What’s in store for internet group IAMAI after Big Tech’s expulsion?
Dream11 Co-Founder and CEO Harsh Jain Elected Chairman Makemytrip co-founder Rajesh Magow became Vice Chairman and Times Internet Vice Chairman Satyan Ghajwani became Treasurer.
Today, we’ll dive in to understand what the changing of the guard could mean for the Indian tech and startup ecosystem.
Lead news: The new board will take office as domestic internet companies take the lead in fighting the big tech players at the helm of a leading industry group. On May 2, we wrote in detail about deepening abyss between the interests of major global internet companies such as Google and Facebook, which list India as one of their biggest markets, and those of local internet startups on issues ranging from Big Tech pricing policies to digital regulations.
Why does it matter?
- The new board of directors does not include a single representative of major technology firms such as Google, Microsoft and Meta. Previously, IAMAI’s chairman and vice chairman were senior executives from the Indian divisions of Google and WhatsApp, owned by Meta.
- This shift is the result of ongoing efforts by Indian internet companies to wrest control of the 500-member internet association’s leadership.
- “It is important to put the needs of the Indian ecosystem first, whether it be policy development, research… In that sense, this governing board embodies the right spirit of Indian business priority,” Aloke Bajpai, co-founder of online travel agency ixigo, told ETtech. . Bajpai was elected to the IAMAI Governing Board.
What’s next?
- The new management will formally take office at the AGM next month. The Board of Governors sets the agenda for the sectoral body for a two-year term, while the Executive Board is responsible for the execution of that agenda.
- The new members of the Governing Council stated that “Vocals for the local people” would be the dominant theme of IAMAI. “We want to be the voice of Indian local companies and start-ups. We want them to grow without hindering the interests of big tech,” Vishwas Patel of Infibeam Avenues told us.
Agenda setting:
- Patel, who was elected to the board of governors, said the problem with invoicing for Google app purchases is opposed by Indian entrepreneurs in various forums – is on the agenda. “We need to be aggressive because the battles here are fought on several fronts. Such a deliberate strategy of removing local payment gateways and forcing developers to choose from a limited set of options reduces the profitability of many startups, especially large enterprises with low margins,” he said.
- Shaadi.com founder Anupam Mittal, who was IAMAI’s first chairman when it was founded, has been elected to the new governing board. He said the body should first spend time looking into whether it “really represents the interests of Indian startups and digital companies” in its current form.
- Mobikwik co-founder and chief operating officer Upasana Taku, the only female member of the new board, told ETtech: “I am confident that I can make a valuable contribution to IAMAI’s efforts to advance the interests of its members, especially Indian Internet companies, and create a more enabling environment for digital innovation”.
Top ETtech news this week
■ Tiger Global may acquire a stake in Rajasthan Royals’ IPL franchise valued at $650 million: Tiger Global, one of the world’s most prolific technology-focused investors, is in talks with get a financial stake in the Rajasthan Royals Indian Premier League franchise— said two people knowledgeable in this matter.
This marks a significant deepening of Tiger Global’s involvement in India’s sports economy and a move beyond the digital commerce sector, where the company is best known as an early supporter of e-commerce giant Flipkart.
■ Binny Bansal eyeing Prime Volleyball Bengaluru: Flipkart co-founder Binny Bansal is in advanced talks with choose a stake in the Bangalore volleyball team franchise within the Major Volleyball League (PVL), sources with knowledge of the matter said.
■ Exclusive | Betting, gaming applications Betway, Lotus365, Fun88 continue to work, advertising despite a complete ban: Several betting apps are among the 138 banned by the Center earlier this year. continue to advertise your activities on digital platforms against the rules, lawyers say.
■ Reliance JioMart lays off 1,000 people, likely to see a larger layoff: After the distribution price war started last year, Reliance Industries JioMart online wholesale format fired more than 1,000 employees as it aligns with the recently acquired Metro Cash and Carry.
