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Surge’s 10th Cohort Welcomes 14 Startups, Spotlight on AI and Financial Services

Supriya Biswas
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Surge’s 10th Cohort Welcomes 14 Startups, Spotlight on AI and Financial Services

Surge, the accelerator program by Peak XV, has announced the selection of 14 startups for its tenth cohort, with a focus on artificial intelligence, financial services, consumer sectors, and healthcare. This new cohort, which includes startups from India, Southeast Asia, Australia, China, the UK, the US, and the Middle East, represents a diverse and global mix of innovation.

Rajan Anandan, Managing Director at Peak XV, emphasized the geographical and sectoral diversity of this group, noting, “In our last cohort, we saw significant interest in deeptech and semiconductor companies. Now, we’re seeing broader innovation across various sectors, showcasing the dynamic evolution of the Indian startup ecosystem.”

This cohort marks the second group under the Peak XV brand, which emerged from Sequoia Capital’s split into independent entities for its operations in India, China, and the US.

Key startups in the AI and financial services domain include Brainfish, Auquan, Dubbing AI, Orbitshift, Ambak, Parseable, SalarySe, and Wobot AI. Other selected companies are Amaani, Clout Kitchen, Dezy, The Health Factory, Tailcall, and a stealth-mode healthcare startup.

Surge continues to back innovative companies, with notable alumni like InCore, Mindgrove, Scaler Academy, and Khatabook. Since its launch in 2019, the program has supported over 150 startups across 17 sectors.

Surge’s investment model has evolved, now offering up to $3 million per startup in seed funding. In addition to financial backing, startups benefit from expert mentorship, workshops, and support in areas such as product development, hiring, and marketing.

The 10th Surge cohort will run from October 2024 to February 2025, with a strong lineup of mentors including prominent industry leaders such as Stripe’s Patrick Collison, Zerodha’s Nithin Kamath, and Cred’s Kunal Shah.

Surge companies have collectively raised over $2 billion in follow-on funding, with over 75% of startups securing Series A funding after completing the program. Anandan reiterated that the caliber of founders and the market opportunity remain key factors in the selection process.

“There has never been a better time to launch a startup in India,” Anandan added, highlighting the immense potential in the country’s startup landscape.

ADB Allocates $241 Million for Power Distribution Enhancement in West Bengal

Supriya Biswas
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ADB Allocates $241 Million for Power Distribution Enhancement in West Bengal

The Asian Development Bank (ADB) has sanctioned a loan of $241.3 million aimed at upgrading electricity distribution systems in West Bengal. This initiative is set to bolster power reliability for approximately 8.96 million users across seven districts. Key components of the program include the replacement of outdated power lines, the segregation of agricultural and non-agricultural electricity feeders, and the establishment of a comprehensive management system. Additionally, the initiative focuses on improving operational efficiency and promoting renewable energy sources.

According to Roka Sanda, ADB Principal Energy Specialist, “This ADB program aligns with the government’s Revamped Distribution Sector Scheme, which is designed to enhance the operational effectiveness of power distribution companies.” The statement highlights the critical role of reliable and sustainable electricity distribution in fostering growth and development in West Bengal.

The West Bengal Distribution System Strengthening Program aims to enhance electricity delivery for 8.96 million consumers throughout the state. Planned upgrades include replacing low-tension overhead lines with aerial bundled cables, creating distinct electricity feeders for agricultural and non-agricultural consumers, and implementing an integrated information and operational management system to oversee power supply quality, performance monitoring, and corporate financial management.

Furthermore, the program seeks to bolster the operational capacity of the West Bengal State Electricity Distribution Company Limited by enhancing asset and financial management capabilities, encouraging the use of renewable energy, rationalizing tariffs, and promoting gender equity and social inclusion.

ADB is dedicated to fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while continuing its mission to eliminate extreme poverty. Founded in 1966, the organization comprises 69 member countries, with 49 from the Asia-Pacific region.

IBM Unveils Granite 3.0: Pioneering Open-Source AI Solutions for Businesses

Supriya Biswas
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IBM Unveils Granite 3.0: Pioneering Open-Source AI Solutions for Businesses

IBM has launched its latest generative AI model, named “Granite 3.0,” designed to support businesses eager to harness the power of generative AI. In contrast to competitors like Microsoft, IBM’s models will be open-source, avoiding the fees associated with similar offerings.

These new Granite models will be accessible for commercial purposes on IBM’s Watsonx platform, which is a subscription-based service enabling companies to deploy tailored AI models within their own data infrastructures. Additionally, some models will be integrated with Nvidia’s AI software, as they have been trained using Nvidia’s advanced H100 GPUs.

