Swiggy Instamart Strengthens Leadership with Key Hires from Amazon and Reliance Ahead of IPO
Swiggy Instamart, the quick-commerce arm of the IPO-bound food and grocery delivery giant Swiggy, has bolstered its leadership team with significant hires from industry titans Amazon and Reliance. The new appointments include Himavant Srikrishna Kurnala as Senior Vice President and Head of Product, Mayank Rajvaidya as Vice President of Fruits and Vegetables, and Manu Sasidharan as Associate Vice President of the FMCG category. Girish Menon, Head of HR at Swiggy, expressed excitement about the new additions, highlighting their expertise in scaling large organizations as crucial for Swiggy’s next growth phase. In addition, Kumar Rahul has joined Lynk by Swiggy as the new Associate Vice President of Business Development.
The leadership enhancements come as Swiggy confidentially files for an initial public offering (IPO) worth Rs 10,400 crore (approximately $1.25 billion), with plans to go public soon. Amid the growing demand for quick commerce, Amazon India is reportedly in talks with Swiggy’s Instamart for a potential deal, following Flipkart’s earlier interest. This strategic move aligns with Swiggy’s ongoing expansion and its recent announcement of a $65 million ESOP liquidity program, allowing employees to benefit ahead of the IPO. Valued at $9.3 billion, Swiggy’s impending IPO marks a pivotal moment, underscoring its rapid growth and industry impact.
Editor’s Note: Swiggy Instamart has bolstered its leadership team with key hires from Amazon and Reliance, including Himavant Srikrishna Kurnala and Mayank Rajvaidya, as it gears up for its $1.25 billion IPO. The move is particularly notable as Amazon India is reportedly in talks with Swiggy following earlier interest from Flipkart, highlighting the strategic importance of Swiggy’s expansion and its $65 million ESOP liquidity program in the context of its upcoming public offering.
India Faces Skilled Labor Shortage Amid Ambitions to Become Electronics Manufacturing Hub
India’s growing semiconductor and electronics manufacturing sector requires over 6.3 million trained workers in the next 18 to 24 months, but the industry faces a significant demand-supply gap. According to industry experts, for every five roles advertised, only three skilled workers are hired due to the lack of workforce-ready graduates at an affordable cost. Ajay Sharma, director of the National Institute of Technology in Delhi, noted that the shortfall of skilled labor is unlikely to be resolved soon. To bridge this gap, Mahesh Verma, vice-chancellor of Guru Gobind Singh Indraprastha University, stressed the need for industry collaboration in setting up research centers and labs on educational campuses to ensure graduates are job-ready.
The demand for talent in electronics and semiconductor manufacturing is expected to increase by 25-30% this year, driven by infrastructure needs and the ambition to increase domestic value addition from 18-20% to 40% over the next five years. Companies like Flex and Zetwerk have initiated programs to develop leadership and technical skills among their employees. Experts suggest that to tap into untapped talent pools, companies should promote diversity, equity, and inclusion, and offer flexible work options. Additionally, government incentives for companies that establish training institutes could further enhance capacity building in this critical sector.
Editor’s Note: India’s electronics and semiconductor manufacturing sector faces a critical skilled labor shortage, with a need for over 6.3 million trained workers in the next 18 to 24 months, exacerbated by a gap between job roles and available talent. Despite increased demand, with a projected 25-30% rise in talent needs this year, the industry struggles to find workforce-ready graduates at an affordable cost. To address this, experts advocate for industry-educational collaborations to create job-ready programs and suggest enhancing talent pools through diversity, equity, and inclusion initiatives, along with government incentives for establishing training institutes.
