Also in the letter:
■ M2P and Aye Finance funding rounds
■ z21 Ventures raises $20 million for its second fund
■ A closer look at Indian partners
AI advances in India face hurdles from privacy laws
Many companies, including information technology (IT) companies, banks and cloud storage providers, Seeking legal advice amid apprehensions over its use of generative artificial intelligence (GenAI) in contravention of data law provisions.
Caution ahead: Industry executives said many companies are building proprietary GenAI models without sufficient transparency about the use of personal data that is processed for training purposes.
They fear that this could go against the principles of legal consent, fairness and transparency prescribed in the Digital Personal Data Protection Act (DPDP).
Tell me more: Companies are seeking legal advice on issues such as how to define the scope of their privacy policies to seek appropriate user consent, the type of contractual obligations required for data processors when offering AI-as-a-service, and the global laws and regulations that apply to multinational data exchanges.
Expert opinion: “The DPDP Act also lays down the principles of purpose limitation and data minimisation, while models trained on the same data are used for multiple applications and there is uncertainty over whether the personal data being processed is limited to what is necessary,” said Akshayy S Nanda, partner at a Delhi-based law firm.
Astrotalk rides online astrology boom to double FY24 revenue to Rs 651 crore
Anmol Jain, co-founder of Astrotalk
As a demonstration of the growing popularity of online astrology, Astrotalk’s operating income more than doubled in fiscal year 24 to Rs 651 crore as it expanded its presence in domestic and international markets.
Finance: The startup saw its net profit jump more than tenfold to Rs 94 crore in the financial year ended March 2024, according to financial statements we have seen. The company is yet to file its financial statements with the Registrar of Companies (RoC).
- The company increased its marketing spend during FY24 and costs rose to Rs 157 crore from Rs 74 crore in FY23.
- Its staff costs for the year stood at Rs 30 crore against Rs 23 crore in FY23.
- Nearly a fifth of Astrotalk’s revenue comes from international markets, while its e-commerce business contributes 5% of its revenue.
Tell me more: Astrotalk has managed to increase its revenue sixfold in two years. In the last fiscal year, it secured its first institutional funding, having raised $30 million so far, and is currently valued at $300 million.
Founded in 2015 by Anmol Jain and Puneet Gupta, who is the CEO of the company, Astrotalk reported its first profit in FY21 at Rs 11 crore.
In quotation marks: “With our world-class technology and products, we were able to expand aggressively internationally and domestically. The increase in profits was due to increased operational efficiency across the entire marketing, product and service delivery chains,” Jain told us.
Read also | Spiritual apps gain blessing from more users and investors after Covid
M2P Fintech Nears Unicorn Status With $80M Raised
Madhusudanan R, Co-Founder of M2P Fintech
Several financing deals are being closed in the fintech sector, with B2B banking software maker M2P Fintech and Aye Finance set to raise fresh funding.
Offer details: M2P Fintech is in Negotiations to close financing for 80 million dollars Through a mix of primary and secondary transactions. Africa-based Helios Investment Partners is leading the round with participation from Bank Muscat. There is a secondary component of $20 million with early backers such as BeeNext and angel investors selling stakes, according to people familiar with the matter.
Understanding the context: M2P Fintech could use the newly raised funds for its global expansion as it goes live across multiple geographies in Africa and the Middle East.
For Aye Finance, this is an important round of funding as it prepares for a possible IPO. This will help the company strengthen its balance sheet and also expand its business.
Dr Sanjay Sharma, Aye Finance
Aye Finance gears up to raise Rs 250 crore: Gurugram based Aye Finance loan company It has entered into a definitive agreement to raise Rs 250 crore. in a new funding round led by ABC Impact, a Singapore-based impact investment fund backed by Temasek. The round will include participation from British International Investment.
Early-stage venture capital firm z21 Ventures raises $20M in first close of second fund
From left to right: Sudarshan Ravi Jha, Jyotika Gupta, Raj Shekhar Singh, co-founders of z21 Ventures
Early-stage investment firm z21 Ventures, which backs technology startups in India and those founded by Indian-origin entrepreneurs in the US, Has raised 20 million dollars in the first closing of its second $40 million fund, with investment firm WestBridge Capital joining as lead investor.
Tell me more: Fund II will continue to support technology companies in sectors such as artificial intelligence (AI), enterprise software and healthcare. It will focus primarily on pre-seed and seed stage investments, targeting startups with strong teams, innovative technologies and large market opportunities.
ET first wrote about the company’s plans. to launch the second fund in June 2024.
ET Soonicorns Summit 2024: BigBasket’s Hari Menon to dive into India’s fast-paced commerce boom
India’s e-commerce sector is expected to grow from $3,349 billion this year to $9,951 billion by 2029, and fast commerce will be the driver of this boom. As FMCG earnings reports show, fast commerce is fast becoming a major growth driver, where speed and accessibility matter most. Join Hari Menon, Co-Founder, BigBasket, in conversation with Digbijay Mishra, Deputy Editor, ETtech, on the ET Soonicorns 2024 Summit Opening Fireside Chat. Don’t miss this deep dive into the future of e-commerce on September 20, 2024 in Bengaluru.
ET Soonicorns Summit 2024: boAt’s Aman Gupta on Product Innovation | The countdown is over! The ET Soonicorns Summit 2024 kicks off on September 20 in Bengaluru. Hear from Aman Gupta, Co-Founder, boAt, in a fireside chat with Deepak Ajwani, Editor, Economictimes.com. Learn how boAt revolutionized the Indian audio market, created Gen Z-focused products, and leveraged a consumer-first approach to design and innovation. Join the summit, which is India’s largest congregation of soonicorns, to get future-ready insights from India’s top soonicorns and industry leaders!
Other featured stories from our reporters
Japanese tech giant Sharp seeks Indian partners to open display factory: Japanese company Sharp, backed by Foxconn Actively looking for an Indian partner. to set up a display factory under the India Semiconductor Mission (ISM) scheme for display manufacturing facilities, people with knowledge of the developments told ET.
IT union NITES calls for investigation into death of EY employee: IT Employees Union Nascent Information Technology Employees Senate (NITES) He has called for an “independent and thorough investigation” for the death of Anna Sebastian Perayil, 26, a public accountant who worked at Ernst & Young (EY).
SaaS startup NowPurchase raises $6M in a mix of equity and debt: NowPurchase, a software-as-a-service (SaaS)-enabled marketplace for metal fabricators, raised $6 million in a round of funding led by existing investor Info Edge Ventures.
Global Picks We’re Reading
■ Your phone won’t be the next exploding pager (Cabling)
■ AI risks making some people ‘uninsurable’, UK financial watchdog warns (FOOT)
■ How AI can help detect forest fires (MIT Technology Review)
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