■ Tatas can play more electronics and semiconductors: Conglomerate is currently looking for land next to his electronics manufacturing plant. in the Krishnagiri district of Tamil Nadu, according to several people with knowledge of the developments.
■ With 200 million monthly users in India, Snap hopes to increase ad revenue: Apac President Ajit Mohan: Having passed the 200 million monthly active user mark in India, it is now the parent of the Snapchat messaging app. seeks to monetize its offerings even though the company is hiring a managing director for India, said Snap Inc’s Asia Pacific President Ajit Mohan. “We are going to invest in building a sales team in addition to development, content and partnerships,” Mohan said in an interview with ET.
Avnish Bajaj (left), Tarun Davda of Matrix Partners.
■ Money podium cannot be used to hide bad business models: Avnish Bajaj, Matrix Partners | Venture fund Matrix Partners announced this final closing of its latest $550 million Indian fund.the largest corps he has assembled for the country since starting work here in 2006.
■ PB Fintech, the parent company of Policybazaar, cut fourth quarter losses to Rs 9 crore: PB Fintech, which operates the insurance aggregator Policybazaar and the credit market Paisabazaar, reported a significantly narrower net loss for the fourth fiscal quarter at Rs 9 crore compared to Rs 220 crore a year earlier.
■ Nykaa’s fourth quarter results: net income fell 72% year on year to Rs 2.4 crore; revenue jumped by 34%: FSN E-Commerce Ventures, which operates beauty and fashion platform Nykaa, reported a decline of 71.83% year on year (y/y). in the March quarter, net income was Rs 2.4 crore.
■ Lendingkart made a profit of Rs 120 crore in fiscal year 23, says CEO Harshvardhan Lunia: Fullerton-backed company saw total revenue will rise to Rs 828 crore in fiscal year 23while total loan payments rose by 44% to nearly Rs 3,960 crore.
Fintech Corner
■ Banks and lenders are wary of centralized KYC as a high risk: A centralized Know Your Customer (c-KYC) database, which was conceived as the solution to all KYC problems for financial institutions, was marked as high risk Reserve Bank of India (RBI).
■ Fintech startups push for decentralized KYC regime: Several industry insiders ET spoke to said that a centralized KYC registry could become difficult to maintain given the old players in the Indian financial services industry. Instead, if blockchain based platform could be built.
■ NPCI relies on partnerships with banks to promote RuPay credit cards: NPCI is working closely with several major banks to find ways encourage the use of RuPay credit cards. The company has set an internal goal of getting around 10% of total monthly credit card spending next year.
Technical policy
■ Investors from 21 countries exempt from business angel tax: India freed up investments from non-resident legal entities such as sovereign wealth funds and pension funds from 21 countries from the so-called “angel tax”. Not counting Mauritius and Singapore, among others, which account for significant capital inflows to India. disgruntled venture capital firmswho plan to apply to the income tax office for a safeguard against the tax.
■ For venture capitalists, the updated angel tax kills the devil in detail: Venture investors (VC) welcomed the government’s proposed changes to the business angel tax regulationsstating that they provide much-needed clarity on taxation by preventing its arbitrary application.
■ Government working groups can submit an AI framework within two weeks: The seven working groups established under India’s National AI Program are likely to provide recommendations for a comprehensive framework governing various aspects of AI in the next two weeks, senior officials told ET. The Trade Union Minister Rajiv Chandrasekhar informed the Center about this. internal consultations started on the principles and limitations of the use of AI.
ETech Deal Digest
Indian startups received a total of $447 million this week in 20 roundsaccording to data provided by market research firm Tracxn, the growth was 124% compared to the same period last year.
The funding was backed by late-stage investments such as Walmart-owned fintech giant PhonePe.
Digital payments company PhonePe raises additional $100 million (about 828 crore rupees) from the investment company General Atlantic. That said, General Atlantic invested about $550 million in the Walmart-backed fintech firm in its latest funding round.