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Indian ride-hailing giant Ola cuts 180 jobs in profitability push | TechCrunch


Ola has let go its chief executive officer Hemant Bakshi, merely four months after making the appointment, and is cutting about 180 jobs, a source familiar with the matter told TechCrunch. The move from the Indian ride-hailing startup is aimed at “improving profitability,” its founder Bhavish Aggarwal told employees in an email Monday seen by TechCrunch.

The Bengaluru-headquartered startup, which counts SoftBank and Tiger Global among its backers, is undergoing a “restructuring exercise” to gear up for its “next phase of growth,” Aggarwal, pictured above, wrote in the email.

The move follows Ola shutting down its operations in the U.K., Australia and New Zealand earlier this month. Bakshi, a former HUL executive, was appointed as Ola chief executive in January this year.

Ola is looking to go public later this year, months after the public debut of Ola Electric, a startup that spun out of the ride-hailing firm. Both the startups were founded by Aggarwal, who has since also founded the AI startup Krutrim, which became a unicorn in January. Ola Electric is seeking to raise more than $650 million in its initial public offering, according to paperwork filed by the firm.

You can read Aggarwal’s Monday email to staff in its entirety below.

Dear All,

In line with our vision to serve 1 Billion Indians, and our commitment to drive sustainable growth and enhance efficiency across the organization, we are undergoing a restructuring exercise aimed at improving profitability and preparing ourselves for the next phase of growth.

We have made substantial investments in areas of AI & Technology which has led to significant cost advantages and we will continue to focus on these areas to ensure that we build cutting edge products and services across our business verticals.

These changes will result in certain roles within the company becoming redundant. This decision was not made lightly, and we are committed to supporting those impacted during this transition period.

Hemant will be stepping down from his role as CEO to pursue opportunities outside the company. We extend our gratitude to Hemant for his contributions and wish him the best in his future endeavors.

I am very confident of the strong leadership team which we have built over the last few years at Ola Consumer, who bring in a lot of experience and expertise to their respective roles. They will collaborate closely with me to drive technology-led growth.

We are committed to transparency and open communication throughout this process. Our HR team would be available to address any queries or concerns you may have.

Thank you for your unwavering dedication and commitment to Ola.

Best,
Bhavish


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India's ICICI Bank exposed thousands of credit cards to 'wrong' users | TechCrunch


ICICI Bank, one of India’s top private banks, exposed the sensitive data of thousands of new credit cards to customers who were not their intended recipients.

The Mumbai-based bank confirmed to TechCrunch Thursday that its digital channels “erroneously mapped” about 17,000 credit cards issued in the past few days to “wrong” users. The issue came to light after some customers raised concerns on social media about the bank’s iMobile Pay app exposing unknown customers’ credit card details, including their full number and card verification value (CVV).

“Our customers are our utmost priority, and we are wholeheartedly dedicated to safe guarding their interests,” said Kausik Datta, corporate communications head at ICICI Bank, said in a statement emailed to TechCrunch. “We regret the inconvenience caused. No instance of misuse of a card from this set has been reported to us. However, we assure that the Bank will appropriately compensate a customer in case of any financial loss.”

The spokesperson added that the number of impacted credit cards constituted about 0.1% of the bank’s credit card portfolio.

As reported by the finance-related forum Technofino, sensitive data such as the full card number, expiry date and CVV of unknown customers’ credit cards suddenly appeared for some users on the iMobile Pay app.

“I have access to someone else’s Amazon Pay CC due to a security glitch on the iMobile app. Although OTP restricts domestic transactions, but I can do international transactions using the details from the iMobile app,” one of the users wrote on the forum.

The bank spokesperson told TechCrunch it blocked the affected cards and is issuing new cards to customers.

ICICI Bank, which has over 6,000 branches in India, is in 17 countries worldwide. The iMobile Pay app, launched in 2008, has over 28 million users.


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Swiggy, the Indian food delivery giant, seeks $1.25 billion in IPO after receiving shareholder approval | TechCrunch


Swiggy plans to raise $1.25 billion in an initial public offering and has secured approval from its shareholders, the Indian food delivery and instant commerce startup disclosed in a filing to the local regulator.

