Taxing periods: The GST hike is expected to provide a rough ride for used car platforms.

Bengaluru: Following the government's decision to impose higher taxes on their margins on the sale of tiny automobiles, India's used car platforms appear to be in for a rough ride after cruising at a double-digit growth rate over the previous five years since the epidemic. On Saturday, the Goods and Services Tax Council made the decision to raise the tax rate from 12% to 18% on the margins of suppliers selling small used cars, including electric vehicles (EVs).A used vehicle platform will now pay 18% goods and services tax (GST) on the margin (₹40,000) if it buys a small car for ₹1 lakh and sells it to a buyer for ₹1.4 lakh after refurbishing, as opposed to 12% previously. Eighteen percent has paid for used EVs and SUVs (sport utility vehicles). Although companies will be able to offset this against input tax credits, startup margins are expected to be impacted in the short term by this initiative to harmonize tax slabs.Industry analysts predict that the 50% tax increase will hurt a sector that sold 51 lakh units in FY23, according to the India Blue Book report that was made public earlier this year. India continues to sell more used automobiles than new ones annually, as seen by the 42.3 lakh new cars sold within the same time period. According to Vikram Chopra, CEO of online used automobile marketplace Cars24.com, "such policies can affect affordability in a country where car ownership is still in single digits [in percentage terms]."  

Over 16 Lakh Jobs Are Created by Startups: Commerce Ministry

SUMMARY According to the commerce ministry, 1.57 lakh businesses were recognized by DPIIT as of December 25, and the Indian startup ecosystem has generated over 16 lakh jobs nationwide. According to DPIIT, there are currently over 73,000 businesses in India with at least one female director. Startups like Zomato, Ola, and Nykaa have shown that India can compete in global markets by growing their businesses outside of their country.According to the ministry of commerce and industry, as of December 25, 1.57 lakh companies had been approved by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Startup India initiative, contributing to the creation of over 16 lakh employment nationwide. With 1.57 lakh firms approved by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Startup India initiative as of December 25, the Indian startup ecosystem has generated over 16 lakh jobs nationwide, according to the ministry of commerce and industry.According to the department, the proliferation of startups in a variety of industries, such as fintech, edtech, health-tech, and e-commerce, has been stimulated by the broad availability of reasonably priced internet and a youthful and vibrant workforce.A mix of demographic, economic, and policy variables are propelling India's ascent to the top of the global startup ecosystem, the report stated. With more than 100 unicorns, the Indian startup scene is influencing the direction of innovation and entrepreneurship, according to the DPIIT, which also stated that India has become one of the most dynamic startup ecosystems in the world, earning its position as the third largest startup center.  

Cornerstone Exits Node for Startup Intelligence in Retail Analytics

OVERVIEW After IPG acquired Intelligence Node, Cornerstone Ventures made its second exit from Fund I. The exit is made possible by a $100 million (INR 849.5 crore) acquisition agreement with the multinational advertising conglomerate Interpublic Group. NEA, Orios Venture Partners, and BlackSoil Capital are among the investors that Intelligence Node has previously raised $10.25 million from in several rounds.After the global advertising conglomerate Interpublic Group (IPG) acquired retail analytics startup Intelligence Node, SaaS-focused venture capital firm Cornerstone Ventures announced its departure from the business. Additionally, this is the second exit for Fund I of Cornerstone Ventures, which made its initial investment in Intelligence Node in 2019.Intelligence Node's emphasis on a clearly defined worldwide need has always thrilled us. Over the years, the business has been able to provide measurable consumer benefits that have allowed its clients to increase their margins and level of competition," said Nanika Kakkar, a partner at Cornerstone Ventures. Including integration expenses, the deal was valued at about $100 million (INR 849.5 crore). The transaction highlights Intelligence Node's strategic significance in the changing retail landscape, especially given that the company's AI-powered platform presently analyzes more than 1.2 billion products from 190K businesses globally.Since its founding in 2012, Intelligence Node has created a range of AI and machine learning-based solutions to assist companies in optimizing their pricing and digital shelf presence. The platform generates over $600 billion in revenue globally and boasts a 99% product matching accuracy thanks to its unique AI algorithms. According to Sanjeev Sularia, CEO of Intelligence Node, "We have always focused on empowering our clients with data-driven insights that can drive real business value." "Our collaboration with Cornerstone Ventures was crucial in propelling our expansion and expanding the market for these cutting-edge products. An important milestone in our journey has been reached with this IPG acquisition, which presents new prospects for both our business and our clientsBy partnering with IPG, Intelligence Node will take advantage of the global network of the advertising behemoth to increase its reach and provide customers with better value.  

