Sri Lanka’s startup innovators; Info Edge’s rising deeptech bets

Hello,

Is a breakup on the cards for Meta?

The Facebook parent is facing a historic trial that could force the tech giant to break off Instagram and WhatsApp. 

The US competition and consumer watchdog FTC alleges that Meta, which already owned Facebook, bought Instagram and WhatsApp to eliminate competition, effectively giving itself a monopoly. The case also will test the new Trump administration's promises to take on Big Tech.

Elsewhere, NVIDIA is moving a portion of its production to the US. The company said on Monday that it has commissioned more than a million square feet of manufacturing space to build and test AI chips in Arizona and Texas.

Meanwhile, privacy advocates are preparing for another battle against Microsoft’s new AI tool Recall that screenshots, indexes, and stores everything a user does every three seconds. The feature was initially introduced last May but was criticised for being a goldmine for criminals. 

ICYMI: Kawasaki Heavy Industries recently showed off a bizarre concept for a ridable, four-legged robotic "horse," dubbed Corleo, that runs on a 150cc hydrogen engine. The CGI video shows the machine traversing different terrain. 

Meanwhile, an all-female crew, including the pop star Katy Perry, is back on Earth after completing a trip to the edge of outer space on a rocket belonging to Jeff Bezos. 

In today’s newsletter, we will talk about 

• Sri Lanka’s startup innovators
• Info Edge’s rising deeptech bets

Here’s your trivia for today: Who opened the first "cinema" in Paris in 1895?

Interview

Sri Lanka’s startup innovators

A country’s startup ecosystem indicates its desire for innovation, economic growth, and employment generation. And despite its size—comprising only 65,600 sq kms, 1/50th the size of India—Sri Lanka is buzzing with opportunities. 

Earlier this month, Startup Mahakumbh, one of India's biggest startup events held in New Delhi, dedicated an entire pavillion to showcasing 10 inspiring Sri Lankan startups. In a conversation with Shradha Sharma, seven such startups spoke about their products and services, and expressed their interest in engaging with the Indian ecosystem.

Widening horizons:

• Among the startups disrupting Sri Lanka’s healthcare sector is Jendo Innovations, which has developed an AI-based vascular health assessment device. Presently, the startup is in the process of receiving FDA approval, after which it will launch its products in the Indian market, followed by other countries.
• In the fintech sector, Colombo-based fintech startup PayMedia provides software solutions to banks and other financial institutions to simplify the banking experience, including services for digital onboarding and eKYC, online wallets, remittance systems, and electronic funds transfer, among others. 
• Sri Lanka’s startup ecosystem is also going all-in on AI. Colombo-based Bluechip Technologies offers AI strategy and consulting services to empower businesses by identifying high-impact AI use cases and developing proof-of-concepts. 

Funding Alert

Startup: Optimized Electrotech

Amount: $6M

Round: Series A

Startup: NOTO

Amount: Rs 6 Cr

Round: Pre-Series A

Startup: Cura Care

Amount: Rs 5 Cr

Round: Pre-Seed

Deeptech

Info Edge’s rising deeptech bets

Amid the growing debate over the need for Indian startups to focus on deeptech and artificial intelligence, Info Edge founder Sanjeev Bikhchandani revealed that the firm has invested in eighteen deeptech companies over the past five years.

Info Edge has made the bulk of these investments through its subsidiary Red Start and its venture arms Capital2B and Info Edge Ventures. The group is adding one or two new companies each quarter, he noted, with its current portfolio spanning across drug discovery, mental health technologies, advanced materials, and spacetech applications.

Capital requirements:

• Bikhchandani emphasised that the definition of deeptech evolves over time—as new breakthroughs shift the baseline of what’s considered revolutionary. For example, he cited Tesla’s success with electric vehicles, and Moderna’s COVID-19 vaccine, which have reset industry standards.
• He argues that India’s deeptech pipeline stalls because such ventures need far longer than a typical VC fund’s 8-12‑year life to reach product‑market fit and profitability. Compounding the problem, most scientist‑founders are not ‘commercially savvy’, making it harder to convert their IP into businesses.
• To bridge the funding gap for deeptech firms, he also suggested tapping the country’s biggest balance sheets: conglomerates such as Reliance, Tata, Birla, and Adani; large IT services firms like TCS and Infosys, or ONGC and NTPC; or the government itself.

News & updates

• Market volatility: Major geopolitical risk events, including trade tensions, can trigger large corrections in stock prices, the International Monetary Fund said in a report on Monday. That in turn can generate market volatility which can threaten financial stability, it said in a chapter from its forthcoming Global Financial Stability Report.
• Price hike: Sony has increased the price of its PlayStation 5 by 25% as the video game industry reels from the impact of Donald Trump’s tariffs. The Japanese game developer said it had made the “tough decision” to raise the price of the console’s digital edition to £429.99 in the UK and €499.99 in Europe, starting from Monday.
• Golf masters: Tiger Woods welcomed Rory McIlroy to golf’s most exclusive club after his dramatic victory in the Masters. McIlroy, born in Holywood, Co Down, defeated Justin Rose on the first hole of a playoff at Augusta National to join Woods, Jack Nicklaus, Gary Player, Ben Hogan and Gene Sarazen in having won all four major titles.

Who opened the first "cinema" in Paris in 1895?

Answer: The Lumiere Brothers

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