Karnataka IT Sector Faces Backlash Over Proposed 14-Hour Workday Extension
Karnataka Labour Minister Santosh Lad announced that the IT industry is pressuring the government to extend working hours in the IT/ITeS/BPO sector through the ‘Karnataka Shops and Commercial Establishments (Amendment) Bill 2024,’ which proposes a 14-hour workday. The current law allows a maximum of 10 hours per day, including overtime. Lad emphasized that the proposal originated from the industry and that the government will consider opinions from all stakeholders, including industry leaders and employees. The Karnataka State IT/ITeS Employees’ Union (KITU) has strongly opposed the amendment, arguing it threatens workers’ rights to a personal life and could lead to job losses by reducing shifts from three to two.
The proposal has sparked significant dissent among IT employees and criticism from political figures. Suhas Adiga, General Secretary of KITU, highlighted health concerns, suggesting employees might have to work 80-85 hours a week under the new rules. State BJP President B Y Vijayendra criticized the Congress government for the proposed bill, accusing it of undermining the IT sector’s efficiency. Lad urged industry leaders to voice their opinions on the matter, assuring that the government would consider public feedback before making a final decision.
Editor’s Note: Karnataka’s proposed amendment to extend the workday to 14 hours for the IT/ITeS/BPO sector has ignited backlash, with significant opposition from the Karnataka State IT/ITeS Employees’ Union (KITU) and criticism from political figures. The bill, aimed at addressing industry demands, has been criticized for potentially jeopardizing workers’ personal lives and health while possibly reducing job opportunities. Labour Minister Santosh Lad has called for stakeholder feedback before making a final decision, emphasizing the government’s commitment to considering all viewpoints.
Budget 2024: Abolition of Angel Tax Celebrated by Startup Ecosystem
In a significant move to boost the startup ecosystem, Finance Minister Nirmala Sitharaman announced the abolition of the decade-old angel tax in the Union Budget for 2024-25. Introduced in 2012, Section 56 (2) (viib) of the Income Tax Act taxed the differential amount received by a privately held company for shares sold above their fair market value at around 31%. This tax has been a contentious issue, with startup industry leaders arguing that it imposed undue financial and compliance burdens, stifling the growth of genuine risk capital. The Finance Bill specifies that the provisions of the angel tax will cease to be in effect from April 1, 2025, a move hailed by venture investors and startup founders as a long-overdue reform.
Industry leaders and entrepreneurs have welcomed the abolition, highlighting the relief it brings from compliance burdens and harassment by officials. Siddarth Pai, founding partner at 3one4 Capital, emphasized that removing the angel tax is crucial for startups to thrive in India. Snapdeal cofounder Kunal Bahl noted that subsequent regulations had already addressed the transparency issues the angel tax was meant to combat. DPIIT secretary Rajesh Kumar Singh acknowledged that the decision followed consultations with the startup community. Serial entrepreneur K Ganesh and other industry voices echoed the sentiment, celebrating the end of what they described as a source of unnecessary anguish for startup founders and investors.
Editor’s Note: The abolition of the decade-old angel tax, announced by Finance Minister Nirmala Sitharaman in the Union Budget for 2024-25, has been warmly welcomed by India’s startup ecosystem. This tax, introduced in 2012, had imposed financial and compliance burdens on startups by taxing shares sold above their fair market value. With the provision set to end on April 1, 2025, industry leaders, including Siddarth Pai and Kunal Bahl, have praised the reform as crucial for fostering growth and reducing regulatory challenges for startups.
Government Announces Rs 1,000 Crore Fund to Boost Indian Spacetech Startups
Finance Minister Nirmala Sitharaman, in her budget speech, announced the establishment of a Rs 1,000 crore venture capital fund aimed at accelerating the growth of India’s space economy. The initiative is expected to expand the Indian space economy by five times over the next decade. Srinath Ravichandran, co-founder of spacetech startup Agnikul, hailed the announcement as a significant step towards encouraging private sector participation and fostering larger players in the space startup ecosystem. Pawan K Goenka, chairman of IN-SPACe, noted that the fund would facilitate easier equity investments for startups at the venture capital stage.
