 Morning Dispatch |
Digital lenders’ bond pivot; Cracking chip supply chains
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Happy Friday! Digital lenders tap public bond markets to reduce reliance on traditional NBFC borrowing. This and more in today’s ETtech Morning Dispatch.
Also in the letter:
■ ET AI Conclave 2026
■ Balancing AI & safety
■ HCLTech-Suchi tie-up
Digital lending startups such as Fibe, Kreditbee and Olyv (formerly Smartcoin) are tapping public bond markets to fund onward lending, widening their funding base beyond traditional non-bank lenders.
Driving the news: Industry watchers told us that the rise of Online Bond Platform Providers (OBPPs) and growing retail participation have made non-convertible debentures (NCDs) a viable funding tool for new-age lenders.
Earlier, many fintech NBFCs relied heavily on higher-cost borrowing from other non-bank financiers.
Jargon buster: NCDs are fixed-interest-rate investments issued to public investors. They are a common borrowing tool for established NBFCs.
Details decoded:
Cost benefit: OBPPs like Stable Money, Wint Wealth and Grip Invest are enabling retail participation in these issues. Since NCDs are listed on exchanges, disclosure norms offer investors visibility into credit risk and terms.
Prabhu Raja, president, Semiconductor Products Group at Applied Materials
Advanced chip packaging offers India a timely entry point into global semiconductor supply chains, according to Prabhu Raja, president of the Semiconductor Products Group at Applied Materials.
On semiconductor goals: Raja said India’s talent base is a structural advantage, but execution speed will determine outcomes.
“Most packaging in India today is assembly/test; truly advanced packaging is different and aligned with current inflections. If I had to pick a place to cut in, advanced packaging would be high on the list,” he told ET.
He said this approach aligns with Applied Materials’ long-term view for India, provided innovation and execution are delivered in tandem.
What else? Raja urged a focus on emerging shifts such as 3D architectures and heterogeneous integration of chiplets, rather than legacy processes.
"Everything is going 3D. Traditional scaling was lithography and etch. 3D reduces litho intensity and increases the importance of materials engineering," he said.
ETtech editor Samidha Sharma with Sarvam cofounder Vivek Raghavan
Building AI for consumers is tougher because it has to compete with free tools like ChatGPT and Gemini, said Sarvam AI cofounder Vivek Raghavan in a fireside chat with ET's Samidha Sharma.
He added that Indian large language models will only see wider use if they offer real value.
Sarvam's monetisation plan: Raghavan said the company is mainly focused on enterprises. “Our approach is largely B2B. We’re also working with governments and different sectors. These are the primary channels we are focused on right now,” he said.
On frontier models: Raghavan explained why India should develop its own foundational models, drawing a comparison to countries that have nuclear power and those that do not.
“Many countries are perfectly fine using ChatGPT, Gemini, and other frontier models, and then building applications on top of them. That’s a reconciliation they’ve made. India is somewhere in between. We have to decide which side we are on,” he said.
Also Read: AI Impact Summit: Beyond the optics, where is the 'foundational' capital?
(L-R) ET's Deepak Ajwani, Fractal Analytics CEO Srikanth V, Inmobi CEO Naveen Tewari and Neysa CEO Sharad Sanghi
Cloud infrastructure startup Neysa is aiming to go public in a few years, founder and chief executive Sharad Sanghi said on Thursday at the event.
Quote, unquote: “We’ve got a partner like Blackstone, and the aim is to go public in a few years. Once we have that growth engine going and know that we can start growing at the pace the market expects, we can hopefully go public,” he said.
Why sale over IPO: Sanghi said a majority stake in his first startup Netmagic was sold to let investors and employees exit, as data centres were still a new market at the time.
“That meant we didn’t have to raise capital, because data centres are a very capital-intensive business, and NTT had a lot of money that we could use to scale,” he said.
Also Read: India’s Rs 10,000 crore AI mission fund akin to weekend expense for OpenAI: Fractal CEO
(L-R) Fermi AI's Peeyush Ranjan, Paras Chopra of Lossfunk and ETtech editor Samidha Sharma
At the event, Wingify founder Paras Chopra said India is far from building frontier AI models and must invest in deep, basic research if it wants to catch up in AI.
On research: Chopra noted that today’s AI models are the result of years of research that once seemed pointless, showing how OpenAI kept working for years before finally making a breakthrough.
India's biggest constraint: Chopra stressed that India’s biggest constraint is the mindset. “We need to shift from a business mindset to a builder’s mindset — from chasing near-term profit to building the future,” he said.
Also Read: ET AI Conclave & Awards 2025: “If it works in India, it can work in 40–50% of the world”
Rahul Chari, founder and chief technology officer of IPO-bound PhonePe, said companies should move quickly and embrace AI’s full potential — but first put the right organisational scaffolding in place before rolling it out widely.
