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States lure Tesla component suppliers; bumper exit for Snapdeal founders
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Happy Thursday! Tesla’s suppliers are looking for locations to double down on their India operations. This and more in today’s ETtech Morning Dispatch.
Also in this letter:
■ Fintechs lend a hand to banks
■ Karnataka’s job quota bill on hold
■ ETtech Done Deals
![electric vehicles makers FAME II policy EV THUMB IMAGE ETTECH 1 electric vehicles makers FAME II policy EV THUMB IMAGE ETTECH 1](https://img.etimg.com/photo/msid-111822024/electric vehicles makers FAME II policy EV THUMB IMAGE ETTECH 1.jpg)
A number of Tesla Inc’s component suppliers are scouting for locations to start their operations in India, people aware of the matter said, even as the US car maker’s plans to manufacture in the country remain fluid.
Driving the news: While the Centre continues to woo Tesla, state governments including Gujarat and Tamil Nadu are luring the EV maker's suppliers, believing that “Tesla would be more likely to go where its supplier ecosystem is,” sources said.
Separately, two other European suppliers of the EV maker are eyeing plans to expand operations in Tamil Nadu, which already has some of Tesla’s suppliers based there.
![Tesla Tesla](https://img.etimg.com/photo/msid-111822031/Tesla.jpg)
Quote, unquote: Experts say Tesla's supply chain is highly intricate, characterised by partnerships with multiple tier I and tier II suppliers across different regions, aimed at the timely delivery of high-quality products.
"For instance, Tesla has partnered with BYD and CATL in China for batteries, and with Panasonic and LG Energy in the USA for the same purpose,” said Soumen Mandal, senior research analyst at Counterpoint Research.
Shift from China: India is also gaining from a shift away from China by global manufacturers. “The reduction of US (manufacturers) dependency on China has brought India closer as a reliable partner to meet growing demands,” Ashwin Amberkar, automotive analyst at Canalys, said.
Titan Capital cofounders Rohit Bansal (left) and Kunal Bahl
Kunal Bahl and Rohit Bansal, who founded ecommerce marketplace Snapdeal, and now run Titan Capital, have clocked a bumper win by exiting at-home services platform Urban Company.
Deal details: Bahl and Bansal have snagged a nearly 200 times return on their nine-year-old seed cheque, according to people in the know. The duo invested Rs 57 lakh in 2015 in Urban Company and have made a full exit with aggregate proceeds to totalling to Rs 111 crore, according to people aware of the transaction.
![titan cap titan cap](https://img.etimg.com/photo/msid-111822051/titan cap.jpg)
Secondary investment: They sold their stake to Vy Capital’s offshoot, Dharana Capital which closed a $50 million secondary deal at the Gurugram-based firm. Some employees also offloaded their stock options as part of the secondary transaction.
Return multiple: Last year, the duo sold shares worth around Rs 78 crore through the initial public offering (IPO) of Honasa Consumer, the parent company of Mamaearth. At the issue price of Rs 324 per share, Bahl and Bansal saw a return multiple of over 100 times on the per share weighted average acquisition cost of Rs 3.21 per share.
Other bets: Some of the other investments that have clocked a return of 100 times or more for Titan Capital include Ola Cabs and Credgenics. OfBusiness is one such investment for the fund but it is yet to make an exit from there.
Also read | Sebi clears FirstCry and Unicommerce IPO
![Fixerra StableMoney Upswing promoting fixed deposits Fintech THUMB IMAGE ETTECH Fixerra StableMoney Upswing promoting fixed deposits Fintech THUMB IMAGE ETTECH](https://img.etimg.com/photo/msid-111822057/Fixerra StableMoney Upswing promoting fixed deposits Fintech THUMB IMAGE ETTECH.jpg)
Fintech startups have helped grow consumer loans, stock markets, and the digital payments sector. Now, some of them are trying to make fixed deposits (FDs) attractive again.
Driving the news: Bengaluru-headquartered Stable Money has started selling FDs of small finance banks (SFBs) and other medium-sized private lenders. Eventually, they intend to expand into bonds and other fixed-income investment options. Mumbai-based Fixerra and Upswing are building pipelines to connect banks with consumer-facing applications to sell such products.
