 Daily Top 5 |
Zostel hits Oyo IPO filings; PhonePe’s new CTO
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Zostel asked Sebi to review Oyo's IPO filings, escalating their dispute over the Zo Rooms acquisition. This and more in today's ETtech Top 5.
Also in the letter:
■ Flipkart's fashion push
■ ETtech Done Deals
■ Meta's child safety crackdown
Ritesh Agarwal, founder, Oyo
Zostel Hospitality has urged the Securities and Exchange Board of India (Sebi) to review disclosures in Oyo parent Prism's updated draft red herring prospectus (DRHP) in light of their long-running legal dispute.
What's the issue? In a July 7 representation to Sebi, Zostel said Prism's updated DRHP does not adequately spell out the background, nature or commercial significance of its dispute with Oyo, which stems from the hotel chain's proposed acquisition of Zo Rooms in 2015.
Zostel has also written to the NSE, BSE and the book-running lead managers, asking them to independently vet the disclosures and withhold the IPO until they are convinced the offer document meets disclosure norms.
Background:
Prism's IPO documents do acknowledge the litigation. Zostel, however, argues that the disclosures largely reflect Prism's side of the story and downplay the case's materiality for investors.
Walmart-backed PhonePe has promoted long-time executive Srijon Biswas to chief technology officer (CTO).
Tell me more: Biswas joined PhonePe in 2017 and most recently led engineering for its merchant and financial services businesses. He will now head the company's entire engineering organisation.
Earlier, he worked at BrowserStack and Flipkart. He will continue to report to cofounder Rahul Chari, who recently took on the role of chief product and technology officer (CPTO).
Yes, and? The elevation comes after PhonePe pushed back its planned initial public offering (IPO) in March amid geopolitical tensions and market volatility, while reiterating that it remains committed to listing.
Also Read: PhonePe insurance CEO Vishal Gupta quits to launch new startup
Dream Sports' chief technology officer Amit Sharma is stepping down after nearly a decade at the fantasy sports major.
What's next: Sharma says his next venture will involve building something “cool” with artificial intelligence (AI). He joined Dream Sports in 2016 after spending around 12 years in the US, including stints at Netflix and Yahoo.
What else? His exit comes as Dream Sports restructures. In March, ET reported that more than 100 executives left after the company overhauled its business following the regulatory ban on online real-money gaming in India.
Also Read: Dream Sports shuts fintech platform Dream Money within a year of launch
Ahead of the festive season, Flipkart has waived seller commissions across its entire fashion category.
Jargon buster: Seller commission is the fee ecommerce platforms charge merchants for every sale. Depending on the platform and category, it usually ranges from 5% to 30%.
Platforms often waive these fees ahead of the festive rush to attract more sellers, expand product selection and sharpen their appeal among Gen Z shoppers.
Also Read: Flipkart announces $50 million Esop buyback: the biggest employee cashouts at startups so far
Tell me more: Since November, Flipkart has offered zero commission on products priced below Rs 1,000 on its main platform and on all products on its hypervalue platform Shopsy, regardless of price.
The expanded policy will now cover around 90,000 sellers, including micro, small and medium enterprises (MSMEs) and direct-to-consumer (D2C) brands. Flipkart says the move aims to nudge sellers to list a wider range of products on the platform.
Also Read: Amazon India to remove seller fee for items under Rs 1,000 from mid-March
Industrial gas analytics and environmental monitoring firm Adage Automation has raised Rs 230 crore in a growth round led by private equity firm InCred Alternative Investments.
More on the round: InCred Growth Partners Fund invested Rs 180 crore, with Global South Capital and Prachetas Capital also participating.
Adage plans to use the money to build a manufacturing facility in Goa, expand working capital, pursue selective acquisitions, invest in AI-powered industrial software and digital monitoring platforms, and expand across the Middle East, Africa, Europe and the US.
(L-R) Ankur Jain, Ashish Munjal and Piyush Nangru, cofounders, Elevate Education
Higher education startup Elevate Education, formerly Sunstone, has raised Rs 170 crore from WestBridge Capital.
Fund use: The company plans to deploy the capital to deepen its technology and AI capabilities, expand partnerships with educational institutions, and improve placement and student support services.
Mark Zuckerberg, CEO, Meta
Meta has detailed the steps it took to curb child sexual abuse material (CSAM) on its platforms, days after the Indian government flagged Instagram ads allegedly promoting such content.
Meta's position: In its first public response, Meta said it began acting before the matter became public. It said it had already pulled down the offending ads and disabled the accounts behind them.
“We want to be clear: we take these concerns seriously, we never want this content on our platforms, and we're committed to improving our efforts to combat it," Meta said.
Tell me more: Meta said it removed 4 million Instagram and Facebook accounts and 36 million pieces of content linked to child sexual exploitation last year. It added that it has improved AI-based detection, strengthened protections for teens, and stepped up collaboration with law enforcement agencies.
The company rejected allegations that its ad systems intentionally targeted users with an inappropriate interest in children.
Also Read: Meta CSAM breach triggers calls for digital safety rules overhaul
Also in the letter:
■ Flipkart's fashion push
■ ETtech Done Deals
■ Meta's child safety crackdown
Zostel urges Sebi to examine Oyo IPO disclosures over legal dispute
Zostel Hospitality has urged the Securities and Exchange Board of India (Sebi) to review disclosures in Oyo parent Prism's updated draft red herring prospectus (DRHP) in light of their long-running legal dispute.
