RBI tightens scrutiny over digital lending apps with new guidelines: The Reserve Bank of India on Wednesday issued detailed guidelines that will increase scrutiny over digital lending apps and lenders who engage with them.
New lending rules will force fintech firms focus on NBFC ops: The RBI’s digital lending guidelines have increased the pressure on new-age lending businesses, forcing them to focus on their non-banking financial company (NBFC) units and book building, as the regulator gives importance to regulated entities.
Fintech firms to seek clarity on some of RBI’s new lending rules: Fintech industry bodies, including Digital Lenders Association of India (DLAI) and Fintech Association for Consumer Empowerment (FACE), are collecting inputs from member firms to seek clarity from the Reserve Bank of India (RBI) on its new digital lending guidelines, sources told us.
Eight account aggregators await RBI licence to go live: Eight fintech entities that have received in-principle approval from the Reserve Bank of India to operate as account aggregators are confident of going live in the next quarter or two.
Indian fintech firms will handle $1 trillion in assets by 2030, says report: Funding in Indian fintech startups touched $7.8 billion in 2021 and the industry is expected to handle $1 trillion worth assets by 2030, according to a new report by venture capital firm Chiratae Ventures and EY India.
Cryptoverse
WazirX tries to allay employees’ concerns on ED action, Binance dispute: Crypto exchange WazirX on Monday attempted to allay the concerns of its employees, days after the Enforcement Directorate froze its banks assets, leading to a public spat between WazirX CEO Nischal Shetty and Binance CEO Changpeng Zhao, also known as CZ.
ED probes 10 crypto exchanges in Rs 1,000 crore laundering case: The Enforcement Directorate (ED) is probing at least 10 crypto currency exchanges for allegedly laundering more than Rs 1,000 crore identified as proceeds of crime from firms under investigation in the instant loan apps case, sources told us.
WazirX says it is compliant with KYC rules: Zanmai Labs, the operator of Indian cryptocurrency exchange WazirX, said on Tuesday that it had a no-tolerance policy towards illegal activities. The statement comes just days after the Directorate of Enforcement (ED) alleged that the company was in violation of know your customer (KYC) guidelines.
Binance, WazirX ownership row has crypto users in knots: A public spat between global cryptocurrency platform Binance CEO Changpeng Zhao, known as CZ, and WazirX cofounder Nischal Shetty has dealt a blow to the 15 million or so users of the Indian crypto exchange.
ED freezes another Rs 370 crore: The ED said on Friday it has attached Rs 370 crore in assets of a Bengaluru-based company linked to the instant loan app case. The assets were parked in bank and payment gateway balances and crypto wallets on Flipvolt, the Indian arm of Singaporean crypto exchange Vauld.
Funding news
IPO-bound FirstCry may see its valuation hit $4 billion in secondary financing: Japan’s SoftBank is one among a slew of investors seeking to sell shares of FirstCry in the secondary market, valuing the company in the range of $3.5-4 billion as it prepares for a public listing, several sources told us.
AIFs due for closure struggle to sell holdings in startups: Alternative investment funds (AIFs) that are scheduled to wind up in the next few months have been struggling to sell their holdings in unlisted ventures and startups as investors stay clear of risky investments due to tightening liquidity.
Unicorns unwilling to take valuation cut face longer winter, says SoftBank’s Son: SoftBank chief executive Masayoshi Son said the ongoing funding winter will last longer for unicorn founders who are unwilling to accept a lower valuation to raise funds and continue to believe in their previous valuation. Unicorns are startups valued at $1 billion or more.
India SaaS firms face moment of reckoning on US belt tightening: Owing to the current belt tightening in the United States, Indian software-as-a-service (SaaS) vendors are sharpening their focus on products, hiring judiciously and reining in marketing spends even as they explore new market and geographic niches, according to top entrepreneurs and executives.
Paytm in the news
Shares of Paytm parent One 97 Communications closed 4.66% down on Friday.
Tech policy update
NCLAT dismisses NGO’s appeal in WhatsApp antitrust case: The National Company Law Appellate Tribunal (NCLAT) has dismissed an appeal by a non-governmental organisation (NGO) against a decision by India’s antitrust regulator that instant messaging platform WhatsApp had not been abusing its dominant position in the country.
ETtech Done Deals
■ Digital lending fintech EarlySalary is in the process of closing a $100 million financing round which is being led by private equity fund TPG and Norwest Venture Partners, according to multiple people ET spoke to. The round is expected to be officially announced in the next few days.
■ Customer engagement and user retention software platform Clevertap raised $105 million in a Series D funding round led by global investment group CDPQ. IIFL AMC’s tech fund and existing investors Tiger Global and Sequoia India also participated in the round. ET had reported on August 9 that the company was looking to raise $75 million. Clevertap aims to use the fresh funds for expansion and strengthening its team.
■ Ronnie Screwvala-led UpGrad picked up $210 million in a funding round at a $2.5 billion valuation. Many prominent investors participated in the round, including existing backers Temasek, IFC and IIFL. The funding comes amidst a challenging period for edtech startups, with many like Byju’s and Unacademy cutting their headcount to navigate the gloomy economic environment.
Hiring picks up momentum
Ola Electric making plans to hire about 3,000 for car project: Ola Electric is close to finalising plans for its electric car project and is likely to reveal this on August 15. The electric vehicle maker is looking to hire about 3,000 people for its upcoming car project, executives at multiple recruitment services firms told ET.
IT corner
IT Industry faces perfect storm on talent, says Wipro’s Rishad Premji: The Indian IT sector is facing a “perfect storm” in terms of talent-related challenges, said Wipro Ltd executive chairman Rishad Premji, as nearly 40% of its employees have joined in just the past two years and a similar number are operating from tier II and tier III cities.
Govt to issue SOPs after IT industry flags work-from-home rules in SEZs: The government will soon release standard operating procedures (SOPs) that special economic zones (SEZs) must follow regarding new work from home (WFH) rules.
