets behind successful entrepreneurs’ journeys, providing valuable insights for aspiring entrepreneurs and business enthusiasts. The series is hosted by Gautam Srinivasan, a well-known personality with a diverse range of TV and digital programs. He currently serves as a consulting editor at CNBC (India), CNN-News18, Forbes India, and The Economic Times.

    In a podcast discussion with Kumara Raghavan, Head of Startup Sales at AWS India, we explored how Amazon Web Services (AWS) supports Indian startups through various programs and initiatives, enabling them to enter new and global markets. The conversation highlighted the growth of India’s startup industry and how entrepreneurs leverage technology to solve widespread problems. For instance, MoEngage, a customer engagement platform, expanded into the ASEAN market with AWS’s assistance. They gained networking opportunities to connect with over 200 CMOs across six ASEAN countries, leading to high-quality business prospects. AWS’s support and networking capabilities, along with the advantages of an Activate program, opens up new possibilities and help lower the cost of curiosity for startups.

    Crafting Bharat Episode 12 With Kumara Raghavan, Head of Startup Sales at AWS India

    We are seeing Bharat in terms of Tier 2 and Tier 3 cities and towns emerge as a fertile ground with over 50% of DPIIT recognized startups coming from these areas today. What’s your sense of the transformative effect of these Bharatiya startups in making India Atmanirbhar?

    As of December 2023, there were over 117,000 startups listed with DPIIT. That’s quite a phenomenal achievement, and as you say, a lot of this is coming not just from Tier 1 cities, but also from Tier 2 and Tier 3 cities. If you look at jobs, for example, over 12.4 lakh jobs have been created, which is quite something. Today’s startups are emerging from every state and union territory, spanning 80% of the districts. This truly shows India’s potential and the untapped power of innovation that we are all eagerly looking forward to.

    In running a startup there’s always a balance needed between innovation and costs, especially in their starting phase since building a minimum viable product involves constant experimentation and being curious about upcoming consumer habits, trends, and pain points. How is AWS helping startups build products without worrying about costs?

    I think you have touched upon an important point. Often, people see it as two diametrically opposite ends: either being innovative or being very cost-conscious. However, I think they are really two sides of the same coin and, counterintuitively, both go hand in hand. Typically, when depicting the journey of a startup, particularly those in their initial stages, they conceive a brilliant concept, develop their MVP, and endeavor to attain product-market fit. At this phase, extensive experimentation is essential to substantially enhance the customer experience, not just marginally. This is where AWS’s flagship ‘Activate Program’, in operation since 2013, comes into play. Startups in the early stages can benefit greatly from AWS credits, which offer access to a range of services, including computing, storage, networking, databases, and advanced solutions like AI/ML. This access allows them to experiment and innovate with minimal risk, as they can “fail fast” with little to no penalty.

    For example, when it comes to technological innovation, AWS’s custom Graviton processors offer a significant advantage. Compared to traditional x86 compute options, Graviton provides a 40% improvement in price-to-performance ratio. This leads to a substantial increase in ROI, as businesses benefit from enhanced performance while also reducing costs. This innovation not only boosts performance but also delivers significant cost savings.

    Take us through some conversations that you’ve had with startups on challenges that they face around building capabilities and mastering new technologies to future-proof their business since the narrative has shifted from pure growth to profitability for this ecosystem?

    Currently, our conversations tend to be around how to use Generative AI, which is one of the most transformational technologies of our times. What they’re looking to do is improve the efficiency and creativity of their own employees while also enhancing the customer’s journey. When they try out new technologies, they want to do it right. That’s where our philosophy comes in: although there is a new technology, there are some foundational principles that are best adhered to if you want to get it right.

    A great example is DeHaat, which operates with a “farmer-first” philosophy. They currently serve about 1.8 million farmers across 11 states in India through 11,000 DeHaat centers. DeHaat assists farmers by addressing various challenges, such as crop classification, disease prediction and remediation, and yield forecasting, to optimize the supply chain.

