Also in the letter:
■ Rebel Foods’ reset
■ Nykaa Q1 update
■ Eternal’s new appointment
India building tech capabilities in times of upheaval: Ashwini Vaishnaw
Union IT minister Ashwini Vaishnaw
As the world navigates a period of deep uncertainty, India is quietly building its own capabilities to reduce risk and stay future-ready, union IT minister Ashwini Vaishnaw told ET in a wide-ranging interview. Vaishnaw spoke about topics ranging from Foxconn’s Chinese staff exiting India to Trump era-shifts in global manufacturing.
Building tech muscle: India is steadily strengthening its capabilities in complex components, such as mechanical systems and glass, as well as the broader assembly of electronics, Vaishnaw said. This comes amid reports of Apple’s largest supplier, Foxconn, pulling back its Chinese engineers from India. He noted that India continues to receive technological support from Taiwan, the United States and South Korea. That, he believes, is enough to keep the momentum going.
Is China a hurdle? Vaishnaw avoided a direct answer, instead emphasising the need for India to grow methodically and build a resilient supply chain over the long term.
Competing with China: China has held the top spot in electronics value addition for more than 30 years, contributing 38%. India, by contrast, has crossed the 20% mark in just seven years. Closing the gap in the next five years is a realistic goal, Vaishnaw said.
Trump troubles: Asked about Donald Trump’s calls to bring manufacturing back to the US, Vaishnaw played it diplomatically. The world, he said, has enough room for everyone. India, he added, should focus on the value it can deliver.
Startups weigh government nod to use Aadhaar KYC for gig workers
Consumer internet startups are gearing up to approach the government for explicit approval to use Aadhaar authentication, after a recent crackdown on digital ID verification platforms.
Quick catch-up: Food delivery, ecommerce, and ride-hailing platforms are struggling to onboard gig workers using Aadhar-based eKYC, industry sources told us. The trouble began when the IT ministry halted all unauthorised use of Aadhar for digital verification.
Also Read: ETtech Explainer: Behind crackdown on unauthorised use of govt databases for user onboarding
Tell me more: Players like Protean eGov Technologies can offer secure Aadhaar access, but government approval remains the key step. “We are already in multiple conversations with players in the tech industry. However, it’s important to note that ministry approval remains a required part of the process,” said Bertram D’Souza, Protean’s chief product and innovation officer.
Context: With official nods in place, ID verification startups could plug into platforms like Protean and offer authentication services via user consent.
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Faasos parent Rebel Foods to sell stake in dessert brand Smoorr
(L-R) Kallol Banerjee, Jaydeep Barman, founders, Rebel Foods
Faasos and Behrouz Biryani parent Rebel Foods has explored a potential sale of its majority stake in premium chocolate and dessert brand Smoor, according to people familiar with the matter.
Driving the news: Rebel, which owns around 57% of Smoor, has been seeking a buyer, but negotiations have not yet resulted in a deal. In response to ET’s queries, a Rebel Foods spokesperson stated that the company remains committed to Smoor and continues investing in its long-term growth.
Missed expectations: When Rebel Foods acquired a controlling stake in Smoor in 2022, it projected that Smoor would triple its revenue in FY23 and cross $100 million by 2026.
But the numbers haven’t kept pace. In FY24, Smoor clocked Rs 149 crore in revenue, up just 16% year-on-year, according to data sourced from Tracxn. Losses also progressively widened—from Rs 10 crore in FY22 to Rs 17 crore in FY23 to Rs 19 crore in FY24.
The big picture: Rebel has also shut its offices in Gurugram and Bengaluru as part of a broader operational reset. The moves suggest the cloud kitchen player is tightening up operations and rethinking bets on high-end brands, possibly ahead of an IPO, one of the persons told us.
Also Read: Rebel Foods flags slowdown in food delivery growth; bets on 15-minute offering
Keeping Count
Meta CEO Mark Zuckerberg is offering up to $300 million over four years to AI researchers for working in his “superintelligence” lab, with a total compensation of over $100 million for the first year alone, Wired reported. His aggressive hiring tactics have left rivals fuming and India eyeing a cost advantage. (Source: Wired, ET)
Other Top Stories By Our Reporters
Falguni Nayar, CEO, Nykaa
Nykaa expects mid-20s revenue growth in Q1: The company anticipates consolidated net revenue growth in the mid-20% range for the June quarter, driven by sustained demand in its core beauty business and a rebound in the fashion segment.
Eternal appoints Aditya Mangla as food delivery CEO: The Zomato parent has appointed Aditya Mangla as the new chief executive officer of its food delivery business, replacing Rakesh Ranjan, who stepped down from this role in April.
X restores Reuters, Reuters World accounts in India after withholding: The accounts were withheld “in response to a legal demand”, even though the IT ministry stated that the Government of India has not raised any demand to this effect.
Global Picks We Are Reading
■ TikTok building new version of app ahead of expected US sale (The Information)
■ Laid-off workers should use AI to manage their emotions, says Xbox exec (The Verge)
■ This is why Tesla’s Robotaxi launch needed human babysitters (Wired)