This launch is a significant step in IBM’s strategy to deliver AI solutions that are easy for businesses to implement. As the interest in generative AI tools grows, IBM’s latest offerings are designed to provide a versatile and scalable option for organizations looking to incorporate AI into their workflows.

Paytm Achieves Rs 1,660 Crore Revenue in Q2 FY25, Demonstrating Enhanced Financial Dynamics

Supriya Biswas
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Paytm Achieves Rs 1,660 Crore Revenue in Q2 FY25, Demonstrating Enhanced Financial Dynamics

One97 Communications Limited, the parent entity of Paytm, has announced a revenue of Rs 1,659.5 crore from operations for the second quarter of FY25. This figure represents a quarter-on-quarter growth of 10.5% compared to Q1 FY25.

Payment services contributed 59% to the total operating revenue, which rose by 9% quarter-on-quarter to reach Rs 981 crore in Q2 FY25. The rest of the revenue stemmed from financial services, device sales, and various other associated services.

In terms of expenses, Paytm allocated 38% of its total costs to employee benefits, which saw an 11.2% reduction, amounting to Rs 709 crore for Q2 FY25. This figure includes Rs 225 crore attributed to ESOP expenditures.

The company reported its marketing expenses at Rs 151 crore and payment processing costs at Rs 305 crore for Q2 FY25. Additional costs related to software, technology, finance, legal matters, and other operational overheads brought the total expenditure to Rs 1,864 crore, down from Rs 2,099 crore in the preceding quarter.

The combination of steady growth and controlled spending in marketing and employee compensation enabled Paytm to slash its losses by 47%, totaling Rs 437 crore in Q2 FY25. Notably, Paytm recorded Rs 1,345 crore as non-operating income from the sale of its entertainment ticketing segment to Zomato, which has been excluded from the loss calculation due to its non-operational nature.

During Q2 FY25, Paytm experienced remarkable growth in merchant loan disbursements, which jumped to Rs 3,303 crore from Rs 2,508 crore in Q1 FY25. However, personal loan disbursements slightly dipped to Rs 1,977 crore as lenders adopted more stringent risk policies.

Paytm’s EBITDA before ESOP costs improved by Rs 359 crore quarter-on-quarter, although it remained negative at Rs 186 crore in Q2 FY25. This enhancement in operational efficiency indicates Paytm’s ongoing efforts to manage costs and boost profitability.

As of the end of Q2 FY25, Paytm reported a robust cash balance of Rs 9,999 crore, showcasing its strong liquidity position. Despite these positive developments, the company’s stock saw a 7.39% decrease in today’s trading session, with shares priced at Rs 672.3 each by 12:04 PM, resulting in a market capitalization of approximately Rs 42,800 crore ($5 billion).

Freo Obtains IRDAI Corporate Agent License to Enhance Insurance Offerings

Supriya Biswas
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Freo Obtains IRDAI Corporate Agent License to Enhance Insurance Offerings

Freo, a leading digital finance platform, has successfully secured a Corporate Agent license from the Insurance Regulatory and Development Authority of India (IRDAI). This new license empowers Freo to offer its registered users an extensive selection of curated insurance products in partnership with well-known insurers. With this addition, Freo solidifies its position as a comprehensive provider of various digital financial services, encompassing loans, savings, and now insurance.

In an effort to bridge the insurance penetration gap in India, Freo is committed to delivering affordable and easy-to-understand insurance solutions. The company aligns itself with the government’s goal of achieving ‘Insurance For All by 2047’ amidst a projected 7% growth in the insurance sector. Freo’s mission focuses on making insurance accessible to the underinsured segments of the population.

The company’s diverse insurance portfolio features specialized offerings, including women’s health plans, top-up options for existing policies, and coverage against cyber fraud and job loss. These plans are thoughtfully designed to tackle prevalent risks such as malaria and dengue while providing extensive financial protection without straining customers’ budgets. Kunal Varma, Freo’s co-founder and Chief Executive Officer (CEO), reiterated the company’s vision to simplify insurance, making it reliable and widely accessible through its integrated digital platform.

Qualcomm Enhances Mobile Chips for AI, Partners with Samsung and Others

Supriya Biswas
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Qualcomm Enhances Mobile Chips for AI, Partners with Samsung and Others

Qualcomm, the leading mobile phone chip manufacturer based in San Diego, is expanding its focus on artificial intelligence (AI) by enhancing its mobile chip technology. In 2021, the company brought in a team of former Apple engineers to develop laptop chips, which are now being used to support AI functionalities in Microsoft’s Windows system. This year, Qualcomm is integrating that same technology into its mobile processors.

