Cabinet nod for Online Gaming Bill; Bluestone’s listing day gains

Cabinet approved the Online Gaming Bill, outlawing online money games. This and more in today's ETtech Top 5.

Also in the letter:
■ ChatGPT @ Rs 399
■ ETtech Done Deals
■ SoftBank eyes Intel stake

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The Union Cabinet on Tuesday cleared a draft bill to regulate India's booming online gaming and e-sports industry.

Driving the news: The bill marks a decisive move to prohibit real-money online gaming. It introduces sweeping measures – banning not only the games themselves, but also ads promoting them and financial transactions enabling such gameplay.

But why?

• According to the draft note presented to the Cabinet, the unchecked rise of online money games has led to “addiction, debt traps, suicides and mental health issues.”
• The government also flagged fraud risks and national security threats linked to these platforms.
• At the same time, the note suggests that bringing online gaming and e-sports under a legal framework will enable healthier growth for the sector.

What's next: With Cabinet approval secured, the bill is set to be introduced in the Lok Sabha tomorrow (Wednesday).

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Gaurav Singh Kushwaha, CEO, Bluestone

Omnichannel jewellery retailer Bluestone saw its stock climb 7.3% on the BSE after a flat start to trading on Indian exchanges earlier today.

Market performance: Shares opened at a 1.5% discount to the IPO price of Rs 517 on the BSE, while the NSE opening price was Rs 510. The company's market capitalisation at the end of the day stood at Rs 8,262.09 crore.

Shareholder returns: The IPO proved a lucrative exit for several early Bluestone backers:

• Accel: 8.1x times jump from initial investment, compared to the IPO price.
• Saama Capital: 10.6x
• Kalaari Capital: 8.4x
• Promoter Gaurav Singh Kushwaha: 10.7x

IPO details: Bluestone raised over Rs 1,540 crore through its IPO, split between a fresh issue of Rs 820 crore and an offer for sale by existing investors. The non-institutional portion of the issue was only 55% subscribed, which pulled overall demand down to 2.7 times. Investors who sold part of their stakes included Accel, Kalaari, Samaa, Iron Pillar, and Hero Group's Sunil Kant Munjal.

Financials under pressure: The company's top-line is growing, but losses have widened:

• Net loss: Rs 222 crore in FY25 vs Rs 142 crore in FY24
• Operating revenue: Rs 1,770 crore in FY25, up 40% YoY
• Expenses: Rs 2,050 crore in FY25, a 42% increase from Rs 1,445.7 crore in FY24

Smaller issue: Bluestone initially sought to raise Rs 1,000 crore in primary capital, but pared this to Rs 820 crore. The offer for sale was trimmed to 13.9 million shares from 24 million.


Ranvir Singh, founder & CEO, Kissht

OnEMI Technology Solutions, which runs fintech lending app Kissht, filed its draft red herring prospectus (DRHP) with markets regulator Sebi for an initial public offering (IPO).

Key details:

• Fresh issue: Rs 1,000 crore
• Offer for sale: 8.8 million shares

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The ET Soonicorns Summit 2025 will dive deep into the billion-dollar blueprint for scaling Indian AI startups with hard-hitting discussions on capital, efficiency, and execution. The panel on ‘AI Investments in India—Chasing Hype or Backing Real Disruption?' brings together Rutvik Doshi (Athera Venture Partners), Manav Garg (Together Fund), Sanjay Swamy (Prime Venture Partners), and Manish Singhal (pi Ventures) to decode where AI capital is flowing. The Capital Efficiency in the New Normal panel will see voices, including Reeju Datta (Cashfree), Abhishek Bansal (Shadowfax), and Pawan Kumar Danwar (HCL Corporation & Shiv Nadar University) debating sustainable scaling.

Rounding it up, the IPO CFO playbook masterclass will feature Arpit Chug (Razorpay) and Sohil Parekh (Ather Energy), unpacking what it takes for founders and CFOs to navigate 2025's high-stakes public markets. Complementing these open sessions, closed-door conversations will probe deeper into building industrial tech for India, global expansion strategies, and the founder's toughest trade-offs.