    By utilizing tools like Amazon SageMaker and Amazon Redshift, DeHaat has achieved impressive results. They have helped farmers reduce costs by up to 15%, improved yield predictability by 90%, and increased the accuracy of disease prediction and remediation by 80%. This highlights how integrating advanced technology with a strong foundational philosophy can drive significant improvements and create lasting value for both businesses and their customers.

    For startups with game-changing ambitions for Generative AI, how does AWS Accelerator enable them to be up and running within weeks?

    Last year, we launched AWS ML Elevate, an accelerator program for generative AI startups. We have had a number of generative AI startups participate in that program; to name a few, we had Blend and Dubverse.ai. To elaborate on Blend, they’re making commercial-grade photography accessible to SMBs. Blend can help you with removing backgrounds and polishing images in a matter of seconds, making them readily available to be displayed on 16 different e-commerce sites and 8 different social media platforms. They are essentially reducing the dependence of SMBs on professional photographers for making their products highly visible.

    The startup ecosystem in India has witnessed significant growth over the last decade, driven by increasing technology adoption and urbanization. With various AWS services, they are making the startup journey more efficient for disruptive founders.

  • My Tirth India Shuts Down Its Operations Due to Lack of Funds

    My Tirth India, a spiritual tech business, declared on Monday that it is ceasing operations as a result of a serious shortage of funding.

    Following the passing of its primary shareholder and mentor Subrata Roy, the creator of Sahara India Pariwar, the company is facing a funding shortage, according to founder and chief executive Indraneel Dasgupta.

    By urging individuals to reconnect themselves with their history, culture, and traditions, the firm sought to provide as many job opportunities as possible in urban, suburban, and rural areas.

    “However, we regret to inform you that, following the tragic passing of our principal shareholder and mentor, we are now in a financial position where we must close the office,” Dasgupta stated.

    What My Tirth India Was Offering?

    The company, which is situated in Mumbai and was established in 2018, is a pilgrimage and darshan website that provides a one-stop shop for pilgrims to travel throughout India’s sacred attractions. A variety of online services, including online prasad and puja facilities, astrological and ayurvedic consultations, and funeral services, are also provided by the organisation. In addition, it offers customised trip packages for devotees.

    Because of the current state of affairs, company was unable to move forward with its operations. It was already operating with a small workforce that is working without being paid, without having an office, and working from their homes. “At this point, we are unable to continue operations since we do not have the financial resources to do so,” Dasgupta continued.

    Spiritual and Religious App Market in India

    Over the past few years, companies such as Peak XV Partners, Elevation Capital, Titan Capital, and India Quotient have made significant investments in India’s rapidly growing market for religious and spiritual applications. Among the most important companies operating in this sector are Vama.app, Astrotalk, AppsForBharat, DevDham, and Utsav.

    Using funds from Left Lane Capital and Elev8 Venture Partners, the digital astrology platform Astrotalk was able to raise $9.4 million on June 7th.

    A well-known media outlet said on July 7 that the fortunes of apps that provide spiritual and devotional services have been revived as a result of a post-pandemic boom in internet engagement and a growing interest in spiritual activities in recent times both of which have occurred in recent times.

    A number of business analysts have compared this trend to the quick growth in digital payment apps like Paytm that occurred after the demonetisation of high-value cash in 2016. The Ram Temple in Ayodhya was inaugurated in 2016, which contributed to an increase in the number of people using devotional applications.

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  • Quick Access to Loans for Borrowers in Rural Areas: RBI to Unveil Unified Lending Interface

    On 26 August 2024, Shaktikanta Das, governor of the Reserve Bank of India (RBI), stated that the bank is considering a nationwide launch of a technological platform dubbed the Unified Lending Interface (ULI) to expedite the distribution of loans, particularly to smaller borrowers and those residing in rural areas.

    At a worldwide conference in Bengaluru on “Digital Public Infrastructure and Emerging Technologies,” Das predicted that ULI will revolutionise retail financing in the same way that UPI did.

    “We expect ULI to transform the lending landscape,” the governor stated, comparing it to how the Unified Payments Interface changed the payments sector.

