Also in this letter:
■ Some influencers say Trell hasn’t paid them in months
■ Swiggy vies with Reliance and others for Indian unit of Metro AG
■ Zomato defines the main priorities once the Blinkit agreement is concluded
Payments Council of India Seeks Government Help on RBI Rule
The Payments Council of India (PCI) and several fintech companies have urged the government to intervene to resolve the fallout from a recent directive from the Reserve Bank of India (RBI), which prohibited payment companies from charging credit lines. credit on wallets and prepaid payments. instruments (IPP).
Catch up fast: We reported last week that fintech firms, along with the Digital Lenders‘ Association of India (DLAI), had contacted the government and the banking regulator to request a six-month extension to comply with the new mandate.
We also reported that the RBI circular came after commercial banks raised concerns about a likely violation of rules, including anti-money laundering (AML) and KYC guidelines, by companies. fintech.
What PCI wants: The council – under the aegis of the Internet and Mobile Association of India (IAMAI) – said wallets that fully meet know-your-customer (KYC) standards should be treated on an equal footing with accounts. banks and that they should be allowed to disburse credit.
He said that “a drawdown by the client on a non-revolving line of credit (which has been granted by a regulated lender) should be disbursable in a full KYC PPI.”
This essentially means that he is seeking to rescind the RBI order issued last week.
A non-revolving line of credit is a concept where credit is “non-revolving” unless the customer re-subscribes for a new line of credit and has a clear repayment schedule with no minimum due.
Make the case of fintech: In the letter, PCI explained the different models for using PPIs to disburse loans to customers. He also said that disbursing loans to a portfolio or PPI helps lenders have more control over how the loan is used versus the risk of misuse if given in cash.
He also said the current model of disbursing loans through a PPI has led to greater financial inclusion and a move towards a cashless future.
To fall: Industry sources told us that credit card startups, such as Tiger Global-backed Unicorn Slice and Uni Cards, were more likely to be affected by the regulator’s decision.
Tiger Global, Insight Partners, General Catalyst and others have invested more than $500 million in challenger credit card companies over the past 18 months.
Some influencers say Trell hasn’t paid them in months; 100 other employees leave
Influencer-run video commerce platform Trell hasn’t paid its membership fee to a section of content creators in the past six to seven months, three creators told us.
About 100 Trell employees have also voluntarily left the company in the past two months, a source said.
Problems galore:Trell is being investigated by an EY India forensic team looking into alleged related party transactions, misreporting of company numbers and other financial irregularities within the company.
How many are outstanding? We couldn’t determine the exact figure, but sources tell us that Trell hasn’t paid a “significant” number of creators. At one point, the company was working with 1,000 to 1,500 creators, they said.
Deleting comments: Trell’s community page on Instagram received several comments from creators, such as “please clear pending payments”, urging the company to pay. Trell was actively deleting these comments, we found.
At least one creator also alleged that the company only pays influencers with large followings on popular social media platforms like Instagram to avoid public shaming, while not paying creators with relatively smaller numbers of followers. .
Denial: Trell denied the allegations.
“Trell has paid all of its creators in accordance with our contractual agreements with them. A certain percentage of creators work through their agencies. Trell has also authorized payments with agencies,” the company said in a statement.
“However, we have learned that some agencies are delaying payments. While this is a gap between agency and creator, we have been actively working with them to ensure our creators are supported and that payments are settled at the earliest…”
Dismissals: In March, Trell laid off 300 employees amid growing uncertainty around the business and talk of halting a funding round.
TWEET OF THE DAY
Swiggy vies with Reliance, PremjiInvest for Indian unit of Metro AG
Food delivery firm Swiggy is competing with Reliance Retail, Thailand’s biggest conglomerate Charoen Pokphand (CP) Group and PremjiInvest – the investment fund run by the family office of Indian tech billionaire Azim Premji – to buy the operations Indian cash-and-carry companies from German retailer Metro AG, several sources told us.
