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Crypto futures overtake spot deal; Eternal's tax woes
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Indian crypto traders are shifting to futures trading for higher leverage and tax benefits. This and more in today's ETtech Top 5.
Also in the letter:
■ ETSA 2025: Jury reveal
■ Dream Sports downplays layoff risk
■ Indian IT firms look past US
Futures trading is now the dominant play in Indian crypto circles. On local exchanges, volumes in crypto futures have surged to nearly three times those in spot markets.
Why it matters: Futures let traders make bigger bets with small upfront capital — often using 50x leverage, compared to the full-payment model in spot trading. Then there's the tax twist: a 1% TDS (tax deducted at source) hits every spot transaction, but futures escape it. That's because futures don't involve a direct transfer of virtual assets. Instead, gains are taxed as income, not under the flat 30% virtual digital assets (VDA) rate.
How it works:
The backdrop: With daily volumes of $3–5 million per exchange, the trend points to traders chasing leverage and tax arbitrage rather than long-term crypto adoption. Some platforms are promoting futures through social media and OTT ads to expand their reach.
What's next: The Central Board of Direct Taxes (CBDT) has started investigating crypto derivatives and cross-border trades, a clear signal that rules may soon tighten. For now, futures are the escape hatch keeping India's crypto volumes afloat.
Eternal, the parent company of Zomato, Blinkit, Hyperpure, and District, has received tax demands amounting to Rs 40.3 crore for FY18 to FY20, it said on Monday. The three orders — covering tax, interest, and penalties — were used by the Bengaluru Joint Commissioner (Appeals-4) on August 25.
Breakdown:
Eternal said it plans to challenge the orders, asserting that its case is “strong on merits” and backed by legal precedent.
Why it matters: Zomato and Blinkit are the core drivers of Eternal's growth. While Rs 40 crore may not move the needle financially, it reinforces the rising compliance risks faced by India's consumer internet giants. Tax authorities have been increasingly assertive, and disputes — whether over GST interpretation or retrospective levies — are now a recurring theme (GST notice of Rs 803.4 crore last December, and Rs 11.82 crore demand in April last year). For investors, this introduces an overhang that can dent confidence and weigh on valuations.
Zoom out: GST litigation has become part of the terrain for ecommerce and food-tech players as regulators tighten oversight of digital platforms. Analysts note that the real drag is not the size of a single order, but a cumulative pressure of multiple such claims over time.
Blinkit is scrapping its Rs 5 per unit recall fee till October 15 as it moves to an inventory-led model. The fee waiver is aimed at easing seller friction during the shift.
The change: Blinkit will not directly purchase inventory from sellers, replacing the marketplace-style dark store model. Rival Zepto is also increasing inventory control as part of a broader structural rejig.
Also Read: ETtech Explainer: Why Blinkit is shifting to an inventory-led model
By the numbers:
The big picture: Owning inventory helps improve unit economics, say analysts. However, they add that rising costs are also now being passed to users through “hidden” surcharges (convenience fee, weather surge, etc). These moves indicate Blinkit is attempting to balance profitability pressures ahead of its initial public offering.
Also Read: Blinkit set for margin expansion after driving Q1 for Eternal: Analysts
The ETtech team has been neck-deep preparing for the past few months to bring you the 11th edition of The Economic Times Startup Awards (ETSA).
Today, we unveiled the elite jury and nominees for two more categories — Woman Ahead and Social Enterprise.
Who's on the jury: A high-powered jury will meet on August 28 in Bengaluru to pick the winners of ETSA 2025.
Background: Launched in 2015 to celebrate startups and the new-age economy, ETSA has, over the past ten years, chronicled the ups and downs of the entrepreneurship ecosystem. Past winners of the coveted Startup of the Year award, like Lenskart, Delhivery, and Zomato, have grown into strong publicly listed corporations, displaying the mettle of new economy ventures.
What's the process? ET reached out to more than 200 of the country's top entrepreneurs, investors, industry groups, and other stakeholders to compile a list of the best entrepreneurial talent. The paper's editorial team then distilled this list to arrive at the final contenders.
The jury will pick the winners after long deliberations followed by secret voting.
Stay tuned for all the ETSA 2025 coverage through the week leading up to the jury meeting to be held on August 28 in Bengaluru.
Today, we are showcasing the shortlisted contenders in Woman Ahead — women who have started their own ventures and are giving the best in the business a run for their money — and Social Enterprise — startups that best combine profits with public good.
Woman Ahead
Read more about the nominees here
Social Enterprise
Read more about the nominees here
Over the past few days, we also declared nominees for Bootstrap Champ, Top Innovator, Best on Campus, and Comeback Kid categories.
Harsh Jain, CEO, Dream Sports
Following the Indian government's blanket ban on real-money gaming, Dream Sports saw 95% of its revenue wiped out. But as CEO Harsh Jain told ET, the company is focused on the long haul — and on keeping its flock together.
