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Month: October 2024

Education

HDFC Bank divests 100% stake in HDFC Edu for Rs 192 crore

Observenow Desk October 9, 2024

HDFC Bank, India’s largest private sector lender, announced on October 7 that its board has approved the sale of its entire 100% stake in HDFC Education and Development Services Private Ltd (HDFC Edu) to Vama Sundari Investments (Delhi) Private Ltd for ₹192 crore.

In a stock exchange filing, HDFC Bank stated, “…we wish to inform you that the Board of Directors of the Bank has today approved the sale of a 100% stake in HDFC Edu to Vama Sundari Investments (Delhi) Private Limited, being the successful bidder under the sale process.”

This divestment is part of a mandate from the Reserve Bank of India (RBI), requiring HDFC Bank to fully exit from HDFC Edu within two years following its merger with e-HDFC Ltd. The final deadline for this divestment is set for June 30, 2025.

As per the bank’s divestment timeline, it plans to sell a 91% stake in HDFC Edu by October 31, 2024, and the remaining 9% by the final deadline of June 30, 2025.

The transaction was executed at arm’s length and followed a competitive bidding process. Prior approval from HDFC Bank’s Audit Committee was obtained due to Vama Sundari’s status as a related party of HDFC Asset Management Company Ltd. The deal is priced at ₹9.60 per share, with all cash consideration involved.

For the fiscal year 2024, HDFC Edu reported a total income of ₹18.18 crore and held total assets valued at ₹197.05 crore. The company specializes in educational services, covering a range of sectors including K-12 education, higher education, vocational training, and supplementary education services.

Tags: HDFC BankVama Sundari Investments

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AICTE to give Faculty Promotions by Integrating Student Feedback into Evaluation Criteria

Observenow Desk

The All India Council for Technical Education (AICTE) is set to incorporate student feedback and performance in semester exams as critical factors in the promotion of engineering faculty members. This decision is part of AICTE’s recently drafted regulations on pay scales, service conditions, and minimum qualifications for faculty.

Under the new guidelines, student input will play a pivotal role in assessing faculty performance & the Key areas of evaluation will include whether instructors effectively covered the syllabus, emphasized on creative thinking, offered support beyond classroom hours, and maintained fairness in grading. These qualitative metrics will be weighed alongside traditional academic achievements and research outcomes, marking a shift toward a more holistic evaluation approach.

Rajul K. Gajjar, Chair of the AICTE Faculty Norms Review Committee and Vice-Chancellor of Gujarat Technological University emphasizes the importance of focusing on course outcomes rather than mere attendance. “This new framework aims to enhance the academic performance of institutions,” he stated, indicating that the emphasis will be on how well students are learning and applying their knowledge.

Moreover, the draft regulations propose several notable changes, including fast-tracking promotions for qualified faculty, increasing the retirement age to 65 (with exceptions for those in state government institutions), and mandating a minimum engagement of 40 hours per week encompassing teaching and other academic responsibilities. Additionally, the regulations offer flexibility for faculty members wishing to transition into emerging fields, provided they complete a quality improvement program. R. Velraj, a member of the review committee and former vice-chancellor of Anna University, remarked, “Faculty members who demonstrate potential in research and innovation will find their paths to promotion significantly accelerated under these new regulations.”

Importantly, faculty members will have a grace period of three years to adapt to the new parameters and become eligible for promotions. “We will consider the feedback and make necessary adjustments before submitting our final report to AICTE,” Velraj added.

However, the new approach is not without its critics. D. Meganathan, secretary of the Anna University Teachers Association, raised concerns that weighing student performance in exams might skew the evaluation of answer scripts. He warned, “Teachers who are strict and prioritize fair grading could face challenges in securing promotions under this system.”

Tags: aicteRajul K. Gajjar

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Omar Abdullah’s Political Comeback: National Conference in Jammu and Kashmir

Observenow Desk

Omar Abdullah is poised to reclaim the Chief Minister’s seat in Jammu and Kashmir, marking a political comeback after a resounding victory in the 2024 Assembly elections. The National Conference (NC), led by Omar’s father Farooq Abdullah, along with its ally Congress, crossed the majority mark, securing 48 seats in the 90-member Assembly.