    For the purpose of facilitating frictionless financing, the central bank created the Public Tech Platform one year ago today. The original intent was to simplify the process of obtaining a loan or credit by giving lenders digital information in a matter of minutes.

    “VoloFin welcomes the Reserve Bank of India’s initiative to introduce a unified lending interface, a pivotal step towards enhancing financial inclusion across rural India. This platform will empower borrowers in remote areas by providing quick and seamless access to credit, bridging the gap between financial institutions and the underserved segments of our society. The availability of instant loans will not only boost economic activity but also enable entrepreneurs in these regions to scale their businesses, create jobs, and contribute to the overall development of their communities. As a company dedicated to simplifying finance and extending support to MSMEs, we believe that this move will revolutionize the way rural India interacts with financial services,” said Roshan Shah, Co-Founder & CEO, VoloFin.

    Echoing similar sentiments, Pramod Kathuria, Founder and CEO of Easiloan stated, “The ULI will simplify the loan application process by integrating multiple financial institutions, including banks, non-banking financial companies (NBFCs), and digital lenders, onto a single platform. This streamlined process ensures that loan applications are processed more quickly and efficiently. Through real-time data sharing and advanced algorithms, ULI enables instant verification of borrower credentials, such as KYC (Know Your Customer) details, credit history, and income verification. This reduces the time taken for loan approval from days to mere minutes, accelerating the disbursement process.”

    The System Aims to Make Entire Lending Process Hassle Free

    Banks, account aggregators, digital identification authorities, banks, credit information businesses, and state and federal governments were among the several sources from which RBI retrieved the data needed for credit evaluation. A delay in the smooth and timely distribution of loans was caused by the data being available in several systems.

    Because of this, the entire digital platform was built with an open architecture and open APIs so that all the participants in the financial sector can connect with each other in a ‘plug and play’ fashion.

    The tech platform is the result of several pilot initiatives that started in 2022. These experiments included digital dairy loans and end-to-end digitisation of Kisan Credit Card (KCC) loans. As a result of these initiatives, the loan processing time was significantly reduced and the desired efficiency was achieved. Additional digital loans were added to the platform last year.

    Digitization Revolutionising India’s Lending Sector

    According to Das, the digital Public Tech Platform is an aspect of the central bank’s efforts to digitise banking services. “Data privacy is fully protected, and the new platform is also based on consent of potential borrowers,” he assured.

    Das mentioned that there is a new suggested trinity that would replace the old one, which consisted of Jan Dhan Accounts, Aadhaar, and mobile phones or JAM.

    He proclaimed that the Central Bank Digital Currency (CBDC), which will be introduced gradually and consists of the new trinity of JAM, UPI, and ULI, is a groundbreaking development in India’s digital public infrastructure. “This initiative streamlines the integration of multiple technical systems, which means borrowers can enjoy the benefits of easier credit delivery and faster processing times without having to provide a mountain of paperwork,” he continued.

    Lenders, customers, and data service providers are all winners with this platform. Through consent architecture, customers can acquire streamlined, personalised credit without submitting paper forms or physically visiting banks. The network effect, standardisation, cost efficiency, innovation in the loan process, scalability, and increased reach are all to the advantage of lenders and data service providers.

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  • Namma Yatri, an Indian Brand, Is Eyeing the American Market

    According to reports, the ride-hailing app Namma Yatri, based in Bengaluru, is looking into entering the American market.

    An article in a well-known media outlet states that the firm is negotiating with various US unions in an effort to distinguish itself from industry heavyweights like Lyft and Uber.

    In addition, the article stated that the company’s entry into the US market will be backed by Juspay, which separated Namma Yatri into its own entity in April of this year.

    Juspay has recently stated its intentions to expand into international markets, including the United States, and received a payment aggregator license from the Reserve Bank of India.

    Obstacles in the Western Market

    Because the taxi industry is a very low-margin business, it is a free market in the USA, and anyone who has a superior product can enter it. The question is, however, whether they will be able to maintain it because of the circumstances. Not only that, but Uber and Lyft are the two companies that dominate the market in the United States. When compared to the situation in India, the drivers in the United States are in the same position.

