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Govt likely to take ‘middle path’ on crypto; Myntra leaps into live commerce
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The Indian government, which is finalising legislation on cryptocurrencies for the winter session of Parliament, is likely to take the “middle path” on regulating these assets, one that “balances the concerns of all stakeholders,” a source told us.
Also in this letter:
■ Myntra leaps into live commerce
■ Brightchamps valued at nearly $500 million
■ Kamal Haasan to launch digital avatar in the metaverse
![Cryptocurrency Cryptocurrency](https://img.etimg.com/photo/msid-87572725/Cryptocurrency.jpg)
India may take the “middle path” on cryptocurrencies as it finalises legislation on the virtual assets for the upcoming winter session of Parliament, a source in the government told us.
Catch up quick: The government had listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 for the budget session, but it was not introduced for wider consultations. An inter-ministerial group was subsequently set up to look into the draft and issues around such currencies.
Change of stance? An outright ban on crypto is not seen as feasible because of the large sums that Indians have been pouring into various crypto assets. All the same, these virtual currencies are also unlikely to be allowed as legal tender, a government source told us.
“A balance has to be found,” the person said, adding that a final call on the contours of the law will be taken shortly. “A middle path that balances the concerns of all stakeholders is more likely.”
The source said a growing view among policymakers is that the law should take into consideration technological developments in the space. The earlier draft, the person said, did not address these issues effectively.
What’s next? Various stakeholders recently conducted a detailed presentation for policymakers, including some from the finance ministry, on various aspects of crypto, including pros and cons, regulations adopted by other countries, investments by Indians in digital currencies, and the Reserve Bank’s views on the issue.
There is likely to be another presentation shortly to finalise the taxation aspects, the source said. The bill will then be legally vetted before being sent to the Cabinet.
Finance minister Nirmala Sitharaman had told us in August: “I've already said that we are not saying no to cryptocurrency. We are saying we'll have to see how this technology can help fintech to maximise its potential that it has.”
![Myntra Myntra](https://img.etimg.com/photo/msid-87572751/Myntra.jpg)
Flipkart-owned fashion portal Myntra has been running a pilot in which experts and influencers in fashion, beauty and personal care hold live video sessions on the platform. The influencers also interact with customers, answering queries related to brands and pricing.
ET has reviewed the live sessions, in which experts also offer limited-time discounts (typically for around four hours) to nudge consumers to add featured products to their carts.
Myntra is expected to officially announce its entry into live commerce later this month. Its parent company Flipkart recently announced it had partnered with short-video platform Moj on video commerce.
China success: A part of the broader social commerce space, influencer-led live commerce relies on spontaneous orders from consumers in relatively low-cost categories such as beauty, fashion and accessories.
The business model has been a huge success in China, where Alibaba's Taobao Live has a large chunk of the market. It reported a gross merchandise value (GMV) of close to $62 billion in 2020, according to Alibaba.
ByteDance, the parent firm of TikTok, owns Douyin — a short-video platform with ecommerce integrations to make direct purchases. Kuaishou is the other major player in the market.
In India, startups such as Bulbul and Simsim (now acquired by YouTube) have tried replicating this model and are in the early stages of expanding their operations. Last month, InMobi’s Glance-owned Roposo also pivoted to the live commerce model.
In a report in June, market research firm RedSeer said India’s live commerce market could be worth $4-5 billion by 2025, with around $1 billion of GMV coming from beauty and personal care alone.
Brightchamps founder and chief executive Ravi Bhushan
Premji Invest, the investment arm of Wipro founder Azim Premji, has led a new $51 million funding round in Brightchamps. The edtech startup offers online courses on programming, artificial intelligence, design thinking and financial literacy to children aged 6 to 16.
Edtech-focused investor GSV Ventures, Flipkart cofounder Binny Bansal-backed 021 Capital, and Singapore-based venture fund Beenext also participated in the round.
Valuation: Brightchamps has raked in a total of $63 million from investors since it began operations last August and is now valued at nearly $500 million, its founder and chief executive Ravi Bhushan told us.
GSV Ventures, which has backed Indian edtech firms such as Classplus and LEAD School, had led a previously undisclosed investment of around $12 million in Brightchamps. The company already has a presence in 10 foreign countries in the Middle East and Southeast Asia. It plans to use the fresh funds to expand to the US and Canada. Bhushan said the company also plans to launch its paid courses in India next year.
How’s business? The 16-month-old startup has 200 full-time employees and around 1,000 teacher-partners. It currently has an annual recurring revenue (ARR) of around $10 million, Bhushan said.