Key quotes:
Also Read: ‘Bad timing', says Dream Sports CEO Harsh Jain on flipback to India amid RMG ban
Zoom out: The regulatory vacuum is quickly being filled by offshore players like Parimatch and 1xBet, who, as ET reported, are luring punters with heavy bonuses. Staying onshore (and legitimate), Dream is now exploring ad-supported fantasy models and expanding FanCode's streaming play.
Also Read: Dream Sports CEO Harsh Jain: Won't legally challenge real-money gaming ban by Indian govt
The context: A prior 28% GST hit had already shaken the industry with Rs 2.5 lakh crore in retrospective claims. The ban now forces a reset and a race to reinvent.
Also Read: Blanket ban on online real money gaming will kill jobs, revenue, innovation: minister Priyank Kharge
India's IT majors are breaking out of their US comfort zone. While the US still brings in around 62% of industry revenue, firms are now doubling down on markets like the Middle East, Nordics, Australia, and even India.
Drivers:
The moves:
By the numbers: Europe makes up 11.3% of revenues, the UK 16.5%, APAC 7.7%, and RoW (including India) 2.2%, according to Nasscom data.
The big picture: Analysts see this shift as both a hedge against the US volatility and a move to meet stricter data rules as AI adoption grows.
Also in the letter:
■ ETSA 2025: Jury reveal
■ Dream Sports downplays layoff risk
■ Indian IT firms look past US
Indian traders pivot to crypto futures
Futures trading is now the dominant play in Indian crypto circles. On local exchanges, volumes in crypto futures have surged to nearly three times those in spot markets.
Why it matters: Futures let traders make bigger bets with small upfront capital — often using 50x leverage, compared to the full-payment model in spot trading. Then there's the tax twist: a 1% TDS (tax deducted at source) hits every spot transaction, but futures escape it. That's because futures don't involve a direct transfer of virtual assets. Instead, gains are taxed as income, not under the flat 30% virtual digital assets (VDA) rate.
How it works:
- Indian exchanges now accept margins in INR (Indian Rupee).
- These are converted into USDT (United States Dollar Tether), unlocking access to global liquidity.
- Margins can also be reused across trades, unlike in spot markets, where TDS is triggered with every sale.
The backdrop: With daily volumes of $3–5 million per exchange, the trend points to traders chasing leverage and tax arbitrage rather than long-term crypto adoption. Some platforms are promoting futures through social media and OTT ads to expand their reach.
What's next: The Central Board of Direct Taxes (CBDT) has started investigating crypto derivatives and cross-border trades, a clear signal that rules may soon tighten. For now, futures are the escape hatch keeping India's crypto volumes afloat.
Zomato parent Eternal faces Rs 40 crore GST demand
Eternal, the parent company of Zomato, Blinkit, Hyperpure, and District, has received tax demands amounting to Rs 40.3 crore for FY18 to FY20, it said on Monday. The three orders — covering tax, interest, and penalties — were used by the Bengaluru Joint Commissioner (Appeals-4) on August 25.
Breakdown:
- Tax component: Rs 17.2 crore
- Interest: Rs 21.4 crore
- Penalty: Rs 1.7 crore.
Eternal said it plans to challenge the orders, asserting that its case is “strong on merits” and backed by legal precedent.
Why it matters: Zomato and Blinkit are the core drivers of Eternal's growth. While Rs 40 crore may not move the needle financially, it reinforces the rising compliance risks faced by India's consumer internet giants. Tax authorities have been increasingly assertive, and disputes — whether over GST interpretation or retrospective levies — are now a recurring theme (GST notice of Rs 803.4 crore last December, and Rs 11.82 crore demand in April last year). For investors, this introduces an overhang that can dent confidence and weigh on valuations.
Zoom out: GST litigation has become part of the terrain for ecommerce and food-tech players as regulators tighten oversight of digital platforms. Analysts note that the real drag is not the size of a single order, but a cumulative pressure of multiple such claims over time.
Blinkit offers fee waiver amid inventory shift
Blinkit is scrapping its Rs 5 per unit recall fee till October 15 as it moves to an inventory-led model. The fee waiver is aimed at easing seller friction during the shift.
The change: Blinkit will not directly purchase inventory from sellers, replacing the marketplace-style dark store model. Rival Zepto is also increasing inventory control as part of a broader structural rejig.
Also Read: ETtech Explainer: Why Blinkit is shifting to an inventory-led model
By the numbers:
- GOV (gross order value) jumped 140% YoY in Q1 to Rs 11,821 crore.
- NOV (net order value) rose 127% YoY to Rs 9,203 crore, taking the annualised GOV run-rate to ~$5.5 billion.
- The inventory model contributed 3% of NOV in the June quarter.
The big picture: Owning inventory helps improve unit economics, say analysts. However, they add that rising costs are also now being passed to users through “hidden” surcharges (convenience fee, weather surge, etc). These moves indicate Blinkit is attempting to balance profitability pressures ahead of its initial public offering.
