Tax Breaks Woo Companies Back to GIFT City
Many Indian startups that incorporated in the United States might soon be coming home. The Indian government is paving the way for their return with a tax-neutral scheme aimed at luring them back to GIFT City, a special economic zone in Gujarat. This move comes after challenges faced by startups like PhonePe, which had to pay a hefty tax bill when it flipped back to India due to unfavorable capital gains norms.
The inspiration for this initiative likely stems from the fallout of the Silicon Valley Bank collapse last year, which exposed the vulnerability of Indian startups domiciled overseas. The new scheme, expected to be announced in the upcoming budget, could feature eligibility criteria like requiring the company to be founded by Indian citizens and have a substantial share value derived from Indian assets or business.
This potential homecoming could be a boon for both the startups and the Indian economy. By returning to India, these companies would gain access to a wider talent pool, reduce regulatory hurdles, and potentially benefit from government support programs. For India, the return of these startups would bring back valuable intellectual property (IP), boost the startup ecosystem, and generate tax revenue.
Zepto Zooms Ahead in Ultrafast Delivery Race
Meanwhile, India’s startup scene continues to witness impressive growth. Zepto, the pioneering quick commerce company known for creating the 10-minute grocery delivery market, is a prime example. The company is on track to secure a whopping $650 million in fresh funding, propelling its valuation to a staggering $3.5 billion – more than double its valuation in August 2023. This massive investment round is being led by Nexus Venture Partners and existing investors like Glade Brook Capital. New heavyweights like Avenir Growth, Lightspeed Venture Partners, DST Global, and Avra are also joining the party, signifying their belief in Zepto’s disruptive potential.
Zepto’s success story has even garnered praise from Binny Bansal, co-founder of Flipkart, the Indian e-commerce giant. Bansal acknowledges that Zepto has achieved what established players like Flipkart and Amazon couldn’t – cracking the ultrafast delivery market. He credits their success to a strong team, likely built by strategically hiring talent from Flipkart and Amazon themselves.
LTIMindtree Seeks New Leadership: Nachiket Deshpande Frontrunner
The musical chairs game continues at the helm of India’s IT giants. LTIMindtree, formed by the 2022 merger of L&T Infotech and Mindtree, is on the lookout for a new CEO as Debashis Chatterjee’s term nears its end in late 2025. Internal sources suggest Nachiket Deshpande, the current COO, is the frontrunner to succeed Chatterjee. Deshpande’s strong relationships within LTIMindtree and the trust he’s built with L&T chairman SN Subrahmanyan seem to be tipping the scales in his favor. While Deshpande appears to be the natural choice, earlier reports mentioned Sudhir Chaturvedi, president and an Infosys veteran, as another potential candidate. This leadership change comes amidst a period of churn at LTIMindtree, with nearly two dozen senior leaders leaving for competitors since the merger.
Noteworthy Tech News
- Paytm Money’s user base has shrunk by 2.5% in the past five months, likely due to the RBI’s crackdown on its associate firm Paytm Payments Bank. This has opened doors for competitors like Zerodha and Groww, who have seen significant user growth.
- In a surprising turn of events, Mumbai-based brokerage Dhan has witnessed a staggering 330% surge in active users, capitalizing on Paytm Money’s struggles.
- The IT industry continues to dominate fresh graduate hiring, making up a whopping 32% of all job postings in the country.
- After facing initial hurdles, Reliance Jio Platforms has finally cleared the path to launch satellite internet services in India.
- Neobanking startup Jupiter Money has received the green light from RBI to commence operations as a prepaid wallet business.
- South Park Commons, a venture capital firm, has closed its third fund and is planning to launch a fund dedicated solely to Indian startups.
- Elon Musk’s social media platform, X, has hidden user likes in an attempt to protect user privacy.
- Eyeing a slice of the booming AI pie, Oracle has partnered with the Tamil Nadu Skill Development Corporation to train a massive workforce in AI, machine learning, and blockchain.
- Samsung Electronics is offering a one-stop shop for clients to design and manufacture their AI chips faster, leveraging its expertise in memory chips, foundry services, and chip packaging.
Interesting News
- Paytm Money Loses Users: Paytm Money’s user base is shrinking after the RBI cracked down on their payments bank. Competitors like Zerodha and Groww are gaining ground.
- Dhan Soars: While Paytm Money stumbles, Mumbai-based brokerage Dhan is experiencing a surge in users, with a 330% increase in active users.
- IT Industry Hiring Spree: The IT industry is leading the way in hiring fresh graduates, making up 32% of all job postings.
- Sequel to Border Announced: Fans of the classic Indian war movie Border will be excited to learn that a sequel, Border 2, is in the works.
- Focus on AI Training: Oracle and Samsung are both making efforts to train more people in Artificial Intelligence (AI) and related technologies.
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