Also in this letter:
■ Important to stay balanced, and I’m cautiously optimistic: Wipro CEO
■ Karnataka govt may build its own ride-hailing app for autos
■ Byju’s to sack up to 2,500 employees in ‘rationalisation’ bid
A slew of consumer internet companies including food delivery platforms, cab aggregators and some gaming platforms are petitioning the government to clarify certain proposals in the upcoming telecom bill, which appears to club them with communication service providers, multiple sources told us.
They are seeking a clearer definition of “communication” and “over-the-top” service providers in the new rules, the sources said.
Concerns: These businesses are concerned that the upcoming regulation – currently open for public consultation – has expanded the definition of OTT to include not just instant messaging apps such as WhatsApp, Signal, Telegram but all other electronic mail, voice mail, voice, video and data communication services.
As a result, consumer internet companies that offer chat or other communication services within their apps for customer care support or dialogue between users could also be required to apply for a telecom licence, said the people cited above.
Meeting: Last week, several consumer internet companies met officials from the Ministry of Electronics and Information Technology (MeitY), seeking more clarity on the issue.
While the IT ministry assured them that the definition of OTT or communication service provider would not apply to them, it also asked them to present their case before the Department of Telecom (DoT), some executives told us. The draft telecom Bill falls under the purview of the DoT.
Experts’ view: Privacy experts are of the view that OTT and digital communication platforms, which are currently regulated under the IT Act, have sufficient safeguards to ensure they function correctly.
Wipro has seen robust deal wins and a strong order pipeline despite macroeconomic headwinds. However, inflationary pressures and recession fears may have strayed into client discussions, and the company is “cautiously optimistic” about the future, Thierry Delaporte, its chief executive and managing director, told us in an exclusive interview.
Here are some edited excerpts.
How are you preparing Wipro for an uncertain environment?
I’m constantly talking and listening to clients. It is important to recognise that the market is fundamentally changing. We can absolutely navigate in a less good market, but you need to adjust, not the strategy but tactically. Numbers tell me that things continue to do well. I’m halfway through the year and I already know that we will show more than 10% growth.
Have senior executives left because of your new operating structure? Will there be more pain before we see gain?
There is no new organisation structure or model. There is no big change and no pain to be expected. Some leaders join while some leaders go. It is business as usual for me. People leave, it’s a fact of life. It happens to my competitors as well.
Wipro, HCL Tech announce Q2 results: Wipro on Wednesday reported a 14.6% year-on-year (YoY) jump in its Q2 revenue to Rs 22,540 crore while its profit after tax decreased 9.3% to Rs 2,660 crore.
HCL Technologies reported a 5.2% sequential rise in consolidated revenue for the September quarter to Rs 24,686 crore. Consolidated net profit rose 6.3% to Rs 3,489 crore. Net profit rose 7.1% revenue 19.5% YoY.
Byju’s to sack around 2,500 employees in ‘rationalisation’ bid
After furnishing its audited FY21 financials 18 months late in September, edtech major Byju’s said it would cut – or ‘rationalise’ – about 5% of its 50,000 workforce across departments such as product, content, media and technology in phases. A 5% cut in the workforce would translate to about 2,000-2,500 sackings. The final number may be different.
Byju’s said in a statement that these changes were in line with its aim to turn profitable this fiscal year.
Round two: Earlier this year the company fired at least 600 people from group firms Toppr and WhiteHat Jr.
Changes: Byju’s India K-10 business, which includes Toppr, Meritnation, TutorVista, Scholar, and HashLearn, will now be consolidated under a single business unit. Only Aakash Institute and Great Learning will continue to function as separate organisations.
The company said it would conduct sales pitches over the phone, video calls and email to save costs. It also said it would cut marketing spends in India and focus on expanding its presence overseas.
Accounting controversy: The edtech firm has faced intense scrutiny over its accounting practices in recent months.
