Also in this letter:
■ Some influencers say Trell hasn’t paid them in months.
■ Swiggy competes with Reliance and others for the Indian division of Metro AG.
■ After closing the deal with Blinkit, Zomato determines the main priorities.
Payments Council of India asks government for help under RBI rule
Payments Council of India (PCI) and several fintech companies urged the government to intervene to address the effects of a recent Reserve Bank of India (RBI) directive that prohibited payment companies from loading lines of credit into wallets and prepaid payment instruments (PPIs).
Catch up quickly: Last week, we reported that fintech firms, along with the Digital Lenders Association of India (DLAI) appealed to the government and the banking regulator is seeking a six-month extension to fulfill the new mandate.
We also reported that the RBI circular came out after the commercial banks have expressed concern due to possible violations of regulations, including anti-money laundering (AML) rules and KYC principles, by fintech companies.
What PCI wants: The Board of the Internet and Mobile Association of India (IAMAI) has said that wallets that are fully KYC compliant should be treated on par with bank accounts and should be allowed to issue credit.
It stated that “a client’s use of a non-revolving line of credit (which was provided by a regulated lender) should be allowed to pay out in full PPI KYC.”
Essentially, this means that he seeks to reverse The RBI order was published last week.
A non-revolving line of credit is a concept where the loan is “non-refillable” unless the client is re-drawn to a new line of credit and has a clear repayment schedule with no minimum term.
Fintech case: In the letter, PCI explained the various models for using PPI to provide loans to customers. It also states that issuing wallet or PPI loans helps lenders have better control over how credit is used versus the risk of misuse if it is issued in cash.
It also states that the current PPI lending model has led to greater financial inclusion and a move towards a cashless future.
Drop out: Industry sources told us that the regulator’s actions are more likely to impact credit card startups such as the Tiger Global-backed unicorn Slice and Uni Cards.
Tiger Global, Insight Partners, General Catalyst and others have invested more than $500 million in credit card companies in the past 18 months.
Some influencers say Trell hasn’t paid them in months; Another 100 employees quit
Influencer-led video commerce platform Trell failed to pay contributions to some content creators over the past six to seven months, the three creators told us.
Nearly 100 Trell employees have also voluntarily left the company in the past two months, the source said.
Numerous troubles:Trell is under EY India forensic investigation. which looks into alleged related-party transactions, business number misreporting, and other financial irregularities at the firm.
How many are unpaid? We were unable to establish an exact figure, but sources told us that Trell did not pay a “significant” number of creators. At one point, the company was working with 1,000-1,500 creators, they said.
Removing comments: Trell’s Instagram community page had several comments from creators such as “please clear pending payments”, pushing the company to pay. We found that Trell was actively deleting these comments.
At least one creator also claimed that the company only paid influencers with large followings on popular social networks like Instagram to avoid public shaming, and did not pay creators with relatively fewer followers.
Refusal: Trell denied the allegations.
“Trell has paid all of its creators in accordance with our contractual agreements with them. A certain percentage of authors work through their agencies. Trell also made settlements with agencies,” the company said in a statement.
“However, we have become aware that some agencies are delaying payments. While this is a mismatch between agency and creator, we are actively working with them to ensure our creators are taken care of and payments are received as soon as possible…”
Layoffs: In March, Trell laid off 300 employees against the backdrop of growing uncertainty around the company and talk of stopping the funding round.
Tweet of the day
Swiggy competes with Reliance, PremjiInvest for Metro AG India
Food delivery firm Swiggy competes with Reliance Retail, Thailand’s largest conglomerate Charoen Pokphand (CP) Group, and PremjiInvest, an investment fund run by the family office of Indian tech billionaire Azim Premji. buy Indian cash and carry operations from the German retailer Metro AG, We were told by several sources.
Tata Group and private equity fund Bain Capital are evaluating the possibility of a $1-1.5 billion buyout but have yet to approve any plans, the people mentioned above said.