"Google in Russia" Yandex sells local assets to expand in Europe.

The majority of its Russian assets have been sold off by the parent company of Yandex, the biggest tech business in Russia and the equivalent of Google in that nation.The agreement gives the Dutch parent business the freedom to expand in Europe, freeing up its hundreds of highly qualified tech workers who left the nation. Its intentions include creating four AI-focused firms, which would be a major entry into the market at a time when competition is intensifying.A haircut from the Kremlin The Dutch parent company of Yandex, which is listed on the Nasdaq, has sold 72% of its Russian business to a group of investors, including Russian oil giant Lukoil, and members of the company's former management. In July, the final 28% of the deal will be completed. According to Russian government regulations on exits for Western corporations, the purchase, which was announced in February after 18 months of discussions, valued the company at $5.2 billion and required a 50% valuation decrease. Yandex was valued at $30 billion at its height.Founded during the dotcom boom of the 1990s, Yandex launched its main search engine in 1997. After that, it added online games, a music streaming service, an online map product, and a ride-hailing service to its list of offerings. The company's plan to become a global internet giant was thwarted by the conflict. Foreign investors stayed away from it, and many of its employees fled the nation. In June 2023, the European Union imposed sanctions on Arkady Volozh, a cofounder of Yandex. In March of this year, the restrictions against him were removed. Currently, Volozh resides in Israel.Negotiations for the sale of Yandex's Russian assets required months of political backstabbing because the Kremlin considered the company to be strategically and economically significant. Putin's spokesperson, Dmitry Peskov, described the business as "one of the largest companies and one of the economy's national champions in high tech," according to Russian newswire Interfax. "The company's continued operations in the nation are important to us."  

The law firm with a venture fund mindset

Contrary to what its name might imply, it is not an incubator, private equity fund, or venture capital business. It's a legal practice in one of the oldest law firms in Canada that specializes in offering digital businesses special assistance.By assisting founders with everything from employment contracts to regulatory obstacles and utilizing the firm's wider network to foster genuine connections, the team integrates itself into the day-to-day reality of startup life rather than focusing just on high-profile transactions.Ramji's notion that the proper legal support can be equally as important to a startup's success as its funders is the foundation of its hands-on approach to legal support and its unique payment model.Ramji started her career in trademarks and pharmaceutical patent litigation after receiving her Juris Doctor from Queen's University. After that, she worked for the Canadian Standards Association in an internal legal capacity before attending New York University to obtain a master's degree in law. Ramji's perspective on legal services changed significantly in 2014 when she joined Figure 1, where she oversaw legal and corporate affairs, even if these experiences helped her better grasp business and regulations.  

Baichuan, a Chinese AI startup, loses a co-founder

For personal reasons, Hong Tao, a co-founder of Baichuan, a Chinese AI firm, has departed the company. The Beijing-based company thanked him for his efforts, particularly in assembling the monetization team, and announced his resignation on Tuesday.One of China's top AI startups is Baichuan. His departure is a result of continuous leadership changes at Chinese AI firms, which are dealing with heightened competition in the industry. For personal reasons, Hong Tao, a co-founder of Baichuan, a Chinese AI firm, has departed the company. The Beijing-based company thanked him for his efforts, particularly in assembling the monetization team, and announced his resignation on Tuesday. One of China's top AI startups is Baichuan.  

Lab-grown diamonds are not "synthetic," according to modern companies.

The term "synthetic" is being opposed by new-age jewelry businesses because it incorrectly equates lab-grown diamonds (LGDs) to diamond simulants. In light of India's fast expanding LGD market, which is predicted to reach $1.19 billion by 2033, they call on the Central Consumer Protection Authority to prioritize consumer education and clear labeling.A wide range of investment opportunities across industries and market segments are presented by India's economic growth. Anupam Tiwari, Head of Equity at Groww Mutual Fund, discusses in a recent livestream how the recently introduced Groww Multicap Fund is ideally positioned to profit from India's changing economic narrative.  

