 Daily Top 5 |
Coforge row deepens; MDR on UPI coming soon
Want this newsletter delivered to your inbox?
I agree to receive newsletters and marketing communications via e-mail
Thank you for subscribing to Daily Top 5
We'll soon meet in your inbox.
Coforge’s boardroom brouhaha has taken a new turn days after chairman Om Prakash Bhatt’s resignation. This and more in today’s ETtech Top 5.
Also in the letter:
■ Centre tightens ecommerce rules
■ Apple's pricing raises concerns
■ Pocket FM parent’s ARR booms
Coforge's chairman OP Bhatt resigned on Tuesday
Coforge’s former chairman Om Prakash Bhatt had instructed that findings from the company’s board evaluation report should not be shared with other board members, including independent directors, the company said in a regulatory filing on Thursday.
What happened: The board evaluation report, which is mandatory per the Companies Act of 2013, gave Bhatt’s category the lowest rating. However, these findings were not shared or discussed with the full board or the Nomination and Remuneration Committee (NRC), according to Coforge.
The backdrop: An internal audit by KPMG had flagged lapses around the board evaluation process. Bhatt resigned as chairman on September 8, two days before the latest disclosure. The report was available to NRC chair DK Singh though, along with Bhatt.
Verbatim: "The relevant Reports were available to the NRC Chair and the Chairman of the Board alone but were not made available to other members of the Board, including the independent directors, at the instruction of the Chairman of the Board," the filing read.
What next: Coforge said its internal audit and governance review is still ongoing. The company also said the board evaluation issue is separate from its financial reporting and audit processes.
The government is likely to notify the return of the MDR (merchant discount rate) on certain merchant transactions on UPI in the next few weeks. Banks are expected to get the biggest share of the fee under the proposed structure, people familiar with the development told ET.
The plan: The MDR is expected to be around 40 basis points (bps), or 0.4%, for certain high-value merchant transactions. The issuing bank could get 40% of the fee, while the UPI app and acquiring bank could get 30% each. This means that on a 40 bps MDR, the bank would get around 16 bps, while the app and acquirer would get 12 bps each.
Who will pay: The proposed MDR is expected to apply to merchants with an annual turnover of Rs 1-1.5 crore and transactions above Rs 2,000. There could also be different rates for businesses across sectors.
.jpg "UPI Upswing - 3 (1)")
No charges for users: Peer-to-peer (P2P) payments and low-value transactions are expected to remain free. The government has also said that regular users and small merchants will not be charged.
Why it matters: UPI has had zero MDR since January 2020, when the government made the payments free to encourage digital adoption. Banks and fintech companies have been pushing for the fee to return, arguing that the zero-fee model is difficult to sustain.
Read ETtech’s coverage on the return of MDR on UPI:
The National Payments Corporation of India (NPCI), which operates UPI, reported a 12.2% decline in its revenue surplus to Rs 1,361.77 crore in FY26, even as its income from operations grew 21.4% to Rs 3,968.95 crore.
The government has tightened ecommerce rules, requiring platforms to show the actual reduced price and the 'prior price' when advertising discounts.
The numbers: More than 1.77 million complaints were received by the National Consumer Helpline in 2025, with around 511,000, or 29%, related to ecommerce.
What’s changing: Platforms will have to clearly disclose sponsored listings and cannot manipulate search results to mislead consumers. They will also need stronger grievance redressal systems and must join the National Consumer Helpline’s convergence (resolution) process.
Fake discounts in focus: The “prior price” is defined as the lowest price at which a product or service was offered in the previous 30 days. The move aims to prevent sellers from inflating prices before offering discounts.
What next: The amended Consumer Protection (ECommerce) Rules, 2020, will come into effect from January 1, 2027.
Also Read: Flipkart Minutes sees path to profitability, plans 100 new fulfilment centres every month
Apple’s new foldable iPhone Duo is priced much higher in India than in the US and Dubai, raising concerns among retailers and analysts.
The gap: The iPhone Duo, which was launched on September 10, starts at Rs 2,99,900 in India, compared with roughly Rs 1.92 lakh in the US. The price difference is also significant in other overseas markets.
Sales outlook: Research firms IDC India and Counterpoint Research have cut their outlook for iPhone sales in India, which they now expect to decline by low single digits in 2026 — the product’s first annual decline in India.
Why so expensive? The new foldable phone is not locally manufactured yet. Imported units attract duties, while GST and the weaker Rupee also add to the final price.
Retailer concern: Industry bodies fear the large price gap could push consumers to buy iPhones abroad, hurting authorised retailers and potentially encouraging grey-market sales.
Pocket Entertainment CEO Rohan Nayak
Pocket Entertainment, the parent company of Pocket FM, has crossed $500 million in annual recurring revenue (ARR) by scaling its AI-led content production and expanding its overseas business.
The numbers: The company added $250 million in net ARR over the past 12 months and is now Ebitda positive, according to cofounder and CEO Rohan Nayak. Pocket FM currently has 770,000 stories and 550,000 creators on its platform, with more than 5.5 billion hours of playtime (duration not specified).
The AI pivot: Pocket FM switched to AI-based content production in mid-2024. After the switch, the company went from about 25,000 hours of content produced per year to over 2.5 million hours. Nayak said the move helped unlock 100% ARR growth.
Quote, unquote: “In mid-2024, we pivoted to only AI content production. Our growth took a direct hit. Pocket was already at $200 million ARR, growing 50% YoY, and we flatlined for a whole semester. Six months later, the business exploded.” Nayak said.