Speaking to the media, Farooq Abdullah emphasized the significance of this electoral win, linking it to the rejection of the abrogation of Article 370, the special constitutional status of Jammu and Kashmir that was revoked in August 2019. “The people have given their mandate. They have proven they do not accept the decision taken on August 5,” Farooq said. He confirmed Omar Abdullah’s return to the Chief Ministerial post, stating confidently, “Omar will be the Chief Minister.”

Omar Abdullah echoed his father’s sentiments, expressing gratitude to the voters for the unexpected level of support. “We are thankful for the overwhelming trust the people have placed in us. Our focus now is to prove we are worthy of these votes,” he remarked. While the final tally was yet to be declared, the NC was already leading in 34 seats and had secured seven, while Congress held six. Together, they comfortably crossed the halfway mark of 46 seats needed for a majority.

For Omar, this victory holds deep personal significance. He successfully contested in two key constituencies—Budgam and Ganderbal—winning both by significant margins. This follows a challenging year, where he faced defeat in the Lok Sabha elections, losing the Baramulla seat by over two lakh votes to independent candidate Engineer Rashid. Reflecting on this, Omar said, “Baramulla was a strange circumstance, and I proved it with my victory. This was a difficult election, especially after a significant loss, but the support has been humbling.”

The National Conference’s agenda, particularly on the restoration of Jammu and Kashmir’s statehood, was central to its campaign. The party has consistently called for a reversal of the Union Territory status imposed after the revocation of Article 370. Omar Abdullah reiterated his demand for statehood, appealing to Prime Minister Narendra Modi Ji to honor his previous commitments. “We expect the Prime Minister to fulfill his promise to restore Jammu and Kashmir’s statehood,” Omar stated, underscoring the need for reconciliation and dialogue with the central government.

During the campaign, Omar Abdullah and the National Conference faced the daunting task of changing the political landscape. The region, once enjoying special privileges under Article 370, is now a Union Territory and the new government will inherit the complex task of rebuilding trust between the state and the centre. Nonetheless, Omar remains optimistic about the future, confident in his party’s ability to steer Jammu and Kashmir towards greater stability and prosperity.

As preparations for the swearing-in ceremony gained momentum, the media said that Omar Abdullah had already placed orders for ceremonial attire ahead of the results. Alongside his father, the Abdullahs appear ready to usher in a new chapter for Jammu and Kashmir, one marked by a commitment to restoring the region’s status and rebuilding its political fabric.

Tags: Jammu and KashmirOmar Abdullah

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Yulu Emerges as India’s Largest EBITDA-Profitable Shared Electric Mobility Pioneer, Crosses US$30 Million ARR

Observenow Desk

Yulu, India’s leading shared electric mobility platform, has achieved a major milestone, becoming the country’s largest EBITDA-profitable player in the sector while crossing an Annual Recurring Revenue (ARR) of US$30 million. This growth can be attributed to Yulu’s strong product-market alignment, increased demand from the quick commerce and food delivery industries, and supportive policy measures promoting transport electrification.

With a fleet of over 40,000 electric vehicles (EVs), Yulu has seen its revenues and user base expand by an astonishing seven-fold over the past two years. The company’s AI-powered full-stack EV platform, combined with the strategic support of Yuma Energy—one of India’s largest battery-swapping networks—has fueled this hypergrowth, making Yulu an indispensable part of the delivery ecosystem across 11 Indian cities.

Now, Yulu is gearing up for an ambitious expansion plan to deploy 100,000 EVs by 2025. To fund this initiative, the company plans to raise US$100 million in Series C debt and equity financing within the next 12 months. Yulu has focused on maintaining positive unit economics by investing in continuous product innovation and leveraging data science, AI, and machine learning to enhance monetization and operational efficiency. This technology-driven approach has allowed Yulu to scale its business without significantly increasing fixed costs.

