Latest news with #UPI-first
Economic Times
16-05-2025
- Business
- Economic Times
UPI extras miss mark; Amazon streamlines India ops
Happy Friday! Most new features on United Payments Interface (UPI) have struggled to gain meaningful traction over the years. This and more in today's ETtech Morning Dispatch. Also in the letter: ■ PB Fintech profit triples■ GIC seeks CCI nod for Groww stake■ Uptick in SaaS M&A deals UPI Lite and wallet-based pay off to a slow start as UPI payments climb In recent years, the National Payments Corporation of India (NPCI) has rolled out several new features—UPI Lite, wallet-based payments, recurring payments via UPI, UPI through RuPay credit cards, and UPI Circle. Yet, most have seen limited adoption. Driving the news: According to multiple sources, features like UPI Lite, wallet-based UPI payments, and RuPay card usage on UPI are seeing just 80-150 million monthly transactions. While not insignificant, these numbers appear modest given UPI's massive scale. Going deeper: Industry insiders cite several challenges hindering adoption: Fintechs such as PhonePe, Google Pay, and Paytm have done little to promote these features. The lack of financial incentives means big players primarily use UPI to drive traffic to their revenue-generating products. Banks are reluctant to invest in building and maintaining tools that show weak traction. Fresh challenges: Despite UPI's runaway success, NPCI must now prove its innovation muscle. Features like UPI Lite and wallet-based payments were designed to ease pressure on core banking systems. Their failure to scale undermines that goal and the NPCI's ambition to evolve the platform. Also Read: Behind UPI-first digital payment apps' latest plan to revamp their mobile wallet operations Amazon India's board clears logistics arm & marketplace biz merger Amazon Transportation Services (ATS), the logistics arm of American ecommerce giant in India, is merging with Amazon Seller Services, the primary marketplace unit in the country. Driving the news: The National Company Law Tribunal (NCLT) has granted interim approval for the merger. In its filings with the NCLT, Amazon stated that the move aims to: Reduce legal and regulatory compliance requirements Enable more efficient management of infrastructure and resources across both companies. For context: ATS was launched in 2013 as an in-house logistics service for Amazon's ecommerce marketplace in India. The unit still generates more than 95% of its revenue from Amazon. In 2023, ATS began offering its services to third-party clients as well. Rival watch: Flipkart operates its own logistics arm, Ekart Logistics. Meesho, backed by SoftBank, launched Valmo last year to serve its sellers. Financial snapshot: ATS reported a 7.6% YoY rise in operating revenue for FY24 to Rs 4,889 crore. Amazon Seller Services reported Rs 25,406 crore in operating revenue during FY24, up 14%. Also Read: CAIT calls for ban on sale of Pakistani flags, merchandise on Amazon, Flipkart Flipkart helps deliver strong Walmart ad business Ecommerce giant Flipkart has powered a strong quarter for its US-based parent Walmart, contributing to a 20% rise in international advertising revenue for the three months ending April 30. Walmart Q1 results: Walmart International reported net sales of $32.1 billion for the February-April quarter, marking a 7.8% year-on-year increase. Growth in constant currency terms was primarily driven by Flipkart, alongside strong performances from Walmart's businesses in China and Walmex (Mexico and Central America). In numbers: Flipkart Internet, the marketplace arm of Flipkart, earned nearly Rs 5,000 crore from advertising in the financial year ending March 2024, outpacing the Rs 3,734 crore generated from marketplace fees. Also Read: Flipkart may limit its quick commerce expansion to top cities to reduce burn Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: 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. The opportunity: Reach a highly engaged audience of decision-makers. Boost your brand's visibility among the tech-savvy community. Custom sponsorship options to align with your brand's goals. What's next: Interested? Reach out to us at spotlightpartner@ to explore sponsorship opportunities. PB Fintech profit triples in Q4, revenue up 38% Alok Bansal and Yashish Dahiya, founders, PB Fintech group PB Fintech posted an 181% year-on-year (YoY) jump in net profit to Rs 171 crore for the quarter that ended March 2025, driven by strong performance across its business verticals. Q4 highlights: Net profit: Rs 171 crore, up 181% YoY Rs 171 crore, up 181% YoY Revenue: Rs 1,508 crore, up 38% YoY Rs 1,508 crore, up 38% YoY Expenses: Rs 1,437 crore, up 29% YoY (from Rs 1,145 crore in Q4 FY24) Tell me more: The robust profit growth was fuelled mainly by steady momentum in the insurance business, alongside strong disbursals in secured loans such as home loans and loans against property, which boosted the lending vertical. The slower pace of expense growth relative to revenue also contributed to the improved bottom line. Insurance business (Policybazaar): Q4 premium collection: Rs 7,030 crore (vs Rs 2,176 crore in Q4 FY24) FY25 total premium processed: Rs 23,486 crore Also Read: PB Healthcare secures $218 million from General Catalyst, PB Fintech, others GIC seeks CCI nod for Groww stake ahead of IPO Lalit Keshre, CEO, Groww Singapore's sovereign wealth fund GIC has sought the Competition Commission of India's (CCI) nod to acquire a 2.14% stake in wealthtech startup Groww through its affiliate Viggo Investment. Why it matters: The move is part of Groww's $200 million pre-IPO funding at a 6.5 billion valuation, as reported by ET on March 26. As we reported earlier, this will nearly double its 2021 private market valuation. The big picture: Groww, now India's largest stockbroker by active clients, recently shifted its domicile to India and is gearing up to file its IPO papers soon. Also Read: Groww gets CCI approval for bonus shares, founders relinquish extra voting rights Other Top Stories By Our Reporters Trump wants Apple to stop moving iPhone production to India: President Donald Trump asked Tim Cook to halt production in India and move back to the US, as the iPhone maker plans to diversify its manufacturing beyond China. SaaS sees an uptick in mergers, buyouts as AI flips the script: As smaller software-as-a-service (SaaS) companies struggle to raise funds and scale operations amid the AI boom, M&A deals increased 19% sequentially and 31% annually in the March quarter. New-age ice cream brand Hocco raises $10 million: The latest funding round was co-led by the Chona family office and Sauce VC, and funds were earmarked for expansion, capex, innovation, marketing, and more. Global Picks We Are Reading ■ US tech visa applications are being put through the ringer (Wired) ■ AI therapy is a surveillance machine in a police state (The Verge) ■ Apple finally launches next-gen 'CarPlay Ultra' software, starting with Aston Martin (TechCrunch) Updated On May 16, 2025, 07:14 AM IST
Time of India
13-05-2025
- Business
- Time of India
Flipkart‘s quick breather; Now hiring: AI leaders
Flipkart's quick breather; Now hiring: AI leaders Also in the letter: Flipkart may limit quick commerce expansion to top 6-8 cities to cut burn Key details: Current footprint: Flipkart Minutes operates in 14 cities with around 300 dark stores. Flipkart Minutes operates in 14 cities with around 300 dark stores. Expansion plans: The unit aims to increase the number of dark stores to between 500 and 550 by October. The unit aims to increase the number of dark stores to between 500 and 550 by October. Long-term goal: Flipkart group CEO Kalyan Krishnamurthy has stated that Minutes will reach 800 stores by the end of 2025. Competitive landscape: Zepto and Swiggy Instamart: Both surpassed 1,000 dark stores during the January-March quarter. Both surpassed 1,000 dark stores during the January-March quarter. Blinkit: Reported over 1,300 dark stores as of March 31. Reported over 1,300 dark stores as of March 31. BigBasket: Operates between 500 and 550 dark stores, aiming to reach 700 by July. The context: AI leadership roles up 40-60% in FY25 as talent demand soars Driving the news: Firms across IT, consulting, global capability centres, BFSI, and healthcare sectors are leading demand. Startups in ecommerce and fintech are setting up dedicated AI units. Deeptech and generative AI-focused startups from multinational firms are establishing AI centres in India. Yes, and: Key designations include chief AI officer, head of AI/ML, VP of AI engineering, VP of AI strategy/innovation, director, applied AI or innovation, and AI product head. Top recruiters for these roles include Accenture, LTIMindtree, IBM, Deloitte, and