    It is impossible for businesses to enter a new market without first lowering their prices, and if the prices are lowered, the driver will not obtain any profit from the transaction. In order to attract investors, businesses that invest a significant amount of capital in a market must also guarantee a certain rate of return on their investment. Namma Yatri will face competition from companies such as Uber, Didi, Grab, and Lyft if it decides to enter the market in the United States. On the other hand, at a time when there is some unhappiness among drivers and customers, the Indian company will be able to gain an advantage and take off thanks to the relationship with unions.

    The Indian Market Continues to Be the Primary Focus at Present

    Namma Yatri’s primary focus continues to be on increasing its reach within India, even if discussions and negotiations on expansion in the United States are still underway.

    Karnataka (Bengaluru, Mysuru, and Tumakuru), Kerala (Kochi), West Bengal (Kolkata, Asansol-Durgapur, and Siliguri), Telangana (Hyderabad), Tamil Nadu (Chennai), and Delhi are the states in which it is currently actively operating.

    Blume Ventures and Antler led the pre-Series A funding round, which raised $11 million (approximately INR 91 crore) a month ago. Sundar Pichai-led tech behemoth Google and other investors also participated. This development comes right one month after the company acquired the aforementioned funding, indicating Namma Yatri’s future growth plans.

    Namma Yatri Parent Raises $11 Million from Google, Blume Ventures, and Others
    Moving Tech Innovations Ltd., the company behind community-led mobility apps Namma Yatri and Yatri Sathi, has raised $11 million (INR 92 crore) in a pre-Series A funding round.
    StartupTalkyNitin Konde

  • India’s Nazara Tech Acquires UK’s Fusebox Games

    Nazara Technologies, a gaming and esports company based in Mumbai, 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.

    Through this move, the Indian gaming corporation has made its second acquisition of a gaming studio located outside of India, and it is also the largest acquisition it has ever made.

    An announcement that Absolute Sports, a subsidiary of Nazara Tech, had acquired all of the assets of DeltiasGaming.com had been made prior to this action.

    Public Notification of Acquisition

    Fusebox Games, a game firm based in London, was acquired by Nazara Technologies; the announcement was made earlier this month.

    As stated by Nitish Mittersain, the founder and chief executive officer of Nazara Technologies, “We see an enormous potential in building an IP-based global gaming business that benefits from our core base in India. This core base allows us to support global studios by implementing enhanced user acquisition strategies, data analytics, live operations, and new initiatives such as implementing our in-house AI playbook.”

    “Several of our existing intellectual properties are excellent illustrations of this strategy, and we are delighted to be able to collaborate with the skilled team at Fusebox as we continue to develop Nazara into a worldwide gaming company that operates on a scale that is relevant,” Mittersain noted further.

    Fusebox Games

    The mobile free-to-play studio known as Fusebox focusses on developing interactive story games as its primary focus. A well-known interactive story game called “Love Island” is published by the studio, and it is also working on developing new games based on well-known television intellectual properties from around the world.

    It operates interactive story games that are powered by intellectual property and are predominantly monetised through in-app purchases, which represented for around 92% of the total sales in the fiscal year that ended in July of 24.

    Financial Dynamics of Fusebox

    The United States of America, the United Kingdom, Australia, Canada, Switzerland, Sweden, Denmark, Norway, and New Zealand are among the developed areas that Fusebox principally aims to penetrate.

    Thirty people are employed by the company, the majority of them are located in the United Kingdom.A total of INR 87.5 crore ($10.4 million) in sales was recorded by the Fusebox during the fiscal year 23 (CY23), while the company’s EBITDA was INR 11.7 crore ($1.4 million).

    Year-to-date (YTD) revenues for the company were INR 116.6 crore ($13.9 million) for the fiscal year 24 (CY24), while the company’s earnings before interest, taxes, and depreciation (EBITDA) was Rs 33.3 crore (EBITDA of $4.0 million).

