The many allegations on Okinawa Autotech; Why Indian banks must innovate to survive

The most interesting news selected specially for you! 01 September 2024 [View in Browser]( POWERED BY Hello, In today's newsletter, we will talk about: - The many allegations on Okinawa Autotech - Banking on tradition: Why Indian banks must innovate to survive - PhonePe’s swing to profit - AI-powered water conservation - Meet Apple’s new CFO Kevan Parekh Imagine being at the heart of India’s innovation hub, surrounded by industry giants such as Sreedhara Panicker Somanath and Bhavish Agarwal, and accessing insights that could transform your career or startup. Join us for the 15th edition of[TechSparks Bengaluru]( Here’s your trivia for today: What colour is liquid oxygen? --------------------------------------------------------------- --------------------------------------------------------------- Electric Vehicle The many allegations on Okinawa Autotech Autotech is facing worsening troubles as former employees allege unpaid salaries and dealers report faulty vehicle deliveries, highlighting significant financial and operational challenges for the electric two-wheeler company amid ongoing legal battles and regulatory scrutiny. The EV maker, which was taken to court by the Ministry of Heavy Industries for violating provisions of the FAME India Scheme, has allegedly not paid salaries to its employees since February 2024. Troubling waters: - One former employee claimed that they are yet to be paid salary for November last year and two other employees are to be paid salaries for three months this year. - According to an Okinawa dealership owner, some vehicles came in without a throttle or an accelerator. More times than not, the dealership had to personally source these parts to repair the vehicles, he says. - Okinawa was founded in 2015 by Jeetender Sharma and Rupali Sharma. It competes with other EV-makers, including newly-listed Ola Electric and IPO-bound Ather Energy. [Read More]( --------------------------------------------------------------- From the CapTable Banking on tradition: Why Indian banks must innovate to survive At least thrice in the recent past, Reserve Bank of India (RBI) Governor Shaktikanta Das publicly voiced the institutional concern that consumers are moving away from bank fixed deposits, or FDs. Instead, competing investment instruments such as mutual funds have grown in popularity among Indians, potentially hurting the banking sector’s asset-liability management. Recent news reports that bank deposits have overtaken credit disbursement as of July 26, 2024, seem to be a sectoral attempt to allay these worries. However, the RBI’s outlook on the consumer trend of divesting their investments away from bank FDs is more structural in nature, while credit growth slowing as compared to deposit growth is only cyclical. Indian banks have long reaped the benefits of a shallow debt market, where limited competition has allowed them to dominate various consumer segments with minimal innovation. The banking sector, though must anticipate that digital entities could evolve into standalone or fully digital banks which may resonate strongly with younger Indians and erode their market share. How will the current banking giants adapt to this new competition? Key takeaways: - Despite recent reports that deposit growth has outpaced credit growth for the first time in a while, the RBI is still concerned about banks’ asset-liability management - The RBI's concern highlights a structural change in consumer behaviour towards diversified investments. This could challenge traditional banking models - Indian banks have long benefited from limited competition but must now innovate as alternative financial products, such as mutual funds and digital assets, gain popularity - With younger Indians drawn to emerging digital platforms, banks must adapt quickly to avoid losing market share to more agile, tech-driven competitors [Continue Reading]( --------------------------------------------------------------- News PhonePe’s swing to profit payments giant PhonePe said that it has turned its adjusted profit after tax (PAT) positive with a profit of Rs 197 crore excluding ESOP-related costs in FY23-24, recovering from a loss of Rs 738 crore in FY22-23. PhonePe attributed its growth and profitability to its market leadership, platform reliability, and its strategic focus on cross-selling a diverse product portfolio. Recovering results: - The payments app also reported a revenue growth of 74% year-on-year to Rs 5,064 crore, from Rs 2,914 crore in the previous fiscal year. - PhonePe’s standalone payments business was a significant contributor, achieving an adjusted PAT of Rs 710 crore, compared to a loss of Rs 194 crore in the prior year. - PhonePe is the topmost player in the Indian UPI landscape, processing over 10 lakh crore worth of payments from 6.98 billion customer-initiated transactions to date, according to NPCI UPI ecosystem data. [Read More]( --------------------------------------------------------------- Startup AI-powered water conservation rapid industrial growth and escalating water scarcity, water management has become a critical concern for industries worldwide. India, with its burgeoning industrial sector, is experiencing acute water challenges. Amid this critical point in time, entrepreneur Ganesh Shankar realised the urgent need for innovative solutions in water management and founded FluxGen in 2019, aiming to optimise industrial water usage. Tech integration: - The Bengaluru-based startup developed an advanced water management system called AquaGen, which monitors water flow and levels in real-time to optimise water usage, enhance efficiency, and ensure sustainability in industrial settings. - The startup primarily operates in healthcare, manufacturing, commercial real estate, and public services sectors and serves over 110 customers including Tata Steel, Microsoft, and Adani Group. - The startup is in talks with investors to raise around $5 million and plans to close it in the coming 2-3 months. It aims to achieve Rs 100 crore in revenue within the next three years. [Read More]( --------------------------------------------------------------- Technology Meet Apple’s new CFO Kevan Parekh has a new chief financial officer (CFO). The iPhone maker appointed Kevan Parekh, who will succeed Luca Maestri. Parekh, Apple’s vice president of financial planning and analysis, will take on the role of CFO on January 1, 2025, and join the executive team. Onboarding: - Parekh, who has been with Apple for 11 years, currently oversees financial planning and analysis, G&A and benefits finance, investor relations, and market research. - Before his current role, Parekh led worldwide sales, retail, and marketing finance. He started his tenure by providing financial support for Apple’s product marketing, internet sales and services, and engineering teams. - He has also held senior leadership positions at Thomson Reuters and General Motors, gaining extensive global experience. [Read More]( --------------------------------------------------------------- Techsparks 2024 Application open for Tech30 Are you a visionary founder at the helm of a startup poised to redefine industries? Look no further than Tech30, the ultimate platform to showcase your innovation. Tech30 is more than just a recognition; it's a catalyst for the future. We're on a mission to bring together India's brightest tech minds to unravel the next big thing. If you're building groundbreaking solutions that have the potential to reshape our world, Tech30 is your launchpad. Join us as we celebrate the pioneers driving India's tech revolution. [Apply for Tech 30]( --------------------------------------------------------------- News & Updates - [EV embargo:]( Canada will impose a 100% tariff on imports of China-made electric vehicles after the US and EU made similar announcements. The country also plans to impose a 25% duty on Chinese steel and aluminium. Canada and its Western allies accuse China of subsidising its EV industry, giving its car makers an unfair advantage. - [AI oversight:]( OpenAI, Adobe, and Microsoft have thrown their support behind a California bill requiring tech companies to label AI-generated content. The legislation requires watermarks in the metadata of AI-generated photos, videos, and audio clips. - [Tough action:]( South Korean President Yoon Suk Yeol called for digital sex crimes to be thoroughly investigated after media reported that sexually explicit deepfake images and videos of South Korean women were often found in Telegram chatrooms. Most of the accused were teenagers and people in their 20s, the police said. Did you know? What colour is liquid oxygen? Answer: Pale blue We would love to hear from you! To let us know what you liked and disliked about our newsletter, please mail nslfeedback@yourstory.com. If you don’t already get this newsletter in your inbox, [sign up here](. 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