Wipro. Payout: Chief AI officers are offered between Rs 1.2-2.5 crore annually. According to Quess data, heads of AI/ML typically earn between Rs 80 lakhs and Rs 1.5 crore. VPs of GenAI/ML are in the Rs 70 lakhs to Rs 1.2 crore range. Also Read: ET Explainer: Behind UPI-first digital payment apps' plan to revamp mobile wallet operations Buzz around wallets: PhonePe has added 25 million wallets. Amazon Pay has gained 5 million new users. MobiKwik saw 14 million new wallets created on its platform. Consumers are increasingly choosing wallets for perks like cashback rewards, Fastag payments and cleaner bank statements. Hunt for revenues: Interoperability with UPI: Also Read: Ather Energy loss narrows to Rs 234 crore in Q4 as revenue rises Key numbers: Operating revenue rose 29% YoY to Rs 676 crore. Total expenses increased 12.6% YoY to Rs 922.2 crore. Adjusted gross margin expanded by ~900 bps to 18%. Vehicle sales rose 35% to nearly 47,400 units in Q4. FY25 revenue stood at Rs 2,255 crore, up from Rs 1,753.8 crore in FY24. Full-year net loss narrowed 23.3%. Ather added 143 stores during FY25, taking its total network to 351 outlets. Other Top Stories By Our Reporters Taking on Porter, Uber launches logistics service Courier XL for delivery of large goods: Cybersecurity agency CERT-In flags spike in online threats: Blinkit, Instamart face rising competition, elusive profitability in Q4: Global Picks We Are Reading Happy Tuesday! Flipkart is going slow on the expansion of its quick commerce service to control costs. This and more in today's ETtech Morning Dispatch.■ Why UPI wallets are back in focus■ Ather's Q4 financials■ Uber takes on PorterFlipkart is set to scale back the expansion of its quick commerce unit, Flipkart Minutes, by focusing on adding dark stores only in the top six to eight cities, according to sources familiar with the cautious approach to expanding its quick commerce unit comes after a year of rapid growth in the sector, even as the broader ecommerce segment has slowed. A more aggressive rollout could potentially escalate losses, similar to Blinkit and Instamart, which together added over 600 dark stores in Q4 FY2025, incurring capital expenditures of Rs 317 crore (Blinkit) and Rs 425 crore (Instamart).By concentrating on top-tier cities, Flipkart aims to minimise operational costs while maintaining a significant presence in high-demand roles in artificial intelligence (AI) have surged by 40-60% year-on-year in FY25, according to data from staffing are increasingly linking compensation to business impact, with top talent moving faster into CXO or P&L-aligned chief executive officer Vijay Shekhar Sharma told market analysts last week that the company is close to a breakthrough in reviving its mobile wallet operations. But why bring back mobile wallets when UPI dominates the digital payments space?Fintechs have seen a resurgence in mobile wallet usage over the past year:UPI payments linked to bank accounts do not generate direct revenue. In contrast, mobile wallet-based UPI payments carry a merchant discount rate (MDR), offering fintechs a monetisation route. Major players like PhonePe and Paytm earn little from core UPI transactions, so strengthening wallet offerings is a way to drive December 27, 2024, the Reserve Bank of India (RBI) enabled users to link their mobile wallets with any UPI app . The move effectively makes a full-KYC wallet functionally equivalent to a bank account, increasing its utility and Mehta, founder, Ather EnergyElectric two-wheeler maker Ather Energy narrowed its Q4 FY25 net loss by 17% year-on-year to Rs 234.4 crore, driven by higher scooter sales and improved XL has been rolled out in Delhi NCR and Mumbai, with plans to expand to more cities in the coming months. It allows users to send large packages weighing up to 750 the escalating conflict between India and Pakistan over the last weekend, the Indian Computer Emergency Response Team (CERT-In) has reported a sharp increase in cyber threats targeting businesses and government post-results commentary from Zomato parent Eternal and Swiggy had a common denominator: both companies pointed to heightened competition in the quick commerce space ■ Deepfakes, scams, and the age of paranoia ( Wired ■ Insurers launch cover for losses caused by AI chatbot errors ( FT ■ How UAE is shifting gears to lead Middle East's EV revolution ( Rest of World
