Apr 2, 2025

Want this newsletter delivered to your inbox? SUBSCRIBE Thank you for subscribing to Morning Dispatch We'll soon meet in your inbox. Happy Wednesday! Fintech startups are tapping into India’s growing commercial EV market. This and more in today’s ETtech Morning Dispatch. Also in the letter: EV finance companies charged up over electric commercial vehicles Fintech startups are ramping up efforts to capture India’s booming commercial electric vehicle (EV) credit market . With electric two- and three-wheelers rapidly gaining traction in last-mile logistics, fintech firms are stepping in to finance these vehicles. Driving the news: Industry estimates suggest India will need $30 billion in EV financing over the next five years. With banks and non-banking financial companies (NBFCs) focussing on passenger EVs, fintechs are targeting commercial vehicles. Industry insiders say EVs already make up 20-25% of the market in major cities, and this share is rising fast. Innovative models: Unlike combustion engine vehicles, EVs have higher upfront costs due to expensive batteries. VidyutTech offers a pay-per-use model, where users pay per kilometre driven, turning battery costs into an operational expense (much like fuel). Revfin works with manufacturers to assess vehicle and battery lifespan, to improve loan underwriting. Larger context: Investors hope to replicate NBFC successes like Cholamandlam in the EV space. They are betting on fintechs to develop innovative underwriting models that will scale quickly. These startups will have a strong foothold if they succeed before banks and large financial players enter the market. Lalit Keshre, cofounder, Groww What's happening: The approval follows Groww’s reverse flip , which relocated its parent entity from the United States to India in preparation for a public listing. CCI has cleared the acquisition of additional voting rights by select shareholders of Billionbrains Garage Ventures Private Limited, Groww’s parent company. It also approved the issuance of bonus compulsorily convertible preference shares to all existing equity shareholders. The order names major investors Tiger Global, Peak XV Partners, Y Combinator, Ribbit Capital, and Iconiq Strategic Management. Other details: CCI has also sanctioned the removal of Groww's founders' differential voting rights and the alignment of their voting power with that of other shareholders. On March 26, ET reported about Groww’s plans to raise $200 million in equity funding before its listing, potentially valuing the company at $6.5 billion. Sriharsha Majety, CEO, Swiggy Food and grocery delivery company Swiggy has received an income tax assessment order demanding Rs 158.25 crore in unpaid dues , according to a regulatory filing. Details: The tax demand pertains to the 2022 financial year, with authorities citing unpaid taxes on cancellation charges paid to merchants and interest earned on income tax refunds. This follows previous tax notices for Rs 1.1 crore for cancellation charges in 2018 and 2019. Swiggy stated last month that it would appeal those assessments. Tell me more: In addition to income tax demands, the company faces scrutiny over Rs 327 crore in alleged unpaid Goods and Services Tax (GST). The GST department argues that Swiggy and its rival Zomato should pay tax on delivery fees, but both companies contend these fees are passed entirely to gig workers. In December 2024, the GST department issued a tax demand of Rs 803 crore to Zomato . GCC enablers gain by helping mid-sized MNCs open bases Global capability centres (GCCs) in India are evolving beyond captive units , with boutique enablers increasingly helping companies of all sizes set up tech hubs in the country. What’s happening: In the past two years, more than 20 firms, including Confabulators, Bridgepath Innovations, and Torry Harris Business Solutions, have emerged to assist global companies in setting up sourcing or offshore centres in India. Industry experts see this as a growing sector as foreign companies expand their presence in India, shifting from back-office operations to value-driven innovation centres. Future outlook: Industry data suggests the market will surpass $10 billion in the coming years. Experts predict that global startups, mid-sized companies ($1-5 billion), and specialised small and medium businesses (SMBs) will increasingly turn to India to create innovative technology solutions, creating new market opportunities for GCC enablers. Other Top Stories By Our Reporters Zomato lays off 500 employees from customer service roles: Food delivery major Zomato has laid off approximately 500 junior-level employees from its associate programme, which was launched last year, according to sources familiar with the matter. AI mission GPU bidders set to get workloads assigned by April second week: Companies such as Reliance Jio, E2E, NxtGen, Locuz, and CtrlS, which won the IndiaAI Mission GPU tender as L1 bidders, will start receiving artificial intelligence (AI) workloads by the second week of April, a senior government official told ET. Atomberg surpasses Rs 1,000 crore in revenue for FY25: Sibabrata Das | Consumer appliances maker Atomberg Technologies has surpassed Rs 1,000 crore in revenue for the fiscal year ending March 2025, founder Sibabrata Das said. Government support can boost esports industry: Krafton’s India CEO | Krafton India chief executive Sean Hyunil Sohn said on Tuesday that government policies and support can significantly drive the growth of the esports industry . Global Picks We Are Reading ■ Apple and Google app stores host VPNs linked to sanctions-hit Chinese group ( FT ) ■ Microsoft is redesigning the Windows BSOD, and it might change to black ( The Verge ) ■ How is SoftBank funding its mega investment in OpenAI? A lot of debt ( WSJ )