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  • Jio Financial Receives Government Approval To Increase Foreign Investment Cap To 49%

    The non-bank financial company Jio Financial Services Ltd (JFSL), which is a subsidiary of Reliance Industries, has been in the news recently. The Department of Economic Affairs, Ministry of Finance, authorised JFSL to raise the foreign investment limit to 49% of its total stock on a fully diluted basis, which the firm disclosed recently and could further accelerate its growth trajectory. Foreign Portfolio Investors (FPIs) and other foreign investors will be able to participate more actively as a result of this decision.

    The business, which is headed by billionaire Mukesh Ambani, first asked its shareholders for approval to increase the foreign investment limit to 49% in May 2024. This action is not merely a technical modification; it is a strategic manoeuvre designed to attract substantial foreign capital.

    In order to stand out in India’s very competitive financial services industry, JFSL is actively courting investors from around the world. The capacity to attract investment from outside sources will allow the business to grow by bringing in much-needed finance, as well as international knowledge and ideas.

    JFSL’s Strong Financial Performance Is the Icing on the Cake

    This declaration is made in light of the fact that JFSL had a very successful financial performance during the first quarter of 2024. A consolidated net profit of INR 311 crore was declared by the company for the quarter that ended in March 2024, representing a 6% increase over the previous quarter’s figure of INR 294 crore accumulated in December.

    In the meantime, the consolidated revenue from operations stayed unchanged INR 418 crore, which is a decrease from the previous quarter’s figure of INR 414 crore.

    Strategic Collaboration

    Strategic actions have been taken by Jio Financial Services to increase its market share. The business established a historic alliance with global asset manager BlackRock, Inc. in April 2024. The two companies are teaming up to launch a wealth management and broking firm.

    By delivering digital-first investment products, this partnership would likely revolutionise India’s asset management industry and meet the changing demands of Indian investors. By teaming up with BlackRock, JFSL is sending a message that it is serious about innovation and wants to dominate the wealth management industry.

    JFSL’s Performance at the Stock Market

    The impressive market performance of JFSL since its debut on the stock market in August of last year has captured the interest of investors. At the beginning, the market valuation of the company was more than INR 1.5 lakh crore.

    The stock has nevertheless managed to produce positive returns of more than 52% over the past year, even with this small decline. On the other hand, Jio Financial Services is in a great position to attract additional international investments thanks to the recently approved rise in the foreign investment limit, which might lead to even better stock performance in the months to come.

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  • Introducing Heph, InsuranceDekho’s New SaaS Platform for Insurance Providers

    Insurtech startup InsuranceDekho, based in Gurugram, has established Heph, a new software-as-a-service (SaaS) company that is affiliated with InsuranceDekho. The company’s mission is to provide digital solutions that would ease the operations of insurance distributors around the country.

    This coming Monday, August 26th, will mark the formal launch of Heph’s website, which will be offering a variety of services such as front-end customer interfaces and back-end systems.

    This platform covers all areas of insurance operations, from front-end consumer interfaces to sophisticated back-end systems, and it covers a wide range of products from health insurance to life insurance to vehicle insurance to group insurance. The platform is compatible with a variety of distribution channels and works with 49 different insurers. These channels include assisted sales, direct-to-consumer models, and embedded insurance. Heph is the most comprehensive platform in the business as a result of its extensive product API integration, which enables it to provide any insurance product across any distribution channel.

    Four Core Modules

    Heph serves to a varied clientele by providing its four major modules, which are D2C, POSP, Lending, and Embedded Insurance. These modules are used by banks, non-bank financial companies (NBFCs), brokers, original equipment manufacturers (OEMs), fintech companies, and digital players.

    The platform gives users access to more than 650 different insurance products and gives them the ability to co-create products with insurers. This presents an opportunity for businesses to construct, administer, and optimise their insurance services in an effective manner.

    Easing the Working Environment

    Heph provides businesses with the assurance that they may operate in a highly regulated environment in a secure and efficient manner by adhering to the regulations of the Insurance Regulatory Development Authority of India (IRDAI). With digital insurance platforms becoming an increasingly fundamental part of the financial ecosystem, it is essential that this emphasis on security be maintained.

