Top Startup News: Paytm Layoffs, Ola Electric's IPO & More News

The world of news is full of noise! There is a new happening every now and then, especially in the electrifying startup space. In this situation, it becomes difficult for news and startup enthusiasts to keep up with the most important developments. But don't worry! TICE, your one-stop destination for startup news, is here with its weekly news bulletin, Startup Spotlight. This week, we delve into major layoffs at Paytm, groundbreaking partnerships and approvals, significant debt funding for fintech, regulatory changes in Karnataka, and much more. 

Top Startup News of the Week

Paytm Layoffs Leads to Questions

Paytm has recently been the center of media attention, with multiple reports of layoffs causing discontent among its employees. Allegations have surfaced claiming that the company is labeling these layoffs as voluntary resignations to avoid paying severance. However, Paytm refutes these claims, stating that the reports of new layoffs are speculative and incorrect. The company insists it is merely optimizing costs and focusing on core business enhancements, including advancements in AI. Furthermore, Paytm assures that fair transitions are being ensured, with full notice periods, due bonuses, and outplacement support being provided.

Paytm Partners with Samsung and Gets IRDAI Approval for Paytm Insurance

In other news, Paytm's parent company, One97 Communications, has announced a strategic partnership with Samsung and received IRDAI approval for a shift in its insurance strategy. This has led to a significant surge in Paytm’s stock, which increased by over 7% on Thursday. The partnership will allow Galaxy smartphone users to purchase tickets directly from Samsung Wallet. Additionally, the IRDAI approval enables Paytm to distribute insurance products from various insurers.

CredAble Secures INR 30 Crore Debt for MSMEs and Women-Led Businesses

Fintech startup CredAble has secured INR 30 crore in debt funding from SIDBI. The funds are intended to expand operations and provide affordable financing for MSMEs and women-led businesses. CredAble’s AI-powered platform facilitates over USD 8 billion annually in working capital and has recently allocated INR 200 crore specifically for women-led enterprises, supporting over 50 businesses in the past 10 months.

Karnataka Extends Startup Labour Norm Exemptions for 5 Years

The Karnataka State Government has extended the exemption for IT and ITES companies from the Industrial Employment Act for another five years. This includes conditions such as setting up internal committees for sexual harassment prevention and grievance redressal, and reporting disciplinary actions to labor authorities. This move aims to support the growth of IT and ITES industries in Bengaluru and Karnataka.

Ola Electric Gets SEBI Approval for India’s First EV IPO

Ola Electric has received SEBI approval for its IPO, marking the first time an Indian EV maker has received such approval and the first automotive brand IPO in 20 years since Maruti Suzuki. Ola Electric plans to raise ₹5,500 crore through the IPO, targeting a $6 billion valuation. The proceeds will be used for capacity expansion, debt repayment, and R&D. Ola Electric, which holds a 52% share in the Indian EV two-wheeler market, recently launched the affordable Ola S1 X scooters.

boAt Eyes IPO, Currently Raising Funds

Wearable startup boAt is preparing for an IPO in the Financial Year 2025-2026. The company is currently in talks with investors to raise funds. CEO Sameer Mehta mentioned that there is no "pressing need" for capital but noted interest from a global fund, a sovereign fund, and a strategic investor. boAt aims for profitability in FY25 and plans to raise INR 2,000 crore through the IPO within the next 12-18 months.

Women Gig Workers Protest Urban Company's New Work Policy in Bengaluru

In Bengaluru, women gig workers at Urban Company went on strike, protesting against new work terms requiring a minimum 4.8 rating and limiting cancellations. They describe these conditions as "horrific" and akin to "slavery," demanding better terms. Urban Company maintains its commitment to both customer experience and partner satisfaction.

Indian Neobank Jupiter Gets RBI Nod for Digital Wallet

Neobank startup Jupiter has received final approval from the RBI to launch a digital wallet for UPI payments and other transactions. This authorization will enable Jupiter to introduce a prepaid account soon. With features like UPI payments, co-branded credit cards, and loans, Jupiter aims to attract users seeking safe and convenient transaction options.

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