Uber introduces a boat hailing service on the picturesque Dal Lake in Kashmir

Srinagar: The charming Dal Lake in J&K is now home to Asia's first water transport service, "Uber Shikara." With shikara reservations on its app, Uber launched the first water transportation service in Asia. 'Uber Shikara', Uber's first water transport service, has been launched, making travel to Dal Lake hassle-free for tourists. By combining technology and tradition, this creative project enables travelers to reserve shikara rides in advance via the well-known ride-hailing app.Seven local Shikara owners have collaborated with Uber, and the company expects to grow its fleet in response to user demand. Government-regulated prices will apply to rides, guaranteeing tourists fair pricing. Nehru Park, an island park in the center of Dal Lake, is where the seven shikaras are stationed. Crucially, Uber will not impose any fees on its shikara partners, guaranteeing that the entire fare is paid to the boat operators directly."Anyone who visits Srinagar must take a shikara ride, which is a classic activity on every traveler's bucket list," stated Ruchika Tomar, Director of Communications at Uber. Our service offers travelers a seamless experience by fusing Kashmir's ancient beauty with the enchantment of technology. Up to four people can travel in each Uber Shikara, which is available for one-hour reservations every day between 10 a.m. and 5 p.m. It is possible to book rides 12 hours to 15 days in advance.  

Byju's bankruptcy: Riju Raveendran petitions the NCLT to be included in the case

On Monday, Riju Raveendran, the brother of Byju Raveendran, the founder of the insolvent edtech company, and its largest stakeholder, went to the Bengaluru insolvency tribunal to request inclusion in the case. The tribunal, however, voiced concerns over his involvement in the proceedings.Before the tribunal, Riju's attorney begged for permission to defend himself against claims made by Byju's lenders—specifically, Glas Trust, a US-based lender—about where the Rs 158 crore that was first given to the Board of Control for Cricket in India (BCCI) to pay its debts came from.Byju's US-based lenders had resisted the settlement, arguing that the funds utilized to reimburse BCCI were corrupted because they were included in the $533 million that was purportedly "missing." The tribunal, however, stated that determining the source of funds falls under the jurisdiction of the income tax authorities and the Enforcement Directorate. It directed the lenders to file objections to Raveendran’s plea and adjourned the hearing.However, the panel declared that the Enforcement Directorate and the income tax authorities had the authority to ascertain the source of funds. It postponed the hearing and instructed the lenders to oppose to Raveendran's plea.The appeal panel was earlier informed by Riju Raveendran, a board member of the business, that the funds paid to the BCCI were "clean." His attorney had maintained that the $533 million that the lenders said was "missing" did not include the payment to the BCCI. The US lenders and Byju's parent business, Think & Learn, are at odds over the missing funds.  

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Uber and Bolt launched a women only service in Paris

Two rival ride-hailing platforms announced on Thursday options allowing Parisian women to order a car driven by a female driver in a bid to ensure "greater safety" for its customers. The "Uber by Women" option, available from Thursday, comes at no extra cost but with potentially longer waiting times. Uber launched a similar scheme in other European countries as the company grapples with a litany of sexual assault or harassment claims against their drivers. The change will ensure "greater safety" for its women customers, said Uber, with some 1,500 female drivers already available in Paris. There is a reminder on the app that the option is for women only, and drivers can cancel if a man tries to use it, the platform told AFP. "Waiting times ... could be higher than with other options, 15 minutes on average compared to four minutes" for a standard order, Uber said. But the ride-share company also hopes the change will attract more women drivers by offering them a "substantial reduction" on the fees charged for each ride. Uber by Women is an "excellent way of increasing the attractiveness of the ride-hailing profession to women who would otherwise not consider it", said Uber's head in France, Laureline Serieys. European rival Bolt also announced the launch of a similar option in France called "Women by Women", set to roll out by the end of 2024. "It is essential to guarantee the safety of all women using ride-hailing services," said France's Bolt director Julien Mouyeket. "The 'Women for Women' category embodies this commitment, meeting the safety expectations of female users while protecting female drivers," he added.    