    Ankit Agrawal, who is also the Chief Executive Officer of InsuranceDekho, has remarked that Heph is a platform that combines sophisticated insurance knowledge with cutting-edge technology innovation. The objective of the company is to enable businesses throughout the whole spectrum of the financial industry to provide insurance solutions that are both smooth and efficient.

    The company is not merely keeping up with the digital revolution of the insurance industry; rather, InsuranceDekho is leading the way in this change thanks to its powerful API interfaces, bank-grade security, and customisable modules. Through the launch of this product, the organisation intends to revolutionise the manner in which insurance products are delivered and managed in India, hence fostering expansion for its partners and enhancing accessibility for customers.

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  • Uber Is Considering Reintroducing Its Premium Service, “Black,” to the Indian Market

    At a time when customers in India are willing to spend more on high-end experiences, ride-hailing platform Uber is reintroducing its flagship product, Uber Black, to the nation.

    According to a media report, the service is set to be launched in the coming weeks, initially targeting certain areas in Mumbai.

    In 2013, the firm began operating in India with Uber Black, which offered on-demand access to luxury vehicles including Mercedes, BMW, and Audi. It supplanted the high-end vehicles with more affordable options, such as the Toyota Innova, Honda City, and Toyota Corolla. A year after that, the service was discontinued.

    Uber’s New Business Strategy

    According to various media rports, Uber Black is set to undergo a major overhaul, resulting in a “far more sustainable model” that will offer consumers white glove cab service in larger vehicles compared to traditional commercial sedans. Additionally, reports mentioned that the service will make use of SUVs and MUVs manufactured by Toyota, MG, and other brands.

    Uber Black, which will be priced 30–40% higher than the platform’s current top offering, Uber Premier, is expected to have significant uptake by businesses for their business travel expenses. The American ride-hailing giant has been pouring resources into expanding its network of fleet partners. Its biggest vehicle partner, Mumbai-based Everest Fleet, was one of its initial investors in a $20 million round last year.

    Motive Behind This Move

    The idea that is being considered within the organisation is to develop a mobile application that caters to all different kinds of clients. Consequently, the platform is considering the possibility of releasing items that cater to both extremes of the spectrum, as was emphasised in a media release.

    When it comes to the Indian market, the firm is expanding its offerings to include items such as Uber Black in addition to intercity rides and rentals in an effort to achieve larger average ticket sizes and a more profitable dollar.

    The premium ride-hailing products that Uber offers in India are expanding at a significantly quicker rate than Uber Go, which is the company’s entry-level offering for on-demand taxi services. According to a source in the media, the corporation is thinking about increasing its focus on providing services of a higher quality.

    Uber has revealed to a well-known media outlet that they will be relaunching its Uber Black service.

    The firm noted in a press release that there is a critical mass of travellers who are prepared to pay a premium for on-demand services that provide them with a high-end experience. As Uber serves to a complete spectrum of customers who have diverse mobility demands, we are reacting to this expanding demand at the same time.

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  • Hardware Industry Wants Computer Import Regulation Clarity

    Recently, representatives from the electronics hardware business penned a letter to the Ministry of Electronics and Information Technology (MeitY) requesting more information on the plans for future policies regarding the import of specific computer items under HS 8471. The letter also requested the Ministry to engage stakeholders more actively.

    After local and international businesses voiced their worries, the government revised its limitations on laptop and computer imports in October 2023, following earlier restrictions enacted in August 2023. Importers could simply provide the quantity and value of the hardware they were importing, and the government would grant them “authorisation” to bring the goods in.

    Last year, the government made an effort to collaborate with stakeholders in order to clarify administrative procedures and get ready for implementation, which we greatly appreciated.

    Kumar Deep, country director of the ITI Council in India, wrote to MeitY Secretary S Krishnan that the strategy “addressed many stakeholder concerns about potential import licensing requirements and restrictions.”

    According to him, it is “critical” that the government takes action to facilitate early stakeholder participation in order to keep these commodities available in India as the probable expiration date of the registration/license draws near. This would help “to prevent far-reaching unintended consequences on key sectors.”

