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Top tech and startup stories this week
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Welcome to a new edition of ETtech Unwrapped – our weekend newsletter packed with the most important stories this week. Let’s take a look.
Qcomm firms slow dark stores buildout to control cash burn: India’s quick commerce players are hitting the brakes on dark store expansion, choosing to rein in cash burn after an aggressive year of growth. Blinkit is the outlier—backed by parent Eternal’s $2 billion war chest, it aims to nearly double its footprint to 3,000 stores from 1,544 as of June 30.
Brands rush to join qcomm party at any cost: Hundreds of emerging direct-to-consumer (D2C) brands are racing to secure space on ecommerce and quick commerce platforms, betting on an early festive rush to lift sales. The increased frenzy has driven ad rates on quick commerce apps 40–50% higher in key festive categories.
Campus incubators hoping for the next million-dollar startup: IIT Madras making a pretty penny with Ather Energy going public has become a success story many are trying to emulate. That windfall has inspired top campuses to double down on nurturing their own startup pipelines.
VC funds lock in specialists to vet cybersafety bets: Venture capital (VC) funds are increasingly turning their attention to cybersecurity startups and deploying specialists to evaluate potential investment bets amid rapid growth in the sector fuelled by the rise of artificial intelligence (AI) and escalating concerns over data security.
OpenAI to bring more products to India, make them affordable: India is an “incredibly fast-growing” market, and may soon overtake the US as the largest one for OpenAI, according to cofounder Sam Altman.
Also Read: OpenAI’s ChatGPT-5: All you need to know
(L-R) Vijay Shekhar Sharma, CEO, Paytm and Jack Ma, founder, Antfin
Antfin snaps Eternal, Paytm ties: Chinese financial services major Antfin exited two Indian companies it has been associated with for years—Paytm owner One97 Communications and Zomato parent Eternal—in as many days as India tightened scrutiny on investments from the neighbouring nation.
Reliance writes off its entire investment in Dunzo: Reliance Industries has written off its entire investment in Dunzo, turning its Rs 1,800 crore infusion in the hyperlocal delivery startup to nil, according to its FY25 annual report.
BlueStone cuts IPO size days before launch: Omnichannel jewellery retailer BlueStone has pared down the size of its upcoming initial public offering (IPO) just days before launch, now looking to raise Rs 820 crore in fresh capital, down from the Rs 1,000 crore it had initially targeted, according to revised IPO papers.
OTPP set to bag Darwinbox stake for $50 million: Canadian pension giant Ontario Teachers' Pension Plan (OTPP) is on the verge of snapping up a stake in the human resources SaaS unicorn Darwinbox, likely valuing it over $1 billion.
The Sleep Company raises Rs 480 crore in new round: Direct-to-consumer startup The Sleep Company raised Rs 480 crore in its latest funding round to develop teams and expand its retail network. The fresh capital raise comes as its rivals—Wakefit and Duroflex—prepare to go public.
MapmyIndia to invest Rs 25 crore in Zepto: Digital mapping firm MapmyIndia is set to acquire a small stake in quick commerce unicorn Zepto, which is trying to cut foreign shareholding in the run-up to going public.
Also Read: Zepto enters pharmacy delivery with 10-minute promise
Digital lender Fibe eyes fresh capital from IFC, others: Digital lending startup Fibe plans to raise $35 million in a new funding round led by the International Finance Corporation (IFC), the impact investing arm of the World Bank Group, two sources familiar with the matter told us.
Indian VCs, startups heading out to ride UAE’s Big Tech wave: Venture capital firms and startups from the country are setting their sights on the Middle East, as the region looks to shed its old image as a land of oil rigs and pipelines.
Tarun Mehta, CEO, Ather Energy
Ather flags Q2 supply risks on China rare earth curbs: Ather Energy CEO Tarun Mehta highlighted a possible short-term disruption in Q2 due to China's export restrictions on rare earth magnets. The electric two-wheeler maker saw a 79% year-on-year increase in operating revenue to Rs 644.6 crore during the June quarter, with a marginal reduction in net loss.
Info Edge’s Q1 profit grows 32% on year: The parent company of job site Naukri.com reported a more than 32% year-on-year increase in net profit for the quarter ended June 30 to Rs 342.8 crore, supported by revenue growth in both its recruitment and non-recruitment businesses.
Blackbuck Q1 profit grows on sales boost: Zinka Logistics, owner of the digital trucking platform Blackbuck, reported a 17% year-on-year rise in net profit to Rs 34 crore on the back of a 57% rise in revenue to Rs 144 crore.