SolarSquare's valuation is expected to increase threefold with new investment.

SolarSquare is currently in detailed discussions to secure $30 million in a new funding round, spearheaded by Lightspeed Venture Partners, with an anticipated valuation of $130 million. Established in 2015, SolarSquare Energy started its journey with business-to-business rooftop solar solutions and shifted to the business-to-consumer segment in 2021. In the fiscal year 2023, SolarSquare reported a net loss of INR 30 crore against an operating revenue of INR 107 crore.Several months after securing $4.2 million from prominent investors, including Zerodha Technology and Nikhil Kamath’s Gruhas Proptech, the rooftop solar solutions company SolarSquare is planning to raise an additional $30 million in a new funding round. Based in Mumbai, the startup is currently engaged in advanced discussions for this round, which is expected to be spearheaded by Lightspeed Venture Partners, according to a report by Mint citing insider information.The funding round, expected to conclude by next month, is projected to value the startup at $130 million — representing a 2.7X increase from its earlier valuation of $47.7 million, according to the report. Inc42 has contacted Shreya Mishra, cofounder and CEO of SolarSquare, for her insights on this development. The article will be updated following her response. SolarSquare is reportedly planning to utilize the new funds to expand its operations and fulfill its capital expenditure requirements.Established in 2015 by Neeraj Jain, Nikhil Nahar, and Shreya Mishra, SolarSquare Energy began its journey by providing B2B rooftop solar solutions but shifted its focus to the B2C market in 2021. The company delivers a comprehensive range of rooftop solar solutions, encompassing the design, installation, and financing of solar systems for residential homes, housing societies, and commercial properties. SolarSquare faces competition from various solar solution providers, including Zunroof, Cleantech, Mysun, Oorjan, and Freyr Energy, among others. As reported by Inc42, SolarSquare has secured over $20.25 million in funding to date. In May, the company successfully raised $4.2 million from investors including Zerodha Technology, Gruhas Proptech led by Abhijeet Pai and Nikhil Kamath, Lowercarbon Capital, and Good Capital.  

To encourage technological innovation, Rajasthan will host an IT and startup summit.

OVERVIEW To establish the state as a center for innovation and technology, the Rajasthani government will hold the "Information Technology & Startup Pre-Summit" on November 12. The "Rising Rajasthan Global Investment Summit 2024," which intends to double the state's GDP and exports by 2030, will be preceded by the pre-summit. The state government will sign Memorandums of Understanding to promote partnerships and strengthen Rajasthan's tech sector at the pre-event.Rajasthan is positioned as a vibrant center for innovation and entrepreneurship and is about to undergo a technological revolution. The 2018 Information Technology & Startup Pre-Summit, with the theme "Building a Resilient Future – Lessons from Leading Innovators," is expected to be a crucial event in the state's efforts to develop a strong startup ecosystem. The Confederation of Indian Industry (CII) and iStart Rajasthan are collaborating to arrange this summit, which is set for November 12, 2024, in Jaipur from 9 am to 5 pm. The Potential of AI and Technology Artificial intelligence (AI) and technology are key forces behind change in today's rapidly changing world. The importance of using AI and technology breakthroughs to enhance Rajasthan's sectors and provide opportunities for innovation and economic resilience will be emphasized at this summit. Rajasthan's potential as a tech-driven state can be strengthened by utilizing AI to not only expedite procedures but also develop innovative answers to challenging problems in a variety of industries.  

In FY24, cashless losses increased by 2.17% while revenue increased by 4.19%.

