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UPI MDR worries new-age brokers; India's semiconductor ambitions
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India’s new MDR framework for UPI is raising concern among new-age stockbrokers, who are planning to take it up with Sebi. This and more in today’s ETtech Top 5.
Also in the letter:
■ Rentomojo’s strong public debut
■ India ramps up iPhone output
■ Practo gets a new CEO
(L-R) Zerodha founder Nithin Kamath and Groww founder Lalit Keshre
New-age stockbrokers including Groww, Zerodha, Upstox, and Angel One are planning to write to Sebi, tabling their concerns about the merchant discount rate on UPI transfers to broking accounts.
The ask: The representation from brokers is likely to propose capping the charge at Rs 5 instead of Rs 300, and raising the zero-MDR threshold from Rs 2,000 to Rs 20,000.
The concern: Brokers had argued that transferring money into a trading account was not equivalent to paying a merchant for a product and should not attract MDR. A transfer does not necessarily result in an order. Customers can add and withdraw money without investing, leaving the broker with MDR charges but no brokerage income.
By the numbers: Industry calculations based on NPCI data show UPI transfers worth around Rs 15 lakh crore are made annually to entities classified under merchant category code 6211, which includes stockbrokers and other capital-market entities.
The new MDR framework for UPI transactions, effective October 15 smack in the middle of the ecommerce festive season sales, may impact D2C brands operating in low-margin categories such as consumer electronics, fashion, and packaged goods, said founders and executives.
Industry view:
Sirona founder Deep Bajaj said even 40 basis points can hurt businesses with margins of just 3-5%. He said the timing of the MDR announcement is "concerning because everybody is going into the festive season with deep discounts to liquidate some stock."
"Small merchants will now think twice about whether to accept cash or UPI," said Kumar Rajagopalan, CEO, RAI. "During the festive season, a large share of transactions crosses the Rs 2,000 mark, and the moment there’s a fee attached to a digital payment, cash becomes the path of least resistance."
Also Read: UPI MDR could bring transaction value into payment apps’ market-share battle, industry executives say
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PM Modi at Semicon India 2026
India is taking every step needed to become a preferred destination for the semiconductor industry at a time when the world is looking for new and trusted manufacturing destinations, prime minister Narendra Modi said while inaugurating Semicon India 2026 on Thursday.
New facilities: The PM also virtually launched Suchi Semicon's Rs 868 crore facility near Surat and CDIL's expansion of its existing facility in Mohali, Punjab.
Quote, unquote: "Our effort is to ensure the growth of fabless chip companies in India, and the expansion of intellectual property rights — be it the establishment of various types of compound semiconductor manufacturing units, integrating silicon photonics into the ecosystem, or strengthening the supply chain. These have already set the foundations for AI-enabled infrastructure," said Modi.
Big investments: Applied Materials plans to invest $5 billion in India over the next decade, while Lam Research announced a Rs 10,000-crore investment.
Participants: The three-day summit, which began on September 17, features over 500 exhibitors representing the complete global semiconductor and electronics ecosystem, and more than 240 international companies.
(L-R) Accel partner Prashanth Prakash and Rentomojo founder Geetansh Bamania
Furniture and appliance rental platform Rentomojo made a strong debut on Dalal Street on Thursday, with its shares listing at a nearly 19% premium over the IPO price of Rs 404. The stock closed at 31.92% higher at Rs 532.95.
IPO demand: The debut follows robust demand for Rentomojo’s Rs 1,256 crore IPO, which was subscribed 72.87 times. The QIB (qualified institutional buyer) portion was subscribed 177.3 times, while the non-institutional investor (NII) and retail portions were subscribed 67.92 and 15.58 times, respectively.
FounderSpeak: "Awareness is the biggest issue. If 100 consumers are looking for rental apartments, the problem is only 15 are searching for furniture and appliances on rent. In short, it (our focus) will be more on marketing, more awareness," founder and promoter Geetansh Bamania said.
Kuku Technologies, the parent of audio storytelling platform Kuku FM, has received approval from Sebi for its Rs 3,500-crore IPO. Kuku, which had filed its confidential papers in June, will now file an updated prospectus with Sebi in the next three weeks. It is eyeing a listing by the first half of 2027.
Apple’s iPhone factories in India have been working round the clock to ship the latest iPhone 18 Pro and Pro Max models across the world, in order to make sure they’re on shelves in the US and elsewhere when sales of the latest models begin on Friday. Indeed, additional capacity was being created to manufacture the latest Pro models, people aware of the details told us.
Release-day preparation: Several chartered flights have left India, mostly from Chennai, carrying the latest devices.
Made in India: Currently, two factories — one each of Foxconn and Tata Electronics — are making iPhone 18 Pro and Pro Max. The company will likely expand the number of assembly lines to nearly a dozen, depending on global demand. While this is the second time Apple will be selling made-in-India iPhones on the start date, it’s a first for Pro and Pro Max models.
Global export: Since only 15% of the total iPhones sold in India are in the Pro and Pro Max range, almost 80-90% of local production will go overseas, experts said. The jump in shipments is set to be reflected in export numbers for the September quarter, explained one of them.
Digital healthcare platform Practo has appointed Jagnoor Singh as chief executive, while founder Shashank ND has moved into the role of managing director and executive chairman.
New role: Singh, who joined Practo as COO in January 2025, took over as CEO effective September 1. He will oversee the company’s strategy, growth, and operations across markets.
Expansion: The top-level changes come as Practo expands overseas. After entering the UAE in 2025, the company launched its care-navigation platform in the US earlier this year.
IPO plans: Practo has also been exploring an initial public offering. Bloomberg reported in December that the company was looking at a listing in the second half of 2026 and was preparing to shift its holding company from Singapore to India.