Also Read: Blinkit set for margin expansion after driving Q1 for Eternal: Analysts
ET Startup Awards 2025: Elite jury to pick winners on August 28
The ETtech team has been neck-deep preparing for the past few months to bring you the 11th edition of The Economic Times Startup Awards (ETSA).
Today, we unveiled the elite jury and nominees for two more categories — Woman Ahead and Social Enterprise.
Who's on the jury: A high-powered jury will meet on August 28 in Bengaluru to pick the winners of ETSA 2025.
- Amitabh Kant, jury chair, India's former G20 Sherpa
- Prashanth Prakash, partner at venture capital fund Accel
- Kalyan Krishnamurthy, CEO of Flipkart Group
- Sahil Barua, cofounder and chief executive, Delhivery
- Ruchi Kalra, cofounder of OfBusiness and Oxyzo
- Adwaita Nayar, cofounder of Nykaa
- Ghazal Alagh, cofounder of Mamaearth
- Tarun Mehta, cofounder and CEO, Ather Energy
- Harshil Mathur, cofounder and chief executive, Razorpay
- Faraz Khalid, chief executive of Dubai-based ecommerce major Noon
- Satyan Gajwani, chairman of Times Internet
Background: Launched in 2015 to celebrate startups and the new-age economy, ETSA has, over the past ten years, chronicled the ups and downs of the entrepreneurship ecosystem. Past winners of the coveted Startup of the Year award, like Lenskart, Delhivery, and Zomato, have grown into strong publicly listed corporations, displaying the mettle of new economy ventures.
What's the process? ET reached out to more than 200 of the country's top entrepreneurs, investors, industry groups, and other stakeholders to compile a list of the best entrepreneurial talent. The paper's editorial team then distilled this list to arrive at the final contenders.
The jury will pick the winners after long deliberations followed by secret voting.
Stay tuned for all the ETSA 2025 coverage through the week leading up to the jury meeting to be held on August 28 in Bengaluru.
And the nominees are…
Today, we are showcasing the shortlisted contenders in Woman Ahead — women who have started their own ventures and are giving the best in the business a run for their money — and Social Enterprise — startups that best combine profits with public good.
Woman Ahead
- Pallavi Shrivastava: Progcap
- Romita Mazumdar: Foxtale
- Prukalpa Sankar: Atlan
- Shruti: ApnaKlub
- Aditi Murarka: Nestasia
- Anjali Sardana: Pronto
Read more about the nominees here
Social Enterprise
- Padcare Labs
- Bintix Waste Research
- Digivriddhi
- Chakr Innovation
- CureBay
Read more about the nominees here
Over the past few days, we also declared nominees for Bootstrap Champ, Top Innovator, Best on Campus, and Comeback Kid categories.
Dream Sports CEO Harsh Jain plays down layoff fears
Following the Indian government's blanket ban on real-money gaming, Dream Sports saw 95% of its revenue wiped out. But as CEO Harsh Jain told ET, the company is focused on the long haul — and on keeping its flock together.
Key quotes:
- “We have 800 employees, a 260 million user base, and 500 engineers. We can redeploy this talent toward sports AI, fan engagement, and creator economy.”
- “We may need some cuts, but talent will be the last thing to go.”
Also Read: ‘Bad timing', says Dream Sports CEO Harsh Jain on flipback to India amid RMG ban
Zoom out: The regulatory vacuum is quickly being filled by offshore players like Parimatch and 1xBet, who, as ET reported, are luring punters with heavy bonuses. Staying onshore (and legitimate), Dream is now exploring ad-supported fantasy models and expanding FanCode's streaming play.
Also Read: Dream Sports CEO Harsh Jain: Won't legally challenge real-money gaming ban by Indian govt
The context: A prior 28% GST hit had already shaken the industry with Rs 2.5 lakh crore in retrospective claims. The ban now forces a reset and a race to reinvent.
Also Read: Blanket ban on online real money gaming will kill jobs, revenue, innovation: minister Priyank Kharge
IT firms diversify beyond the US
India's IT majors are breaking out of their US comfort zone. While the US still brings in around 62% of industry revenue, firms are now doubling down on markets like the Middle East, Nordics, Australia, and even India.
Drivers:
- Fresh tech spends across newer geographies.
- Visa hurdles and tighter US client budgets.
- Rising demand in AI, cybersecurity, and consulting.
The moves:
- TCS and Infosys are deepening bets in Europe and the Gulf.
- Infosys struck a JV with Telstra in Australia and expanded in Japan.
- Wipro shifted its Middle East HQ to Saudi Arabia.
- HCLTech has begun reporting India separately for the first time.
By the numbers: Europe makes up 11.3% of revenues, the UK 16.5%, APAC 7.7%, and RoW (including India) 2.2%, according to Nasscom data.
The big picture: Analysts see this shift as both a hedge against the US volatility and a move to meet stricter data rules as AI adoption grows.
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