Also in the letter:
■ BharatPe vs Ashneer saga: a timeline
■ Amazon enters sports streaming space
■ Gig workers’ earnings surged 48% in festive season
Piyush Goyal meets top tech executives in US
Minister of commerce and industry Piyush Goyal at the Asia Pacific Economic Cooperation (APEC) summit. (Source: AP)
Union minister Piyush Goyal, currently on a four-day visit to the US to attend the Indo-Pacific Economic Framework (IPEF) ministerial meeting and the Asia-Pacific Economic Cooperation (APEC) summit, met senior executives from tech giants such as Micron Technologies and YouTube to discuss expansion opportunities in India.
Micron meet: Goyal met Sanjay Mehrotra, chief executive of Micron Technology, and discussed India’s “growing semiconductor ecosystem and vast opportunities” for the company to expand its footprint, according to his post on X.
This comes after the company announced plans in June this year to invest $825 million in a new chip assembly and testing plant in Gujarat. Mehrotra had also met Prime Minister Narendra Modi in July.
Goyal meets YouTube chief: Taking to X, the minister shared his experience meeting YouTube chief executive Neal Mohan. The two discussed opportunities for YouTube to expand its collaboration in India. Mohan took over the video streaming giant in February this year, succeeding Susan Wojcicki, one of Google’s early employees.
Goyal had also visited a Tesla factory in California on Wednesday.
India-US partnership boost: At an industry roundtable led by Goyal, India and the US signed an agreement to promote innovation through cooperation among startups, address regulatory hurdles, and share best practices on fundraising by entrepreneurs.
The roundtable, held in San Francisco, saw Indian industry players, CEOs of major information and communication tech companies, executives from venture capital funds, and founders of startups participate.
Tata Tech IPO opens on November 22, price band at Rs 475 to Rs 500
Nearly 20 years after Tata Consultancy Services hit the bourses, Tata Tech’s initial public offering is set to open on November 22. The company on Thursday announced the IPO price band and other details.
- Tata Technologies has set the price band for the IPO at Rs 475-500 per equity share.
- The issue will be open for subscription from November 22 to November 24.
- The issue size is estimated at Rs 2,890-3,042 crore.
- Under the offer for sale, parent Tata Motors will sell 4.62 crore shares, Alpha TC Holdings will offload 97.1 lakh shares and Tata Capital Growth Fund will divest 48 lakh shares.
- Axis Capital pegs the post-issue market capitalisation at between Rs 19,269 crore and Rs 20,283 crore.
More about Tata Tech: A leading global engineering services company, it provides product development and digital solutions to global original equipment manufacturers.
With over 11,000 employees, Tata Technologies offers services such as concept design, tear-down and benchmarking, vehicle architecture, body and chassis engineering, electrical and electronics systems, and diagnostics.
Financial details: For the nine-month period ended December 2022, the company clocked a 15% year-on-year (YoY) growth in revenue, at Rs 3,052 crore. The company’s net profit during the same period stood at Rs 407 crore.
BharatPe vs Ashneer Grover saga: The story so far…
The tussle between BharatPe and cofounder Ashneer Grover unravelled further this week as the Economic Offences Wing (EOW) of the Delhi Police, in a status report to the Delhi High Court, said there were discrepancies in vendor invoices and that some human resource (HR) consultancies involved with the payments company had been set up to siphon off funds from the fintech unicorn.
The EOW said the investigation is still in early stages. Let us take a look at the story so far.
BharatPe’s action: By the end of 2022, BharatPe had initiated three separate legal actions against its embattled cofounder.
- BharatPe said it has been able to “unearth embezzlement to the tune of Rs 81.28 crore” by the Grovers, through its internal investigation.
- The fintech alleged that Rs 7.6 crore had been siphoned off between 2018 to 2021 through forged invoices raised by eight “bogus HR consultants”.
- It has accused Grover’s wife Madhuri Jain of misappropriation of funds to the tune of Rs 59.73 lakh.
- In an interaction with ET last year, Grover has called the entire matter as a ‘witch-hunt’ by board and management to get him out.
- In February, Grover wrote to NPCI against Bhavik Koladiya alleging data theft.
Amazon enters sports streaming space to take on Jio, Disney
Amazon Prime Video has entered the competitive sports streaming segment with the launch of its first dedicated sports channel, in partnership with Dream Sports-owned FanCode. It will offer live streaming of over 15 sports, including cricket and football, across the globe.
About the partnership: To access this channel, Prime members need to purchase an annual add-on FanCode subscription at an introductory price of Rs 249.
Tell me more: FanCode owns the rights to stream cricket matches in some countries. It holds exclusive rights and partnerships with various entities, including ICC Pathways, Cricket West Indies, EFL (English Football league), Conmebol (South American football organisation), Volleyball World, and FIBA (international basketball). Subscribers can tune in to tournaments such as the Carabao Cup, Women’s Big Bash League, FIFA U17 World Cup, Barclays Women’s Super League, AFC Champions League, AFC Cup, and Yuva Kabaddi, among others.
Significance: The latest partnership with FanCode, which offers sports services from streaming to selling merchandise, will be a shot in the arm for the tech giant, which is looking to enter the lucrative India market, which has millions of sports fanatics and where concurrents for one cricket game can cross five crore on a digital platform.
Background: This comes after a high-stakes showdown between billionaire Mukesh Ambani and Disney Star over media rights for the Indian Premier League (IPL) last year, which went to JioCinema. The cut-throat nature of the space became more evident when ET reported on November 9 that Disney reported a 7% subscriber loss on its streaming platform Disney+ Hotstar, with 2.8 million subscribers leaving the service. This was likely due to the IPL loss and the non-renewal of its content deal with HBO.
Festive gains: Gig workers earned 48% more this season, says PickMyWork
PickMyWork, a gig platform that assists digital businesses in acquiring end users (individual users and merchants), reported a 48% increase in the overall income of gig workers during the ongoing festive season, as compared to the same period in 2022.
Fine print: The marketplace also saw nearly thrice as many gig workers earn higher monthly incomes in the festive season, while the number of female gig workers doubled over one year, the firm said in a statement.
Yes, but: While this is good news, multiple organisations and activists have raised concerns about the working conditions in the gig economy, cautioning that earnings and quality of work for gig workers vary heavily from platform to platform and certain questions around the provisioning of social security persist.
According to the Fairwork Project’s 2023 report for India, ride-hailing platforms Ola and on-demand logistics startup Porter were rated the worst platforms for gig workers to work with, scoring zero on a scale of one to ten.
Word for word: “Gig and platform workers see a bump in income during the festive season because the workload increases, but this does not translate to them being happy or getting extra money. Are the companies giving them anything else? The companies aren’t providing bonuses, sweets, or clothes for the festivals,” Shaik Salauddin, founder and state president of Telangana Gig and Platform Workers Union, told ET.
Today’s ETtech Top 5 newsletter was curated by Vaibhavi Khanwalkar in Bengaluru and Megha Mishra in Mumbai.