Vishesh Rajaram, Managing Partner at Speciale Invest, expressed optimism about the government’s focus and the recently announced FDI policy, predicting increased investment from both domestic and international sources. Speciale Invest, an early investor in various spacetech ventures, including Agnikul Cosmos and GalaxEye Space, believes that the Rs 1,000 crore fund will solidify India’s position in the global space market. According to IN-SPACe, the Indian space economy could grow from its current $8.4 billion to $44 billion in the next decade, increasing India’s share of the global space economy from 2% to 8%.
Editor’s Note: The Indian government has announced a Rs 1,000 crore venture capital fund to significantly boost the growth of the country’s space economy, with expectations to expand it fivefold over the next decade. This initiative, celebrated by spacetech leaders and investors, aims to enhance private sector involvement and elevate India’s global space market share from 2% to 8%, with projected growth from $8.4 billion to $44 billion.
Union Budget 2024: Emphasis on Technology and Data to Drive National Growth
On July 23, 2024, Finance Minister Nirmala Sitharaman presented the Union Budget 2024, highlighting the pivotal role of technology and data in supporting India’s growth. Sitharaman emphasized the significant strides made in leveraging technology to boost productivity and reduce inequality over the past decade. She underscored the importance of public investments and private innovation in enhancing digital infrastructure, which has, in turn, improved the lives of many. The Budget 2024 reflects this focus with a substantial increase in the Ministry of Electronics and Information Technology (MeitY) budget to INR 21,936 crores from last year’s INR 16,549 crores. This allocation will support various initiatives such as the DIGITAL INDIA Programme, INDIAai Mission, and National Informatics Centre.
The Budget outlines several technology-driven solutions aimed at boosting various sectors and improving service delivery. Plans include establishing large-scale Digital Public Infrastructure (DPI) to enhance e-commerce, health, law, urban governance, and agriculture. Additionally, an Integrated Technology Platform for an Inter-Blockchain Communication Protocol (IBC) ecosystem will be developed to promote transparency and better oversight. The Budget also focuses on digitizing land records, implementing a digital crop survey for farmers, and integrating the eShram portal with other platforms to provide comprehensive services to laborers. Efforts to improve data governance, support the MSME sector, and advance the Critical Minerals Mission, space, and nuclear energy are also highlighted. To bridge the digital divide, the Basic Customs Duty on mobile phones and related components has been reduced, making these devices more affordable for consumers.
https://www.orfonline.org/expert-speak/budget-2024-catalysing-technology-for-development
Editor’s Note: In the Union Budget 2024, Finance Minister Nirmala Sitharaman emphasized leveraging technology and data to drive national growth, marking a substantial increase in the Ministry of Electronics and Information Technology’s budget to INR 21,936 crores. The budget outlines significant investments in digital infrastructure, including the DIGITAL INDIA Programme, and initiatives like establishing a Digital Public Infrastructure and an Inter-Blockchain Communication Protocol, aimed at enhancing e-commerce, governance, and service delivery across sectors.
Modi 3.0’s First Budget Slashes Corporate Tax Rates for Foreign Firms to Boost FDI
In a significant move aimed at positioning India as a leading global manufacturing hub, the Modi 3.0 government has proposed a reduction in corporate tax rates for foreign companies from 40% to 35%. Announced by Finance Minister Nirmala Sitharaman in the 2024 Budget, this tax cut is seen as a strategic effort to attract more foreign direct investment (FDI) and capitalize on the global supply chain shift away from China. With this change, the highest effective tax rate for foreign firms will drop from approximately 43.7% to around 38%, benefiting established foreign entities and those generating short-term capital gains from unlisted shares, securities, and other previously high-taxed income.
This fiscal policy, part of India’s broader strategy to draw $110 billion in FDI annually over the next seven years, underscores the nation’s ambition to achieve a $5 trillion economy. Initiatives like Make in India, the Industrial Corridor Development Program, and the Production Linked Incentives (PLI) scheme have already positioned India as an attractive destination for global investors. By simplifying FDI regulations and promoting the use of the Indian Rupee for overseas investments, the Budget aims to foster a more business-friendly environment and encourage international companies to set up operations in India, thereby creating jobs and spurring economic growth.