The cutting-edge innovation, branded “Oryon,” is now being incorporated into Qualcomm’s mobile chips for the first time. The latest chip, dubbed the Snapdragon 8 Elite, is designed to boost the capabilities of mobile devices for tasks such as generating AI-driven images and text. Additionally, Qualcomm is providing developers with specialized tools to access these advanced AI features, which go beyond the standard offerings of Android.

Chris Patrick, Senior Vice President and General Manager of Mobile Handsets at Qualcomm, emphasized the company’s distinctive AI offerings: “While Google is advancing quickly in AI, we have our own proprietary technology to provide to developers.”

Major tech companies like Samsung Electronics, Asustek Computer, and Xiaomi are among the first to adopt Qualcomm’s new AI-enhanced chips, signaling a new era for AI in mobile technology.

Neysa Secures $30 Million in Series A Funding to Drive AI Innovation

Supriya Biswas
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Neysa Secures $30 Million in Series A Funding to Drive AI Innovation

Neysa, a pioneering generative AI startup, has successfully closed a $30 million Series A funding round. The round was co-led by NTTVC, Z47 (formerly known as Matrix Partners India), and Nexus Venture Partners, marking another significant milestone for the company.

This funding follows Neysa’s earlier $20 million seed round, which took place just six months ago in April. With two rounds of funding within a short period, Neysa has positioned itself as one of the fastest-growing AI startups in the industry.

The newly raised capital will be used to expand the company’s AI infrastructure, boost research and development efforts, and prepare for the launch of its Gen AI acceleration cloud service. In a statement, Neysa highlighted that the funding would also support the company’s collaborations with global system integrators, cloud service providers, and AI-focused software vendors.

Founded by Sharad Sanghi and Anindya Das, Neysa provides clients with end-to-end support for generative AI projects, covering everything from planning to deployment. The startup also focuses on securing AI environments both in the cloud and at the edge, using a consumption-based model that aims to be cost-effective for clients.

Since its seed round, Neysa has made significant strides, notably with the public launch of its flagship platform, Neysa Velocis, in July. The platform offers on-demand access to high-performance computing infrastructure, and has already attracted customers across sectors such as AI, media, services, software, and the public sector.

As per a Nasscom-BCG report, India’s AI market is expected to grow to $17-22 billion by 2027, with a compound annual growth rate (CAGR) of 25-35%. Neysa joins a growing list of generative AI startups securing substantial investments this year, including Sarvam AI, which raised $41 million, and Ema, which closed $25 million. With the latest $30 million injection, Neysa has now become the most well-funded early-stage startup in the generative AI space, alongside other prominent players like Vodex, KonProz, and Rabbit.

Deepinder Goyal Launches ‘Continue’: A New Venture in Health and Mental Wellness

Supriya Biswas
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Deepinder Goyal Launches ‘Continue’: A New Venture in Health and Mental Wellness

Deepinder Goyal, co-founder and CEO of Zomato, has recently established a new venture called Continue, which aims to focus on health tracking and mental wellness. This initiative is a personal project for Goyal, operating independently of Zomato.

Founded in April 2024 under the registered name Upslove Advisors Private Limited, the company has received initial funding of ₹50 lakhs from its shareholders—Deepinder Goyal, who holds 99.9%, and Ashish Goel, with a 0.1% stake, according to a regulatory filing from the Registrar of Companies (RoC).

The website Continue.com, branded as “The Ultimate Health Tracker,” currently lacks additional information but has been registered under the new entity Upslove Advisors Private Limited.

As per RoC records, Deepinder Goyal serves as the active director, with Simrandeep Singh and Akriti Mehta appointed as additional directors of Upslove Advisors Private Limited. LinkedIn profiles reveal that Singh and Mehta have both been associated with Zomato for the past five and seven years, respectively.

This development was initially reported by Moneycontrol.

Continue is poised to rival companies like Ultrahuman and Mindhouse, founded by former Zomato COO Mohit Kumar and co-founder Pankaj Chaddah, respectively. Notably, Goyal had previously invested $10 million in Ultrahuman’s Series B funding round.

Zomato has demonstrated a keen interest in the health and fitness sector, having acquired Fitso in the past before selling it to Curefit, owned by Tata Digital. With the launch of Continue, Goyal diversifies his portfolio across multiple industries, including food delivery (Zomato), quick commerce (BlinkIt), entertainment and ticketing (District), and B2B supplies (HyperPure).

In July, Goyal entered the billionaire club as his holdings in Zomato exceeded ₹8,400 crore (approximately $1 billion).