On AI use: This may not be the most popular opinion, but discretion is often the better part of valour. AI is here to stay. Its potential is immense, said the CTO. “The real challenge is using it the right way, not just the fastest way,” he said
PhonePe’s AI strategy: Chari said, “At PhonePe, we think about this in three ways. First, we want to increase the efficiency of a large engineering team significantly. Second, we want to take AI-first features to production as fast as possible for our users. Third, we want to increase the efficiency of operations across the entire organisation.”
Over the past two years, a new wave of AI-focused institutions has appeared. Unlike frontier labs or application startups, these are non-profit organisations aiming to address the risks associated with AI.
What’s happening? Groups such as Fathom, Current AI, the International Association for Safe and Ethical AI (IASEAI), and the AI Futures Project have been set up recently. They are advising governments and companies on safety rules for a technology that is reshaping jobs and markets worldwide.
At the recent AI Summit, Sam Altman, founder of OpenAI, said powerful technologies need safeguards. “We expect the world may need something like the IAEA (International Atomic Energy Agency) for AI for global coordination and especially for it to have the ability to rapidly respond to circumstances,” he said.
Funding: Most of these organisations are backed by frontier labs, donors and philanthropic groups. Current AI secured $400 million at the AI Impact Summit in Paris to support public interest AI, while Fathom relies on donations.
Founders said donations may not always be steady, but regulated institutions are keen to ensure AI is safe. They added that they are starting to see results through work with governments and other stakeholders.
HCLTech, Suchi Semicon team up to offer semicon solutions: HCLTech and Suchi Semicon have signed a partnership deal on Thursday to combine HCLTech’s semiconductor design and digital engineering strengths with Suchi Semicon’s OSAT (outsourced semiconductor assembly and test) manufacturing capabilities in Gujarat.
Defence-tech startup Constelli raises funds: Defence technology startup Constelli has raised $20 million (about Rs 180-190 crore) in a funding round led by Silicon Valley-based venture capital firm General Catalyst, with participation from 360 One Asset Management and existing investor Pravega Ventures, said the company’s cofounder and CEO Satya Gopal Panigrahi.
Brnd.me completes Singapore-to-India merger: Roll-up ecommerce firm Brnd.me (formerly Mensa Brands) has completed a cross-border composite merger shifting its domicile from Singapore to India, as it prepares for a public listing over the next 12-18 months.
■ Who’s your daddy? A chatbot (Wired)
■ The Silicon Valley billionaires spending big to write America’s AI rules (FT)
■ The next AI whistleblower could come from anywhere in the world (Rest of World)
Also in the letter:
■ ET AI Conclave 2026
■ Balancing AI & safety
■ HCLTech-Suchi tie-up
Digital lenders tap bond markets to diversify borrowing channels
Digital lending startups such as Fibe, Kreditbee and Olyv (formerly Smartcoin) are tapping public bond markets to fund onward lending, widening their funding base beyond traditional non-bank lenders.
Driving the news: Industry watchers told us that the rise of Online Bond Platform Providers (OBPPs) and growing retail participation have made non-convertible debentures (NCDs) a viable funding tool for new-age lenders.
Earlier, many fintech NBFCs relied heavily on higher-cost borrowing from other non-bank financiers.
Jargon buster: NCDs are fixed-interest-rate investments issued to public investors. They are a common borrowing tool for established NBFCs.
Details decoded:
- NBFC borrowings can cost 13-15% or more while banks lend at lower rates.
- Issuing NCDs can bring effective borrowing costs closer to bank levels, typically 9-12%.
Cost benefit: OBPPs like Stable Money, Wint Wealth and Grip Invest are enabling retail participation in these issues. Since NCDs are listed on exchanges, disclosure norms offer investors visibility into credit risk and terms.
Advanced packaging can help India enter chip supply chains: Applied Materials executive
Advanced chip packaging offers India a timely entry point into global semiconductor supply chains, according to Prabhu Raja, president of the Semiconductor Products Group at Applied Materials.
On semiconductor goals: Raja said India’s talent base is a structural advantage, but execution speed will determine outcomes.
“Most packaging in India today is assembly/test; truly advanced packaging is different and aligned with current inflections. If I had to pick a place to cut in, advanced packaging would be high on the list,” he told ET.
He said this approach aligns with Applied Materials’ long-term view for India, provided innovation and execution are delivered in tandem.
What else? Raja urged a focus on emerging shifts such as 3D architectures and heterogeneous integration of chiplets, rather than legacy processes.
"Everything is going 3D. Traditional scaling was lithography and etch. 3D reduces litho intensity and increases the importance of materials engineering," he said.
Building for consumers is hard because of free products: Sarvam AI cofounder Vivek Raghavan
Building AI for consumers is tougher because it has to compete with free tools like ChatGPT and Gemini, said Sarvam AI cofounder Vivek Raghavan in a fireside chat with ET's Samidha Sharma.
He added that Indian large language models will only see wider use if they offer real value.
Sarvam's monetisation plan: Raghavan said the company is mainly focused on enterprises. “Our approach is largely B2B. We’re also working with governments and different sectors. These are the primary channels we are focused on right now,” he said.