Also in the letter:
■ Centre tightens ecommerce rules
■ Apple's pricing raises concerns
■ Pocket FM parent’s ARR booms
Coforge says OP Bhatt asked audit findings to be kept from other directors
Coforge’s former chairman Om Prakash Bhatt had instructed that findings from the company’s board evaluation report should not be shared with other board members, including independent directors, the company said in a regulatory filing on Thursday.
What happened: The board evaluation report, which is mandatory per the Companies Act of 2013, gave Bhatt’s category the lowest rating. However, these findings were not shared or discussed with the full board or the Nomination and Remuneration Committee (NRC), according to Coforge.
The backdrop: An internal audit by KPMG had flagged lapses around the board evaluation process. Bhatt resigned as chairman on September 8, two days before the latest disclosure. The report was available to NRC chair DK Singh though, along with Bhatt.
Verbatim: "The relevant Reports were available to the NRC Chair and the Chairman of the Board alone but were not made available to other members of the Board, including the independent directors, at the instruction of the Chairman of the Board," the filing read.
What next: Coforge said its internal audit and governance review is still ongoing. The company also said the board evaluation issue is separate from its financial reporting and audit processes.
UPI MDR notification likely soon; banks may get the biggest share
The government is likely to notify the return of the MDR (merchant discount rate) on certain merchant transactions on UPI in the next few weeks. Banks are expected to get the biggest share of the fee under the proposed structure, people familiar with the development told ET.
The plan: The MDR is expected to be around 40 basis points (bps), or 0.4%, for certain high-value merchant transactions. The issuing bank could get 40% of the fee, while the UPI app and acquiring bank could get 30% each. This means that on a 40 bps MDR, the bank would get around 16 bps, while the app and acquirer would get 12 bps each.
Who will pay: The proposed MDR is expected to apply to merchants with an annual turnover of Rs 1-1.5 crore and transactions above Rs 2,000. There could also be different rates for businesses across sectors.
Why it matters: UPI has had zero MDR since January 2020, when the government made the payments free to encourage digital adoption. Banks and fintech companies have been pushing for the fee to return, arguing that the zero-fee model is difficult to sustain.
Read ETtech’s coverage on the return of MDR on UPI:
- Exclusive: Govt may bring back UPI merchant fee for big businesses
- Exclusive: UPI merchant fee likely to be set at 5-7 basis points: sources
- UPI apps could chase big-ticket transactions as MDR return looms
- Jefferies sees Paytm, Pine Labs gaining from proposal to levy MDR on UPI transactions
- UPI fees explained: Why the government plans to revive MDR and who will pay
NPCI profit falls 12% as expenses rise
The National Payments Corporation of India (NPCI), which operates UPI, reported a 12.2% decline in its revenue surplus to Rs 1,361.77 crore in FY26, even as its income from operations grew 21.4% to Rs 3,968.95 crore.
- Total expenses: Up 20.4% to Rs 2,357.81 crore
- Marketing costs: Up 9% to Rs 1,059 crore, accounting for around 45% of total outgoings
- Operating expenses: Up 33% to Rs 253 crore
- Employee costs: Up 18% to Rs 393 crore
Ecommerce platforms face stricter rules on discounts, search results
The government has tightened ecommerce rules, requiring platforms to show the actual reduced price and the 'prior price' when advertising discounts.
The numbers: More than 1.77 million complaints were received by the National Consumer Helpline in 2025, with around 511,000, or 29%, related to ecommerce.
What’s changing: Platforms will have to clearly disclose sponsored listings and cannot manipulate search results to mislead consumers. They will also need stronger grievance redressal systems and must join the National Consumer Helpline’s convergence (resolution) process.
Fake discounts in focus: The “prior price” is defined as the lowest price at which a product or service was offered in the previous 30 days. The move aims to prevent sellers from inflating prices before offering discounts.
What next: The amended Consumer Protection (ECommerce) Rules, 2020, will come into effect from January 1, 2027.
Also Read: Flipkart Minutes sees path to profitability, plans 100 new fulfilment centres every month
Apple’s India pricing gap raises concerns over iPhone sales
The gap: The iPhone Duo, which was launched on September 10, starts at Rs 2,99,900 in India, compared with roughly Rs 1.92 lakh in the US. The price difference is also significant in other overseas markets.
Sales outlook: Research firms IDC India and Counterpoint Research have cut their outlook for iPhone sales in India, which they now expect to decline by low single digits in 2026 — the product’s first annual decline in India.
Why so expensive? The new foldable phone is not locally manufactured yet. Imported units attract duties, while GST and the weaker Rupee also add to the final price.
Retailer concern: Industry bodies fear the large price gap could push consumers to buy iPhones abroad, hurting authorised retailers and potentially encouraging grey-market sales.
Pocket FM parent crosses $500 million ARR driven by AI content, overseas expansion
Pocket Entertainment, the parent company of Pocket FM, has crossed $500 million in annual recurring revenue (ARR) by scaling its AI-led content production and expanding its overseas business.
The numbers: The company added $250 million in net ARR over the past 12 months and is now Ebitda positive, according to cofounder and CEO Rohan Nayak. Pocket FM currently has 770,000 stories and 550,000 creators on its platform, with more than 5.5 billion hours of playtime (duration not specified).
The AI pivot: Pocket FM switched to AI-based content production in mid-2024. After the switch, the company went from about 25,000 hours of content produced per year to over 2.5 million hours. Nayak said the move helped unlock 100% ARR growth.
Quote, unquote: “In mid-2024, we pivoted to only AI content production. Our growth took a direct hit. Pocket was already at $200 million ARR, growing 50% YoY, and we flatlined for a whole semester. Six months later, the business exploded.” Nayak said.
Want this newsletter delivered to your inbox?
I agree to receive newsletters and marketing communications via e-mail