The Bengaluru-headquartered startup, which competes with publicly-listed Zomato and StepStone Group-backed Zepto, plans to raise $450 million through issuance of new shares and offer $800 million of shares from existing backers in the IPO, it wrote in a filing to Ministry of Corporate Affairs.

The Indian startup ecosystem has been eagerly anticipating Swiggy’s public debut, which is slated for later this year. Swiggy counts Prosus, Accel, SoftBank and Invesco among its backers. It was last valued at $10.7 billion in a funding round unveiled in early 2022. Some of its investors, including Invesco and Baron, have since publicly marked up the valuation of Swiggy to over $12 billion.

Swiggy had earlier intended to go public in 2023, TechCrunch previously reported, but deferred the plan due to not-so-favorable market conditions.

This is a developing story. More to follow.


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India's central bank cracks down on Kotak Mahindra Bank over IT, risk management lapses | TechCrunch


India’s central bank on Wednesday ordered Kotak Mahindra Bank to immediately cease onboarding new customers through its online and mobile banking channels, and to stop issuing fresh credit cards, citing serious deficiencies in the bank’s IT systems and risk management practices.

Kotak Mahindra Bank is one of the largest private banks in India. It’s also one of the key partners for many fintech startups in India, including KredX and Rupeek. The lender, also an investor in many startups, additionally works with many fintech firms to extend credit to SMEs and MSMEs as well as to issue co-branded credit cards.

The Reserve Bank of India (RBI) said it was imposing the restrictions on Kotak Mahindra Bank because of significant concerns stemming from its IT examinations of the bank for the years 2022 and 2023. The central bank found serious deficiencies and non-compliance in areas such as IT inventory management, patch and change management, user access management, vendor risk management, data security, and business continuity planning, it said.

Despite being under close scrutiny and engaging in high-level discussions with the RBI over the past two years, Kotak Mahindra Bank failed to adequately address these issues and implement satisfactory corrective measures, the central bank said. The bank’s core banking system and digital channels have experienced frequent and significant outages, with the most recent disruption occurring on April 15, 2024, causing severe inconvenience to customers, the RBI added.

The RBI stated that the rapid growth of digital transactions at the bank, including credit card transactions, has put additional strain on the lender’s already weak IT systems. Without a robust IT infrastructure and risk management framework, prolonged outages could seriously impact the bank’s ability to provide efficient customer service, and potentially harm the broader digital banking and payment ecosystem, the central bank cautioned.

The restrictions imposed on Kotak Mahindra Bank will be reviewed upon completion of a comprehensive external audit, commissioned by the bank with prior RBI approval, and the satisfactory remediation of all identified deficiencies, the RBI said.

This is a developing story. More to follow.


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Peak XV's Piyush Gupta leaves firm to start own secondary-focused VC fund | TechCrunch


Piyush Gupta, one of the operating leaders at Peak XV Partners, is leaving the firm at the end of this month to start his own fund, four people familiar with the matter told TechCrunch.

Gupta joined Peak XV (called Sequoia India and SEA then) in 2017, leading the influential venture firm’s strategic development team. Before joining Peak XV, he focused on similar things – mergers, acquisitions, and IPOs – at Morgan Stanley and Deutsche Bank for more than a decade.

Though Gupta didn’t serve as an investing partner at Peak XV, he played an important role at some of its programs including Pitstop, where investors from across the globe liaison with Peak XV’s portfolio startups each year.

“For early-stage companies, we take a more programmatic approach, such as UpSurge, where we provide a platform for multiple companies to meet with multiple investors over a few days. At later stages, M&A can be a crucible moment in the journey to becoming a large, enduring company,” his bio on Peak XV reads. “Where our job gets incredibly interesting is when we help companies through the journey from pre to post IPO. Going public is an event and a milestone, but the work continues long after that and preparation is key.”

News of Gupta’s departure was relayed by Peak XV Partners to its limited partners at its annual gathering last month, one person familiar with the matter said, where the fund also unveiled plans to launch a perpetual fund that will be bankrolled by its investment partners and extended team.