![fintech fds fintech fds](https://img.etimg.com/photo/msid-111822072/fintech fds.jpg)
Straight off the shelf: While FDs are among the most popular products sold by banks as a fixed-income investment, fintechs are helping sell recurring deposits (RDs), credit cards backed by FDs, and similar products. Eventually, these products can be sold on ecommerce portals and payment applications as more and more banks start distributing them through third-party applications.
Market opportunity: Industry estimates suggest that the overall FDs parked with banks stood at Rs 110 lakh crore. Of this, around Rs 25,000 crore is sold through digital channels, including around Rs 5,000 crore through third-party platforms. These volumes are being reported within about a year of third-party apps joining the fixed-income bandwagon.
Also read | Take KYC seriously: RBI’s clear message to fintechs
Karnataka CM Siddaramaiah
Amid backlash from all fronts, the Congress government in Karnataka has put the controversial job reservation bill on hold.
Damage control: Karnataka chief minister Siddaramaiah said in a post on X, “The bill approved by the cabinet to provide reservation for Kannadigas in private sector organisations, industries, and enterprises has been temporarily put on hold.”
![Ktaka bill Ktaka bill](https://img.etimg.com/photo/msid-111822087/Ktaka bill.jpg)
“This will be revisited and decided in the coming days,” he added.
Contentious provisions: As per the Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024, “Any industry, factory, or other establishment shall appoint 50% of local candidates in management categories and 70% in non-management categories.”
If there is a lack of local candidates, then companies may apply for relaxation from the provisions of this Act to the government, it said.
Industry response: The industry criticised the bill, calling it a regressive move and short-sighted decision.
The National Association of Software and Service Companies (Nasscom) raised concerns over the bill, saying, “The restrictions could force companies to relocate as local skilled talent becomes scarce.”
Biocon managing director Kiran Mazumdar Shaw, TV Mohandas Pai, former chief financial officer of Infosys, and Assocham’s co-chairman RK Misra were among those who spoke against the bill.
![Startup Funding THUMB IMAGE ETTECH Startup Funding THUMB IMAGE ETTECH](https://img.etimg.com/photo/msid-111822102/Startup Funding THUMB IMAGE ETTECH.jpg)
Protonas bags undisclosed amount of funding: Protonas, a startup specialising in low-cost polymer electrolyte membrane (PEM) hydrogen fuel cell solutions, has secured an undisclosed amount of funding in a round led by Transition VC.
Seeds Fincap raises over $8.5 million funding: Non-banking financial company (NBFC) Seeds Fincap has raised over $8.5 million in a Series A funding round led by Lok Capital and Z47 (formerly Matrix Partners India).
Corvi LED bags $8 million: Mumbai-based consumer lighting startup Corvi LED has raised $8 million (Rs 65.6 crore) from Enam Investments as part of its Series B funding round.
ByteXL raises $5.9 million: Edtech startup ByteXL has raised $5.9 million in a funding round led by early-stage venture capital firm Kalaari Capital as the lead investor, along with the Michael and Susan Dell Foundation.
Boon secures $5 million in funding: Watertech startup Boon has raised $5 million in a mix of equity and debt in a funding round that marked the first investment in India by Roca Group Ventures, the investment arm of Spanish bathroom products firm Roca Group.
Nitish Mittersain, CEO, Nazara Technologies
Nazara Tech’s subsidiaries get Rs 1,120 crore GST demand notice: Online gaming and sports company Nazara Technologies' two subsidiaries have received show cause notices in relation to Goods and Services Tax with a total liability of Rs 1,120 crore, the company stated on Wednesday.
LTIMindtree Q1 net profit up 3.1% at Rs 1,135 crore: LTIMindtree’s net profit grew 3.1% sequentially to Rs 1,135 crore but missed ET’s estimate of Rs 1,150 crore. Lower margins compared to the corresponding quarter of last fiscal also impacted its net profit, which was 1.5% down on a year-on-year basis.
■ These AI models are pretty mid. That’s why companies love them. (WSJ)
■ Struggling bitcoin miners seek deals with AI companies (FT)
■ The real problem with TikTok’s ‘fruity’ boy trend (Wired)
Also in this letter:
■ Fintechs lend a hand to banks
■ Karnataka’s job quota bill on hold
■ ETtech Done Deals
Tesla’s component suppliers scout for location to kick-start operation
![electric vehicles makers FAME II policy EV THUMB IMAGE ETTECH 1 electric vehicles makers FAME II policy EV THUMB IMAGE ETTECH 1](https://img.etimg.com/photo/msid-111822024/electric vehicles makers FAME II policy EV THUMB IMAGE ETTECH 1.jpg)
A number of Tesla Inc’s component suppliers are scouting for locations to start their operations in India, people aware of the matter said, even as the US car maker’s plans to manufacture in the country remain fluid.