Next steps: Brightchamps’ leadership team largely operates out of Goa but it plans to open a facility in Bengaluru for staff willing to work on a hybrid model.
“In two months, we are launching a financial literacy course. That’s a big focus. Besides that, we are focusing on building platforms. We have one-to-one and one-to-many (students) offerings for the courses but are looking at potential peer-to-peer models of sharing learnings,” Bhushan added.
Bhushan said the company will hire more people across functions such as product, technology, growth, content, operations, sales, marketing and business development as it expands its operations.
![Kamal Haasan Kamal Haasan](https://img.etimg.com/photo/msid-87572769/Kamal Haasan.jpg)
Producer, director, actor and politician Kamal Haasan is set to become the first Indian celebrity to have his own digital avatar in the metaverse.
What’s the metaverse? It’s meant to be the next iteration of the internet after Web 2.0, and will support decentralised, persistent, 3D virtual environments. This virtual space will be accessible through virtual reality headsets, augmented reality glasses, smartphones, PCs, and game consoles.
Read our full explainer on the metaverse here.
Haasan, who turned 67 on Sunday, announced his entry into the digital space with the launch of NFT-based digital collectibles. He also announced plans for his museum in an upcoming metaverse game from Fantico, an Indian licensed digital collectables platform.
What are NFTs? NFTs are a type of crypto asset in which each token is unique. They are used to prove ownership of digital content such as videos, photographs or audio, and are changing the way fans buy collectables.
Read our full explainer on NFTs here.
What’s the plan? Fantico will first launch various digital collectables including posters, avatars and videos for Haasan, founder Abhayanand Singh told ET. “Over the next few months, we are looking at the launch of the game-based metaverse, where Haasan will have his own world, his personal museum,” he said.
This will allow Haasan’s fans globally to interact with him by exploring his world, interacting with his digital avatars, buying memorabilia and souvenirs—both physical and digital—and participating in meet-and-greet sessions within the game.
All aboard the NFT train: With fans spending big money on NFT-backed assets, several celebrities have launched their own digital collectibles.
![SaaS SaaS](https://img.etimg.com/photo/msid-87572819/SaaS.jpg)
Late in September, Chennai-based software-as-a-service (SaaS) unicorn Freshworks Inc. debuted on the Nasdaq stock exchange with a blockbuster $1 billion initial public offering (IPO). The development was a bellwether for the sunrise sector and set the stage for several other Indian SaaS firms — 10 of which are unicorns — to consider going public.
At least three SaaS startups — Druva, Capillary Technologies and RateGain Travel Technologies — are preparing for their IPOs in the next few months, according to industry insiders.
India already has over 1,000 funded software product startups that generate $2-$3 billion in revenue and employ 40,000 people, according to SaaSBoomi, a community for Indian SaaS entrepreneurs. In keeping with the current projected growth for the industry, it estimates that Indian SaaS could create $1 trillion in value by 2030 and employ 500,000 people by then.
Micron CEO Sanjay Mehrotra
Micron, the world’s fourth-largest semiconductor company, could look at setting up a semiconductor assembly and test facility in India rather than an expensive fabrication facility, provided it gets the right incentives on a long term basis, its CEO Sanjay Mehrotra told us. While manufacturing is necessary, the country should not lose its focus as a design and innovation hub for semiconductor companies, he added.
“In terms of assembly and test opportunities in India, there are perhaps greater opportunities on that front, rather than the fab side. We have a diversified footprint in Malaysia, Singapore, Taiwan and China, with respect to our assembly and test proficiencies. But that is an area [in which] we, of course, continue to evaluate opportunities [in India] for the future,” Mehrotra said.
India has, for the third time in two decades, stepped up efforts to project its over $50 billion market for chips and invite global semiconductor companies to set up fabrication facilities, and assembly and test units here.
The country, which imports all the chips it needs, is also facing the brunt of the global semiconductor shortage, which has particularly affected its auto, electronics and digital equipment sector. India has a state-run chip unit, the Semi-Conductor Laboratory, which it is looking to upgrade to produce 65-nanometre chips for strategic needs.
Also in this letter:
■ Myntra leaps into live commerce
■ Brightchamps valued at nearly $500 million
■ Kamal Haasan to launch digital avatar in the metaverse
Policymakers considering ‘middle path’ on crypto
![Cryptocurrency Cryptocurrency](https://img.etimg.com/photo/msid-87572725/Cryptocurrency.jpg)
India may take the “middle path” on cryptocurrencies as it finalises legislation on the virtual assets for the upcoming winter session of Parliament, a source in the government told us.