While some might view this new venture as unexpected—considering Zomato is not yet in a stable position despite recent profitability—the business remains complex with numerous challenges to address. The ongoing departures of co-founders might lead one to question Goyal’s decision to embark on a new project. However, the collaborative culture at Zomato seems to support this move, with the company showing a willingness to support former employees with promising ideas. It’s likely that Goyal has a strategy in place to gradually involve key contributors in Continue, similar to his other ventures, without diverting focus from his primary responsibility of steering Zomato, which investors are also keenly observing.

Groww’s FY24 Revenue Surges to ₹3,145 Cr Amid Operational Gains and Domicile Relocation Impact

Supriya Biswas
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Groww’s FY24 Revenue Surges to ₹3,145 Cr Amid Operational Gains and Domicile Relocation Impact

Groww, a full-stack financial services platform, recorded substantial growth with a 2.2x increase in consolidated revenues for the fiscal year ending March 2024. Despite this rapid expansion, the Tiger Global-backed company maintained operational profitability, achieving a 16.8% rise in its profit during the period.

The company’s operational revenue grew to ₹3,145 crore in FY24, a significant jump from ₹1,435 crore in FY23, as revealed in their press release. The primary drivers of this revenue were subscription fees and commissions, alongside earnings from its tech platforms and support services, contributing to additional revenue segments.

However, Groww reported a net loss of ₹805 crore in FY24. This was largely attributed to a one-time tax payment of ₹1,340 crore related to its relocation of domicile to India. Despite this, the company stayed operationally profitable, recording ₹535 crore in profits, up from ₹458 crore in the previous fiscal year.

Earlier in the year, Groww filed its stock broking unit’s annual report, which showed a sharp increase in revenue from ₹1,295 crore in FY23 to ₹2,900 crore in FY24.

By October 2024, Groww had set a new milestone, becoming the first stock broker in India to surpass 1 crore active investors, with 1.2 crore active stock investors currently on its platform.

In comparison, rivals Zerodha and Angel One reported revenues of ₹8,370 crore and ₹4,272 crore, respectively, in the last fiscal year. For Q1 FY25, Angel One posted ₹1,405 crore in revenue and ₹293 crore in profit. Upstox, another competitor, had over ₹1,000 crore in revenue and ₹25 crore in post-tax profits in FY23 but has not yet submitted its FY24 report.

PhonePe Hits Rs 5,000 Cr Revenue Milestone in FY24 as Losses Drop by Nearly 29%

Supriya Biswas
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PhonePe Hits Rs 5,000 Cr Revenue Milestone in FY24 as Losses Drop by Nearly 29%

PhonePe, a leading digital payments platform, made significant strides in FY24, fueled by a $1 billion funding injection from investors like General Atlantic, Walmart, and Tiger Global in 2023. This infusion of capital, along with strong cost optimization, enabled PhonePe to exceed Rs 5,000 crore in revenue while also significantly narrowing its losses.

According to its annual report for FY24, PhonePe’s operational revenue saw a sharp 73.8% jump, hitting Rs 5,064 crore for the fiscal year ending March 2024. Payment services continued to be the platform’s key revenue driver, supplemented by Rs 661 crore in interest income from deposits and investments, a result of a $195 million funding round. Total revenue for the company climbed to Rs 5,725 crore, compared to Rs 3,085 crore the previous year.

On the expenses side, employee benefits accounted for 46.45% of total costs, reaching Rs 3,603 crore in FY24, an increase of 16.4% from the prior fiscal year. Notably, Rs 1,876 crore of this was attributed to ESOP expenses, with only Rs 288 crore settled in cash, while the remainder represented non-cash expenditures.

PhonePe’s costs also rose in other key areas. Payment processing charges surged 74.8% to Rs 1,166 crore, while overall operational expenses—covering advertising, IT, licenses, legal fees, and more—grew by 31.3% to Rs 7,756 crore.

Despite these rising expenses, PhonePe successfully trimmed its net losses by 28.6%, reducing them to Rs 1,996 crore from Rs 2,795 crore in FY23. This was largely due to the company’s growth, with scale expanding by 74%. The firm’s return on capital employed (ROCE) and EBITDA margin were recorded at -18.25% and -14.74%, respectively. In terms of unit economics, PhonePe spent Rs 1.53 for every rupee earned in FY24.

With a valuation of $12 billion, PhonePe is India’s highest-valued privately-owned fintech and leads the UPI-based payments market, holding close to 50% share in both transaction volume and value.

In 2022, PhonePe shifted its corporate headquarters from Singapore to India, a move that saw it pay over Rs 8,000 crore in taxes. Similarly, Groww recently announced a Rs 1,340 crore tax payment as part of its own relocation from the US to India.

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