Editor’s Note: In the Modi 3.0 government’s first budget, Finance Minister Nirmala Sitharaman announced a reduction in corporate tax rates for foreign firms from 40% to 35% to attract more foreign direct investment and bolster India’s position as a global manufacturing hub. This move, part of a broader strategy to draw $110 billion in annual FDI and achieve a $5 trillion economy, aims to capitalize on the global supply chain shift and create a more business-friendly environment.
VinFast Explores Hyderabad for Major EV Ecosystem Development
Vietnamese electric vehicle manufacturer VinFast is considering Hyderabad for its next big venture in India, focusing on developing a comprehensive EV ecosystem. VinFast’s India CEO Pham Sanh Chau, along with his leadership team, recently met with Telangana’s Minister of IT, Electronics, Communications, Industries & Commerce, D. Sridhar Babu, to discuss potential collaborations. Discussions highlighted large-scale public infrastructure projects, sustainable smart urban mobility solutions, services for future cities, and social housing initiatives. The company is exploring the possibility of establishing a 1,000-acre mega smart city project in and around Hyderabad and has started scouting for suitable locations.
VinFast’s recent investment of INR 4,000 crore (approximately USD 500 million) to set up an EV manufacturing plant in Tamil Nadu underscores its commitment to India’s EV sector. Sources close to the discussion revealed that Minister Babu stressed the need for reliable partners to collaborate on critical infrastructure projects as Hyderabad is expected to accommodate half of Telangana’s population within the next 15 years due to increased urban migration. This rapid growth necessitates sustainable improvements in the city’s infrastructure to enhance living standards for its burgeoning population.
Editor’s Note: Vietnamese EV manufacturer VinFast is eyeing Hyderabad for a major investment in developing a comprehensive electric vehicle ecosystem, including a potential 1,000-acre smart city project. This follows their recent INR 4,000 crore investment in Tamil Nadu, as they seek to collaborate on infrastructure projects to support Hyderabad’s expected rapid urban growth and improve living standards.
Economic Survey Highlights Post-Pandemic Surge in Indian Tech Startups
The Economic Survey 2023-24, presented by Finance Minister Nirmala Sitharaman, reveals a significant increase in the number of technology startups in India, rising to approximately 31,000 in 2023, fueled by consumer and enterprise demand for tech solutions post-Covid-19 pandemic. Key sectors for these startups include edtech, enterprise tech, BFSI, advertising and marketing, retail tech, media and entertainment, consumer tech, professional services, and gaming. The survey highlights that government-recognized startups have created over 12.42 lakh direct jobs, driven by initiatives such as simplification, funding support, industry-academia partnerships, and incubation. The number of DPIIT-recognized startups has surged from over 300 in 2016 to 1,17,254 by December 2023.
The Survey also notes the significant role of tier-II and tier-III cities in the startup ecosystem, with over 45% of recognized startups emerging from these areas and 47% having at least one woman director. Additionally, startups filed more than 12,000 patent applications between 2016 and March 2024. The rapid growth of the ecommerce sector, expected to reach $350 billion by 2030, is highlighted alongside the challenges of inadequate skills for online selling and data privacy issues. The government’s focus on easing early-stage funding and reducing compliance burdens aims to further support the startup ecosystem’s growth.
Editor’s Note: The Economic Survey 2023-24 reveals a surge in Indian tech startups, reaching approximately 31,000 in 2023, driven by increased demand for tech solutions post-pandemic. Highlighting the growth of government-recognized startups and their impact on job creation, the survey underscores the significant contribution of tier-II and tier-III cities, with a notable focus on easing funding and reducing compliance burdens to support continued expansion in the sector.