Tata Group and private equity fund Bain Capital are pricing the takeover opportunity at $1 billion to $1.5 billion, but have yet to confirm their plans, the people mentioned above said.
The submission of non-binding offers is scheduled for this week. Flipkart-Walmart, DMart and Amazon have withdrawn from the race for the time being. Detailed due diligence will begin after receipt of non-binding offers with firm offers expected in two months.
We reported on May 20 that Metro AG has decided to exit India by selling its local operations, and that at least 10 potential candidates including Reliance, CP Group, Flipkart, D-Mart have been approached.
On May 30, we reported that Swiggy was also evaluating the prospect.
Fleet integration and customer cross-selling are top priorities after Zomato-Blinkit deal
Zomato plans to begin integrating Blinkit on multiple fronts after its board of directors approves the proposed acquisition, executives said on a conference call Saturday.
Catch up fast: On Friday, Zomato’s board approved its acquisition of fast-trading startup Blinkit for 4,447 crore ($570 million) in an all-stock deal. The company said Blinkit’s valuation decline was due to macroeconomic factors.
Priorities: On the analyst and shareholder call, Zomato executives said once the deal closes, the priorities would be customers and delivery fleet integration. Zomato may consider moving Blinkit to the Zomato app.
“We will be experimenting with different ways to integrate the two customer bases or rather to ensure that we are able to leverage Zomato’s customer base for Blinkit’s business growth,” the CFO said. by Zomato, Akshant Goyal.
“Once the transaction is done we will test these things and if it makes sense to have both brands on the same app then why not? So there are several ideas in our head and we will experiment and see what works . ultimately.”
Using Zomato’s food delivery customer base to cross-sell in fast-paced commerce will be a big part of “achieving synergy,” he said.
More than half of IT companies struggle to get employees back into the office: report
According to a survey conducted by CIEL HR, three out of four employees working in Information Technology (IT) companies in India do not come to the office even once a week despite their organizations (WFO) resuming work.
Many IT companies are also adopting their back-to-work policy, fearing that coercion will trigger more quits. CIEL surveyed 40 IT companies in India, including those in the top 10, employing a total of around 900,000 employees.
Among the companies surveyed by CIEL, 30% are operating in WFH mode while the others have either taken over the WFO or intend to bring employees back to the office soon. But these employees are not yet open to the idea of switching from FMH mode.
TCS to broadcast: To counter this, TCS plans to open offices in smaller cities and non-metropolitan areas including Guwahati, Nagpur and Goa.
This is intended to encourage collaboration among staff members as many are reluctant to return to their bases after working away from home, mostly in their hometowns, following the Covid-19 pandemic, leaders said.
Its peers such as Infosys, Wipro, HCL Technologies and Tech Mahindra have already announced major expansion plans in non-metro areas.
Other Top Stories by our journalists
Political conundrum | The impact on Indian tech companies: New Delhi’s power corridors are once again buzzing with a slew of policies and legislation that directly impact tech and internet companies. The IT Department is seeking changes to the 2021 IT rules for major social media intermediaries, to address “infirmities and loopholes” in existing regulation. The proposed changes are not, however, the only way for the IT Ministry to gain greater accountability from internet companies operating in India.
First Indian NFT platform for esports: Gaming and esports streaming platform Loco is set to launch a new platform that will allow fans to own and trade esports collectibles via non-fungible tokens (NFTs). The platform, Loco Legends, will partner with 50 of India’s most popular esports teams and allow fans to buy and trade virtual collectibles, much like how fans of sport buy merchandise and collectibles for their favorite sports teams in the real world.
Indian cos ready to dial 5G in a year:Indian companies are betting big on 5G, with 52% of companies surveyed by Omdia saying they intend to start using it in the next 12 months, and 56% ranking it among their most important technologies for transformation digital.
Global Choices We Read
■ Period-tracking apps aim for anonymity following Roe v Wade ruling (WSJ)
■ One day, AI will look as human as anyone else. Then what ? (Cable)
■ How to get rid of the Internet, as best you can (The Washington Post)