Catch up quick: The government had listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 for the budget session, but it was not introduced for wider consultations. An inter-ministerial group was subsequently set up to look into the draft and issues around such currencies.
Change of stance? An outright ban on crypto is not seen as feasible because of the large sums that Indians have been pouring into various crypto assets. All the same, these virtual currencies are also unlikely to be allowed as legal tender, a government source told us.
“A balance has to be found,” the person said, adding that a final call on the contours of the law will be taken shortly. “A middle path that balances the concerns of all stakeholders is more likely.”
The source said a growing view among policymakers is that the law should take into consideration technological developments in the space. The earlier draft, the person said, did not address these issues effectively.
What’s next? Various stakeholders recently conducted a detailed presentation for policymakers, including some from the finance ministry, on various aspects of crypto, including pros and cons, regulations adopted by other countries, investments by Indians in digital currencies, and the Reserve Bank’s views on the issue.
There is likely to be another presentation shortly to finalise the taxation aspects, the source said. The bill will then be legally vetted before being sent to the Cabinet.
Finance minister Nirmala Sitharaman had told us in August: “I've already said that we are not saying no to cryptocurrency. We are saying we'll have to see how this technology can help fintech to maximise its potential that it has.”
Myntra is testing an influencer-led live commerce model
![Myntra Myntra](https://img.etimg.com/photo/msid-87572751/Myntra.jpg)
Flipkart-owned fashion portal Myntra has been running a pilot in which experts and influencers in fashion, beauty and personal care hold live video sessions on the platform. The influencers also interact with customers, answering queries related to brands and pricing.
ET has reviewed the live sessions, in which experts also offer limited-time discounts (typically for around four hours) to nudge consumers to add featured products to their carts.
Myntra is expected to officially announce its entry into live commerce later this month. Its parent company Flipkart recently announced it had partnered with short-video platform Moj on video commerce.
China success: A part of the broader social commerce space, influencer-led live commerce relies on spontaneous orders from consumers in relatively low-cost categories such as beauty, fashion and accessories.
The business model has been a huge success in China, where Alibaba's Taobao Live has a large chunk of the market. It reported a gross merchandise value (GMV) of close to $62 billion in 2020, according to Alibaba.
ByteDance, the parent firm of TikTok, owns Douyin — a short-video platform with ecommerce integrations to make direct purchases. Kuaishou is the other major player in the market.
In India, startups such as Bulbul and Simsim (now acquired by YouTube) have tried replicating this model and are in the early stages of expanding their operations. Last month, InMobi’s Glance-owned Roposo also pivoted to the live commerce model.
In a report in June, market research firm RedSeer said India’s live commerce market could be worth $4-5 billion by 2025, with around $1 billion of GMV coming from beauty and personal care alone.
Brightchamps valued at nearly $500 million after Premji Invest-led funding
![Brightchamps founder Ravi Bhushan Brightchamps founder Ravi Bhushan](https://img.etimg.com/photo/msid-87572761/Brightchamps founder Ravi Bhushan.jpg)
Premji Invest, the investment arm of Wipro founder Azim Premji, has led a new $51 million funding round in Brightchamps. The edtech startup offers online courses on programming, artificial intelligence, design thinking and financial literacy to children aged 6 to 16.
Edtech-focused investor GSV Ventures, Flipkart cofounder Binny Bansal-backed 021 Capital, and Singapore-based venture fund Beenext also participated in the round.
Valuation: Brightchamps has raked in a total of $63 million from investors since it began operations last August and is now valued at nearly $500 million, its founder and chief executive Ravi Bhushan told us.
GSV Ventures, which has backed Indian edtech firms such as Classplus and LEAD School, had led a previously undisclosed investment of around $12 million in Brightchamps. The company already has a presence in 10 foreign countries in the Middle East and Southeast Asia. It plans to use the fresh funds to expand to the US and Canada. Bhushan said the company also plans to launch its paid courses in India next year.
How’s business? The 16-month-old startup has 200 full-time employees and around 1,000 teacher-partners. It currently has an annual recurring revenue (ARR) of around $10 million, Bhushan said.
- ARR refers to revenue, normalised on an annual basis, that a company expects to receive from its customers for providing them with products or services. It is primarily used by businesses operating on a subscription-based model.
Next steps: Brightchamps’ leadership team largely operates out of Goa but it plans to open a facility in Bengaluru for staff willing to work on a hybrid model.
“In two months, we are launching a financial literacy course. That’s a big focus. Besides that, we are focusing on building platforms. We have one-to-one and one-to-many (students) offerings for the courses but are looking at potential peer-to-peer models of sharing learnings,” Bhushan added.
