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Tag: MoU

  • The Government and Paytm sign MOU to Provide Indian Companies with Capital, Market Access, and Mentorship

    The ministry of commerce and industry said in a statement on 26 February that the Department for Promotion of Industry and Internal Trade (DPIIT) and digital payments company Paytm have inked a memorandum of understanding (MoU) to promote innovation and quicken the expansion of fintech and manufacturing startups in India. Paytm will provide businesses with market access, financial opportunities, infrastructure support, and mentorship as part of the relationship.

    According to the press announcement, the partnership’s goal is to assist fintech hardware entrepreneurs in developing and scaling payment and financial technology solutions by providing them with innovation assistance and mentorship. Through workshops and guidelines developed in partnership with government and industry entities, it will also offer regulatory and compliance support.

    Offerings of the MoU

    Through the partnership’s infrastructure and market access support, businesses may take advantage of Paytm‘s vast merchant network to test, validate, and improve their solutions. In front of senior representatives from both organisations, DPIIT Director Sumeet Kumar Jarangal and Paytm Founder and CEO Vijay Shekhar Sharma signed the Memorandum of Understanding. This collaboration with Paytm is an important step in bolstering India’s startup environment, according to DPIIT Joint Secretary Sanjiv. DPIIT wants to help entrepreneurs overcome obstacles, scale their businesses, and help India become a worldwide innovation hub by utilising Paytm’s fintech infrastructure and skills.

    Paytm for Startups Initiative

    Paytm will introduce specific programs to assist fintech hardware manufacturers, such as Soundbox and PoS/EDC device makers, in expanding effectively as part of its Paytm for Startups effort. Mentorship programs, financial access via investor connections and incubation programs, regulatory guidance through industry-focused workshops, and recurring tracking and effect evaluations are all part of the projects.

    The Paytm Foundation will fund deep-tech startups in the fields of Mobility, agritech, Web3, and Climate Technology through its CSR division. According to Vijay Shekhar Sharma, the current period is the optimal moment for startups to begin and expand under the leadership of Prime Minister Narendra Modi. Paytm is dedicated to enabling business owners by providing access to state-of-the-art technology, financial support, and mentorship. Through this partnership, the company will guarantee that startups have the resources they need to thrive from the ground up.

    Financial Dynamics of Paytm

    Thanks to the rebound in its digital payments sector, the fintech giant reduced its consolidated net loss from INR 221.7 Cr in the December quarter of Q3 FY25 to INR 208.5 Cr, a 6% decrease. Additionally, Paytm’s operating revenue decreased 36% from INR 2,850.5 Cr in Q3 FY24 to INR 1,827.8 Cr in the reviewed quarter.

    Nevertheless, Vijay Shekhar Sharma, Founder and CEO, stated that the fintech company is on course to achieve profitability in the upcoming quarter (Q1 FY26) in accordance with the management’s expectations. Additionally, Paytm CFO Madhur Deora stated on the Q3 FY25 earnings call that the business anticipates becoming profitable on an adjusted EBITDA basis within a quarter or two.

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  • To Strengthen Cooperation on Cybercrime, India and the US Sign an MOU

    A memorandum of understanding (MoU) has been struck by the US and India to strengthen collaboration in cybercrime investigations. The MoU would enable the two nations to “step up” collaboration and training with relation to employing digital forensics and cyber threat intelligence for criminal investigations, according to a statement from the external affairs ministry (MEA). The home ministry and the Indian Cybercrime Coordination Centre (I4C) would be in charge of carrying out the Memorandum of Understanding on the Indian side. Conversely, the US side’s nodal agency will be the Homeland Security Investigations Cyber Crimes Centre, US Immigration and Customs Enforcement (ICE), and the Department of Homeland Security.

    Further Strengthening India-US Ties

    The security issues that India and the US share, including terrorism and violent extremism, financing of terrorism, drug trafficking, organised crime, human trafficking, illegal migration, money laundering, and transportation security, are intricately linked to cybercrime. “As part of our comprehensive and global strategic partnership, the MoU on cybercrime investigations will enable further strengthening of India-US security cooperation,” the MEA’s official statement stated. On January 17, Indian Ambassador to the United States Vinay Kwatra and Acting U.S. Deputy Secretary of Homeland Security Kristie Canegallo signed the agreement in Washington, DC.