The two are parting ways on cordial terms, two people familiar with the matter said. Gupta plans to launch a secondary-focused fund and Peak XV intends to work closely with him to facilitate transactions at its portfolio firms.

Peak XV declined to comment and Gupta didn’t respond to a text.

Secondary transactions are on the rise in India. Peak XV itself has seen some exits — Pine Labs, K12 — through secondary transactions in the past two years. The firm’s holding in Mamaearth, Zomato, K12 Techno Services, Go Colors stood at a 10x-plus multiple as of last November, TechCrunch reported at the time.

SentinelOne acquired PingSafe, an early-stage startup in India, earlier this year for more than $100 million, TechCrunch reported earlier. PingSafe, which counted Peak XV’s Surge among its backers, had raised less than $4 million before the acquisition deal.


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India's election overshadowed by the rise of online misinformation | TechCrunch


As India kicks off the world’s biggest election, which starts on April 19 and runs through June 1, the electoral landscape is overshadowed by misinformation.

The country — which has more than 830 million internet users and is home to the largest user base for social media platforms like Facebook and Instagram — is already at the highest risk of misinformation and disinformation, according to the World Economic Forum. AI has complicated the situation further, including deepfakes created with generative AI.

Misinformation is not just a problem for election fairness — it can have deadly effects, including violence on the ground and increase hatred for minorities.

Pratik Sinha, the co-founder of the Indian non-profit fact-checking website Alt News, says there’s been an increase in the deliberate creation of misinformation to polarize society. “Ever since social media has been thriving, there is a new trend where you use misinformation to target communities,” he said.

The country’s vast diversity in language and culture also make it particularly hard for fact-checkers to review and filter out misleading content.

“India is unusual in its size and its history of democracy,” Angie Drobnic Holan, the director of International Fact-Checking Network, told TechCrunch in an interview. “When you have got a lot of misinformation, you have a lot of need for fact-checking, and things that make the Indian environment more complex also are the many languages of India.”

The government has taken steps against the problem, but some critics argue that enforcement is weak, and the Big Tech platforms aren’t helping enough.

In 2022, the Indian government updated its IT intermediary rules to require social media companies to remove misleading content from their platforms within 72 hours of being reported. However, the results are unclear, and some digital advocacy groups, including the Internet Freedom Foundation, have noticed selective enforcement.

“You don’t want to have laws or rules that are so vague, that are so broad that they can be interpreted,” said Prateek Waghre, executive director of the Internet Freedom Foundation.

Google and Meta have made announcements about limiting misleading content on their platforms during Indian elections, and restricted their AI bots from answering election queries, but have announced no significant product-related changes or stringent actions against fake news. Moreover, just before the Indian election, Meta reportedly cut funding to news organizations for fact-checking on WhatsApp.

Now fake news is proliferating on social media. Doctored videos of celebrities asking citizens to vote for a particular political party and fake news about the Model Code of Conduct applied to public programs and private chats were well spread online before the election began.

Hamsini Hariharan, a subject matter expert at the U.K.-based fact-checking startup Logically, told TechCrunch about the trend of “cheapfakes” — content generated with less sophisticated measures of altering images, videos, and audio — being widely shared across social media platforms in India.

Last week, 11 civil society organizations in India, including the nonprofit digital rights groups Internet Freedom Foundation and Software Freedom Law Center (SFLC.in), urged the Indian election commission to hold political candidates and social media platforms accountable for any misuse.

Hariharan underlined that the scale and sophistication of misinformation and disinformation have drastically increased over the last five years since India’s last general election in 2019. The key reasons, she believes, are the increase in internet penetration — it’s grown from 14% in 2014 to around 50% now, according to World Bank data — and the availability of technologies to manipulate audiovisual messages, low media literacy, and the mainstream media losing some of its credibility.

Logically noticed a particular spike in attempts to cast doubt about electronic voting machines. Its fact-checkers saw older claims, particularly videos and text from Supreme Court hearings about voting machines, being circulated without sufficient context. There were even some posts about these machines being banned, faulty or tempered with, along with hashtags such as #BanEVM circulated among Facebook groups with thousands of followers.