Driving the news: While the Centre continues to woo Tesla, state governments including Gujarat and Tamil Nadu are luring the EV maker's suppliers, believing that “Tesla would be more likely to go where its supplier ecosystem is,” sources said.
Separately, two other European suppliers of the EV maker are eyeing plans to expand operations in Tamil Nadu, which already has some of Tesla’s suppliers based there.
![Tesla Tesla](https://img.etimg.com/photo/msid-111822031/Tesla.jpg)
Quote, unquote: Experts say Tesla's supply chain is highly intricate, characterised by partnerships with multiple tier I and tier II suppliers across different regions, aimed at the timely delivery of high-quality products.
"For instance, Tesla has partnered with BYD and CATL in China for batteries, and with Panasonic and LG Energy in the USA for the same purpose,” said Soumen Mandal, senior research analyst at Counterpoint Research.
Shift from China: India is also gaining from a shift away from China by global manufacturers. “The reduction of US (manufacturers) dependency on China has brought India closer as a reliable partner to meet growing demands,” Ashwin Amberkar, automotive analyst at Canalys, said.
Kunal Bahl, Rohit Bansal exit Urban Company with 200X returns
![Titan Capital cofounders Kunal Bahl and Rohit Bansal exit from Urban Company THUMB IMAGE ETTECH Titan Capital cofounders Kunal Bahl and Rohit Bansal exit from Urban Company THUMB IMAGE ETTECH](https://img.etimg.com/photo/msid-111822039/Titan Capital cofounders Kunal Bahl and Rohit Bansal exit from Urban Company THUMB IMAGE ETTECH.jpg)
Kunal Bahl and Rohit Bansal, who founded ecommerce marketplace Snapdeal, and now run Titan Capital, have clocked a bumper win by exiting at-home services platform Urban Company.
Deal details: Bahl and Bansal have snagged a nearly 200 times return on their nine-year-old seed cheque, according to people in the know. The duo invested Rs 57 lakh in 2015 in Urban Company and have made a full exit with aggregate proceeds to totalling to Rs 111 crore, according to people aware of the transaction.
![titan cap titan cap](https://img.etimg.com/photo/msid-111822051/titan cap.jpg)
Secondary investment: They sold their stake to Vy Capital’s offshoot, Dharana Capital which closed a $50 million secondary deal at the Gurugram-based firm. Some employees also offloaded their stock options as part of the secondary transaction.
Return multiple: Last year, the duo sold shares worth around Rs 78 crore through the initial public offering (IPO) of Honasa Consumer, the parent company of Mamaearth. At the issue price of Rs 324 per share, Bahl and Bansal saw a return multiple of over 100 times on the per share weighted average acquisition cost of Rs 3.21 per share.
Other bets: Some of the other investments that have clocked a return of 100 times or more for Titan Capital include Ola Cabs and Credgenics. OfBusiness is one such investment for the fund but it is yet to make an exit from there.
Also read | Sebi clears FirstCry and Unicommerce IPO
Fintechs lend a hand to banks to net more low-cost deposits
![Fixerra StableMoney Upswing promoting fixed deposits Fintech THUMB IMAGE ETTECH Fixerra StableMoney Upswing promoting fixed deposits Fintech THUMB IMAGE ETTECH](https://img.etimg.com/photo/msid-111822057/Fixerra StableMoney Upswing promoting fixed deposits Fintech THUMB IMAGE ETTECH.jpg)
Fintech startups have helped grow consumer loans, stock markets, and the digital payments sector. Now, some of them are trying to make fixed deposits (FDs) attractive again.
Driving the news: Bengaluru-headquartered Stable Money has started selling FDs of small finance banks (SFBs) and other medium-sized private lenders. Eventually, they intend to expand into bonds and other fixed-income investment options. Mumbai-based Fixerra and Upswing are building pipelines to connect banks with consumer-facing applications to sell such products.
![fintech fds fintech fds](https://img.etimg.com/photo/msid-111822072/fintech fds.jpg)
Straight off the shelf: While FDs are among the most popular products sold by banks as a fixed-income investment, fintechs are helping sell recurring deposits (RDs), credit cards backed by FDs, and similar products. Eventually, these products can be sold on ecommerce portals and payment applications as more and more banks start distributing them through third-party applications.
