Startup Digest: GST notices to Dream 11 & Play Game 24/7, Dunzo’s co-founder exits, Meesho opens platform for non-GST registered businesses & more

Quick commerce platform Dunzo’s co-founder Dalvir Suri has quit the company at a time when the startup is facing a funding crunch, delayed payments to employees and layoffs.

Meanwhile reports have also suggested that Mukund Jha, co-founder and chief technology officer (CTO) of Dunzo is also leaving the company, making him the second co-founder to depart in a week. However, the embattled startup has denied this development, saying Jha remains an integral part of Dunzo’s leadership team.

In another development, sources have confirmed to CNBC-TV18 that Reliance Retail nominees have stepped down from Dunzo’s board.

Consumer fitness brand Cube Club has raised $1.1 million in a seed funding round led by Salgaocar family office, Rajiv Sahney of New Vernon Capital, Dream11’s founder Harsh Jain and Everest Fleet’s founder Siddharth Ladsariya.

The firm has also launched its fitness app Dopamine that offers challenges, influencer content and rewards for their fitness achievements.

Dopamine will use Artificial intelligence to provide personalized recommendations, track progress, offer insights based on their preferences, and enhance their user experience, the company said in a statement.

Lending Analytics and Infrastructure as a Service company, Roopya, has raised Rs 5.09 crore funding in a pre-seed round led by 100X.VC.

The round saw participation from KRS Jamwal, Executive Director of Tata Industries, SAT Industries, Mr Vishal Khare of Snyk, Shavdia Ventures and several other marque investors.

Roopya intends to utilize the funds to further develop its lending infrastructure, covering more products and analytics layers. Additionally, it will use the capital to invest in building a data infrastructure for Lenders and Loan Service Providers (LSPs).

Online food delivery platform Swiggy said it has facilitated over Rs 450 crore in loan disbursal to more than 8,000 restaurant owners as part of its capital assist programme.

Launched in 2017, the capital assist programme is a first-in-the-segment solution designed to bridge the financing gap and empower restaurant owners.

Over 8,000 restaurants have availed loans so far, of which 3,000 availed loans in 2022 alone, the company said in a statement.

Prosus-owned PayU India CEO Anirban Mukherjee has been elevated to the role of global CEO in a management rejig. “In his new role, Anirban will join the Prosus leadership team and report directly to Ervin Tu, Prosus and Naspers Interim CEO. He will be responsible for overall business operations of PayU,” the company said in a statement.

PayU global CEO Laurent Le Moal will step back from operational management of daily business, but will remain with Prosus and PayU in an advisory capacity, the firm added.

“As part of the transition to an Indian-focused strategy for PayU, now is the right time for Anirban to run the PayU business. Innovation and progressive regulation are driving rapid change within the digital payments industry in India, and we see many opportunities to support the next phase of growth for PayU,” said Ervin Tu, Prosus and Naspers Interim CEO.

E-commerce marketplace Meesho has made the platform inclusive for non-GST sellers. The technological adaptations will enable non-GST sellers to start selling on the platform from October 1, 2023.

The decision is in line with the GST Council’s recent announcement permitting ecommerce platforms to onboard non-GST sellers with a turnover of up to Rs 40 Lakh. This move will potentially unlock 15-20 million sellers in under-penetrated states for the company, Meesho said in a statement.

The company claims to have 1.4 million sellers on its platform. Meesho said it recognises the unique characteristics of non-GST registered sellers, such as their high motivation and locally relevant selection from categories like fashion, consumer electronics and home and kitchen.

As e-commerce majors prepare themselves for a face-off of the online festive season sales, Flipkart has launched a new subscription-based loyalty programme called 'VIP'. This is in addition to its existing membership programmes Plus and Plus Premium.

While Flipkart’s existing memberships were not paid, VIP costs Rs 499 for a year. This is similar to Amazon’s Prime membership, which also started with the Rs 500 a year mark and is currently at Rs 1,499 for the same period.

According to Flipkart's app, VIP gives users added benefits like early access to the sale, free same-day delivery in select cities, faster returns, priority customer support and extra SuperCoins.

Uber has announced the launch of 'Uber Sustainovate', a Startup Challenge in collaboration with Startup India and Nasscom AI, aimed at accelerating the adoption of sustainable mobility in India.

