Startups eye insurance pie; Good Glamm's salary delay

Time of India

3 days ago

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Startups eye insurance pie; Good Glamm's salary delay
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Also in the letter:
Startups leverage distribution chops to gain ground in general insurance
Piece of pie:
Rapido is seeking the insurance regulator's nod for the licence.
Vehicle management firm Park+ entered the fray in March with a full-stack distribution license.
Fintech firms like Freo and wealth management startup IndMoney are also making their move.
Strategy take:
Other players:
Also Read:
Good Glamm delays paying salaries again amid cash crunch
What's happening?
Asset sales
Also Read:
The bigger picture:
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What's next:
Hyundai, Kia sell shares worth Rs 690 crore in Ola Electric via block deal
Tell me more:
Big buyer:
Stock hit:
Tough quarter:
IndiaAI empanelment drives down prices of GPUs in second round
Driving the news:
The hourly rate for the same GPU model fell between Rs 4 and Rs 1,234 from round one to round two.
Thanks to a 40% government subsidy, India may now offer some of the world's lowest GPU service prices.
The second round includes 53 GPU categories
Prices have dropped in 16 of those categories, compared to the first round.
Other Top Stories By Our Reporters
TCS, Virgin Atlantic extend tech alliance of two decades:
Wipro signs deal with US security solutions firm Entrust:
OpenAI announces $150,000 in grants to 11 Indian nonprofits for social innovation:
Musk kicks off xAI, Neuralink fundraises after DOGE farewell:
Global Picks We Are Reading
Happy Wednesday! Startups are eyeing a piece of the general insurance market. This and more in today's ETtech Morning Dispatch.■ Ola Electric block deal■ GPU price reductions■ TCS-Virgin Atlantic allianceStartups are leveraging their distribution muscle to carve out a larger share of India's underpenetrated general insurance market.A growing number of startups have secured or are applying for corporate agency licences, which allow them to partner with up to 27 insurers across life, general and health categories.For vehicle management or ride-hailing companies, car insurance is a logical extension, and a sizable opportunity, according to industry insiders.'Since car insurance is a mandatory product, many vehicle owners opt for the cheapest available option. That limits room for product innovation," one expert said, adding that the viability of the business is a challenge in the space.Ola made its entry into insurance a few years ago, offering full-stack products for both driver-partners and customers. Fintech major Cred is eyeing the same route via its vehicle tracking platform, Garage.To encourage wider adoption, the Insurance Regulatory and Development Authority of India (IRDAI) is promoting greater participation by startups in insurance distribution. Meanwhile, insurers themselves are increasingly open to tech-led partnerships.Cash-strapped beauty and content platform Good Glamm Group has delayed employee salaries for a second consecutive month, as it continues to grapple with a funding squeeze, sources told us.The company had previously informed employees that April salaries would be deferred and paid along with May's in June. However, as of June 3, no salaries have been credited, and this time, management has not provided any explanation for the delay.Several former employees are also awaiting their full and final settlements, leaving both current and former staff financially strained.: To stay afloat, the Mumbai-based company has been selling or exploring the sale of multiple portfolio brands. Sources said Good Glamm is in talks to sell its stake in personal care brand Organic Harvest back to the brand's founders. As we've reported earlier, it has already exited Sirona and ScoopWhoop Once valued at over a billion dollars, Good Glamm pursued an aggressive acquisition spree during the peak of the roll-up ecommerce boom, rapidly acquiring direct-to-consumer (D2C) and content brands. However, scaling and integrating those businesses proved more challenging than anticipated, leading to layoffs, restructuring, stalled growth, and a depleted funding pipeline.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.Hyundai Motor and Kia Corporation have sold shares worth nearly Rs 690 crore in electric two-wheeler maker Ola Electric through open market transactions.Hyundai offloaded 108 million shares at Rs 50.70 apiece, totalling Rs 551.9 crore. Kia sold 27 million shares at Rs 50.55 each, amounting to Rs 137.3 crore, according to NSE data.Citigroup Global Markets Mauritius picked up shares worth Rs 435.4 crore in the same session.Ola Electric shares closed 8% lower at Rs 49.33 on the NSE on June 3.The Bengaluru-based firm has endured a challenging fourth quarter , marked by declining market share, a falling stock price, and increasing regulatory scrutiny.The India AI Mission has triggered a 10% drop in the lowest (L1) prices for graphics processing units (GPUs) in the second round of the tenders, data reviewed by ET showed.Bidders from the first round will now be asked to match these revised prices, unlocking significant savings for end users.Tata Consultancy Services (TCS) and UK-based airline Virgin Atlantic have extended their technology partnership for an additional seven years, aiming to drive artificial intelligence (AI)-led airline operations and enhance the customer experience.Wipro, the country's fourth-largest IT services company, announced on Tuesday that it has entered into a multi-year agreement with Entrust, a US-based company focused on identity-centric security solutions. The financial details of the deal were not disclosed.Artificial intelligence (AI) model developer OpenAI has announced grants totaling $150,000 for nonprofit organisations in India that address challenges in healthcare, education, agriculture, gender equity, and disability inclusion.Billionaire Elon Musk is busy raising fresh funds for his new-age companies as he steps away from politics and refocuses on managing his businesses. The richest person in the world recently bid farewell to the Department of Government Efficiency (DOGE) amid widespread backlash and his apparent disillusionment with the current administration.■ How to make AI faster and smarter—with a little help from physics ( Wired ■ VC money is fueling a global boom in worker surveillance tech ( Rest of World ■ New spying claims emerge in Silicon Valley corporate espionage scandal ( FT