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Month: August 2024

News

Nikhil Bhushan appointed as Chief Technology Officer at Tata Starbucks India

Observenow Desk August 16, 2024

Nikhil Bhushan has been appointed as the Chief Technology Officer (CTO) at Tata Starbucks India, where he will focus on enhancing customer experience and optimizing operations. With 24 years of experience in leadership roles, Bhushan previously served as the Head of IT and Chief Information and Security Officer (CISO) at Travel Food Services Pvt Ltd. His prior roles include Vice President at Citi and Head of CIB Automation Testing and Global Test Manager for Equity & Commodity Derivatives at BNP Paribas India Solutions Private Limited.

Bhushan’s career also includes stints at Oracle and Infosys. He holds an Industrial Engineering degree from the Vishwakarma Institute of Technology and an Executive MBA from the Indian School of Business.

Tags: Nikhil BhushanTata Starbucks India

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Digital Native

Revitalising India’s Startup Scene: Founders Applaud Angel Tax Removal for Opening Doors to New Investment Opportunities

Siddharth Mala

By April 2024, more than 127,000 startups have been officially recognized by the Department for Promotion of Industry and Internal Trade (DPIIT). India’s startup ecosystem has been flourishing since 2016, with new businesses emerging rapidly across the nation. To support this growth, the Indian government launched the Startup India initiative.

However, despite these rising figures, many startups are still struggling. Over half of the Indian startups preparing to go public this year are dealing with ongoing losses, according to a report.

In response to persistent demands from startups, the DPIIT recommended the removal of the Angel Tax. Initially, this tax only applied to funds raised by startups from Indian investors not registered as alternative investment funds (AIFs). However, the Union Budget 2023 extended its application to include foreign investors, raising concerns among venture capital funds registered abroad. This expansion aimed to align the regulations between the Foreign Exchange Management Act (FEMA) and the Income Tax Act.

One of the most widely discussed aspects of Finance Minister Nirmala Sitharaman‘s 2024-25 budget announcement was the removal of the Angel Tax on startups. Siddharth Mala, Correspondent, ObserveNow, engaged with startup leaders to gather their opinions on this issue.

Amid a notable funding slowdown, with startup investments hitting a five-year low in 2023, the industry’s calls for the removal of the Angel Tax have grown louder.

While shedding some light on the abolition of the angel tax Anushita S P Karunakaram, Co-Founder & CEO, Lawyer Desk highlighted 3 major points that “This is A Good Signal for the Start-up Ecosystem”, “Common General Problems Arising for Startups Due to the Angel Tax” & “Growth Opportunities after Abolition of Angel Tax.”

Anushita elaborated that the abolition of the Angel Tax has revitalized the Indian startup ecosystem by removing barriers to early-stage funding, particularly from angel investors. This tax previously complicated fundraising by adding valuation scrutiny and tax liabilities, which hindered growth and long-term planning. Its removal creates a more favorable investment climate, boosting investor confidence and opening doors to domestic and foreign capital. Startups can now focus on innovation and scaling without being bogged down by regulatory hurdles, fostering a more dynamic environment for entrepreneurship.

The Central Board of Direct Taxes has clarified that startups registered with the DPIIT will not be scrutinized for Angel Tax. This exemption applies to both foreign and domestic investments received by DPIIT-registered startups. To qualify for DPIIT registration, a startup must have a turnover of less than ₹100 crore in any of the previous financial years. It can be considered a startup for up to 10 years from its incorporation date.

“The Angel Tax, which imposed up to 30% tax on investments exceeding the fair market value of shares, was a major obstacle. For a fledgling startup like ours, every bit of funding was crucial, and dealing with this tax added a daunting layer of complexity, In our early days, we faced multiple challenges. Securing investments was fraught with delays and complications” said Edwin L, CEO & Co- Founder, Boxigo.

“Investors were wary of the additional tax liabilities, which made it even harder to close deals and accelerate growth. With the Angel Tax now abolished, the landscape has transformed. We’re seeing renewed investor confidence and a smoother funding process. This positive change has allowed us to focus more on scaling our operations and pursuing our vision without the constant worry of tax-related issues. The shift is critical for our growth and aligns seamlessly with our strategic objectives” further added Edwin.