Mark your calendar for August 22 in Bengaluru—India's most awaited soonicorn gathering is days away.

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OpenAI is launching a more affordable version of ChatGPT in India with a new Rs 399/month ($4.60) subscription plan called ChatGPT Go.

Driving the news: OpenAI vice president and head of ChatGPT wrote on social media (X and LinkedIn) that Go offered “10x higher message limits, 10x more image generations, 10x more file uploads, and 2x longer memory compared with our free tier.” Payments can now be made in Indian rupees and via the popular payment platform—UPI, a move aimed at boosting local adoption.


Why it matters:

• India is already OpenAI's second-biggest market, according to CEO Sam Altman. User numbers have soared since the platform added image generation in March.
• The Go plan is priced well below ChatGPT's other paid tiers, with Plus at Rs 1,999 and Pro at Rs 19,900 per month.
• Turley confirmed that India will serve as the pilot market before the plan rolls out globally.

The timing is key: Rivals are also courting Indian users. Perplexity has teamed up with telco Airtel to offer free Pro plans, while Google has rolled out a year-long free AI Pro plan for students. With 700 million weekly users worldwide, OpenAI is betting that a localised, lower-cost plan will unlock broader monetisation in India.

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Weaver Services, a new housing finance platform, has raised $170 million (Rs 1,482 crore) in a funding round led by Lightspeed and Premji Invest, with Gaja Capital also participating. The company is targeting underserved borrowers, particularly self-employed individuals in India's tier-II and III cities.

Weaver has already bought Capital India Housing Finance as an anchor asset and is considering further acquisitions to scale rapidly. The fresh funding will be used to fund these buys, extend market reach, and strengthen its technology platform.

Why it matters:

• India's housing finance market remains under-penetrated, especially in smaller towns where formal credit is scarce.
• Weaver is betting on AI-driven underwriting and alternative data to speed up approvals and limit risk.

Investor insight: Led by former HDFC executive Satrajit Bhattacharya and veteran Anil Kothuri, Weaver's deal ranks among the largest recent bets on affordable housing finance in India.



D2C baby care brand R for Rabbit has secured $27 million in a funding round led by Filter Capital and 3one4 Capital. The mix of primary and secondary capital investment also facilitated an exit for early investor Xponentia Capital, which had pumped in Rs 40 crore in 2021.

Snapshot: Founded in 2014 by Kunal and Kinjal Popat, R for Rabbit offers strollers, car seats, high chairs, and diapers. The products are sold through online channels and a network of over 2,000 offline retail partners. The company claims a 35% revenue CAGR since FY21 and a current annual revenue run rate of over $30 million.

Adding context:

• India's baby care market is expanding quickly as rising incomes and awareness drive demand for safer, high-quality products.
• The brand plans to use the fresh capital to expand distribution, accelerate its omnichannel play, and push product innovation.

Bullish investors: The deal highlights growing investor interest in niche consumer brands with clear category leadership and scale potential.

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SoftBank Group is investing $2 billion in Intel, acquiring shares at $23 apiece. The move gives the Japanese group just under 2% of Intel's equity and lands it among the chipmaker's top ten shareholders.

The investment follows SoftBank's hefty bets on OpenAI and Stargate. Unlike those deals, SoftBank isn't seeking a board seat or committing to chip purchases. However, the investment is seen as a signal of strategic alignment with Intel, which is trying to revive its foundry business under new CEO Lip-Bu Tan.

• Intel reported a $18.8 billion annual loss in 2024 – its first since 1986 – and has lagged Nvidia in the AI chip race.
• SoftBank's capital arrives as the US government also considers a 10% stake in Intel.
• The company remains America's only player with cutting-edge chip R&D and manufacturing.

Intel shares jumped 5.6% after the announcement. SoftBank's stock dipped 5%. The move underlines Masayoshi Son's renewed focus on AI infrastructure through strategic, long-term bets.