India’s ride-hailing leaders, Ola and Uber, are navigating complex regulatory challenges. Goa’s Chief Minister, Pramod Sawant, has indicated that their entry into the state might face hurdles due to new rules requiring a three-year license and a local office. Meanwhile, Karnataka continues to ban bike taxis until a regulatory policy is established. Ola and Uber are also contending with increased competition from zero-commission models like Namma Yatri and Rapido, as well as backlash from Chennai drivers over high commissions. Additionally, they face scrutiny from the consumer affairs ministry over pricing and service features. Amid these challenges, the ride-hailing giants struggle to establish a foothold in Goa.
In other news, Indian startups saw a significant rise in funding, with $567.5 million raised across 19 deals last week. However, new-age tech stocks experienced a downturn, with 24 out of 33 stocks declining. Zepto’s Dharavi warehouse regained its food license after addressing safety violations, and tax officials are investigating potential tax evasion through crypto investments. The startup ecosystem is preparing for a potential IPO surge in 2025, despite economic uncertainties. Meanwhile, the estate of late investor Rakesh Jhunjhunwala has fully exited Nazara Technologies by selling its remaining stake. The government is considering easing localisation mandates for EV makers due to China’s restrictions on rare earth materials. In the OTT space, Reelies is gaining traction with microdramas, aiming to reach 2 million subscribers by the end of the year.
In the cleantech sector, altM is making strides by transforming waste into bio-chemicals. Founded in 2022, the startup uses its proprietary biorefinery platform to convert agricultural and industrial waste into valuable materials, with plans to expand into various industries. With a focus on sustainability, altM aims to produce 10,000 tonnes of biomass annually, potentially driving a cleantech revolution.