The competition focuses on awarding startups that produce innovative, workable solutions to promote sustainable transportation in the country, a statement said. The initiative aligns with Uber's commitment to achieving net-zero emissions by 2040 and its ongoing efforts to reduce tailpipe emissions.

Post evaluation, the top three entries will receive mentorship sessions with Uber’s tech leadership in India to help refine their skills and competencies. The winning startup will be awarded a grant of $120,000 (approximately Rs 1 crore).

Microsoft CEO Satya Nadella testified about competing with Google in digital search during the federal antitrust trial against Google in Washington, D.C.

Nadella told the court that Google’s dominant market share in online search means that publishers and advertisers shape their content to Google’s requirements, making it harder for competitors like Microsoft’s Bing to gain a foothold.

He also described Microsoft’s pitch to pay billions to Apple to replace Google with Bing as the default search engine on its devices.

Payments processor Visa has launched a $100 million venture fund for generative artificial intelligence (AI) startups, joining a list of investors who have flocked to the sector this year.

Several high-profile names such as Microsoft and Alphabet's Google have backed the AI space, a buzzword in technology circles this year, after chatbot ChatGPT's popularity.

"While much of generative AI so far has been focused on tasks and content creation, this technology... will also meaningfully change commerce in ways we need to understand," Visa's chief product and strategy officer, Jack Forestell, said in a statement.

British media regulator Ofcom will this week push for an antitrust investigation into Amazon and Microsoft's dominance of the UK's cloud computing market, according to Reuters.

The recommendation, first issued by Ofcom in April, will remain in the body's final report on the matter, set to be published Thursday, one of the sources said.

Between them, Amazon and Microsoft enjoy a combined market share of 60-70%. Meanwhile, their closest competitor, Alphabet's Google has around 10%.

Sam Bankman-Fried is set to go on trial on charges of stealing billions of dollars from customers of his FTX cryptocurrency exchange starting on Tuesday, nearly a year after the company's collapse shocked markets and tattered his reputation.

Before prospective jurors entered, prosecutor Nicolas Roos said no plea discussions were ever held with Bankman-Fried and that no offers for a plea deal were made. Mark Cohen, a lawyer for Bankman-Fried, confirmed that was the case.

Federal prosecutors say the 31-year-old former billionaire embezzled from FTX customers since its founding in 2019 through its November 2022 bankruptcy in order to prop up his hedge fund Alameda Research, buy luxury properties and donate more than $100 million to U.S. political candidates.

LinkedIn said it will add artificial intelligence features to its core businesses, allowing recruiters to find job candidates by asking questions in natural language and letting marketing professionals create ad campaigns in a few clicks.

The Microsoft-owned social network for business professionals has been using technology from OpenAI, the creator of ChatGPT that Microsoft has invested in, to develop the features.

Ryan Roslansky, LinkedIn's chief executive, told Reuters that in an age when job titles are changing rapidly, LinkedIn is trying to encourage hiring people whose skills fit the job requirements, regardless of title or education.

Apple has started requiring new apps to show proof of a Chinese government licence before their release on its China App Store, joining local rivals years that had adopted the policy years earlier to meet tightening state regulations.

Apple began last Friday requiring app developers to submit the "internet content provider (ICP) filing" when they publish new apps on its App Store, it said on its website for developers.

Apple's loose ICP policy has allowed it to offer far more mobile apps than local app rivals and helped the U.S. tech giant boost its popularity in China, its third-largest market behind the Americas and Europe.

Short video app TikTok said it will halt transactions on its platform in Indonesia from Wednesday following the country's new ban on e-commerce trade on social media.

TikTok, which is owned by China's ByteDance, said in a statement that it would coordinate with Indonesia's government regarding its future plans.

"Our priority is to remain compliant with local laws and regulations. As such, we will no longer facilitate e-commerce transactions in TikTok Shop Indonesia," the company said.

Meta Platforms is looking to introduce ad-free subscription plans for Instagram and Facebook users in Europe, Reuters reported.

Several pricing plans were discussed, but the 10 euro ($10.49) per month plan is the most feasible, one of them said, while the other source said it will be implemented in the coming months.

The proposal is an attempt by Meta to comply with European Union regulations that threaten to curb its ability to personalize ads for users without their consent and hurt its major revenue source.