Ola parent narrows losses in FY23; Paytm to invest Rs 100 Cr in GIFT City

Hello,

Crypto crackdown continues.

Apple App Store has removed three crypto exchange apps—Binance, OKX, and KuCoin—for Indian users after the central government stepped up its crackdown on offshore crypto exchanges operating without local registrations. 

Binance users can rest easy as the company assured customers that their funds were safe, and they could continue using the current version of the app. 

In other news, more dry powder in the ecosystem.

Investment firm Gruhas—co-founded by Zerodha’s Nikhil Kamath and Abhijeet Pai—has partnered with Collective Artist Network to establish a Rs 150 crore fund to invest in consumer brands. Then, revenue-based financing platform Velocity launched a Rs 300 crore growth-focused fixed-term credit capital fund. Also, alternative-financing fintech platform GetVantage announced a Rs 250 crore SaaS Accelerator Fund II.

Moving on, ZestMoney founders Lizzie Chapman and Ashish Anantharaman have set up SwiffyLabs, a subsidiary of Jio Platforms, which is reportedly building a B2B infrastructure, including API for banks and financial institutions. 

ICYMI: This Indian state now has a GI tag for its red ants' chutney—a delicacy not restricted to Southeast Asian countries!

Lastly, here’s an explainer on spot bitcoin ETF. 

In today’s newsletter, we will talk about 

• Ola parent narrows FY23 losses by 65%
• Paytm to invest Rs 100 Cr in GIFT City
• A ragi revolution in Jharkhand

Here’s your trivia for today: Which American financier was convicted of running the largest Ponzi scheme in US history?

Mobility

Ola parent narrows FY23 losses by 65%

Bhavish Aggarwal-led ANI Technologies, the parent company of Ola, managed to reduce its losses in FY23, especially as revenue showed solid growth. Its standalone loss in FY23 narrowed by nearly 65%, coming in at Rs 1,082.56 crore. Its revenue rose 62.9% to Rs 1,987.54 crore in FY23 from Rs 1,220.29 crore a year ago.

Key takeaways:

• On an audited consolidated basis, ANI Technologies—also the parent company of Ola Financial, Ola Fleet, and Ola Stores—posted a loss of Rs 772.25 crore and revenue of Rs 2,799.38 crore in FY23.
• Ola Financial—which operates Ola Money—swung to a loss in FY23 at Rs 54.64 crore after posting a profit of Rs 8.68 crore the previous year. Its revenue also declined 22%.
• The company's ride-hailing platform, Ola Fleet, narrowed its losses to Rs 387.64 crore in FY23 from Rs 467.99 crore the previous year.

Fintech

Paytm to invest Rs 100 Cr in GIFT City

One97 Communications, the parent company of Paytm, is planning to invest Rs 100 crore in Gujarat International Finance Tec-City (GIFT City) to build an AI-driven remittance and establish an innovation centre. The investment, subject to requisite approvals, aligns with Paytm's vision to build a global financial ecosystem. 

Expansion:

• The fintech aims to develop technology facilitating global investments in India by positioning GIFT City as an innovation hub for cross-border activity. 
• The development centre within GIFT City is set to create employment opportunities for engineers and create effective financial products and services.
• By leveraging artificial intelligence, the company also seeks to streamline remittances, reducing friction with cost-effective solutions.

Agriculture

A ragi revolution in Jharkhand

IAS officer Sushant Gaurav won the Prime Minister’s Award for Excellence in Public Administration for transforming Jharkhand's Gumla district through ragi (finger millet) cultivation.

The crop fetches around Rs 30 per kg, leading to a substantial increase in the farmers’ incomes. The officer has also formed a system to help women sell ragi-based products in and out of the state and enable them to earn a livelihood.

A crop change:

• Beginning with over 5,000 farmers, Gaurav has empowered more than 30,000 farmers in the district to grow ragi. 
• As per the district agriculture department, there has been a 217% increase in the net acreage—from 3,500 hectares of ragi cultivation in 2022-23 to 11,100 hectares in 2023-24. 
• Gaurav started a women-led FPO, Baghima-Palkot Farmer Producer Company Ltd, which has 40 members tasked with buying ragi from local farmers and further producing varied products.

News & updates

• Listings: US stock exchange Nasdaq held talks with Finance Minister Nirmala Sitharaman and SEBI Chairperson Madhabi Puri Buch on potentially allowing local Indian companies to list directly on foreign stock exchanges. 
• Big apps: According to the latest report by data.ai, TikTok and Disney+ drove an 11% rise in consumer app sales in 2023, showing resilient demand, while the games industry dealt with a double-digit sales decline in China that dragged global sales down 2%.
• Layoffs: Besides the 500 layoffs at Twitch, Amazon is also making cuts at Prime Video and MGM Studios, laying off “several hundreds” of employees to “reduce or discontinue investments in certain areas while increasing our investment and focus on content and product initiatives that deliver the most impact”.

Which American financier was convicted of running the largest Ponzi scheme in US history?

Answer: Bernie Madoff

We would love to hear from you! To let us know what you liked and disliked about our newsletter, please mail [email protected]. 

If you don’t already get this newsletter in your inbox, sign up here. For past editions of the YourStory Buzz, you can check our Daily Capsule page here.