By Our Reporters

Copyright indiatimes

Explore other editions

Swiggy’s Instamart rejig; Smaller UPI firms gain

Want this newsletter delivered to your inbox?I agree to receive newsletters and marketing communications via e-mail

Thank you for subscribing to Morning DispatchWe’ll soon meet in your inbox.

Happy Thursday! Swiggy’s recent move to restructure its Instamart business may be a step towards a larger pivot. This and more in today’s ETtech Morning Dispatch.Also in the letter:■ H-1B chaos continues■ Changes at Unacademy■ Emergent raises fundsSwiggy’s Instamart rejig signals a move to inventory-led model (L-R) Amitesh Jha, CEO, Instamart; and Sriharsha Majety, Group CEO, SwiggySwiggy is rejigging its quick commerce structure, laying the groundwork for a potential pivot to an inventory-led model, mirroring rival Blinkit’s shift.Background: The board has approved transferring all Instamart assets to a new step-down subsidiary, Swiggy Instamart Pvt Ltd. This will give the platform greater operational and financial flexibility.Driving the news: “Directionally, that’s where things are headed (inventory model)… but the transition is contingent on Swiggy becoming a company with majority Indian ownership,” a senior industry executive told us. Nomura analysts echoed this in a recent research note, stating Swiggy must first qualify as an Indian owned and controlled company (IOCC) to change business models.How it works: India’s foreign direct investment (FDI) policy requires marketplace-only operations for ecommerce firms with majority ownership.Swiggy’s foreign ownership is currently just under 60%.The inventory model allows platforms to own and sell goods directly. It demands higher working capital, but offers tighter control.Yes, and: Blinkit changed its model after parent Eternal became an IOCC. Zepto is also pushing for local ownership, as ET has reported earlier.Executives say this restructuring could also help Swiggy raise fresh capital specifically for Instamart.Also Read: Instamart’s market share growth is self-driven, not rival-led: Swiggy group CEO MajetySmaller UPI players nibble at veterans’ transactions share The race for Unified Payments Interface (UPI) market share is heating up, with smaller fintechs ramping up volumes and pushing into territory long dominated by PhonePe and Google Pay.Driving the news: Navi, Super.Money and Bhim have seen their UPI payment volumes surge by 50% to 100% over the past six months, fuelled by aggressive user acquisition and improved app experiences.Going deeper: What’s behind the growth?Heavy marketing and cashback campaigns.Sleeker checkout processes and faster payment flowsNew credit-linked features aimed at retentionSector impact: The National Payments Corporation of India (NPCI) has long encouraged more players to expand UPI’s reach. Early signs suggest this new wave of challengers is finally gaining some traction. Whether they can chip away at the incumbents’ lead remains to be seen, but the momentum is picking up.Also Read: Monthly UPI transactions cross 20 billion for first time in AugustH-1B Indians on red alert, freeze travel Uncertainty around the proposed $100,000 (Rs 88 lakh) fee on new H-1B visas has spooked Indian tech workers in the US, prompting many to delay international travel, even as the government clarified that the rule will only apply to fresh petitions.Wait and watch: Despite the clarification, legal experts say confusion persists. Joel Yanovich, attorney at Murthy Law Firm said some of their clients are avoiding international travel for the time being due to the unease around H-1B.Silver lining: The drop in outbound travel and visa applications could shorten wait times at US consulates in India. A Chennai-based immigration lawyer said two of his clients, both up for H-1B renewals, faced virtually empty visa centres this week, an unusual sight during peak application season.Also Read: As White House issues clarification, door opens for laid-off H-1B techiesThe rest of the West is laying out red carpet for Indian tech talentAs the US tightens skilled immigration, countries like Germany, Canada and the United Kingdom are stepping up their pitch to attract Indian talent.Philipp Ackermann, German ambassador to India and Bhutan, posted a video urging Indians to explore Germany’s tech market.Canada’s ‘Build Canada’ forum argued the country could easily absorb 120,000 high-earning (earning CAD 200,000 or above) H-1B workers.Other Top Stories By Our Reporters Sumit Jain, CEO, test-prep business, UnacademyUnacademy cofounder appointed CEO of test-prep biz: Sumit Jain has been appointed as the chief executive of the test-prep business, cofounder Gaurav Munjal said on Wednesday. Jain joined Unacademy after he sold his startup, Opentalk, to the edtech company. Emergent AI raises $23 million: Vibe coding platform Emergent AI has raised $23 million in a round led by Lightspeed, with participation from Together Fund, Y Combinator, Prosus Ventures, and individual backers including Google DeepMind’s chief scientist Jeff Dean, Thinking Machine Labs’ Devendra Chaplot, and former Coinbase CTO Balaji Srinivasan. With the new capital, the startup’s total fundraise has touched $30 million, including a previous $7 million seed round.BharatGen bets on small models to hit big AI goals: Government-backed AI initiative BharatGen will develop a suite of generic and domain-specific small language models (SLMs) with sectoral applications, to build up a sovereign resource base for Indian firms as well as unlock enterprise value, its executive vice president Rishi Bal told ET.L&T Semiconductors has designed, begun selling products: CEO | L&T Semiconductors Technology (LTSCT) has already designed and commenced the sales of three to four semiconductor products, and is on track to design up to 15 by 2026, chief executive Sandeep Kumar told ET.Global Picks We Are ReadingThe 22 very online upstarts changing the face of politics (Wired)Nvidia’s $100bn bet on ‘gigantic AI factories’ to power ChatGPT (FT)Why I left Silicon Valley: Chinese tech workers talk about returning home (Rest of World)

Explore other editions

Want this newsletter delivered to your inbox?I agree to receive newsletters and marketing communications via e-mailThank you for subscribing to Morning DispatchWe’ll soon meet in your inbox.