Also in the letter:
■ Rentomojo’s strong public debut
■ India ramps up iPhone output
■ Practo gets a new CEO
Brokers plan to write to Sebi over UPI MDR concerns
New-age stockbrokers including Groww, Zerodha, Upstox, and Angel One are planning to write to Sebi, tabling their concerns about the merchant discount rate on UPI transfers to broking accounts.
The ask: The representation from brokers is likely to propose capping the charge at Rs 5 instead of Rs 300, and raising the zero-MDR threshold from Rs 2,000 to Rs 20,000.
The concern: Brokers had argued that transferring money into a trading account was not equivalent to paying a merchant for a product and should not attract MDR. A transfer does not necessarily result in an order. Customers can add and withdraw money without investing, leaving the broker with MDR charges but no brokerage income.
By the numbers: Industry calculations based on NPCI data show UPI transfers worth around Rs 15 lakh crore are made annually to entities classified under merchant category code 6211, which includes stockbrokers and other capital-market entities.
UPI MDR prompts D2C brands to reassess costs ahead of festive sales
The new MDR framework for UPI transactions, effective October 15 smack in the middle of the ecommerce festive season sales, may impact D2C brands operating in low-margin categories such as consumer electronics, fashion, and packaged goods, said founders and executives.
Industry view:
Sirona founder Deep Bajaj said even 40 basis points can hurt businesses with margins of just 3-5%. He said the timing of the MDR announcement is "concerning because everybody is going into the festive season with deep discounts to liquidate some stock."
"Small merchants will now think twice about whether to accept cash or UPI," said Kumar Rajagopalan, CEO, RAI. "During the festive season, a large share of transactions crosses the Rs 2,000 mark, and the moment there’s a fee attached to a digital payment, cash becomes the path of least resistance."
Also Read: UPI MDR could bring transaction value into payment apps’ market-share battle, industry executives say
India to become world's preferred destination for semiconductors: PM Modi
India is taking every step needed to become a preferred destination for the semiconductor industry at a time when the world is looking for new and trusted manufacturing destinations, prime minister Narendra Modi said while inaugurating Semicon India 2026 on Thursday.
New facilities: The PM also virtually launched Suchi Semicon's Rs 868 crore facility near Surat and CDIL's expansion of its existing facility in Mohali, Punjab.
Quote, unquote: "Our effort is to ensure the growth of fabless chip companies in India, and the expansion of intellectual property rights — be it the establishment of various types of compound semiconductor manufacturing units, integrating silicon photonics into the ecosystem, or strengthening the supply chain. These have already set the foundations for AI-enabled infrastructure," said Modi.
Big investments: Applied Materials plans to invest $5 billion in India over the next decade, while Lam Research announced a Rs 10,000-crore investment.
Participants: The three-day summit, which began on September 17, features over 500 exhibitors representing the complete global semiconductor and electronics ecosystem, and more than 240 international companies.
Accel-backed Rentomojo lists on Dalal Street at 19% premium
Furniture and appliance rental platform Rentomojo made a strong debut on Dalal Street on Thursday, with its shares listing at a nearly 19% premium over the IPO price of Rs 404. The stock closed at 31.92% higher at Rs 532.95.
IPO demand: The debut follows robust demand for Rentomojo’s Rs 1,256 crore IPO, which was subscribed 72.87 times. The QIB (qualified institutional buyer) portion was subscribed 177.3 times, while the non-institutional investor (NII) and retail portions were subscribed 67.92 and 15.58 times, respectively.
FounderSpeak: "Awareness is the biggest issue. If 100 consumers are looking for rental apartments, the problem is only 15 are searching for furniture and appliances on rent. In short, it (our focus) will be more on marketing, more awareness," founder and promoter Geetansh Bamania said.
Kuku Technologies receives approval from Sebi for its proposed IPO
Kuku Technologies, the parent of audio storytelling platform Kuku FM, has received approval from Sebi for its Rs 3,500-crore IPO. Kuku, which had filed its confidential papers in June, will now file an updated prospectus with Sebi in the next three weeks. It is eyeing a listing by the first half of 2027.
India ramps up iPhone 18 Pro and Pro Max production
Apple’s iPhone factories in India have been working round the clock to ship the latest iPhone 18 Pro and Pro Max models across the world, in order to make sure they’re on shelves in the US and elsewhere when sales of the latest models begin on Friday. Indeed, additional capacity was being created to manufacture the latest Pro models, people aware of the details told us.
Release-day preparation: Several chartered flights have left India, mostly from Chennai, carrying the latest devices.
Made in India: Currently, two factories — one each of Foxconn and Tata Electronics — are making iPhone 18 Pro and Pro Max. The company will likely expand the number of assembly lines to nearly a dozen, depending on global demand. While this is the second time Apple will be selling made-in-India iPhones on the start date, it’s a first for Pro and Pro Max models.
Global export: Since only 15% of the total iPhones sold in India are in the Pro and Pro Max range, almost 80-90% of local production will go overseas, experts said. The jump in shipments is set to be reflected in export numbers for the September quarter, explained one of them.
Practo appoints Jagnoor Singh as CEO; founder Shashank ND transitions to chairman’s role
Digital healthcare platform Practo has appointed Jagnoor Singh as chief executive, while founder Shashank ND has moved into the role of managing director and executive chairman.
New role: Singh, who joined Practo as COO in January 2025, took over as CEO effective September 1. He will oversee the company’s strategy, growth, and operations across markets.
Expansion: The top-level changes come as Practo expands overseas. After entering the UAE in 2025, the company launched its care-navigation platform in the US earlier this year.
IPO plans: Practo has also been exploring an initial public offering. Bloomberg reported in December that the company was looking at a listing in the second half of 2026 and was preparing to shift its holding company from Singapore to India.
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