BharatPe turns the page with Rs 6 crore profit: BharatPe has swung to its first adjusted pre-tax profit of Rs 6 crore in FY25, pulling off a sharp rebound from a Rs 342 crore loss in the previous year.
Listed fintechs cut marketing spends to boost fundamentals: India’s listed fintechs have tightened purse strings, slashing marketing and promotional spends in recent quarters as they chase profitability and sturdier business fundamentals. Paytm cut marketing spend by 55% in the June quarter, while PB Fintech trimmed advertising expenses for two straight quarters despite steadily reporting net profits.
Paytm cuts headcount by 10% in FY25: Fintech major Paytm trimmed its workforce by 4,592 in FY25, sharply bringing down employee costs as part of a wider restructuring effort, the company revealed in its latest annual report.
IT exports climb 12.5% to $224 billion in FY25: MeitY | Information technology (IT) exports rose 12.48% in fiscal 2024-25, accelerating from the prior year’s 2.83% growth, to an estimated $224.4 billion. Meanwhile, India’s electronics exports surged 47% year-on-year in the April-June quarter. Now these success rates face a looming threat that could spoil the party: fresh US tariffs.
Indian IT grappling with cost pressures: India's information technology services industry is facing heightened cost pressures on account of a fundamental shift in its pricing models, especially triggered by the productivity boost from AI, said industry executives and experts.
Mid-tier Indian IT pips Big 5 in Q1: Five of the mid-tier Indian IT companies reported an average 20% revenue growth annually with strong deal conversions and AI efficiencies, surpassing the five top-tier firms, which recorded flat to single-digit growth rates, averaging a 1.5% increase, according to data from their April to June quarter financials.
PE firms push portfolio companies to open GCCs in India: Private equity heavyweights, likme KKR, Blackstone, Warburg Pincus, and others, are guiding portfolio companies to establish global capability centres (GCCs) in India, resulting in a fourfold increase in such investments over five years.
Jobs at risk: AI’s reality check | The traditional job pyramid of the Indian white-collar workforce—wide at the base with repetitive roles—is being compressed, experts said. Hiring is becoming more selective, with companies placing a premium on value-creation over volume.
Human-plus-agent model creates fresh complexities: Integration of AI agents into the workforce could complicate people management and erode company culture if not governed carefully, said Jacqui Canney, chief people and AI enablement officer at ServiceNow.
Top Stories This Week
Qcomm firms slow dark stores buildout to control cash burn: India’s quick commerce players are hitting the brakes on dark store expansion, choosing to rein in cash burn after an aggressive year of growth. Blinkit is the outlier—backed by parent Eternal’s $2 billion war chest, it aims to nearly double its footprint to 3,000 stores from 1,544 as of June 30.
Brands rush to join qcomm party at any cost: Hundreds of emerging direct-to-consumer (D2C) brands are racing to secure space on ecommerce and quick commerce platforms, betting on an early festive rush to lift sales. The increased frenzy has driven ad rates on quick commerce apps 40–50% higher in key festive categories.
Campus incubators hoping for the next million-dollar startup: IIT Madras making a pretty penny with Ather Energy going public has become a success story many are trying to emulate. That windfall has inspired top campuses to double down on nurturing their own startup pipelines.
VC funds lock in specialists to vet cybersafety bets: Venture capital (VC) funds are increasingly turning their attention to cybersecurity startups and deploying specialists to evaluate potential investment bets amid rapid growth in the sector fuelled by the rise of artificial intelligence (AI) and escalating concerns over data security.
OpenAI to bring more products to India, make them affordable: India is an “incredibly fast-growing” market, and may soon overtake the US as the largest one for OpenAI, according to cofounder Sam Altman.
Also Read: OpenAI’s ChatGPT-5: All you need to know
Startup Watch
Antfin snaps Eternal, Paytm ties: Chinese financial services major Antfin exited two Indian companies it has been associated with for years—Paytm owner One97 Communications and Zomato parent Eternal—in as many days as India tightened scrutiny on investments from the neighbouring nation.
Reliance writes off its entire investment in Dunzo: Reliance Industries has written off its entire investment in Dunzo, turning its Rs 1,800 crore infusion in the hyperlocal delivery startup to nil, according to its FY25 annual report.
BlueStone cuts IPO size days before launch: Omnichannel jewellery retailer BlueStone has pared down the size of its upcoming initial public offering (IPO) just days before launch, now looking to raise Rs 820 crore in fresh capital, down from the Rs 1,000 crore it had initially targeted, according to revised IPO papers.