Adding on the same Anshul Jain, Co-founder, Roadcast emphasised “The removal of the Angel Tax is going to be a game-changer for start-ups. Before this, dealing with the Angel Tax was like navigating a minefield. The tax, which slapped a 30% levy on investments that were considered above the “fair market value” of shares, was a hurdle.”

Beyond the removal of the Angel Tax, the government can support startups through policy reforms that address key challenges such as access to capital, regulatory simplification, and infrastructure development. Establishing dedicated startup funds, easing credit access, and providing tax incentives for research and development can stimulate innovation and growth. Streamlining regulations and simplifying compliance processes would reduce the bureaucratic burden, allowing startups to focus on business growth.

Echoing the same Anushita underscored “The removal of the Angel Tax is a move in the right direction, and surely, the government can do a lot more for the cause of startups in India with regard to several other areas. Compliance and regulatory norms need simplification—the lesser the administrative burden, the better—so that startups may focus on growth and innovation. Ease in financial troubles, again at the very stage of setting up a business, through better access to funding by way of grants, low-interest loans, and tax breaks for investors.”

The leaders collectively emphasised that investing in digital infrastructure, strengthening collaboration between academia and industry, and promoting skill development programs can cultivate a more supportive environment for startups to flourish in the competitive global market. Enhancing infrastructure and digital connectivity in tier-2 and tier-3 cities would unlock new opportunities for startups nationwide. Encouraging collaboration between startups and established industries, along with offering support for global expansion through export incentives and trade facilitation, would empower startups to scale and compete internationally. These efforts would foster a growth-oriented ecosystem, drive innovation, and contribute to India’s economic development.

Tags: Angel TaxBoxigoLawyer DeskNirmala SitharamanRoadcastSiddharth MalaStartup

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Digital Native

Krutrim Announces AI Chip Launch by 2026 and Major Expansion of Cloud Services

Observenow Desk

Krutrim, the AI startup founded by Bhavish Aggarwal, Co-founder and CEO of Ola Cabs, has unveiled its ambitious plan to design, build, and release its first AI chip by 2026. This announcement, made during the Ola Sankalp 2024 event, highlighted that the initial chip lineup will feature “Bodhi” for AI, “Sarv” for general computing, and “Ojas” for edge computing. Krutrim also aims to launch the second-generation Bodhi-II chip by 2028 as part of its long-term strategy.

To advance these goals, Krutrim has forged strategic partnerships with global chip manufacturers Arm and Untether AI, which are expected to boost the company’s chip design and production capabilities.

At the event, Bhavish Aggarwal underscored India’s potential to become a leader in AI, stating, “India has a unique opportunity to emerge as a global powerhouse in future technologies like AI. With 20% of the world’s data and a vast tech talent pool, India is well-positioned to lead the AI revolution.” Alongside chip development, Krutrim is planning a major expansion of its data centre capacity, aiming to increase it from 20 MW to 1 GW by 2028 to meet the rising demand for AI and cloud computing services.

Earlier this year, Aggarwal made headlines by migrating Ola’s workloads from Microsoft Azure to Krutrim Cloud. He reported significant growth on the platform, noting, “Over 50 new services have been launched on Krutrim AI, positioning it to meet the needs of most Indian developers.”

Krutrim Cloud is rapidly expanding its services across various domains, including infrastructure, developer platforms, data platforms, AI models, AI platforms, and applications. The AI ecosystem is already in use by Ola Electric and Ola Cabs, showcasing its versatility.

Aggarwal also shared impressive metrics about Krutrim’s adoption: “Over 25,000 developers have engaged with Krutrim Cloud, more than 10 million users have used the Krutrim chat app, and since early 2024, there have been 250 billion API calls and over 1 trillion tokens generated.”

To attract more developers and businesses, Krutrim is offering ₹100 crore worth of free cloud services until Diwali. In a major rebranding move, Ola Cabs will now be known as Ola Consumers, reflecting the company’s broader consumer service ambitions beyond mobility. Aggarwal explained, “Our goal is to make consumption accessible to every Indian, extending beyond just mobility.”

