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Surprise poll results impact startups' plans, and other top stories this week
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In a week charged with political buzz, the BJP government came back to power after a stormy election, but without a full majority that left it dependent on the whims of its alliance partners. Unnerved, the markets went into a tailspin on counting day, with both benchmark indices, Sensex and Nifty50, dropping 8% intraday. They recovered a day later as hopes of a stable government revived.
The startup ecosystem sought policy continuity and support from the incoming government. Rameesh Kailasam, chief executive of startup industry body IndiaTech, pointed out issues like angel tax which require the government's attention. Meanwhile, Mohandas Pai, Infosys veteran and chairman of venture firm Aarin Capital, called the results "a victory of democracy."
![Startup Inc and investor reactions to the 2024 Lok Sabha election results_THUMB IMAGE_ETTECH_1 Startup Inc and investor reactions to the 2024 Lok Sabha election results_THUMB IMAGE_ETTECH_1](https://img.etimg.com/photo/msid-110805795/Startup Inc and investor reactions to the 2024 Lok Sabha election results_THUMB IMAGE_ETTECH_1.jpg)
As stock markets struggled with volatility after the results, new-age companies eyeing public listings soon are planning to seek counsel on the timing of their IPOs.
![Startups GFX Startups GFX](https://img.etimg.com/photo/msid-110805803/Startups GFX.jpg)
We have been reporting that companies including omnichannel retailer FirstCry, food and grocery delivery platform Swiggy, electric vehicle maker Ola Electric and ecommerce software company Unicommerce are planning to list on the bourses soon.
Meanwhile, amid a funding winter that shows no signs of abating, we reported on new ways startups are adopting to cut costs. While they continue to lay off workers, companies like Swiggy and the Ola group are also refilling a section of vacant positions with junior employees at lower salaries. Earlier in the week, sources told us that Ola Electric is planning to lay off around 400-500 employees to rein in costs ahead of its listing.
Now, on to other top stories this week.
![Byjus Crisis Byjus Crisis](https://img.etimg.com/photo/msid-110805813/Byjus Crisis.jpg)
Prosus’ 10% Byju’s stake worth zilch: HSBC Note | Dutch-listed technology investment firm Prosus' nearly 10% stake in Byju's has no value, HSBC said, alluding to a deepening cash crunch and legal battles at the troubled Indian edtech firm.
Earlier this week, a section of lenders in a consortium that lent $1.2 billion to Byju’s said they have petitioned a US court to initiate bankruptcy proceedings against the company’s Epic, Tynker and Osmo subsidiaries.
Online travel aggregator Ixigo sets Rs 88-93 price band for IPO to raise Rs 740 crore: Le Travenues Technology, the parent company of online travel aggregator Ixigo, set a price band of Rs 88-93 per share for its initial public offering.
![Ixigo investor returns_June 2024_Graphic_ETTECH Ixigo investor returns_June 2024_Graphic_ETTECH](https://img.etimg.com/photo/msid-110805826/Ixigo investor returns_June 2024_Graphic_ETTECH.jpg)
The company sold shares worth Rs 176 crore in the company ahead of its pre-IPO anchor investor allocation, according to an addendum to its regulatory filing.
![New-age brand_ Rare Rabbit_Kapiva_Frubon_Go Zero_Hocco Ice Cream_Veeba_10X_logos collage_THUMB IMAGE_ETTECH New-age brand_ Rare Rabbit_Kapiva_Frubon_Go Zero_Hocco Ice Cream_Veeba_10X_logos collage_THUMB IMAGE_ETTECH](https://img.etimg.com/photo/msid-110805831/New-age brand_ Rare Rabbit_Kapiva_Frubon_Go Zero_Hocco Ice Cream_Veeba_10X_logos collage_THUMB IMAGE_ETTECH.jpg)
VC funds take a shine to new gen’s D2C brands: Several direct-to-consumer (D2C) brands in sectors such as food and beverages, apparel, health and wellness — founded by scions of families running traditional businesses in similar categories — are drawing significant amounts of venture funding.