OTPP set to bag Darwinbox stake for $50 million: Canadian pension giant Ontario Teachers' Pension Plan (OTPP) is on the verge of snapping up a stake in the human resources SaaS unicorn Darwinbox, likely valuing it over $1 billion.
The Sleep Company raises Rs 480 crore in new round: Direct-to-consumer startup The Sleep Company raised Rs 480 crore in its latest funding round to develop teams and expand its retail network. The fresh capital raise comes as its rivals—Wakefit and Duroflex—prepare to go public.
MapmyIndia to invest Rs 25 crore in Zepto: Digital mapping firm MapmyIndia is set to acquire a small stake in quick commerce unicorn Zepto, which is trying to cut foreign shareholding in the run-up to going public.
Also Read: Zepto enters pharmacy delivery with 10-minute promise
Digital lender Fibe eyes fresh capital from IFC, others: Digital lending startup Fibe plans to raise $35 million in a new funding round led by the International Finance Corporation (IFC), the impact investing arm of the World Bank Group, two sources familiar with the matter told us.
Indian VCs, startups heading out to ride UAE’s Big Tech wave: Venture capital firms and startups from the country are setting their sights on the Middle East, as the region looks to shed its old image as a land of oil rigs and pipelines.
Earnings Corner
Ather flags Q2 supply risks on China rare earth curbs: Ather Energy CEO Tarun Mehta highlighted a possible short-term disruption in Q2 due to China's export restrictions on rare earth magnets. The electric two-wheeler maker saw a 79% year-on-year increase in operating revenue to Rs 644.6 crore during the June quarter, with a marginal reduction in net loss.
Info Edge’s Q1 profit grows 32% on year: The parent company of job site Naukri.com reported a more than 32% year-on-year increase in net profit for the quarter ended June 30 to Rs 342.8 crore, supported by revenue growth in both its recruitment and non-recruitment businesses.
Blackbuck Q1 profit grows on sales boost: Zinka Logistics, owner of the digital trucking platform Blackbuck, reported a 17% year-on-year rise in net profit to Rs 34 crore on the back of a 57% rise in revenue to Rs 144 crore.
BharatPe turns the page with Rs 6 crore profit: BharatPe has swung to its first adjusted pre-tax profit of Rs 6 crore in FY25, pulling off a sharp rebound from a Rs 342 crore loss in the previous year.
Fintech News
Listed fintechs cut marketing spends to boost fundamentals: India’s listed fintechs have tightened purse strings, slashing marketing and promotional spends in recent quarters as they chase profitability and sturdier business fundamentals. Paytm cut marketing spend by 55% in the June quarter, while PB Fintech trimmed advertising expenses for two straight quarters despite steadily reporting net profits.
Paytm cuts headcount by 10% in FY25: Fintech major Paytm trimmed its workforce by 4,592 in FY25, sharply bringing down employee costs as part of a wider restructuring effort, the company revealed in its latest annual report.
IT Updates
IT exports climb 12.5% to $224 billion in FY25: MeitY | Information technology (IT) exports rose 12.48% in fiscal 2024-25, accelerating from the prior year’s 2.83% growth, to an estimated $224.4 billion. Meanwhile, India’s electronics exports surged 47% year-on-year in the April-June quarter. Now these success rates face a looming threat that could spoil the party: fresh US tariffs.
Indian IT grappling with cost pressures: India's information technology services industry is facing heightened cost pressures on account of a fundamental shift in its pricing models, especially triggered by the productivity boost from AI, said industry executives and experts.
Mid-tier Indian IT pips Big 5 in Q1: Five of the mid-tier Indian IT companies reported an average 20% revenue growth annually with strong deal conversions and AI efficiencies, surpassing the five top-tier firms, which recorded flat to single-digit growth rates, averaging a 1.5% increase, according to data from their April to June quarter financials.
PE firms push portfolio companies to open GCCs in India: Private equity heavyweights, likme KKR, Blackstone, Warburg Pincus, and others, are guiding portfolio companies to establish global capability centres (GCCs) in India, resulting in a fourfold increase in such investments over five years.
Eye on AI
Jobs at risk: AI’s reality check | The traditional job pyramid of the Indian white-collar workforce—wide at the base with repetitive roles—is being compressed, experts said. Hiring is becoming more selective, with companies placing a premium on value-creation over volume.
Human-plus-agent model creates fresh complexities: Integration of AI agents into the workforce could complicate people management and erode company culture if not governed carefully, said Jacqui Canney, chief people and AI enablement officer at ServiceNow.
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