Byju’s revenue from operations for the financial year ended March 2021 was readjusted to Rs 2,280 crore, a drop of 48% from the projected revenue of about Rs 4,400 crore in its unaudited results, as we reported last month. It incurred massive losses of 4,588 crore in its audited FY21 results, up from just Rs 262 crore in FY20.
The Karnataka government may develop its own ride-hailing app for auto-rickshaws, transport minister B Sriramulu said on Wednesday, in a veiled threat to cab aggregators Uber and Ola, which are battling allegations of charging inflated fares.
Business as usual: Sriramulu’s statement came after the aggregators continued to operate their app-based auto-ride hailing services, despite the government ordering them to stop and asking why they had been charging more than the stipulated rates.
We reported on October 8 that aggregators were unlikely to stop services in the city despite the government’s order.
On Wednesday, ET was able to hail auto rides on Ola, Uber and Rapido and drivers said they would continue to accept these rides as it was difficult for them to find customers otherwise.
By evening, all three aggregators had reduced the convenience fee from Rs 47 including tax, to around Rs 25 including tax.
Fireside Ventures, a direct-to-consumer (D2C) focussed fund, has announced the closing of its third and largest fund at $225 million.
This is nearly double the size of its previous fund of $120 million. Fireside’s portfolio firms includeMamaearth, Boat, and Slurrp Farm.
The new fund will invest in 25-30 startups, said Kanwaljit Singh, managing partner, Fireside Ventures. ITC, Premji Invest, Waterfield Fund of Funds, Emami are among its limited partners, or LPs, who have invested in the third fund. 10 founders of Fireside Ventures have also invested in the new fund, Singh added.
The fund close comes amid a slowdown in demand for the D2C sector, which peaked during the pandemic.
Adda247, an edtech startup that offers courses for jobs in public sector banks, government departments and the railways, said it has raised $35 million in a funding round led by WestBridge Capital. Google, a new investor, also participated in the round along with existing investors such as Info Edge Ventures and Asha Impact.
Co-living and food court operator Isthara has raised $10 million (Rs 81 crore) from investors to expand its presence in the retail smart food-tech and co-living businesses, the company’s managing director Gilbert James said.
Electric vehicle ( EV) component maker Vecmocon has raised $5.2 million from Tiger Global, Blume Ventures and angel investors. The company, incubated at IIT-Delhi, aims to use the funds for team building, business expansion, scaling operations and product innovation.
Direct-to-consumer (D2C) health-tech startup Good Health Company said it has raised $10 million in a funding round led by Left Lane Capital, with participation from existing investors such as Khosla Ventures, Quiet Capital, and Weekend Fund.
Online education firm Physics Wallah, which recently became a unicorn, has acquired PrepOnline, an online learning platform for the National Eligibility cum Entrance Test (NEET), and Altis Vortex, a publisher of exam preparation books, for undisclosed sums.
The acquisitions come at a time when Physics Wallah is eyeing new acquihires this year as it looks to expand geographically, strengthen its leadership team, and foray into new test preparation categories.
The company is also earmarking $20 million for acquisitions this year from the recent fundraise, cofounder Prateek Maheshwari told us.
Unicorn round: In June, Physics Wallah, which was launched during the onset of the Covid-19 pandemic in 2020 by Alakh Pandey and Maheshwari, raised $100 million from Westbridge and GSV Ventures, at a post-money valuation of $1.1 billion.
Other Top Stories By Our Reporters
Global VC funding plummets to 21-month low in India, says report: Global venture funding in startups took a beating between July and September, according to a report by CB Insights, as global macroeconomic headwinds such as high inflation, interest rate hikes and the ongoing Russia-Ukraine war dented investor confidence worldwide.
IGSS Ventures looks to partner with Indian manufacturers on chips: Singapore-based IGSS Ventures, one of the applicants for the centre’s $10-billion scheme to seed a semiconductor ecosystem, is in talks with Indian manufacturers for partnerships amid scrutiny of its incentive application to build a $3.5-billion fabrication plant in India.
Global Picks We Are Reading
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