Yulu’s shared fleet of electric two-wheelers has quickly become the preferred choice for delivery riders, offering savings of 30-40% compared to traditional internal combustion engine (ICE) vehicles. The platform has empowered over 150,000 delivery riders, including women, with enhanced livelihoods through cost-effective, sustainable mobility solutions. Additionally, Yulu has forged strong partnerships with key players in the quick commerce and food delivery sectors, including Zomato, Swiggy, Zepto, Blinkit, and others. The company’s market dominance is evident in its nearly 100% coverage of dark stores in areas where it operates, with its EVs comprising 35-80% of all vehicles at the store level, powering over 20 million green deliveries each month.

Amit Gupta, Co-founder and CEO of Yulu, says, “Yulu is delighted to achieve the EBITDA-positive milestone. As the country’s largest shared electric mobility player, Yulu is a critical enabler for the instant delivery revolution. The simplicity and ease of our platform allow gig workers without vehicles to join the delivery workforce, while also addressing the crucial supply gap in the quick commerce value chain. With its best-in-industry technology stack and reliable and purpose-built EVs by Bajaj Auto, Yulu stands out with a unique advantage and unmatched scalability. We’re excited about the future and look forward to seizing the vast opportunities in instant and hyperlocal deliveries.”

In line with its expansion strategy, Yulu has introduced the Yulu Business Partner (YBP) initiative, a franchise model that has extended its reach into non-metro cities such as Indore, Kochi, Tirunelveli, and Pondicherry. Additionally, Yulu is set to unveil a mid-speed electric two-wheeler by the end of the year, with a top speed of 45 km/h. This new EV model will cater to a broader range of use cases, including bike taxis, long-distance food deliveries, courier services, and higher-payload goods transport.

As a result, Yulu has significantly contributed to the Sustainable Development Goals by enabling millions of green deliveries, reducing carbon emissions, and supporting eco-friendly commerce.

Tags: Amit GuptaElectric Mobility PioneerYulu Business Partner

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Amazon May Cut 14,000 Managerial Jobs by 2025 to Save $3 Billion Annually

Observenow Desk

Amazon is planning a restructuring effort aimed at cutting 14,000 managerial positions by 2025, part of a broader cost-saving initiative led by CEO Andy Jassy. The move is projected to save the company $3 billion annually as it seeks to become efficient and remain competitive in the rapidly evolving tech industry.

The plan focuses on reducing managerial redundancy across Amazon’s vast global operations. By trimming excess layers of management, Jassy aims to create a more agile organization that can respond quickly to market changes. Media sources indicate that this transformation has been in the works for some time, as Jassy pushes for operational improvements to address inefficiencies that have emerged in recent years.

This latest initiative follows a series of layoffs targeting non-core business units over the past year, marking a continued shift in Amazon’s internal strategy. In an effort to encourage a streamlined approach, Jassy introduced a “bureaucracy tipline” to allow employees to report unnecessary procedures and obstacles that hinder productivity.

“We’re focused on removing layers, operating with fewer managers, and flattening the organization to accelerate decision-making,” Jassy explained. His focus on innovation and customer-centricity is at the heart of this strategy, intending to make Amazon more responsive to customer needs and competitive pressures.

According to Morgan Stanley, the planned reduction will cut Amazon’s global management workforce from approximately 1,05,770 to around 91,936, resulting in substantial cost savings and a leaner organizational structure.

While the move is expected to affect thousands of managers, Amazon has emphasized its commitment to supporting those impacted. The company has assured affected employees that they will receive severance packages and access to outplacement services to assist with their transition.

The company has seen significant growth in recent years, but with the tech sector experiencing rapid shifts, many companies, including Amazon, are being forced to reassess their organizational structures to remain competitive.

Tags: AmazonAndy Jassy

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Cisco To Invest In Hot AI Startup CoreWeave at $23 BN

Observenow Desk

Cisco Systems Inc. is making a major move in the AI environment by investing in CoreWeave, a cloud computing firm valued at $23 billion. CoreWeave, founded in 2017 and headquartered in Roseland, New Jersey, has established itself as a prominent participant in the artificial intelligence market by providing cloud solutions customized for compute-intensive workloads such as AI, employing a large array of high-powered GPUs. The company says that its solutions are up to 35 times faster and 80% less expensive than standard public clouds, making them an appealing option for AI-driven enterprises.