Market opportunity: Industry estimates suggest that the overall FDs parked with banks stood at Rs 110 lakh crore. Of this, around Rs 25,000 crore is sold through digital channels, including around Rs 5,000 crore through third-party platforms. These volumes are being reported within about a year of third-party apps joining the fixed-income bandwagon.
Also read | Take KYC seriously: RBI’s clear message to fintechs
Karnataka govt puts job reservation bill on hold post uproar
![Karnataka CM Siddaramaiah Karnataka CM Siddaramaiah](https://img.etimg.com/photo/msid-111822075/Karnataka CM Siddaramaiah.jpg)
Amid backlash from all fronts, the Congress government in Karnataka has put the controversial job reservation bill on hold.
Damage control: Karnataka chief minister Siddaramaiah said in a post on X, “The bill approved by the cabinet to provide reservation for Kannadigas in private sector organisations, industries, and enterprises has been temporarily put on hold.”
![Ktaka bill Ktaka bill](https://img.etimg.com/photo/msid-111822087/Ktaka bill.jpg)
“This will be revisited and decided in the coming days,” he added.
Contentious provisions: As per the Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024, “Any industry, factory, or other establishment shall appoint 50% of local candidates in management categories and 70% in non-management categories.”
If there is a lack of local candidates, then companies may apply for relaxation from the provisions of this Act to the government, it said.
Industry response: The industry criticised the bill, calling it a regressive move and short-sighted decision.
The National Association of Software and Service Companies (Nasscom) raised concerns over the bill, saying, “The restrictions could force companies to relocate as local skilled talent becomes scarce.”
Biocon managing director Kiran Mazumdar Shaw, TV Mohandas Pai, former chief financial officer of Infosys, and Assocham’s co-chairman RK Misra were among those who spoke against the bill.
ETtech Done Deals
![Startup Funding THUMB IMAGE ETTECH Startup Funding THUMB IMAGE ETTECH](https://img.etimg.com/photo/msid-111822102/Startup Funding THUMB IMAGE ETTECH.jpg)
Protonas bags undisclosed amount of funding: Protonas, a startup specialising in low-cost polymer electrolyte membrane (PEM) hydrogen fuel cell solutions, has secured an undisclosed amount of funding in a round led by Transition VC.
Seeds Fincap raises over $8.5 million funding: Non-banking financial company (NBFC) Seeds Fincap has raised over $8.5 million in a Series A funding round led by Lok Capital and Z47 (formerly Matrix Partners India).
Corvi LED bags $8 million: Mumbai-based consumer lighting startup Corvi LED has raised $8 million (Rs 65.6 crore) from Enam Investments as part of its Series B funding round.
ByteXL raises $5.9 million: Edtech startup ByteXL has raised $5.9 million in a funding round led by early-stage venture capital firm Kalaari Capital as the lead investor, along with the Michael and Susan Dell Foundation.
Boon secures $5 million in funding: Watertech startup Boon has raised $5 million in a mix of equity and debt in a funding round that marked the first investment in India by Roca Group Ventures, the investment arm of Spanish bathroom products firm Roca Group.
Other Top Stories By Our Reporters
![Nitish Mittersain CEO Nazara Technologies Nitish Mittersain CEO Nazara Technologies](https://img.etimg.com/photo/msid-111822112/Nitish Mittersain CEO Nazara Technologies.jpg)
Nazara Tech’s subsidiaries get Rs 1,120 crore GST demand notice: Online gaming and sports company Nazara Technologies' two subsidiaries have received show cause notices in relation to Goods and Services Tax with a total liability of Rs 1,120 crore, the company stated on Wednesday.
LTIMindtree Q1 net profit up 3.1% at Rs 1,135 crore: LTIMindtree’s net profit grew 3.1% sequentially to Rs 1,135 crore but missed ET’s estimate of Rs 1,150 crore. Lower margins compared to the corresponding quarter of last fiscal also impacted its net profit, which was 1.5% down on a year-on-year basis.
Global Picks We Are Reading
■ These AI models are pretty mid. That’s why companies love them. (WSJ)
■ Struggling bitcoin miners seek deals with AI companies (FT)
■ The real problem with TikTok’s ‘fruity’ boy trend (Wired)
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