The changing face of MSMEs in India; Helping companies join ONDC

Hello,

Consumer electronics company Bose has acquired a minority stake in D2C smart wearables brand Noise. This marks Noise’s first-ever external capital infusion and is expected to help the brand enter international markets.

Meanwhile, B2B marketplace Udaan has let go of 100-120 employees just days after securing $340 million in Series E funding. The company said the cost-cutting measure was necessitated to remove “some redundancies in the system,” and came just months after the exit of its CTO Gaurav Bhalotia.

Also, Robin Raina-led insurance provider Ebix has filed for Chapter 11 bankruptcy in Nothern Texas district. The company is estimated to have liabilities in the range of $500 million to $1 billion.

And lastly, some more ‘leaks’ of the new ChatGPT 4.5 model have come out. Take a sneak peek!

In today’s newsletter, we will talk about 

• The changing face of MSMEs 
• Helping companies join ONDC
• Atypical families as safety nets

Here’s your trivia for today: What is the fastest fish in the ocean?

MSME

The changing face of MSMEs in India

The micro, small, and medium enterprises (MSMEs), which play a pivotal role in the Indian economy, are poised to elevate their GDP contribution from 30% to 40% in the coming year. 

Once recognised as traditionally operated, MSMEs have demonstrated resilience and growth by embracing the dynamics of the emerging business landscape.

Marching ahead:

• On March 31, the Government of India announced a new foreign trade policy to strengthen exports from districts and attempts to address the issues faced by MSMEs accessing the global market, so that they can contribute significantly to the nation’s exports.
• Venture capital (VC) is emerging as a significant source of funding for MSMEs in India as VCs like Fireside Ventures, SIDBI Venture Capital, Aavishkaar Capital, Everstone Capital, and others are now actively looking at profitable small businesses. 
• Launched in 2009 and revamped in 2013, India's Lean Scheme aims to elevate MSMEs to global competitiveness. To focus on quality, productivity, and mindset transformation among manufacturers, the scheme was again revamped in March 2023. 

Funding Alert

Startup: Finayo

Amount: Rs 16 Cr

Round: Undisclosed

Startup: Curefoods

Amount: Rs 10 Cr

Round: Seed

Startup 

Helping companies join ONDC

Open Network For Digital Commerce (ONDC) has been the talk of the town for over a year and a half now. With big players like Amazon, Paytm, Marico, and Delhivery joining the league, the protocol is touted to bring about UPI-like success in the country.

The prospect of nurturing a trillion-dollar opportunity has excited many, including Manoj Gupta, Co-founder of Plotch, who has developed a software-enabling platform for brands that wish to join ONDC.

Gamechanger:

• Plotch.ai enables digital companies to join the open ecommerce network by offering technical support in the form of a tech stack for both buyers and sellers.
• The Mumbai-based firm’s stack consists of three main components—an application layer, middleware, and a network layer. However, the three layers perform different functions for buyer-side and seller-side applications depending on the requirements.
• In July, the startup raised an undisclosed amount of pre-seed funding led by early-stage investor Antler India with participation from Peak XV Partners and Global Founders Capital.

Mental health

Atypical families as safety nets

Urban millennials are building their own ‘atypical’ families comprising individuals they share values and experiences with, mentally, emotionally and spiritually. 

Especially for urban millennials struggling with childhood trauma, queer individuals and those with mental health challenges, these families are emerging as the safety nets that biological families have traditionally been presumed to be. 

Happy families:

• In August 2022, the Supreme Court said “atypical manifestations” of the family unit were equally deserving of not just protection under the law, but also of benefits—such as maternity and childcare leaves—available under social welfare legislation.
• This judgment was specific to safeguarding the rights of domestic, unmarried partnerships or queer relationships, single-parent households, and those who remarry, adopt, and foster children. 
• The Home Again Programme, started in 1979 by an NGO called The Banyan, offers alternate and inclusive living options for women with mental health concerns.

News & updates

• Powering up: Siemens Ltd will explore a spin-off of its energy business at the behest of some of its stakeholders, the electrical appliances maker said on Monday. Its board also approved the incorporation of a unit in the financial hub of Mumbai, if and when the company decides to implement the demerger, it said in an exchange filing.
• Under scrutiny: The European Union has opened infringement proceedings into social media platform X, previously known as Twitter, over suspected failure to combat content disinformation and manipulation. The move is also in response to what the EU calls a “deceptive” design of user interface, relating to its so-called blue checks.
• Big purchase: IBM is doling out $2.3 billion to acquire a duo of data integration assets from Germany-based enterprise software company Software AG. The all-cash deal will see IBM take ownership of StreamSets, a data integration platform, and WebMethods, which Software AG bought for more than $500 million back in 2007.

What is the fastest fish in the ocean?

Answer: The Indo-Pacific Sailfish. The fish can swim at speeds over 110 km/h.

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