Sinha of Alt News agreed that misleading online content has rapidly risen in the country. He noted that social media companies are not helping to limit such content on their platforms.

“Is there a single report that’s been published in four years as to how their fact-checking enterprise is doing? No, nothing, because they know it is not working. If it was working, they would have gone to town with it, but they know it’s not working,” he told TechCrunch.

Holan believes there is much room for product changes that emphasize accuracy and reliability.

“The platforms invested heavily during COVID in trust and safety programs. And since then, there’s clearly been a pullback,” she said.

Meta and X did not answer why there have been no significant product-related updates to restrict misleading content and the amount of investments made for fact-checking in India. However, a Meta spokesperson noted the existence of a WhatsApp tip line, which was launched in late March, and an awareness campaign on Instagram to identify and stop misinformation using the platform’s built-in features.

“We have a multi-pronged approach to tackling misinformation that includes building an industry-leading network of fact-checkers in the country, including training them on tackling AI-generated misinformation,” the Meta spokesperson said in an emailed statement.

X did not answer a detailed questionnaire sent to the generic press email ID but said, “Busy now, please check back later.”




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Meta AI is restricting election-related responses in India | TechCrunch


Last week, Meta started testing its AI chatbot in India across WhatsApp, Instagram, and Messenger. But with the Indian general elections beginning today, the company is already blocking specific queries in its chatbot.

Meta confirmed that it is restricting certain election-related keywords for AI in the test phase. It also said that it is working to improve the AI response system.

“This is a new technology, and it may not always return the response we intend, which is the same for all generative AI systems. Since we launched, we’ve constantly released updates and improvements to our models, and we’re continuing to work on making them better,” a company spokesperson told TechCrunch.

The move makes the social media giant the latest big tech company, proactively curtailing the scope of its generative AI services as it gears up for a major set of elections.

One of the big concerns from critics has been that genAI could provide misleading or outright false information to users, playing an illegal and unwelcome role in the democratic process.

Last month, Google started blocking election-related queries in its Gemini chatbot experience in India and other  markets where elections are taking place this year.

Meta’s approach follows a bigger effort the company has announced around what it allows and does not allow on its platform leading up to elections. It pledged to block political ads in the week leading up to an election in any country, and it is working to identify and disclose when images in ads or other content have been created with AI.

Meta’s handling of genAI queries appears to be based around a blocklist. When you ask Meta AI about specific politicians, candidates, officeholders, and certain other terms, it will redirect you to the Election Commission’s website.

“This question may pertain to a political figure during general elections. Please refer to the link https://elections24.eci.gov.in,” the response says.

Image Credits: Screenshot by TechCrunch

Notably, the company is not strictly blocking responses to questions containing party names. However, if a query includes the names of candidates or other terms, you might see the boilerplate answer cited above.

But just like other AI-powered systems, Meta AI has some inconsistencies. For instance, when TechCrunch asked for information about “Indi Alliance” — a politicial alliance of multiple parties that is fighting against the incumbents Bharatiya Janata Party (BJP) — it responded with information containing a politician’s name. However, when we asked about that politician in a separate query, the chatbot didn’t respond with any information.

Image credits: Screenshot by TechCrunch

This week, the company rolled out a new Llama-3-powered Meta AI chatbot in more than a dozen countries, including the U.S., but India was missing from the list. Meta said that the chatbot will be in the test phase in the country for now.

“We continue to learn from our users tests in India. As we do with many of our AI products and features, we test them publicly in varying phases and in a limited capacity,” a company spokesperson told TechCrunch in a statement.

Currently, Meta AI is not blocking queries about elections for U.S.-related terms such as “Tell me about Joe Biden.” We have asked Meta if the company plans to restrict these queries to the U.S. elections or other markets. We will update the story if we hear back.

If you want to talk about your experience with Meta AI you can reach out to Ivan Mehta at [email protected] by email and through this link on Signal.


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Fintech CRED secures in-principle approval for payment aggregator license | TechCrunch


CRED has received the in-principle approval for payment aggregator license in a boost to the Indian fintech startup that could help it better serve its customers and launch new products and experiment with ideas faster.

