Happy Thursday! Some digital lending startups reported modest profit growth in FY25, while others have pulled back on IPO plans. This and more in today鈥檚 ETtech Morning Dispatch.Also in today鈥檚 edition:鈻 Ride-hailing GST ruling under review鈻 Infosys鈥 Nilekani flags global risks鈻 NPCI reports 42% profit surgeIPO timing unclear as digital lenders shift focus to balance sheets ETtech
Digital lending startups closed FY25 with mixed results. While some posted profit growth, others slowed down disbursals to maintain capital buffers in a volatile regulatory environment.Driving the news: Fibe reported a 100% rise in net profit to Rs 100 crore for FY25. KreditBee posted a modest increase, with net profit reaching Rs 221 crore versus Rs 200 crore a year earlier. Axio, on the other hand, saw pressure on its operating metrics during the first half of the year.IPO status: Industry executives told us that several digital lenders are preparing draft red herring prospectuses (DRHPs), but few are expected to list before early 2026. Many are looking to secure Sebi approvals in advance and time their public offerings around improved market sentiment 鈥 possibly post the festive season.Looking ahead: Founders say regulatory uncertainty has stabilised and asset quality is holding up. With improved metrics expected this fiscal, some lenders are hoping to hit the public markets early next year.鈥業t鈥檚 not easy鈥: Swiggy鈥檚 Majety on Rapido鈥檚 food delivery push ETtech
Sriharsha Majety, group CEO, SwiggySwiggy says it remains agile and ready to respond, as Prosus-backed Rapido prepares to enter a market with few winners. With Rapido finalising its entry into the food delivery market, Swiggy founder and group CEO Sriharsha Majety said the company remains 鈥渟uper agile and paranoid,鈥 and won鈥檛 hesitate to act if the market shows signs of disruption. It鈥檚 noteworthy that Swiggy is an investor in Rapido.Also Read: Rapido will need to go all out to battle Zomato, Swiggy in food delivery, say brokeragesContext: Speaking at an investor event hosted by Prosus in London, Majety said the food delivery market has seen multiple entrants 鈥 Uber, Ola, Amazon, and ONDC 鈥 come and go, with only Swiggy and Zomato managing to survive and scale.Quote: 鈥淭here were a dozen players in 2015鈥 and we鈥檙e still standing. Credit to us and Zomato. It鈥檚 not easy to find an opening that鈥檚 a home run,鈥 he said. 鈥淏ut if we see one, we鈥檒l be out there in weeks.鈥漌hy it matters: Swiggy holds a 15% stake in Rapido, and both companies share Prosus as a common investor. Rapido is offering significantly lower restaurant commissions compared to incumbents as it enters the space.Also Read: Prosus manages $6.5 billion in Indian tech assets, eyes more IPO exitsGST ruling on Namma Yatri under review after ownership change Company Images
Karnataka AAR questions earlier tax exemption for Juspay platform, citing possible misrepresentation and transfer of control.The Karnataka Authority for Advance Ruling (AAR) has said it may revoke its 2023 ruling that exempted Namma Yatri from collecting GST on auto rides booked via its app.The backstory: Juspay had originally secured the ruling on grounds that it offered a software-as-a-service (SaaS) platform charging drivers a subscription fee 鈥 not a per-ride commission. Since then, Juspay has transferred Namma Yatri to a subsidiary, Moving Tech Innovations.What鈥檚 new: The AAR says the ruling may no longer apply since the business has changed hands and the original applicant, Juspay, no longer owns the platform. The authority also hinted that the initial exemption may have been based on incomplete disclosures.Why this matters: The case could impact GST treatment across other ride-hailing platforms like Uber, Ola, and Rapido, all of which are seeking clarity from the Central Board of Indirect Taxes and Customs (CBIC).Sponsor ETtech Top 5 & Morning Dispatch! Agencies
Why it matters: ETtech Top 5 and Morning Dispatch are must-reads for India鈥檚 tech and business leaders, including startup founders, investors, policy makers, industry insiders and employees.The opportunity:Reach a highly engaged audience of decision-makers.Boost your brand鈥檚 visibility among the tech-savvy community.Custom sponsorship options to align with your brand鈥檚 goals.What鈥檚 next: Interested? Reach out to us at spotlightpartner@timesinternet.in to explore sponsorship opportunities.Other Top Stories By Our Reporters AP
Nandan Nilekani, cofounder, Infosys Infosys鈥 Nandan Nilekani cautions against 鈥榩erfect storm鈥: Amid multiple global challenges and AI becoming unavoidable, Infosys chairman Nandan Nilekani said that the ongoing tariff wars is pushing businesses to derisk sourcing and that the energy transition adds another layer of uncertainty.NPCI FY25 profit jumps 42%: The National Payments Corporation of India, which runs UPI, IMPS, AePS and BBPS, reported a Rs 1,552 crore surplus for FY25 鈥 up 42% year-on-year 鈥 on revenues of Rs 3,270 crore.AI now part of large deals, says LTIM CEO: Agentic and and generative AI are now becoming part of the large deals for LTIMindtree, although with slightly longer closure cycle than the traditional vendor consolidation projects, its new CEO Venugopal Lambu told ET.IndiaBonds鈥 maiden external funding round draws investors: Online bond investment platform IndiaBonds raised Rs 32.5 crore ($3.77 million) from investors, including QiCAP.Ai founder Amit Rathi, former Delhivery CBO Sandeep Barasia, and Sanctum Wealth CEO Shiv Gupta, among others.Global Picks We Are Reading鈻 Who is most at risk from the billions of leaked Facebook and Google passwords? (Rest of World)鈻 Snake Venom, Urine, and a Quest to Live Forever: Inside a Biohacking Conference Emboldened by MAHA (Wired)鈻 Here鈥檚 a running list of all of Tesla鈥檚 robotaxi mishaps so far (The Verge)