On frontier models: Raghavan explained why India should develop its own foundational models, drawing a comparison to countries that have nuclear power and those that do not.
“Many countries are perfectly fine using ChatGPT, Gemini, and other frontier models, and then building applications on top of them. That’s a reconciliation they’ve made. India is somewhere in between. We have to decide which side we are on,” he said.
Also Read: AI Impact Summit: Beyond the optics, where is the 'foundational' capital?
Neysa targets IPO in the next few years: CEO Sharad Sanghi
Cloud infrastructure startup Neysa is aiming to go public in a few years, founder and chief executive Sharad Sanghi said on Thursday at the event.
Quote, unquote: “We’ve got a partner like Blackstone, and the aim is to go public in a few years. Once we have that growth engine going and know that we can start growing at the pace the market expects, we can hopefully go public,” he said.
Why sale over IPO: Sanghi said a majority stake in his first startup Netmagic was sold to let investors and employees exit, as data centres were still a new market at the time.
“That meant we didn’t have to raise capital, because data centres are a very capital-intensive business, and NTT had a lot of money that we could use to scale,” he said.
Also Read: India’s Rs 10,000 crore AI mission fund akin to weekend expense for OpenAI: Fractal CEO
India is nowhere close to building frontier AI models, and everyone knows it: Wingify's Paras Chopra
At the event, Wingify founder Paras Chopra said India is far from building frontier AI models and must invest in deep, basic research if it wants to catch up in AI.
On research: Chopra noted that today’s AI models are the result of years of research that once seemed pointless, showing how OpenAI kept working for years before finally making a breakthrough.
India's biggest constraint: Chopra stressed that India’s biggest constraint is the mindset. “We need to shift from a business mindset to a builder’s mindset — from chasing near-term profit to building the future,” he said.
Also Read: ET AI Conclave & Awards 2025: “If it works in India, it can work in 40–50% of the world”
Don't rush to deploy AI, build foundations first: PhonePe CTO Rahul Chari
Rahul Chari, founder and chief technology officer of IPO-bound PhonePe, said companies should move quickly and embrace AI’s full potential — but first put the right organisational scaffolding in place before rolling it out widely.
On AI use: This may not be the most popular opinion, but discretion is often the better part of valour. AI is here to stay. Its potential is immense, said the CTO. “The real challenge is using it the right way, not just the fastest way,” he said
PhonePe’s AI strategy: Chari said, “At PhonePe, we think about this in three ways. First, we want to increase the efficiency of a large engineering team significantly. Second, we want to take AI-first features to production as fast as possible for our users. Third, we want to increase the efficiency of operations across the entire organisation.”
AI safety hangs in balance as India rushes in
Over the past two years, a new wave of AI-focused institutions has appeared. Unlike frontier labs or application startups, these are non-profit organisations aiming to address the risks associated with AI.
What’s happening? Groups such as Fathom, Current AI, the International Association for Safe and Ethical AI (IASEAI), and the AI Futures Project have been set up recently. They are advising governments and companies on safety rules for a technology that is reshaping jobs and markets worldwide.
At the recent AI Summit, Sam Altman, founder of OpenAI, said powerful technologies need safeguards. “We expect the world may need something like the IAEA (International Atomic Energy Agency) for AI for global coordination and especially for it to have the ability to rapidly respond to circumstances,” he said.
Funding: Most of these organisations are backed by frontier labs, donors and philanthropic groups. Current AI secured $400 million at the AI Impact Summit in Paris to support public interest AI, while Fathom relies on donations.
Founders said donations may not always be steady, but regulated institutions are keen to ensure AI is safe. They added that they are starting to see results through work with governments and other stakeholders.
Other Top Stories By Our Reporters
HCLTech, Suchi Semicon team up to offer semicon solutions: HCLTech and Suchi Semicon have signed a partnership deal on Thursday to combine HCLTech’s semiconductor design and digital engineering strengths with Suchi Semicon’s OSAT (outsourced semiconductor assembly and test) manufacturing capabilities in Gujarat.
Defence-tech startup Constelli raises funds: Defence technology startup Constelli has raised $20 million (about Rs 180-190 crore) in a funding round led by Silicon Valley-based venture capital firm General Catalyst, with participation from 360 One Asset Management and existing investor Pravega Ventures, said the company’s cofounder and CEO Satya Gopal Panigrahi.
Brnd.me completes Singapore-to-India merger: Roll-up ecommerce firm Brnd.me (formerly Mensa Brands) has completed a cross-border composite merger shifting its domicile from Singapore to India, as it prepares for a public listing over the next 12-18 months.
Global Picks We Are Reading
■ Who’s your daddy? A chatbot (Wired)
■ The Silicon Valley billionaires spending big to write America’s AI rules (FT)
■ The next AI whistleblower could come from anywhere in the world (Rest of World)
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I agree to receive newsletters and marketing communications via e-mail