What's the issue? In a July 7 representation to Sebi, Zostel said Prism's updated DRHP does not adequately spell out the background, nature or commercial significance of its dispute with Oyo, which stems from the hotel chain's proposed acquisition of Zo Rooms in 2015.
Zostel has also written to the NSE, BSE and the book-running lead managers, asking them to independently vet the disclosures and withhold the IPO until they are convinced the offer document meets disclosure norms.
Background:
- The dispute dates back to 2015, when Oyo, then operating as Oravel Stays, proposed acquiring Zostel's business. The deal never closed.
- Zostel claims it is owed about 7% equity in Oyo, or an equivalent economic value. Oyo disputes this.
- The Supreme Court dismissed Zostel's challenge last year, but the company says the matter remains pending before the Delhi High Court under Section 37 of the Arbitration and Conciliation Act.
Prism's IPO documents do acknowledge the litigation. Zostel, however, argues that the disclosures largely reflect Prism's side of the story and downplay the case's materiality for investors.
PhonePe elevates Srijon Biswas to CTO
Walmart-backed PhonePe has promoted long-time executive Srijon Biswas to chief technology officer (CTO).
Tell me more: Biswas joined PhonePe in 2017 and most recently led engineering for its merchant and financial services businesses. He will now head the company's entire engineering organisation.
Earlier, he worked at BrowserStack and Flipkart. He will continue to report to cofounder Rahul Chari, who recently took on the role of chief product and technology officer (CPTO).
Yes, and? The elevation comes after PhonePe pushed back its planned initial public offering (IPO) in March amid geopolitical tensions and market volatility, while reiterating that it remains committed to listing.
Also Read: PhonePe insurance CEO Vishal Gupta quits to launch new startup
Dream Sports CTO Amit Sharma exits after a decade to build AI startup
Dream Sports' chief technology officer Amit Sharma is stepping down after nearly a decade at the fantasy sports major.
What's next: Sharma says his next venture will involve building something “cool” with artificial intelligence (AI). He joined Dream Sports in 2016 after spending around 12 years in the US, including stints at Netflix and Yahoo.
What else? His exit comes as Dream Sports restructures. In March, ET reported that more than 100 executives left after the company overhauled its business following the regulatory ban on online real-money gaming in India.
Also Read: Dream Sports shuts fintech platform Dream Money within a year of launch
No strings attached: Flipkart slashes seller fees for fashion
Ahead of the festive season, Flipkart has waived seller commissions across its entire fashion category.
Jargon buster: Seller commission is the fee ecommerce platforms charge merchants for every sale. Depending on the platform and category, it usually ranges from 5% to 30%.
Platforms often waive these fees ahead of the festive rush to attract more sellers, expand product selection and sharpen their appeal among Gen Z shoppers.
Also Read: Flipkart announces $50 million Esop buyback: the biggest employee cashouts at startups so far
Tell me more: Since November, Flipkart has offered zero commission on products priced below Rs 1,000 on its main platform and on all products on its hypervalue platform Shopsy, regardless of price.
The expanded policy will now cover around 90,000 sellers, including micro, small and medium enterprises (MSMEs) and direct-to-consumer (D2C) brands. Flipkart says the move aims to nudge sellers to list a wider range of products on the platform.
Also Read: Amazon India to remove seller fee for items under Rs 1,000 from mid-March
Adage Automation secures Rs 230 crore in funding led by PE firm InCred Alternative
Industrial gas analytics and environmental monitoring firm Adage Automation has raised Rs 230 crore in a growth round led by private equity firm InCred Alternative Investments.
More on the round: InCred Growth Partners Fund invested Rs 180 crore, with Global South Capital and Prachetas Capital also participating.
Adage plans to use the money to build a manufacturing facility in Goa, expand working capital, pursue selective acquisitions, invest in AI-powered industrial software and digital monitoring platforms, and expand across the Middle East, Africa, Europe and the US.
WestBridge Capital invests Rs 170 crore in Elevate Education
Higher education startup Elevate Education, formerly Sunstone, has raised Rs 170 crore from WestBridge Capital.
Fund use: The company plans to deploy the capital to deepen its technology and AI capabilities, expand partnerships with educational institutions, and improve placement and student support services.
Meta removed four million accounts, 36 million posts over child exploitation
Meta has detailed the steps it took to curb child sexual abuse material (CSAM) on its platforms, days after the Indian government flagged Instagram ads allegedly promoting such content.
Meta's position: In its first public response, Meta said it began acting before the matter became public. It said it had already pulled down the offending ads and disabled the accounts behind them.
“We want to be clear: we take these concerns seriously, we never want this content on our platforms, and we're committed to improving our efforts to combat it," Meta said.
Tell me more: Meta said it removed 4 million Instagram and Facebook accounts and 36 million pieces of content linked to child sexual exploitation last year. It added that it has improved AI-based detection, strengthened protections for teens, and stepped up collaboration with law enforcement agencies.
The company rejected allegations that its ad systems intentionally targeted users with an inappropriate interest in children.
Also Read: Meta CSAM breach triggers calls for digital safety rules overhaul
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I agree to receive newsletters and marketing communications via e-mail