OVERVIEW In the fiscal year 2023-24 (FY24), Cashfree Payments' net loss increased by 2.17% to INR 136 Cr from INR 133.1 Cr in the prior fiscal year. In the meantime, the company's operational revenue climbed from the reported INR 613.6 Cr in FY23 to INR 639.3 Cr in the year under review, a 4.19% rise. The Reserve Bank of India recently granted the business a prepaid payment instrument (PPI) license, enabling it to make purchases and transfer funds against a preset value.CashfreeCashfree Datalabs_in-article-icon Fintech platform In the fiscal year 2023-24 (FY24), Payments' net loss increased by 2.17% to INR 136 Cr from INR 133.1 Cr in the prior fiscal year. From the reported INR 613.6 Cr in FY23 to INR 639.3 Cr in the year under review, the startup's operating revenue grew by 4.19%.A full-stack digital payments solution platform, Cashfree was founded in 2015 by Akash Sinha and Reeju Datta. It provides API banking solutions and makes it possible for companies to collect payments. The majority of the startup's revenue comes from commission income, which is derived mostly from the sale of services. With support from Y Combinator, State Bank of India, Apis Partners, and other investors, the firm has raised more than $40 million in total capital to date. It faces competition from companies like PayU, Bill Desk, and Razorpay. The Reserve Bank of India recently granted the business a prepaid payment instrument (PPI) license, enabling it to make purchases and transfer funds against a preset value.  

INR 1,000 Cr Space Sector Venture Capital Fund Approved by the Cabinet

OVERVIEW A venture capital fund under IN-SPACe with a corpus of INR 1,000 Cr was authorized by the Union Cabinet after being first announced by Finance Minister Nirmala Sitharaman in her budget speech. FY26 to FY30 have been designated by the Center as the years for the deployment of funding. Depending on the company's stage, growth trajectory, and possible influence on the national space arena, the typical investment would be between INR 10 Cr and INR 60 Cr. The establishment of a Rs. 1000 crore venture capital fund for the space industry under the auspices of IN-SPACe has been approved by the Union Cabinet, which is led by Prime Minister Shri Narendra Modi. S.No. About 40 businesses are anticipated to be supported by the fund based on the funding range mentioned above.  

Russia is debating whether to host the SCO Startup Forum.

The Shanghai Cooperation Organization Startup Forum facilitates the exchange of innovative best practices and the beginning of collaborative ventures. We are exploring the potential of hosting it in Russia the following year. In close consultation with the Indian side, we are developing the agenda. Aspiring businesspeople and investors from our nations will find the event fascinating, Mishustin stated.Nine member states—the Republic of India, the Islamic Republic of Iran, the Republic of Kazakhstan, the People's Republic of China, the Kyrgyz Republic, the Islamic Republic of Pakistan, the Russian Federation, the Republic of Tajikistan, and the Republic of Uzbekistan—make up the Shanghai Cooperation Organization (SCO), a permanent intergovernmental international organization. In order to maintain and ensure peace, security, and stability in the region, the SCO works to build mutual trust and neighborliness among its member states, encourage effective cooperation in politics, trade, economy, research, technology, and culture, as well as in education, energy, transportation, tourism, and environmental protection, among other areas. It also works to establish a new international political and economic order that is democratic, equitable, and logical.  

By Q2 2025, Bluestone plans to launch an INR 2,100 Cr IPO.

SUMMARY At an estimated valuation of $1.5 billion, Bluestone is expected to raise up to INR 2,100 cr through its IPO. Investment bankers Axis Capital and IIFL Securities, among others, have been enlisted by the omnichannel jewelry firm to assist with its public offering. The news follows Bluestone's pre-IPO investment round, in which the company raised INR 900 Cr, almost propelling it into the unicorn club.With new-age digital companies like Swiggy, Ather Energy, and BlackBuck rushing to list on the stock exchanges, the Indian IPO bubble is still going strong. Now, omnichannel jewelry firm BluestoneBluestone Datalabs_in-article-icon is preparing to enter the fray.Bluestone is getting ready to go public by the second quarter of next year, according to Mint. At an estimated valuation of $1-1.5 billion, the Prosus-backed business is expected to generate $200-250 million (about INR 1,681-2,100 crore) through its initial public offering. According to reports, the business helmed by Gaurav Singh Kushwaha and Vidya Nataraj has enlisted the assistance of investment bankers Axis Capital, IIFL Securities, and Kotak Mahindra Capital for its public offering. The company is anticipated to submit its draft red herring prospectus (DRHP) to market regulator SEBI later this year.Bluestone did not respond to Inc42's questions until this story was published. It will be the first initial public offering (IPO) by an Indian new-age jewelry company if Bluestone's intention to go public is successful.According to sources, Bluestone raised INR 900 Cr in August from investors like Peak XV Partners, Prosus, and Steadview Capital in a pre-IPO investment round, almost propelling the business to the unicorn club. Bluestone, an omnichannel jewelry firm founded in 2011 by Gaurav Singh Kushwaha and Vidya Nataraj, boasts over 8,000 designs for rings, pendants, earrings, and other items. The firm uses a franchise arrangement to run the remaining retail locations while owning some of its own. It asserts that it has more than 200 retail locations nationwide. Legacy jewelry brands like CaratLane, GIVA, Melorra, and others are competitors of BlueStone. The business secured INR 100 Cr in debt capital in June.  

