Startup Digest: Google to meet with IT Ministry over delisting of apps, Rajeev Chandrasekhar clarifies govt's advisory on AI, Apple hit with 1.8 bn euro EU antitrust fine, and more

In a significant development, sources have informed CNBC-TV18 that Google is set to meet with Union Minister Ashwini Vaishnaw imminently regarding the delisting of certain apps from its app store in India for not adhering to its billing policies. The meeting comes amidst escalating tensions between the tech giant and the Indian government over the removal of applications from its platform. Ashwini Vaishnaw, Minister for Electronics and Information Technology, had extended an invitation to Google, seeking to address governmental apprehensions regarding the delisting of prominent applications.

In a follow-up to the government’s artificial intelligence advisory, MeitY minister Rajeev Chandrasekhar has clarified crucial aspects of the advisory amid industry-wide concerns. Chandrasekhar emphasized that the focus of the advisory is on “untested AI platforms” intended for deployment on the “Indian Internet.” He added that public Internet should not be conflated with a sandbox insofar as unlawful content is concerned. Chandrasekhar further stated that all platforms do not have safe harbor or a free pass vis-a-vis unlawful content.

The Finance Ministry is contemplating a deferment of the enforcement of Rule 43B (h) under the Income Tax Act, which mandates payments to micro, small, and medium enterprises (MSMEs) within 45 days, sources informed CNBC-TV18. The proposed postponement is expected to span a full financial year, with the rule anticipated to take effect from April 1, 2025, sources said. The Finance Act of 2023, which amended the Income Tax Act, introduced clause (h) in Section 43B to ensure timely payments to MSMEs.

Kido International, a UK-headquartered preschool chain, has acquired Amelio Early Education. This strategic acquisition positions Kido as one of India’s few non-franchised players in the Indian early childhood education market. The acquisition follows a $7.5-million fundraise by Kido, led by Tanas Capital, a Singapore-based private investment firm. The investment will serve as a springboard for Kido International’s organic and inorganic growth plans, specifically in India. Kido and Amelio’s combined network will now expand to 39 centers across India in different cities, including Chennai, Bangalore, Hyderabad, and Gurugram.

Defence Minister Rajnath Singh has launched the Acing Development of Innovative Technologies with iDEX (ADITI) scheme with a corpus of ₹750 crore for startups. The scheme will focus on innovations in critical and strategic defence technologies from startups. Under the scheme, startups are eligible to receive grant-in-aid of up to ₹25 crore for their research, development, and innovation endeavors in defence technology. In addition, DefConnect 2024 witnessed the launch of a rolling iDEX internship program, aimed at nurturing young talent and providing them with hands-on experience and mentorship in defence innovation.

Medtech startup Cardiotrack has raised $2 million in a pre-series A funding round led by angel investor Girish Narasimhan. Previously, the firm had received an angel investment of $1.6 million from a cohort of UHNIs. "We continue to innovate and expand our reach in our mission to drive positive change in the healthcare industry. The investment further validates the venture’s direction and the immense value it brings in improving the healthcare experience for both providers and consumers,” said Avin Agarwal, Founder & CEO, Cardiotrack. Cardiotrack offers state-of-the-art telemedicine kits, data analytics, and unique screening technologies like the equivalent of a treadmill test at home.

Dubbing platform Dubpro.ai has received $500,000 in its seed funding round led by Venture Catalysts. The round also saw participation from Anicut Capital, 9Unicorns, and JJFO and FirstCheque. The firm enables creators and companies to localize their video content through advanced AI-driven dubbing solutions. "Dubpro.ai is dedicated to revolutionising the content localization industry, making high-quality vernacular content accessible to creators and companies of all sizes," stated Ishan Sharma, Founder & CEO of dubpro.ai. "We are extremely excited to work with leading investors and a passionate team to build generative AI capabilities in Indic languages that could unlock great potential for video content being available across all vernacular languages from Education to Entertainment content,” he added.

Punjab National Bank (PNB) has partnered with EaseMyTrip to launch 'PNB EMT Credit Card'. This co-branded travel credit card targets mass to premium customer segments, the companies said in a statement. The credit card features a built-in wallet for contactless payments. The 'PNB EMT Credit Card' offers a welcome gift voucher worth ₹3,000 and 300+ reward points upon activation. The credit card also provides complimentary access to select domestic and international lounges, insurance coverage for accidental death and personal total disability up to ₹2 lakh, and a fuel surcharge waiver, the lender said.

NODWIN Gaming has announced a strategic alliance with JSW Sports to monetize and market gaming, esports, and cultural intellectual properties (IPs). The strategic partnership spans sponsorship, media rights, activation, and influencers, creating a comprehensive framework to maximize the value of gaming and esports content. “NODWIN Gaming's technical know-how and leadership in the esports and gaming domain, combined with JSW Sports' commercial expertise, positions us to unlock unprecedented opportunities in the distribution and monetization of esports content,” said Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming.

Blue-collar platform apna.co has forged a Memorandum of Understanding (MOU) with the Indian Institute of Management, Sambalpur, to foster innovation, research, and entrepreneurship through collaborative projects. The partnership extends across various sectors, including technological research and development, sustainable solutions, FMCG, logistics, and digital marketing, a statement said. The collaboration will explore a wide range of innovation and research areas, spanning textiles, arts and culture, agriculture, healthcare, financial and digital inclusivity, tribal entrepreneurship, and sustainability.

Apple has been hit with an EU antitrust fine of over 1.8 billion euros ($1.95 billion), its first ever, for preventing Spotify and other music streaming services from informing users of payment options outside its App Store. The European Commission's decision was triggered by a 2019 complaint by Swedish music streaming service Spotify over this restriction and Apple's 30% App Store fees. The European Union competition enforcer said Apple's restrictions constituted unfair trading conditions, a relatively novel argument in an antitrust case and also used by the Dutch antitrust agency in a decision against Apple in 2021 in a case brought by dating app providers.

Bitcoin rallied to a two-year high on Monday, breaking above $65,000 as a wave of money carried it within striking distance of record levels. The price hit a session high of $65,537 early in Europe, having already hit a new two-year high in Asian trading. It was last up 4% at $65,045. Bitcoin hit a record $68,999.99 in November 2021. The largest cryptocurrency by market value has gained 50% this year, and most of the rise came in the last few weeks where inflows into U.S.-listed bitcoin funds surged.