As part of this expansion, Ola Cabs has reintroduced its Ola Share ride-hailing feature in Bengaluru, with plans to expand to other cities soon. Additionally, Aggarwal announced a new loyalty program, Ola Coins, applicable across multiple Ola services, and an automated warehouse available to brands on ONDC, emphasizing the company’s commitment to leveraging automation for scaling its operations.

Tags: Bhavish AggarwalCloud ServicesKrutrimOla Cabs

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News

CrowdStrike’s Michael Sentonas Wins ‘Most Epic Fail’ Award Amidst Global Microsoft IT Outage

Observenow Desk

In a surprising turn of events following a major IT disruption caused by a software update, CrowdStrike has taken a bold approach to managing the fallout. Instead of shying away from the spotlight, Michael Sentonas, the company’s President, embraced the situation by accepting the “Most Epic Fail” award at the Pwnie Awards.

To recap, on July 19, a significant outage triggered by a faulty software update led to widespread disruptions for Microsoft customers, affecting airlines, banks, hospitals, and emergency services around the globe. The incident caused severe operational interruptions and customer inconvenience, with the infamous Blue Screen of Death appearing on thousands of Windows machines. The outage has been linked to CrowdStrike, whose valuation plummeted from over $83 billion to just under $60 billion since the incident.

Amidst this turmoil, CrowdStrike’s unexpected recognition at the Pwnie Awards came as a surprise. The company had previously made a notable appearance at Black Hat, showcasing a prominent booth and distributing free merchandise. A CrowdStrike spokesperson noted that their presence at the event was a gesture of gratitude to the community.

At the awards ceremony, Sentonas addressed the severity of the situation, stating, “Definitely not the award to be proud of receiving, but I was determined to accept it because we got this horribly wrong.” He emphasized the importance of accountability, declaring that the award would be displayed at the company’s headquarters. “I want every CrowdStrike employee to see it, as a reminder that our goal is to protect people and to ensure such failures do not recur.”

The company is now facing mounting legal challenges, including a proposed class action lawsuit filed in federal court in Austin, Texas, by three air travellers. The plaintiffs allege that CrowdStrike’s negligence in the software update led to significant flight delays and cancellations, incurring additional costs for lodging, meals, and alternative travel arrangements. Some travellers also reported missing work and health issues from prolonged airport stays. The plaintiffs seek both compensatory and punitive damages, citing previous technology-related disruptions in the airline industry.

In response to the lawsuit, CrowdStrike has maintained its defense, asserting, “We believe this case lacks merit and we will vigorously defend the company.” This stance is also reflected in their response to a separate shareholder lawsuit filed on July 31, following a dramatic drop in the company’s stock price—approximately one-third—due to the outage.

Tags: CrowdStrikeMichael Sentonas

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Exclusive

Celebrating Independence Day: Viksit Bharat – India’s Journey Towards Development and Prosperity

Riya Adlakha August 14, 2024

India has always been a land of profound contrasts and remarkable achievements because of its ancient heritage and vibrant cultural diversity. Since gaining independence in 1947, the nation has embarked on an ambitious journey to transform itself from a post-colonial entity into a dynamic country. This vision, first articulated by Jawaharlal Nehru, aimed to establish a strong industrial base, invest in critical infrastructure, and advance scientific and technological innovation. Decades later, India stands at the cusp of realizing its dream of becoming a “Viksit Bharat” or a Developed India, with significant milestones marking its progress.

Riya Adlakha, Assistant Editor, ObserveNow interacted with industry leaders to get into the depth of the subject matter, knowing each industry’s contribution to the socio-economic development of the nation.

The IT Boom: A Global Transformation

One of the most significant milestones in India’s modern era is its rise as a global IT powerhouse. The IT revolution of the 1990s marked a dramatic shift, thrusting India into the spotlight of global technology.