    The action is anticipated to promote cybersecurity cooperation between the two countries, facilitate information exchange, and open the door for prompt inquiry in such situations. This comes days after the US, Japan, and South Korean governments jointly said that state-backed North Korean hackers were responsible for the $235 million hack at the Indian cryptocurrency exchange WazirX last year. Additionally, the development coincides with an increasing number of cyberattacks targeting Indian organisations and entities. In 2024, India became the second most targeted country in the world for cyberattacks, after the United States.

    Great Surge in Cyber Attacks in 2024: Prahar’s Report

    Across the first quarter of 2024, there were 500 million cyberattacks across the nation, according to a report by the nonprofit Prahar. In the second quarter of last year, there were about 750 million more attacks. AI and ML techniques have made cyber dangers worse by teaching machines to automate and improve hacks, making them more difficult to detect. Last year, there were several significant cyberattacks in India, including those at the state-run telecom company BSNL (278 GB of private user data was exposed), the broking platform Angel One (personal data of 7.9 million consumers was exposed), and WazirX (which affected 15 million users).

    The signing coincides with a change in leadership in the United States, making it a pivotal time. The signing of this agreement by the Biden administration demonstrates the growing significance of international cooperation in cybercrime investigations.

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  • DPIIT and Flipkart Sign an MOU to Support and Invest in Indian Startups

    E-commerce giant Flipkart has teamed up with the Department for Promotion of Industry and Internal Trade (DPIIT) to invest in and coach up-and-coming entrepreneurs in the nation in an effort to support the domestic startup ecosystem. Flipkart will support early-stage entrepreneurs through Flipkart Leap and Ventures, its startup accelerator, in accordance with the memorandum of understanding (MoU) that the two parties signed. Through the accelerator, the Walmart-backed company provides seed funding to Series A startups, with cheque sizes ranging from $200K to $500K. According to a statement from the e-commerce giant, Flipkart will also assist the up-and-coming businesses with the development of their prototypes and with entering foreign markets by offering infrastructure support.

    Flipkart Claims To Have Supported 20 Startups Till Now

    The organisation claims to have sponsored 20 startups through its accelerator since its founding in 2022, while it did not specify how many startups it plans to back. It has made investments in a number of firms, including FlexiflyMe, Dopplr, and NeuroPixel.AI. The accelerator fund has a $100 million size. According to Rajneesh Kumar, chief corporate affairs officer at Flipkart, the company hopes to use its $100 million venture fund to help entrepreneurs make ground-breaking discoveries that will influence technology and business in India and beyond.

    In contrast, the DPIIT will give selected entrepreneurs access to industry reports, research papers, datasets, and other studies produced by government agencies for market research and expedited patent applications submitted by startups, as well as connections within the Startup India ecosystem. The innovative and entrepreneurial spirit that propels country’s development is embodied in India’s startup ecosystem. According to DPIIT director Sumeet Jarangal, this Memorandum of Understanding would strengthen India’s position as a global innovation leader by accelerating the conversion of ideas into meaningful solutions by leveraging the strengths of both parties.

    Startup India’s Joint Secretary, Sanjiv Singh, underlined the importance of the Memorandum of Understanding in promoting an innovative and entrepreneurial culture, which are essential for India’s development. According to him, the collaboration would improve India’s standing as a worldwide leader in innovation by fostering an atmosphere that would enable companies to turn their concepts into useful solutions. He added that this partnership would give startups the boost they need to reach new heights and make significant contributions to the country’s technological and economic development.

    DPIIT Forging Partnerships to Strengthen Startups’ Ecosystem

    In recent months, DPIIT has formed four partnerships to support the Indian startup ecosystem. It joined together with HCLSoftware in October to advance its manufacturing incubator programme. Additionally, it established a business incubator in Gujarat in collaboration with Johnson Controls-Hitachi Air Conditioning India.  Additionally, last week, the DPIIT teamed up with Moglix, a B2B e-commerce platform, to support manufacturing firms. The changes occur at a time when the startup scene in India is expanding rapidly. As of October 31, 2024, DPIIT-registered businesses have generated over 16.67 lakh direct jobs in over 55 industries, according to a statement made earlier this month by Commerce Minister Piyush Goyal.

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