The Good Bug Secures $3.5 Million from Fireside Ventures and Sharrp

OVERVIEW The startup has already raised INR 20 Cr of the INR 30 Cr. It is anticipated that the final sum will arrive shortly. The new funding will probably be used by The Good Bug to increase the range of products it offers. The Good Bug is a direct-to-consumer company that was established in 2022 by Keshav Biyani and Prabhu Karthikeyan that sells a variety of intestinal health and wellness goods.In its Series A extension round, Mumbai-based direct-to-consumer firm The Good Bug raised $3.5 million, or roughly INR 30 crore, from Sharrp Ventures, the Marcio Group chairman Harsh Mariwala's family office. The startup's previous investors, Fireside Ventures and cofounder Keshav Biyani, also participated in the investment round, according to its RoC filing. To raise money, the business gave the three investors 630 Series A1 and Series A2 compulsory convertible preference shares (CCPS). According to the filing, these CCPS will be converted into equity shares at a 1:10 ratio during the upcoming fundraising event. The startup has already raised INR 20 Cr of the INR 30 Cr. It is anticipated that the final sum will be received shortly. A letter of inquiry to The Good BugThe new funding will probably be used by the firm to increase the range of products it offers. Nearly a year has passed since The Good Bug's $3.5 million Series A fundraising round, which was headed by Fireside Ventures, concluded. Future Group founder Kishore Biyani's daughters Ashni and Avni's Think9 Consumer Technologies also participated in the round. It is important to remember that Kishore Biyani's nephew is Keshav Biyani. The Good Bug, which was founded in 2022 by Keshav Biyani and Prabhu Karthikeyan, provides a line of gut health and wellness products that assist people with chronic lifestyle problems like constipation, bloating, and weight loss through gut health, among others. Financial year 2022-23 (FY23) sales for the startup were INR 2.79 Cr.  

Reforms to Indian regulations may expedite the return of firms destined for initial public offerings.

The elimination of a laborious compliance procedure by India is expected to hasten the return of overseas-domiciled Indian companies to their home country in order to take advantage of the listing boom. This prediction comes from investors, bankers, and attorneys.A so-called "reverse flip" merger with a domestic subsidiary no longer requires approval from the backlogged National Company Law Tribunal, as of last month. This effectively cuts the process's duration in half, from at least 12 to 18 months to three to four months.Many of the dozens of Indian startups that originally decided to locate overseas in order to have easier access to capital and pay lower taxes are now lining up to return home from financial hubs like the United States and Singapore because of the better prospects for their initial public offerings in a nation that forbids dual listings. According to several sources, Zepto, Eruditus, and InMobi are attempting to complete the merger process in the upcoming months in order to be ready for potential initial public offerings (IPOs), while Razorpay, Pine Labs, and KreditBee are further along in finishing the reverse flip. Because they were not authorized to talk in public, the sources spoke on the condition of anonymity. "We have a home market in India, where people are familiar with and understanding of us. From a listing standpoint, being in India makes sense," Razorpay CEO and co-founder Harshil Mathur stated.With its most recent funding in December 2021, the U.S.-domiciled online payments company was valued at $7.5 billion, and it plans to relocate to India. According to LSEG data, IPOs in India, including those by startups Ola Electric and FirstCry, have raised $9.17 billion in the first nine months of this year, up from $4.68 billion in the same period last year. This makes India a unique bright spot for businesses in the Asia-Pacific region looking to raise equity capital. "A reverse flip makes sense given how well the IPO market is doing. This strategic approach is further supported by the streamlined merger process, which was created to enable quick and easy scheme approvals without the need for court intervention, according to Mehul Shah, a partner at corporate law firm Khaitan & Co.