Paytm, Mobikwik shares slip; US onsite visas stall

Time of India

2 days ago

Paytm, Mobikwik shares slip; US onsite visas stall
Also in the letter:
Paytm, Mobikwik shares drop after government denies MDR on UPI
Driving the news:
Paytm shares fell as much as 10% intraday, briefly erasing Rs 6,123 crore in market cap, before recovering slightly to close 6.56% down at Rs 897.20.
Mobikwik shares dropped 3% to Rs 273.05 during trade, before closing 2.68% lower at Rs 273.95, reducing its market value to Rs 2,128 crore.
Backdrop:
Earlier media reports suggested the government may introduce MDR charges on UPI transactions above Rs 3,000.
During recent earnings calls, Paytm executives had voiced cautious optimism about MDR returning, which could benefit payment companies grappling with rising infrastructure costs.
But the Finance Ministry dismissed these reports, calling them 'completely false, baseless, and misleading.'
By the numbers:
UPI processed 18.68 billion transactions worth Rs 25.14 lakh crore in May, up 33% year-on-year.
Average daily transaction value stood at Rs 81,106 crore, with 602 million daily transactions.
For FY24, UPI accounted for 80% of India's retail digital payments.
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Why it matters:
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US onsite visas stall for Indian techies amid slowdown, immigration pressure
What's the story:
Firms such as TCS, Infosys and Wipro have kept hundreds of approved candidates on hold, waiting for travel approvals or visa stamping, people familiar with the matter told ET.
At one IT firm, nearly 600 employees selected for assignments in 2023-24 are still waiting for deployment.
The reasons:
Subcontracting costs — traditionally used to bridge talent gaps — have declined, as firms optimise general and administrative expenses, according to Kotak Institutional Equities.
The numbers:
The US issued 11,080 H-1B visas to Indian nationals in April, 11,067 in March, and 13,749 in February, per US State Department data.
The annual cap for Indian H-1B visa allotments remains at 85,000.
Why it matters:
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What's next:
OpenAI in fresh funding talks with Saudi PIF, Reliance
The latest:
The company is looking to secure $30 billion in the second tranche by December, which would value it at about $260 billion pre-money, the report said.
SoftBank, which leads the round, has already invested nearly $2 billion and bought another $240 million worth of shares from employees earlier this year.
SoftBank is expected to commit about three-fourths of this tranche, while Coatue and Founders Fund may invest at least $100 million each, according to the report.
Talks with PIF and Reliance are still in early stages and may evolve, The Information added.
OpenAI wants to partner with Reliance to distribute and sell its AI products in India, which CEO Sam Altman has called its second-largest user market.
India context:
In February, Altman visited India and met government officials and business leaders, including executives from Reliance.
As reported by ETtech, OpenAI has also partnered with India's Ministry of Electronics and IT (MeitY) to launch OpenAI Academy India, focused on AI skill development.
Separately, Reliance Jio is expanding its AI infrastructure ambitions through investments in data centres, a potential future avenue for collaboration with OpenAI.
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Between the lines:
The massive fundraise comes as OpenAI projects capital spending of $90 billion between 2025 and 2027, driven by soaring compute needs as ChatGPT's weekly active users crossed 500 million.
Completion of the round hinges on OpenAI completing a corporate restructuring of its for-profit unit by year-end. If that fails, SoftBank may cut its commitment and reduce the round to $20 billion, per the report.
The Stargate project, OpenAI's $500 billion global AI data centre buildout with SoftBank, MGX and Oracle, remains a parallel track.
Indian semiconductor firms go global to fast-track chipmaking ambitions
Driving the moves:
Tata Electronics and L&T Semiconductor Technologies (LTSCT) have made strategic bids to acquire foreign chip assets.
LTSCT and Kaynes Semicon are jointly acquiring Fujitsu General Electronics' power modules business in Japan for Rs 118.34 crore.
Polymatech acquired US-based semiconductor equipment provider Nisene Technology last year to build an integrated manufacturing base.
The big picture:
Indian firms are eyeing advanced packaging, OSAT (outsourced semiconductor assembly and test), and precision manufacturing capabilities to upskill local talent and establish robust training pipelines.
India already has strength in chip design, but access to specialised IP, equipment and know-how remains limited.
Why Malaysia matters:
Expert view:
'Most acquisitions and partnerships at the moment are really about two things: gaining access to trained talent – essentially acqui-hires – and jump-starting work on cutting-edge technologies,' said Prithvideep Singh of Continental Device India Ltd (CDIL).
'All the JVs and strategic partnerships are a result of the need for Indian entities to build their core competency with best in class proven technology and manufacturing processes,' added Neil Shah of Counterpoint Research.
Why it matters:
Musk's net worth edges up after Trump apology
Catch up quick:
Backstory:
The tensions stemmed from Musk mocking Trump's economic policy proposals, referring to his spending bill as 'The Big Ugly Bill.'
Musk had also stepped down from the Department of Government Efficiency before launching several critical posts.
What Trump said:
Meanwhile:
Also Read:
Paytm and Mobikwik stocks slide after MDR rumour sparks selloff. This and more in today's ETtech Top 5.■ OpenAI seeks fresh funds■ Indian semicon goes global■ Musk's apology worksShares of digital payments players Paytm and Mobikwik slipped on Thursday after the finance ministry denied media reports that it was considering levying a merchant discount rate (MDR) on UPI transactions.While fintech players argue that MDR is needed to sustain payment infrastructure, the government remains firm on keeping UPI free for consumers and merchants to promote digital payments at scale.Indian IT majors are pausing deputations to the US, delaying onsite assignments for thousands of skilled workers even after visa clearances, amid softening client demand and tighter immigration scrutiny.While US immigration policies remain tight, executives say business uncertainty and slowing client budgets are bigger factors driving caution. AI-led efficiencies are also shrinking the need for extensive onsite teams.US onsite assignments have historically been critical for employee retention and career growth in Indian IT. But with delayed deputations extending to 24 months for many, firms are now prioritising previously selected employees over fresh nominations for FY25.ETtech Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and employees.Interested? Reach out to us at [e-mail] to explore sponsorship opportunities.OpenAI has held discussions with Saudi Arabia's Public Investment Fund (PIF), Reliance Industries and UAE's MGX to raise fresh capital as part of its $40 billion megafund , US tech publication The Information reported.India's chipmakers are turning to overseas acquisitions to bridge capability gaps as they push to build a domestic semiconductor ecosystem.As ET reported on June 3 , Tata Electronics is exploring OSAT or fab acquisitions in Malaysia to accelerate its entry into semiconductor manufacturing and assembly.While domestic semiconductor fabs remain years away, strategic overseas acquisitions are helping Indian companies fast-track capability building in advanced packaging — a crucial step for future global competitiveness.Elon Musk's net worth climbed slightly after his public apology to Donald Trump over recent comments, as the two leaders sought to patch up differences.Musk's wealth rose by $191 million to reach $411.4 billion, according to Forbes' real-time tracker. The Tesla CEO posted on X : 'I regret some of my posts about President @realDonaldTrump last week. They went too far.'After the apology, Trump told the New York Post: 'I thought it was very nice that he did that.' White House Press Secretary Karoline Leavitt confirmed Trump appreciated Musk's remarks.Trump has unveiled a new 'Trump Card' US residency visa programme priced at $5 million, with registrations open on TrumpCard.gov. The programme, still under development, promises wealthy applicants a path to US residency, though details remain scarce.