![All in the family_May 2024_Graphic_ETTECH All in the family_May 2024_Graphic_ETTECH](https://img.etimg.com/photo/msid-110810498/All in the family_May 2024_Graphic_ETTECH.jpg)
Temasek, Fidelity pick up $200 million stake in Lenskart secondary deal at $5 billion valuation: Singapore sovereign fund Temasek and US financial services major Fidelity have together invested $200 million in Lenskart through a secondary share sale at a valuation of $5 billion. Lenskart said it was valued at $4.5 billion in its previous round of funding last year.
Lending startup Fibe closes $90 million financing in mix of primary and secondary transaction: Pune-based consumer lending startup Fibe, previously known as EarlySalary, has closed a $90 million financing round that included a secondary share sale by some existing investors.
![cyber security threats cyber security threats](https://img.etimg.com/photo/msid-110805839/cyber security threats.jpg)
RBI sets up panel to track online payment frauds; AP Hota to head committee | The Reserve Bank of India (RBI) has set up a committee with industry participation to help build a digital public infrastructure platform specialised to tackle the issue of frauds, two people in the know told ET. The panel will be chaired by Abhaya Hota, the first chief executive officer of National Payments Corporation of India (NPCI).
Tech-based NBFCs try a balancing act after RBI action on unsecured loans: At a time when the RBI wants banks and non-banking finance companies to slow down on unsecured lending, ringing caution on sourcing borrowers through fintech firms without proper checks, a bunch of mid-sized NBFCs will have to play the balancing act.
How tech-first stock brokers are diversifying into lending: Tech-first broking companies which are leading the pack among stockbrokers in the country, are betting on the credit business to build a larger financial services play and reduce reliance on the highly volatile futures and options (F&O) market as a core part of their operations.
![Stock brokers gfx Stock brokers gfx](https://img.etimg.com/photo/msid-110805847/Stock brokers gfx.jpg)
RBI, payment industry meet discusses contours of new draft PA guidelines: The digital payments industry has raised issues with the RBI’s draft guidelines for payment aggregators, including mandatory full KYC and stopping disbursal of funds directly to vendors, at a meeting with RBI officials a week ago.
![Indian IT and engineering services firms_outsourcing_ETTECH Indian IT and engineering services firms_outsourcing_ETTECH](https://img.etimg.com/photo/msid-110805855/Indian IT and engineering services firms_outsourcing_ETTECH.jpg)
How the Indian GCC boom is lighting up prospects of IT firms: Indian IT firms are gaining from the country’s emergence as a hub of global capability centres (GCCs), providing services, setting up projects, as well as partnering and even acquiring such centres.
Infosys CEO Salil Parekh's annual compensation grew to Rs 66 crore in FY24: The annual compensation of Infosys chief executive officer and managing director, Salil Parekh, climbed more than a sixth last fiscal to reach Rs 66 crore, showed the FY24 annual report of the company. Parekh drew a salary of Rs 56.4 crore in FY23.
![What IT CEOs earned in FY24_Annual compensation_JUNE 2024_Graphic_ETTECH_3 What IT CEOs earned in FY24_Annual compensation_JUNE 2024_Graphic_ETTECH_3](https://img.etimg.com/photo/msid-110805902/What IT CEOs earned in FY24_Annual compensation_JUNE 2024_Graphic_ETTECH_3.jpg)
Wipro gives over 85% variable pay for Q4 FY24: IT major Wipro paid an average of more than 85% variable pay to its employees for the fourth quarter of fiscal 2024. Wipro had given a pay-out of more than 85% in the third quarter as well. In the first two quarters of FY24, the averages were 80% and 81%, respectively.
![digital-personal-data-protection_digital-india-bill_tech-policy_thumb-image_ettech. digital-personal-data-protection_digital-india-bill_tech-policy_thumb-image_ettech.](https://img.etimg.com/photo/msid-110805906/digital-personal-data-protection_digital-india-bill_tech-policy_thumb-image_ettech..jpg)
Data protection, AI rules top tech’s wishlist for next govt: Technology policy experts say that notification of the Digital Personal Data Protection (DPDP) Rules, which would provide teeth to enforce the DPDP Act notified in August last year, should be the top priority of the new government.
Ministries divided over inclusion of IT gear in public procurement list: The department of promotion of industry and internal trade (DPIIT) and the IT ministry are divided over whether electronic items such as storage consumables, printer cartridges, toners and printer cables should be in ‘Appendix A’ of the public procurement list, sources told ET.
