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Indian Express
3 days ago
- Business
- Indian Express
Karnataka passes gig workers welfare bill; rules for welfare fee soon, says Labour Minister Santosh Lad
The Karnataka Legislative Assembly on Tuesday passed legislation aimed at protecting the rights of gig workers, placing obligations on aggregators for the social security, occupational health and safety of the gig workers. This would cover around 4 lakh gig workers employed by various platforms across the state. The Karnataka Platform Based Gig Workers (Social Security and Welfare) Bill, 2025, was taken up for discussion on Tuesday, after months of deliberations by various stakeholders regarding the contents of the proposed legislation. Labour Minister Santosh Lad, piloting the Bill, said that it would apply to eight services provided by aggregators—ride sharing, food and grocery delivery, logistics services, e-marketplace, professional activity provider, healthcare, travel and hospitality, and content and media services. The Bill allows the government to levy a welfare fee ranging from 1 to 5 per cent on aggregators meant for a welfare fund of gig workers. 'The fee cannot be implemented uniformly (from all aggregators). When rules are framed, the government will also determine the welfare fee,' he said. Deputy Leader of Opposition Arvind Bellad argued that variation in the fee for various aggregators could lead to corruption. 'Fixing one rate is appropriate,' he suggested. Lad, in response, said that it would not be possible to do so as there were differences among various aggregators. 'For instance, Namma Yatri (ride-hailing app) transfers the amount charged directly (to drivers). Should we then take it from the user fee? Companies such as Urban Clap will pay service and transportation charges. How should it be collected from them?' he asked, adding that the government has held discussions with experts to finalise the fee. Explaining the necessity of the Bill, he said that some gig workers were putting in 16-hour shifts to earn around Rs 1,600 to Rs 1,800. Due to the kind of work, these workers will face health problems in the future, Lad said. BJP legislator Dheeraj Muniraju asked whether the government could fix minimum wages and stipulate maximum working hours for a gig worker. The minister said that all gig workers were employed on a 'flexi-hour basis' and were free to work as much as they wanted. 'They have the right to reject work too,' he added. Before the Bill was tabled in the Legislature, it was promulgated as an ordinance earlier this year.
News18
29-04-2025
- Business
- News18
Urban Company IPO: Platform Files Draft Papers For Rs 1,900 Crore Stock Market Debut
Last Updated: Urban Company, formerly Urban Clap, filed for a Rs 1,900 crore IPO with SEBI. Funds will go to platform innovation, tech upgrades, marketing, and office expansion Urban Company, formerly known as Urban Clap, is gearing up for its Initial Public Offering (IPO). The home furnishing company has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an IPO worth Rs 1,900 crore. This includes raising fresh capital of Rs 429 crore, while early investors are expected to gain Rs 1,471 crore. According to Moneycontrol, prominent investors such as Excel India, Bessemer India, Elevation Capital, Tiger Global, and VY Capital stand to benefit significantly by selling their shares. Excel, an early supporter, will enjoy returns 16.7 times greater than Tiger Global, whereas Elevation Capital will see 11 times more profit than Tiger Global. These returns vary because the investors purchased shares at different prices. For instance, Excel acquired shares for Rs 3.61 each, while Tiger Global paid Rs 60.25 per share. Urban Company aims to utilise the raised capital for platform innovation, technology upgrades, marketing, and office expansion. Specifically, Rs 190 crore will go towards AI-based tools and cloud infrastructure to enhance user and service provider experiences. An additional Rs 70 crore will be spent on opening new offices domestically and internationally, and Rs 80 crore will be allocated to digital, OTT, and outdoor marketing. The remaining funds will address corporate needs and working capital. The company has shown steady revenue growth in recent years, with earnings rising from Rs 437.6 crore in FY22 to Rs 828 crore in FY24. It also moved from a net loss to a profit of Rs 242.3 crore in the first nine months of 2024, though this includes a deferred tax credit of Rs 215 crore. Excluding this credit, the profit would appear smaller. Urban Company's Gross Merchandise Value (GMV) increased to Rs 2,564 crore in FY24, a 70% rise from FY22. The number of annual customers has reached 5.8 million, and active service providers now number 46,000. Despite these gains, the DRHP has warned of potential challenges ahead. The company's future profits are not guaranteed, and issues such as reliance on gig workers, quality control, and regulatory hurdles in new markets pose significant risks. Additionally, the dilution of shares due to Employee Stock Options (ESOP) is a concern. First Published: April 29, 2025, 16:16 IST