Jayraj Vyas, Chief Technology Officer, Ola highlighted that, “In the 21st century, India stands at the forefront of the global IT revolution, transforming into a knowledge powerhouse. With IT services, e-commerce, and innovative software and hardware solutions, the IT industry is not just driving economic growth but also enhancing governance and empowering businesses to thrive in a competitive world.”

By 2024, the Indian IT sector is projected to reach $138.9 billion, up from $122.6 billion the previous year, reflecting a robust growth rate of 13.2%. Today, the sector, valued at over $200 billion, employs more than 4 million people. Renowned for its cost-effective and high-quality services, India’s IT industry is expected to grow at a compound annual growth rate (CAGR) of 7.5%, potentially hitting $350 billion by 2027. This growth underscores India’s pivotal role in the global technology landscape.

“Technology has been central to India’s journey from a newly independent nation to a global powerhouse. As India continues to embrace innovation and technological advancements, it is well on its way to becoming a truly developed nation —a Vikshit Bharat. As we progress towards a that goal, innovation continues to drive inclusive growth and empowerment”, said Abhijit Dey – Digital Banking and API Expert.

Advancements in Education and Healthcare

The higher education sector is poised for significant expansion, with a projected CAGR of 8.46% between 2024 and 2032, reaching a remarkable $225 billion by 2024–25. This growth highlights the sector’s responsiveness to modern educational trends, including online learning and EdTech innovations.

“Since Independence, India’s education system has advanced dramatically, with the Gross Enrollment Ratio in Higher Education rising from 0.70 to 28.4 and gender parity at 1.01. Despite this progress, government funding hasn’t met expectations, and the private sector now plays a crucial role in quality and innovation. As we face a demographic dividend, focusing on skill development and research is vital to preparing our youth for a global society, with India projected to supply 40% of the world’s employable population by 2040.” underscored Prof Sandeep Shastri, Director – Academics, Nitte Education Trust

Prof. Raghuvir Singh, Vice Chancellor, K. R. Mangalam University, Haryana underscored, “The purpose of education is two fold, One is to learn to earn a living, and the other is to learn to live. However, if a person learns to live, he/ she can definitely earn to live. Therefore, the focus of education should be on developing a good human with strong character, integrity, spirituality, and kindness.”

Education and healthcare have been central to India’s development story. The literacy rate is anticipated to reach 85.95% in 2024, with Kerala leading at an impressive 99.31%. Investment in education has fostered the rise of prestigious institutions such as the Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs), cultivating a new generation of skilled professionals.

Vishal Anand, Pro Chancellor, Shoolini University said, “Indian education is at its sunrise point with edu tech becoming the norm along with skill education that will shape the country in the coming years. We have come a long way since independence but it’s time for us to fly.”

“Come On My Bharat, Bash On Regardless. The Peak is Within Reach”, Maj. Gen. B.D. Wadhwa, Pro-Chancellor, IILM University highlighted in a statement.

In healthcare, initiatives like the National Rural Health Mission and the Ayushman Bharat scheme have made substantial strides in improving medical access and reducing health disparities. The Union Health Ministry’s allocation of Rs 90,658.63 crore in the 2024-2025 Budget marks a notable 12.59% increase in healthcare spending. The Ayushman Bharat Digital Mission aims to establish an integrated digital health infrastructure, enhancing accessibility and empowering individuals with comprehensive health information.

Startup Surge

India’s startup ecosystem has experienced unprecedented growth, emerging as the world’s third-largest hub for startups. With over 125,000 startups and 110 unicorns, the entrepreneurial landscape is bustling with innovation. These startups employ more than 1.2 million people and have secured over 12,000 patents. Initiatives such as Startup India and the Atal Innovation Mission are driving this success, fostering a culture of entrepreneurship that extends beyond major metropolitan areas.