The Bengaluru-headquartered startup, valued at $6.4 billion, received the in-principle approval from the Reserve Bank of India for the payment aggregator license this week, according to two sources familiar with the matter.

CRED didn’t immediately respond to a request for comment.

The RBI has granted in-principle approval for payment aggregator licenses to several companies, including Reliance Payment and Pine Labs, over the past year. Typically, the central bank takes nine months to a year to issue full approval following the in-principle approval.

Payment aggregators are essential in facilitating online transactions by acting as intermediaries between merchants and customers. The RBI’s approval enables fintech firms to expand their offerings and compete more effectively in the market.

Without a license, fintech startups must rely on third-party payment processors to handle transactions, and these players may not prioritize such mandates. Obtaining a license allows fintech companies to process payments directly, reduce costs, gain greater control over payment flow, and onboard merchants directly. Additionally, payment aggregators with licenses can settle funds directly with merchants.

This is a developing story. More to follow.


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Truecaller launches a web client for its Android users | TechCrunch


Truecaller has launched a web version of its eponymous caller ID application that brings a range of features, including SMS and chat mirroring, call notifications, and number search functionality to the desktop. Initially, the web version, called Truecaller for Web, will only be made available to Android users globally, the company said, but it plans to roll out the support on iOS in the future.

All Truecaller for Android users across the world can now link their devices to the web client on a PC or a Mac through a QR code. At the moment, Truecaller is limiting the number of active web sessions to one and is also automatically signing out users after 30 days of no usage. Users can manually de-link a browser from settings as well. This is akin to linking the web version of a messenger like WhatsApp or Telegram.

Truecaller, which counts India as its biggest market with nearly 259 million users, is quite late in offering the SMS and chat-mirroring feature. Notably, Microsoft provides SMS mirroring for both Android and iPhone users on Windows through its Phone Link functionality. Nonetheless, this functionality could provide its users some convenience in quickly replying to a text or accessing one-time passwords (OTPs) for login.

Truecaller also already offers users the ability to look up a phone number on its website, though with some rate limits. Now users will be able to look up numbers without any such limitations on the web client, the company said. The web client also displays real-time caller ID notifications when a user receives a call.

The company said that there are 80 million people who receive SMS pop-up summary notifications every day. This means that these users haven’t denied Truecaller permission to read SMS. But it’s not clear if these folks are using Truecaller as their primary SMS client.

Over the last few months, Truecaller has focused on introducing more AI-powered features. Last month, it launched a “Max” feature update for Android users to block all calls from unapproved contacts or spam detected by AI. In February, the company also brought call recording and AI-powered transcription features to India after launching the feature in the U.S. last year.

After registering lower revenues for the quarter, the company had a 32% stock dip in October 2023. However, the stock has recovered from the low price of SEK24.47 ($2.32) to trading around SEK31.68 ($3) at the time of writing.

After the publication of the story, Truecaller said that it began rolling out the feature globally and not just in India. The story has been reflected to update that.


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Dailyhunt-parent acquires newsstand app Magzter | TechCrunch


VerSe Innovation, the parent firm of news aggregator app Dailyhunt, has acquired the popular digital newsstand firm Magzter, the two said Thursday.

The Bengaluru-headquartered startup has fully acquired Magzter, a New York-headquartered firm that counted Singapore Press Holdings among its backers. VerSe didn’t disclose the financial terms of the deal.

The acquisition of Magzter, which offers more than 8,500 magazines on its eponymous app, underscores VerSe’s focus on targetting and serving the affluent audience, VerSe co-founder Umang Bedi told TechCrunch in an interview.

Magzter has more than 1 million paying subscribers in India, and 87 million active users globally. The firm, which charges about $20 to $30 yearly to consumers for its all-you-can-consume model, will find a distribution and technology partner in VerSe, helping the U.S. firm reduce its user acquisition cost, Bedi said.

Dailyhunt began evaluating the deal with Magzter last year. The Indian firm plans to launch Dailyhunt Premium this year that will include an ad-free experience as well as Magzter’s catalog. Magzter will continue to operate as a standalone service as well, Bedi said.

This is a developing story. More to follow.


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