Cisco’s investment in CoreWeave is part of the strategy to dominate the AI sector. It made to the headlines in 2023 with its $28 billion acquisition of Splunk, a major player in AI-driven security solutions. Cisco also bolstered its AI portfolio earlier this year with the acquisition of Robust Intelligence, a pioneer in AI security, and its intent to acquire Deeper Insights AI Ltd., a U.K.-based AI services firm. These actions highlight Cisco’s increased emphasis on leveraging AI technology to power its next wave of innovation and expansion.

CoreWeave’s meteoric rise in valuation — from $19 billion in May 2023 to $23 billion just six months later — has garnered significant attention from tech giants and investors alike. Notably, chipmaker Nvidia has already poured over $100 million into the startup. These investments signal CoreWeave’s ambition to disrupt the cloud computing industry, particularly with an IPO anticipated in the first half of 2025, according to the media.

As CoreWeave gears up for a public listing and expands its capabilities, Cisco’s backing could significantly enhance its trajectory in the rapidly evolving AI cloud market.

Tags: CiscoCoreWeaveStartup

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Prosus Ventures to double down on Urban Company with $30M investment

Observenow Desk

Prosus, a prominent global technology investor, has increased its stake in Urban Company, India’s leading home services platform. The Dutch company intends to invest approximately $30 million in a transaction to purchase shares from Bessemer Venture Partners, allowing Bessemer to lower its holding while Urban Company’s valuation remains robust at $2.6 billion. Typically, such transactions result in a slight reduction in valuation, but Urban Company’s steadiness indicates that investors are optimistic about its future.

In July, Accel Partners and Elevation Capital sold shares to Dharana Capital for around ₹400 crore. However, Accel and Elevation have decided to hold their shares until Urban Company’s IPO next year.

Urban Company is one of the few valuable assets in the current market, making it an attractive opportunity for Prosus to invest more before the company goes public. Unlike Prosus, many early investors in India are selling their stakes as their funds are reaching the end of their investment cycles. Firms like Orios Venture Partners, Peak XV Partners, and Chiratae Ventures are all looking to sell shares through similar deals.

Prosus is also moving beyond technology. It recently invested $100 million in Vastu Housing Finance and is considering a $40 million stake in Bluestone Jewelry. Despite some setbacks with investments like Byju’s and Pharmeasy, Prosus is focusing on its successes, like its investment in Swiggy, another Indian company preparing for an IPO. Urban Company is seen as a key opportunity for Prosus to benefit from growth when the company goes public.

Urban Company, founded almost 10 years ago by Abhiraj Bhal, Raghav Chandra, and Varun Khaitan, last raised funds in 2021 from major investors like Tiger Global and Dragoneer. The company is already preparing for its upcoming IPO, setting the stage for its next big step.

Tags: FUNDINGProsus Ventures

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India and Maldives Set to Strengthen Financial Ties with Launch of RuPay Card

Observenow Desk

India and the Maldives are on the brink of launching the RuPay card, a move aimed at bolstering their financial partnership and marking a new chapter in bilateral relations. This decision follows discussions between Indian Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu, who met recently to revitalize ties after a challenging relationship between both nations.

On Monday, Prime Minister Modi welcomed President Muizzu at Hyderabad House, where they engaged in extensive talks to reinforce the historic partnership between India and the Maldives. “Taking forward India-Maldives special ties!” Modi Ji shared on X (formerly known as Twitter), highlighting the significance of their meeting.

The introduction of the RuPay card is expected to simplify transactions for both tourists and residents in the Maldives, making it easier to conduct business and enhancing economic cooperation between the two nations. This initiative aligns with India’s broader strategy to expand its economic footprint in the region while also supporting the Maldives’ financial infrastructure.

As the two leaders work to mend ties and foster economic growth, the launch of the RuPay card signifies a hopeful step toward a more cooperative and prosperous future for both India and the Maldives.