“India’s startup ecosystem, a crucible of digital alchemy, is forging a new path. Armed with the quartet of AI, blockchain, engineering and digitization, these catalysts are not merely transforming businesses but are societal architects, as well. Transforming challenges into innovations, they are scripting India’s destiny as a global innovation powerhouse. Their collective brilliance positions India as the world’s innovation foundry, casting a promising future for generations to come !”, highlighted Abhishek dutta Global Director- Data Science & Consulting-Affine

Space Exploration

India’s achievements in space exploration are equally impressive. The space sector is projected to reach $13 billion by 2025, with ambitions to capture 10% of the global space economy by 2030. From a solitary startup in 2012, the space industry now features 189 startups, with funding for these ventures growing significantly to $124.7 million in 2023. The Space Policy 2023 embodies India’s forward-thinking vision for a robust space ecosystem, highlighting the crucial role of the private sector in this burgeoning field.

Social and Cultural Progress

The evolution of India’s ecosystem is increasingly inclusive, with women taking on prominent roles as entrepreneurs and leaders. Programs such as the Women Entrepreneurship Platform are bridging gender gaps and driving economic growth. Women now represent a significant portion of the startup landscape, contributing to a more diverse and dynamic business environment.

“Diversity is a blessing and inclusivity is kindness to be a part of every business and non- business activities. Women, in particular, lead with empathy for people that enables differentiating growth trajectory across all the segments”, said Namita Patwari, Chief Human Resources Officer, Alembic Pharmaceuticals

Women are entering the workforce in greater numbers, notably, 15% of startups are unicorns founded by women, and ventures with female founders raised $74 million in January 2024. 11% of seed funding goes to startups with women on their founding teams.18-20% of startups in India are owned by women. 18-20% of unicorns have women as co founders. As women’s participation in paid work grows, addressing employment quality and investing in supportive infrastructure will be crucial for narrowing gender disparities.

Devyani Mehra, Intel India HR Director emphasised, “This Independence Day, as we celebrate the progress of women achieving over 20% of leadership roles in top companies, let us also recognize the challenges that persist. True freedom is not just about celebrating milestones but committing to overcoming gender pay gaps and amplifying representation for women in marginalized communities. Let us pledge to advance gender equality by supporting initiatives that drive women’s leadership, safety, and representation, ensuring every woman can reach her full potential and contribute equally to our nation’s growth.”

Looking Ahead to 2047

As India charts its course toward 2047, the vision of becoming a Viksit Bharat is within reach.

India stands on the brink of a new era, with the potential to realize its vision of a developed, inclusive, and empowered nation. Achieving the dream of Viksit Bharat by 2047 requires unwavering dedication and collaborative effort from every sector of society.

Together, we can transform this vision into a vibrant reality!

Tags: 78 Independence Day 2024Independence DayIndependence Day 2024Indian Independence DayRiya AdlakhaViksit Bharat

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Education

New scholarship for IIT Bombay women students

Observenow Desk

The Kotak Education Foundation (KEF) has partnered with IIT Bombay to offer a new scholarship aimed at supporting female students from underprivileged backgrounds. The Kotak Kanya-IIT Bombay Scholarship will provide Rs 2.85 lakh annually for the duration of their undergraduate studies, covering programs such as BTech, BS, BDes, and integrated Master’s degrees.

In addition to financial aid, the scholarship promotes the overall development of the recipients through various engagement activities and support services organized by the institute.

Eligibility Criteria:

– Applicants must have achieved 75% or more marks (or an equivalent CGPA) in their Class 12 board exams.
– The applicant’s family income should be less than Rs 5,00,000 per year.
– The scholarship is for meritorious female students who are starting their first year of undergraduate study at IIT Bombay in the 2024-25 academic year.
– Applicants should be among the top 20,000 ranks in the JEE Advanced exam.

Scholarship Benefits:

– The scholarship offers a comprehensive support system to prepare students for their careers.
– Recipients will benefit from mentoring, life skills training, and mental well-being sessions in collaboration with finishing school organizations.
– KEF will also provide additional resources, such as Unstop for engineering students and Marrow for medical students, to support their academic progress.

Tags: IIT-BombayKotak Education Foundation

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News

Google Chrome Users Warned By Indian Govt About Major Security Issue

Observenow Desk

India’s cybersecurity watchdog, the Indian Computer Emergency Response Team (Cert-In), has issued a serious warning about several vulnerabilities found in Google Chrome. They are urging all Chrome users in India to update their browsers with the latest security patches released earlier this month.