Submission of non-binding proposals is scheduled for this week. Flipkart-Walmart, DMart and Amazon have opted out of the race for now. Detailed due diligence will begin upon receipt of non-binding proposals, with firm proposals expected in two months.
We announced this on May 20th. Metro AG decided to leave India through the sale of its local operations, and that it was offered to at least 10 potential candidates, including Reliance, CP Group, Flipkart, D-Mart.
On May 30, we reported that Swiggy is also evaluating the prospect.
Fleet integration, cross-selling to customers are top priorities after the Zomato-Blinkit deal.
Zomato plans to begin integrating Blinkit across multiple fronts after the board of directors approves the proposed acquisition. the top executives said in a conference call on Saturday..
Catch up fast: Zomato board approved it Acquisition of fast commerce startup Blinkit for 4,447 crore ($570 million) in a stock deal on Friday. The company said Blinkit’s markdown was driven by macroeconomic factors.
Priorities: During a call with analysts and shareholders, Zomato executives indicated that customers and the integration of the shipping fleet will be priorities once the deal closes. Zomato may consider porting Blinkit to the Zomato app.
“We will be experimenting with different ways to integrate the two customer bases, or rather make sure we can leverage Zomato’s customer base to grow Blinkit’s business,” Zomato CFO Akshant Goyal said.
“After the transaction is completed, we will check these things, and if it makes sense to use both brands in the same application, then why not? So, we have a few ideas in our head, and we will experiment and see what works. eventually. ”
Leveraging Zomato’s food delivery customer base to quickly cross-sell will be an important part of “realizing synergy,” he said.
More than half of IT firms are struggling to get employees back in the office: report
Three out of four employees working for information technology (IT) companies in India don’t come to the office even once a week despite their organizations resuming work from the office (WFO), according to a survey conducted by CIEL HR.
Many tech companies are also being cautious about their return-to-the-office policies, fearing that coercion could spur more layoffs. CIEL conducted a survey of 40 IT companies in India, including those in the top ten, which employ about 900,000 employees.
Among the companies surveyed by CIEL, 30% are operating in WFH mode, while the rest have either resumed WFO or intend to return employees to the office soon. But these employees are not yet ready for the idea of moving out of the WFH regime.
TCS for distribution: To counter this TCS plans to open offices in smaller towns and non-metro regions including Guwahati, Nagpur and Goa.
This is intended to encourage collaboration among employees, executives say, as many of them are reluctant to return to their bases after working away from home, mostly in their hometowns, in the wake of the Covid-19 pandemic.
Its counterparts such as Infosys, Wipro, HCL Technologies and Tech Mahindra have already announced major expansion plans in non-metro regions.
Other top stories from our reporters
Political riddle | Impact on Indian technology firms: The corridors of power in New Delhi are once again teeming with a bunch of policies and laws that directly affect technology and Internet companies. The IT Ministry is seeking to amend the 2021 IT Rules for Large Social Media Intermediaries to address “shortcomings and gaps” in existing rules. However, the proposed changes are not the only way the IT ministry is seeking greater accountability from Internet companies operating in India.
India’s first esports NFT platform: Game streaming and esports platform Loco is set to launch a new platform that will allow fans to own and sell esports collectibles through non-fungible tokens (NFTs). The Loco Legends platform will partner with India’s top 50 esports teams and allow fans to buy and trade virtual collectibles, not unlike how sports fans buy merchandise and collectibles for their favorite sports teams in the real world.
An Indian company is ready to connect to 5G in a year:Indian businesses are betting big on 5G while 52% of companies surveyed by Omdia said they intend to start using it in the next 12 months, and 56% consider it one of the most important technologies for digital transformation.
The Global Elections We Read
■ Since Roe v. Wade, period tracking apps have been moving towards anonymity. (WSJ)
■ One day the AI will seem to be the same person as everyone else. What then? (wired)
■ How to clean yourself from the Internet, the best you can (Washington Post)