Top Startup News: Paytm's Problems On, Angel Tax To Be Reformed & More

Welcome to this week’s edition of Startup Spotlight, where we bring you the most intriguing and impactful stories from the Indian startup scene. This week, TICE.News cover a range of topics that are shaping the future of business in India. Have you ever wished to converse with AI in your native language? Google's latest innovation might just make that possible. We also explore how the online grocery market is heating up, with Amazon's aggressive expansion potentially changing how you shop for essentials. Additionally, we delve into the latest developments with Paytm as major investors pull out and the company undergoes restructuring. 

In this edition, we also discuss exciting acquisitions, government initiatives aimed at easing startup operations, and proposed tax reforms that could significantly impact the startup ecosystem. Moreover, we highlight a new platform that's set to revolutionize startup fundraising and hiring. Each story is meticulously detailed to provide you with comprehensive insights into the ever-evolving landscape of Indian startups. Read on to discover these compelling stories and more in our weekly news wrap.

Top Startup News

Google’s AI Gemini Will Speak Desi Indian Languages!

Google has launched its AI-powered Gemini app in India, now supporting nine regional languages. This generative AI app, available on Android and soon on iOS, allows users to interact in languages such as Hindi, Bengali, Tamil, and more. Gemini offers personalized suggestions for various queries, making AI more accessible to the Indian market. Additionally, Google has introduced Gemini Advanced for business enterprises, which includes data analysis and document upload features. This marks a significant step in integrating AI into everyday Indian life.

Amazon Expands Grocery Service to Over 130 Cities

Amazon India is expanding its grocery service, Amazon Fresh, to over 130 cities. Facing stiff competition from rivals like Flipkart and Reliance’s JioMart, Amazon Fresh offers a wide array of products, including fresh produce from over 11,000 farmers and various household items. Features like same-day delivery and personalized shopping experiences aim to strengthen Amazon's foothold in the growing online grocery market.

Goldman Sachs and Marshall Wace Offload Paytm Shares

Goldman Sachs and Marshall Wace have sold INR 208.35 crore worth of Paytm shares through bulk and block deals. This comes amidst regulatory challenges for Paytm, including curbs from the Reserve Bank of India affecting its payments bank operations. Despite these hurdles, Paytm is restructuring to focus on its core digital payments and financial services, with its stock seeing a recovery, trading above INR 400 for the first time since April this year.

Zomato in Talks to Acquire Paytm's Ticketing Business

Zomato is in advanced negotiations to acquire Paytm’s movie and event ticketing business for an estimated INR 1,600 crore to 2,000 crore. This move aligns with Zomato's strategy to expand into the entertainment sector, which includes live events and ticketing. As Paytm refocuses on its core operations, this potential deal could streamline its services and bolster Zomato's market presence.

DPIIT’s 100-Day Agenda Focuses on Easing Startup Funding

The Department for Promotion of Industry and Internal Trade (DPIIT) has introduced a 100-day action plan to simplify early-stage funding for startups and reduce compliance burdens. Key initiatives include the National Deep Tech Startup Policy and reforms to ease business operations. These measures aim to create a more supportive environment for innovation and economic growth, highlighting DPIIT's commitment to enhancing India's startup landscape.

CII Advocates for Angel Tax Reforms

The Confederation of Indian Industry (CII) is urging the removal of the Angel Tax in the upcoming Union Budget 2024. This tax is seen as a barrier to startup funding, and its removal could boost innovation and entrepreneurial spirit. CII President Sanjiv Puri emphasizes that eliminating this tax would rejuvenate the startup ecosystem and attract more investment, fostering a more dynamic entrepreneurial environment.

IndianVC Launches New Platform for Startups and Investors

IndianVC, a decentralized venture community based in Bengaluru, has launched a new platform to address fundraising and hiring challenges for startups. The platform includes a comprehensive investor database, a VC job board, and various templates to streamline the fundraising process. Founder Pavithran Chidambaram highlights the importance of saving entrepreneurs' time and enabling them to focus on product development. This initiative aims to enhance collaboration and support within the startup ecosystem.