Tags: MaldivesMohamed MuizzuNarendra ModiRuPay Card

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India’s First Female Gymnastics Olympian, Dipa Karmakar Announces Retirement at 31

Observenow Desk October 8, 2024

Indian gymnast Dipa Karmakar, celebrated for her achievements, announced her retirement from the sport on Monday. The 31-year-old, who hails from Agartala, Tripura, made history as the first Indian female gymnast to compete at the Olympics, narrowly missing a medal in women’s league event during the Rio 2016 Games.

Dipa’s remarkable career is marked by her mastery of the challenging Produnova, a feat accomplished by only a select group of gymnasts worldwide. Reflecting on her decision, she said, “After a lot of thinking, I have decided to retire from gymnastics. This decision wasn’t easy for me but now feels like the right time. Gymnastics has been a huge part of my life, and I am grateful for every moment, the highs, the lows, and everything in between.”

Read more: India Cheers as Neeraj Chopra Throws His Way to Olympic Stardom in Paris 2024

Known as India’s “Small Wonder,” a title she earned through her biography, Dipa defied significant challenges, including being born with flat feet—a condition often deemed harmful for gymnasts. Throughout her career, she has emerged as India’s most successful gymnast. Just recently, she clinched gold at the Asian Women’s Artistic Gymnastics Championships 2024, making her the first Indian to secure a top podium finish at this continental event.

Dipa Karmakar’s accolades include the prestigious Padma Shri and the Major Dhyan Chand Khel Ratna awards. She pioneered several milestones for Indian gymnastics, becoming the first Indian woman to earn a medal at the Commonwealth Games with her bronze finish in Glasgow in 2014. Furthermore, she made history by winning a gold medal at the 2018 Artistic Gymnastics World Cup in Mersin, Turkiye—the first Indian to do so at an international gymnastics competition. That same year, she also secured a bronze medal at the World Cup in Cottbus, Germany.

As Dipa embarks on her new chapter beyond gymnastics, her legacy will continue to inspire countless aspiring athletes across the nation.

Tags: Dipa KarmakarGymnastics Olympian

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Zomato’s CEO Deepinder Goyal says, “Time to Treat Delivery Partners with Humanity and Respect”

Observenow Desk

In a heartfelt appeal to the retail industry, Zomato CEO Deepinder Goyal emphasized the urgent need for malls to adopt a more humane approach toward delivery partners after he experienced the challenges they face while delivering food orders. His comments came after a unique initiative where he and his wife, Grecia Munoz—now known as Gia Goyal on Instagram—took on the role of delivery executives themselves in Gurugram.

Goyal highlighted the struggles of delivery personnel in urban settings, particularly in commercial spaces like malls. “It’s essential that we understand the challenges faced by our delivery partners,” Goyal said during a press conference on Sunday.

“They should be treated with respect and dignity, not as mere faceless workers. “Sharing his experience in a social media post, Goyal said: “During my second order, I realised that we need to work with malls more closely to improve working conditions for all delivery partners. And malls also need to be more humane to delivery partners. What do you think?”

The Zomato CEO tagged a video with the post elaborating upon the experience. “We reached Ambience Mall in Gurugram to pick up the order from Haldiram where I was told to take the other entrance, and realised they were asking me to take the stairs. I went in again at the main entrance to make sure there weren’t any elevators for delivery partners”.

As a delivery partner, Goyal experienced firsthand the logistical hurdles that come with the job. He recounted how he had to climb three flights of stairs just to reach the designated pick-up area, as delivery partners were not permitted inside the malls. “I realized that these workers have to wait at the stairs while their customers are inside enjoying their meals,” he noted. “This is not just inconvenient; it’s dehumanizing.

While waiting for the order, “I chilled with my fellow delivery partners while also getting valuable feedback from them,” he said. The experience not only gave him checks into their daily struggles but also a sense of community among those working in the gig economy.

His breakthrough moment came when he managed to sneak into the mall to collect an order after the staircase guard took a short break. “It was a small victory, Goyal remarked”. “These barriers are not just physical; they represent a lack of understanding and empathy towards the people who keep this system running.

Tags: Deepinder GoyalZomato

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