    Import Management System

    Launched this year, the Import Management System (IMS) for information and communication technology (ICT) hardware imports is expected to conclude on September 30, 2024. With the new “import management system,” the government hopes to keep tabs on computer, tablet, and laptop shipments into the nation without stifling supply in the market or instituting onerous licensing requirements. The administration had previously announced that importers could apply for several authorisations, each of which would be valid until September 30.

    With computers penetrating every sector of the economy, the ITI Council argued in its letter that India’s policy affects a wide range of interested parties, including domestic and international companies with operations in India.

    Industry’s View

    In order to facilitate the transition and minimise “unintended consequences,” the industry group claimed that, first and foremost, it wanted the government to release future guidelines in draft form and give stakeholders enough time to comment on them before they are officially published, preferably before October 1.

    The government should also give a fair amount of time for people to adjust if there is a change in policy. While deciding whether to revise or replace the IMS, ITI has urged the government to choose a course of action that satisfies India’s goals, encourages foreign investment, and complies with international trade standards and commitments.

    According to Deep, the Council and its members are quite worried about the rumours that the government is thinking about switching out the IMS for a quota system. This would have a negative impact on India and make it harder for many businesses to get access to the market.

    A positive way ahead would be for the administration to take immediate, tangible steps towards making its objectives and planned policy roadmap more transparent and to increase stakeholder engagement in the policymaking process. In this regard, industry players are prepared to offer their assistance.

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  • Soon, ONDC Will Offer Insurance and Mutual Funds

    Next two months, the open-source aggregator platform known as the Open Network for Digital Commerce (ONDC) will be launching insurance and mutual fund products. They will also be partnering with MasterCard for credit card processing.

    Customers with and without salaries will be able to get unsecured credit through ONDC’s six-minute digital loans.

    According to T Koshy, CEO of ONDC, “We have deployed a Marine app, one insurer and two more are coming.” “Even with health insurance, we’re in the game, but our partner isn’t licensed. The vehicle insurance is expected to be finalised within the following month. Plus, MF is scheduled to launch next month. We aim to complete 100-200 transactions before anything else,” he added further.

    Although a debut date has not been announced, the aggregator platform is also planning to add credit card functionality to its existing range of services.

    Loan in 6 Minutes

    Accessible in as little as six minutes, ONDC’s new digital and paperless loans were launched on Thursday. Three lenders and nine buyer apps (often called LSPs) are part of the new offering.

    Zyapaar, Indipe, Paynearby, Easypay, Paisabazaar, Tata Digital, Invoicepe, Cliniq360, and Indipe are among the buyer applications. Karnataka Bank, Aditya Birla Finance, and DMI Finance are among the lenders.

    Economic Survey 2024

    Since its launch in 2022, the number of transactions on the ONDC has soared above 68 million, according to the Economic Survey 2024. The number of transactions increased by 12% month-on-month to 9.95 million as of June 2024. According to Koshy, 12 million transactions were processed by ONDC in July.

    To further emphasise that the ONDC network democratises access for all merchants and “prevents market concentration,” Koshy chimed in. He went on to say that the network ensures that every customer can receive the lowest price on any product or service.

    According to Koshy, small businesses eventually go out of business because platforms favour big suppliers and customers. This phenomenon is known as the network effect.

    About ONDC

    Open Network for Digital Commerce (ONDC), a Section 8 company, was established on the 31st of December 2021. It is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT), which is part of the Ministry of Commerce and Industry of the Government of India. The objective of this initiative is to develop a facilitative model that revolutionises digital commerce and increase the penetration of retail eCommerce in India.

    A step towards the democratisation of digital commerce, ONDC symbolises a shift away from a platform-centric model, in which a small number of eCommerce companies control the industry, and towards an open, interoperable platform in which buyers and sellers can connect regardless of the platforms they are using. It is intended to move eCommerce away from walled gardens, which are ecosystems that are closed, compartmentalised, and highly stratified, and towards an environment that is more accessible and encourages competition, inclusivity, and innovation for businesses.

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