Cert-In recommends updating to Chrome versions 127.0.6533.99/.100 for Windows and Mac, and 127.0.6533.99 for Linux, to avoid potential security issues. Users should be particularly cautious about clicking on suspicious emails or downloading files from untrustworthy sources.

Additionally, Cert-In has warned users of Android smartphones with Qualcomm and MediaTek chipsets running Android versions 12, 12L, 13, and 14 about similar vulnerabilities.

Apple users have also been advised to be aware of multiple security issues affecting iPhones, iPads, Macs, and other devices. Google has confirmed that the security update is already available for Windows and Mac users, with Linux users expected to receive it soon.

Tags: cybersecurityGoogle ChromeIndian Govt

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Exclusive

Paris Olympics 2024 Faces More Than 140 Cyberattacks

Observenow Desk

French authorities announced on Tuesday that over 140 cyberattacks were reported during the Paris Olympics, but none disrupted the events.

Throughout the lead-up to and during the Games, France’s cybersecurity agency was on high alert to protect the organizing committee, ticketing systems, and transportation networks from potential disruptions.

From July 26 to August 11, the government’s cybersecurity agency Anssi logged 119 reports of low-impact “security events” and 22 cases where malicious actors successfully targeted information systems.

The attacks mostly focused on government entities, as well as sports, transport, and telecom infrastructure. About a third of these incidents involved downtime, with half of those being denial-of-service attacks meant to overwhelm servers. The remaining incidents involved attempted or actual breaches and data disclosures.

Anssi reported that the overall impact of these cyber events was generally low.

In early August, the Grand Palais and around 40 other French museums were hit by a ransomware attack, but it did not affect any systems involved in the Olympic Games. Ransomware typically encrypts and blocks computer systems, demanding a ransom for their release.

In comparison, the Tokyo Olympics in 2021 faced 450 million cyber operations, double the number from the 2012 London Olympics. Prior to the Paris Games, Marie-Rose Bruno, director of technology and information systems for the Paris Olympics, had anticipated “eight to 10 times more” cyberattacks than those experienced in Tokyo.

Tags: CyberattackscybersecurityParis Olympicsparis olympics 2024

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Governance

Dr. Vinay Goyal Took charge as Director, Kerala State IT Mission & Project Director at eHealth Kerala

Observenow Desk August 13, 2024

Dr. Vinay Goyal, an IAS officer of the 2016 batch, has officially taken charge as the Director of the Kerala State IT Mission and Project Director at eHealth Kerala. His appointment marks a significant step in advancing Kerala’s digital and health infrastructure initiatives.

Dr. Goyal brings a wealth of experience to his new role. Previously, he served as the Director of the Scheduled Tribes Development Department (STDD) in Thiruvananthapuram, where he played a pivotal role in implementing policies aimed at improving the welfare and development of scheduled tribes in the state.

Tags: Dr. Vinay GoyalIAS officer

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BFSI

Kotak Mahindra Bank Appoints Kedarswamy Ravangave as Head of Marketing for Consumer and Commercial Banking

Observenow Desk

Kotak Mahindra Bank has announced the appointment of Kedarswamy (Kedar) Ravangave as the new Head of Marketing for its Consumer and Commercial Banking division.

Ravangave, who previously held a leadership role at Amazon India, will now lead marketing strategies at Kotak Mahindra Bank, drawing on his extensive experience from prominent companies such as Marico and Amazon.

He holds a B.Tech in Electronics and Communication from Malaviya National Institute of Technology Jaipur and an MBA from Symbiosis Institute of Business Management, Pune. Reporting to Rohit Bhasin, President and Chief Marketing Officer, Ravangave is expected to be instrumental in strengthening Kotak’s position as a leading financial services brand for the aspirational Indian market.

Bhasin highlighted that Ravangave’s rich background in e-commerce and FMCG, combined with his focus on customer-centric innovation, will be crucial in achieving the bank’s strategic objectives.

Tags: Kedarswamy RavangaveKotak Mahindra Bank

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