The startup ecosystem sought policy continuity and support from the incoming government. Rameesh Kailasam, chief executive of startup industry body IndiaTech, pointed out issues like angel tax which require the government's attention. Meanwhile, Mohandas Pai, Infosys veteran and chairman of venture firm Aarin Capital, called the results "a victory of democracy."
![Startup Inc and investor reactions to the 2024 Lok Sabha election results_THUMB IMAGE_ETTECH_1 Startup Inc and investor reactions to the 2024 Lok Sabha election results_THUMB IMAGE_ETTECH_1](https://img.etimg.com/photo/msid-110805795/Startup Inc and investor reactions to the 2024 Lok Sabha election results_THUMB IMAGE_ETTECH_1.jpg)
As stock markets struggled with volatility after the results, new-age companies eyeing public listings soon are planning to seek counsel on the timing of their IPOs.
![Startups GFX Startups GFX](https://img.etimg.com/photo/msid-110805803/Startups GFX.jpg)
We have been reporting that companies including omnichannel retailer FirstCry, food and grocery delivery platform Swiggy, electric vehicle maker Ola Electric and ecommerce software company Unicommerce are planning to list on the bourses soon.
Meanwhile, amid a funding winter that shows no signs of abating, we reported on new ways startups are adopting to cut costs. While they continue to lay off workers, companies like Swiggy and the Ola group are also refilling a section of vacant positions with junior employees at lower salaries. Earlier in the week, sources told us that Ola Electric is planning to lay off around 400-500 employees to rein in costs ahead of its listing.
Now, on to other top stories this week.
Top Stories This Week
![Byjus Crisis Byjus Crisis](https://img.etimg.com/photo/msid-110805813/Byjus Crisis.jpg)
Prosus’ 10% Byju’s stake worth zilch: HSBC Note | Dutch-listed technology investment firm Prosus' nearly 10% stake in Byju's has no value, HSBC said, alluding to a deepening cash crunch and legal battles at the troubled Indian edtech firm.
Earlier this week, a section of lenders in a consortium that lent $1.2 billion to Byju’s said they have petitioned a US court to initiate bankruptcy proceedings against the company’s Epic, Tynker and Osmo subsidiaries.
Online travel aggregator Ixigo sets Rs 88-93 price band for IPO to raise Rs 740 crore: Le Travenues Technology, the parent company of online travel aggregator Ixigo, set a price band of Rs 88-93 per share for its initial public offering.
![Ixigo investor returns_June 2024_Graphic_ETTECH Ixigo investor returns_June 2024_Graphic_ETTECH](https://img.etimg.com/photo/msid-110805826/Ixigo investor returns_June 2024_Graphic_ETTECH.jpg)
The company sold shares worth Rs 176 crore in the company ahead of its pre-IPO anchor investor allocation, according to an addendum to its regulatory filing.
Deal counter
![New-age brand_ Rare Rabbit_Kapiva_Frubon_Go Zero_Hocco Ice Cream_Veeba_10X_logos collage_THUMB IMAGE_ETTECH New-age brand_ Rare Rabbit_Kapiva_Frubon_Go Zero_Hocco Ice Cream_Veeba_10X_logos collage_THUMB IMAGE_ETTECH](https://img.etimg.com/photo/msid-110805831/New-age brand_ Rare Rabbit_Kapiva_Frubon_Go Zero_Hocco Ice Cream_Veeba_10X_logos collage_THUMB IMAGE_ETTECH.jpg)
VC funds take a shine to new gen’s D2C brands: Several direct-to-consumer (D2C) brands in sectors such as food and beverages, apparel, health and wellness — founded by scions of families running traditional businesses in similar categories — are drawing significant amounts of venture funding.
![All in the family_May 2024_Graphic_ETTECH All in the family_May 2024_Graphic_ETTECH](https://img.etimg.com/photo/msid-110810498/All in the family_May 2024_Graphic_ETTECH.jpg)
Temasek, Fidelity pick up $200 million stake in Lenskart secondary deal at $5 billion valuation: Singapore sovereign fund Temasek and US financial services major Fidelity have together invested $200 million in Lenskart through a secondary share sale at a valuation of $5 billion. Lenskart said it was valued at $4.5 billion in its previous round of funding last year.
