ETtech Unwrapped: Your Weekend Digest of Key Developments
Welcome to the latest edition of ETtech Unwrapped, a concise briefing summarizing this week’s pivotal narratives. Let us delve into the highlights.
Key Stories of the Week
Sumer Juneja, Managing Partner and Head of EMEA & India, SoftBank Investment Advisers
SoftBank’s Sumer Juneja: No Rush for IPOs, Focus on Long-Term Growth
SoftBank has invested approximately $10 billion through Vision Fund 1 and 2 in India, with net positions estimated at a similar amount, asserted Sumer Juneja, the managing partner overseeing EMEA and India.
Manipal Group Submits Bid for Byju’s Parent Amid Bankruptcy
Manipal Education & Medical Group (MEMG), led by Ranjan Pai, announced on Thursday that it has expressed interest in bidding for Think & Learn, the parent company of Byju’s, currently in bankruptcy.
Exclusive: Upgrad Joins Bidding Battle for Byju’s
Under the leadership of Ronnie Screwvala, Upgrad has also submitted a bid for Think & Learn, thus joining the roster of prospective acquirers eyeing the assets of the beleaguered edtech firm.
Our Aim: Empowering the 99% Without Coding Skills – Lovable Co-founder
The AI startup Lovable sets itself apart in the saturated coding-assist classification by targeting individuals lacking technical expertise, as articulated by co-founder and CTO Fabian Hedin.
Verlinvest’s CEO remarks on recent trends.
AI’s Impact: IT Sector Faces Competitive Pressure – Replit Founder Amjad Masad
Amjad Masad, founder of the AI platform Replit, indicated that Indian IT companies can no longer leverage wage arbitrage due to AI’s encroachment into lower-value software development tasks.
Significant Regulatory Milestone: Centre Issues DPDP Act Rules
On Friday, India officially announced the Digital Personal Data Protection Rules, 2025, marking a crucial advance in the governance, processing, and protection of personal data within the country.
IPO Landscape
Peyush Bansal, CEO, Lenskart
Post-IPO Performance: Lenskart Shares Fluctuate Amid Valuation Concerns
After a highly anticipated IPO, Lenskart’s shares commenced trading slightly below the issue price at Rs 402, showing declines of 3% on the BSE and 1.7% on the NSE before eventually concluding the day with minimal gains.
Groww Marks Strong Market Entrance with Premium Listing
As India’s first wealthtech platform to go public, Groww debuted with remarkable vigor, listing at a 14% premium above the IPO price, thanks to substantial interest from investors.
Early backers are poised for significant returns. Peak XV Partners’ 17% stake in Groww is valued at approximately Rs 13,700 crore, positioning it among the largest holdings in new-age IPOs.
Pine Labs Shares Debut to Robust Reception
Pine Labs made a notable entry on the stock market, listing at a 9.5% premium before closing 14% higher, showcasing resilience despite broader market complexities.
ET has previously reported that Peak XV could reap over a billion dollars in realized and unrealized gains from its $32 million investment.
The Fintech Sphere
Growth Surge: The Impact of Groww IPO on Wealthtech Startups
A series of investment opportunities is emerging within startups focused on digital platforms for stock broking, wealth management, and mutual fund distribution.
Expanding Horizons: Warehousing Talent Beyond Major Cities
As venture-backed wealthtech firms seek to broaden their reach, the competitive landscape for hiring relationship managers and private bankers is intensifying.
Earnings Highlights
Varun Alagh and Ghazal Alagh, Cofounders, Honasa Consumer
Honasa Consumer Reports Profit Surge to Rs 39 Crore
Honasa Consumer, the parent of Mamaearth, has achieved a 16% year-on-year increase in revenues, totaling Rs 538 crore in the latest quarter, bolstered by innovation and category-focused growth.
FirstCry Narrows Q2 Loss by 20%
Brainbees Solutions, FirstCry’s parent company, managed to reduce its consolidated net loss to Rs 50.5 crore, assisted by robust growth across various business segments.
Info Edge’s Profits Soar Fourfold in Q2
Info Edge has experienced a remarkable increase in net profit, reporting Rs 347 crore for the quarter ending September, a substantial rise from Rs 85 crore a year prior.
Ather Energy Achieves Revenue Growth, Declines in Net Loss
Electric two-wheeler manufacturer Ather Energy announced an operating revenue of Rs 898.9 crore for the quarter, reflecting a notable year-on-year increase of 54%.
Awfis Sees Revenue Growth Surge of 25%
Co-working enterprise Awfis reported a revenue uptick of 25% year-on-year, reaching Rs 367 crore, driven by sustained demand and operational efficiencies.
Technology Policy Updates
Industry Groups Raise Concerns Over Proposed AI Regulations
India’s anticipated regulations targeting AI-generated deepfakes and synthetic content may exacerbate challenges for legitimate businesses while doing little to deter malign actors, caution leading tech policy organizations.
Error of Scrutiny: US Requests Changes to H-1B Fee
The US Citizenship and Immigration Services (USCIS) has initiated detailed requirements surrounding the $100,000 H-1B fee, as the immigration landscape tightens.
Focus on AI
Global VC Firms Seek Opportunities in Indian AI Startups
Prominent global venture capital entities are increasingly drawn to Indian AI startups, with firms like Insight Venture Partners and Iconiq Capital leading the charge for early investments.
A Shift in Investment Trends: Taking Cues from Y Combinator
While participation in Y Combinator has dwindled for Indian startups, local investors remain keen on the AI sector, buoyed by the prospect of accelerating advancements.
Source link: M.economictimes.com.