Bhushan said the company will hire more people across functions such as product, technology, growth, content, operations, sales, marketing and business development as it expands its operations.
Tweet of the day
Kamal Haasan to launch his digital avatar in the metaverse
![Kamal Haasan Kamal Haasan](https://img.etimg.com/photo/msid-87572769/Kamal Haasan.jpg)
Producer, director, actor and politician Kamal Haasan is set to become the first Indian celebrity to have his own digital avatar in the metaverse.
What’s the metaverse? It’s meant to be the next iteration of the internet after Web 2.0, and will support decentralised, persistent, 3D virtual environments. This virtual space will be accessible through virtual reality headsets, augmented reality glasses, smartphones, PCs, and game consoles.
Read our full explainer on the metaverse here.
Haasan, who turned 67 on Sunday, announced his entry into the digital space with the launch of NFT-based digital collectibles. He also announced plans for his museum in an upcoming metaverse game from Fantico, an Indian licensed digital collectables platform.
What are NFTs? NFTs are a type of crypto asset in which each token is unique. They are used to prove ownership of digital content such as videos, photographs or audio, and are changing the way fans buy collectables.
Read our full explainer on NFTs here.
What’s the plan? Fantico will first launch various digital collectables including posters, avatars and videos for Haasan, founder Abhayanand Singh told ET. “Over the next few months, we are looking at the launch of the game-based metaverse, where Haasan will have his own world, his personal museum,” he said.
This will allow Haasan’s fans globally to interact with him by exploring his world, interacting with his digital avatars, buying memorabilia and souvenirs—both physical and digital—and participating in meet-and-greet sessions within the game.
All aboard the NFT train: With fans spending big money on NFT-backed assets, several celebrities have launched their own digital collectibles.
- Just last week, Amitabh Bachchan sold a collection of his NFTs for $966,000.
- Last month, Salman Khan joined hands with BollyCoin, a Bollywood NFT marketplace. The company said it sold a million tokens in the first three hours of the launch.
- Khan also launched short-video app Chingari’s crypto token, $Gari.
Why Indian firms are no flash in the SaaS-pan
![SaaS SaaS](https://img.etimg.com/photo/msid-87572819/SaaS.jpg)
Late in September, Chennai-based software-as-a-service (SaaS) unicorn Freshworks Inc. debuted on the Nasdaq stock exchange with a blockbuster $1 billion initial public offering (IPO). The development was a bellwether for the sunrise sector and set the stage for several other Indian SaaS firms — 10 of which are unicorns — to consider going public.
At least three SaaS startups — Druva, Capillary Technologies and RateGain Travel Technologies — are preparing for their IPOs in the next few months, according to industry insiders.
- Travel technology platform RateGain has filed its draft red herring prospectus (DRHP) with Sebi for a Rs 1,200-crore IPO likely in December.
- Enterprise software solutions provider Capillary is aiming for a similar-sized offering.
- Data protection firm Druva has also been working on its IPO plans, though it is expected to list in the US, like Freshworks.
India already has over 1,000 funded software product startups that generate $2-$3 billion in revenue and employ 40,000 people, according to SaaSBoomi, a community for Indian SaaS entrepreneurs. In keeping with the current projected growth for the industry, it estimates that Indian SaaS could create $1 trillion in value by 2030 and employ 500,000 people by then.
Micron may look at assembling, not building, semiconductors in India
![micron micron](https://img.etimg.com/photo/msid-87572807/micron.jpg)
Micron, the world’s fourth-largest semiconductor company, could look at setting up a semiconductor assembly and test facility in India rather than an expensive fabrication facility, provided it gets the right incentives on a long term basis, its CEO Sanjay Mehrotra told us. While manufacturing is necessary, the country should not lose its focus as a design and innovation hub for semiconductor companies, he added.
“In terms of assembly and test opportunities in India, there are perhaps greater opportunities on that front, rather than the fab side. We have a diversified footprint in Malaysia, Singapore, Taiwan and China, with respect to our assembly and test proficiencies. But that is an area [in which] we, of course, continue to evaluate opportunities [in India] for the future,” Mehrotra said.
India has, for the third time in two decades, stepped up efforts to project its over $50 billion market for chips and invite global semiconductor companies to set up fabrication facilities, and assembly and test units here.
The country, which imports all the chips it needs, is also facing the brunt of the global semiconductor shortage, which has particularly affected its auto, electronics and digital equipment sector. India has a state-run chip unit, the Semi-Conductor Laboratory, which it is looking to upgrade to produce 65-nanometre chips for strategic needs.
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