Lending startup Fibe closes $90 million financing in mix of primary and secondary transaction: Pune-based consumer lending startup Fibe, previously known as EarlySalary, has closed a $90 million financing round that included a secondary share sale by some existing investors.
Fintech News
![cyber security threats cyber security threats](https://img.etimg.com/photo/msid-110805839/cyber security threats.jpg)
RBI sets up panel to track online payment frauds; AP Hota to head committee | The Reserve Bank of India (RBI) has set up a committee with industry participation to help build a digital public infrastructure platform specialised to tackle the issue of frauds, two people in the know told ET. The panel will be chaired by Abhaya Hota, the first chief executive officer of National Payments Corporation of India (NPCI).
Tech-based NBFCs try a balancing act after RBI action on unsecured loans: At a time when the RBI wants banks and non-banking finance companies to slow down on unsecured lending, ringing caution on sourcing borrowers through fintech firms without proper checks, a bunch of mid-sized NBFCs will have to play the balancing act.
How tech-first stock brokers are diversifying into lending: Tech-first broking companies which are leading the pack among stockbrokers in the country, are betting on the credit business to build a larger financial services play and reduce reliance on the highly volatile futures and options (F&O) market as a core part of their operations.
![Stock brokers gfx Stock brokers gfx](https://img.etimg.com/photo/msid-110805847/Stock brokers gfx.jpg)
RBI, payment industry meet discusses contours of new draft PA guidelines: The digital payments industry has raised issues with the RBI’s draft guidelines for payment aggregators, including mandatory full KYC and stopping disbursal of funds directly to vendors, at a meeting with RBI officials a week ago.
IT Corner
![Indian IT and engineering services firms_outsourcing_ETTECH Indian IT and engineering services firms_outsourcing_ETTECH](https://img.etimg.com/photo/msid-110805855/Indian IT and engineering services firms_outsourcing_ETTECH.jpg)
How the Indian GCC boom is lighting up prospects of IT firms: Indian IT firms are gaining from the country’s emergence as a hub of global capability centres (GCCs), providing services, setting up projects, as well as partnering and even acquiring such centres.
Infosys CEO Salil Parekh's annual compensation grew to Rs 66 crore in FY24: The annual compensation of Infosys chief executive officer and managing director, Salil Parekh, climbed more than a sixth last fiscal to reach Rs 66 crore, showed the FY24 annual report of the company. Parekh drew a salary of Rs 56.4 crore in FY23.
![What IT CEOs earned in FY24_Annual compensation_JUNE 2024_Graphic_ETTECH_3 What IT CEOs earned in FY24_Annual compensation_JUNE 2024_Graphic_ETTECH_3](https://img.etimg.com/photo/msid-110805902/What IT CEOs earned in FY24_Annual compensation_JUNE 2024_Graphic_ETTECH_3.jpg)
Wipro gives over 85% variable pay for Q4 FY24: IT major Wipro paid an average of more than 85% variable pay to its employees for the fourth quarter of fiscal 2024. Wipro had given a pay-out of more than 85% in the third quarter as well. In the first two quarters of FY24, the averages were 80% and 81%, respectively.
Policy Updates
![digital-personal-data-protection_digital-india-bill_tech-policy_thumb-image_ettech. digital-personal-data-protection_digital-india-bill_tech-policy_thumb-image_ettech.](https://img.etimg.com/photo/msid-110805906/digital-personal-data-protection_digital-india-bill_tech-policy_thumb-image_ettech..jpg)
Data protection, AI rules top tech’s wishlist for next govt: Technology policy experts say that notification of the Digital Personal Data Protection (DPDP) Rules, which would provide teeth to enforce the DPDP Act notified in August last year, should be the top priority of the new government.
Ministries divided over inclusion of IT gear in public procurement list: The department of promotion of industry and internal trade (DPIIT) and the IT ministry are divided over whether electronic items such as storage consumables, printer cartridges, toners and printer cables should be in ‘Appendix A’ of the public procurement list, sources told ET.
Other Top Stories
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