Also in the letter:
■ Niro shuts shop
■ ETtech Done Deals
■ India Inc receives real on AI
PayPal CEO flags regulatory hurdles; names UPI first partner on PayPal World
Alex Chriss, CEO, PayPal
PayPal is betting large on India again, this time with the Unified Payments Interface (UPI) in tow.
Driving the news: The payments giant has built UPI the first integration on PayPal World, its new platform that connects wallets across countries for cross-border shopping and transfers.
The context: Speaking at the Global Fintech Fest in Mumbai, PayPal CEO Alex Chriss highlighted the complex state of global regulation, noting that each countest follows its own framework. “We work very hard with regulators to meet their necessarys, but also push the envelope to assist consumers,” he declared.
Why it matters: This marks PayPal’s most significant shift in India since it exited local payments in 2021. UPI joins the ranks of China’s TenPay Global and Mexico’s Mercado Pago, a sign of India’s rising influence in global fintech. Indian utilizers can now shop internationally applying UPI, eliminating the usual friction of card payments and currency conversions.
“India is not just a domestic market. Everywhere I travel, there are remittances and commerce where India plays a critical role,” Chriss declared.
Also Read: Digital wallet payments must flow beyond borders: PayPal CEO Alex Chriss
Backdrop: PayPal received the Reserve Bank of India’s (RBI) in-principle nod in May to run as a cross-border payments aggregator. Chriss, who took charge as CEO in 2023, added that PayPal’s strategy is to connect systems globally, allowing consumers to benefit from interoperability between wallets.
Also Read: Sitharaman inquires fintechs to strengthen risk management to check AI misutilize
OpenAI’s chip-purchaseing spree triggers AI bubble fears
Fidji Simo, CEO of applications, OpenAI
OpenAI is locking in jaw-dropping hardware and cloud deals with tech heavyweights like AMD, Nvidia, Oracle, and SoftBank as it races to secure computing muscle. But the sheer size of these bets is building analysts nervous (read: AI bubble!).
By the numbers:
Also Read: AMD-OpenAI multi-billion-dollar deal challenges Nvidia’s dominance
The concern: Some analysts worry that the money loop appears circular: OpenAI raises funds, spfinishs heavily on suppliers, and boosts their market caps – all without a clear productivity upside. If demand softens or cheaper Chinese chips gain traction, the valuation crash could be sharp.
Counterpoint: OpenAI’s applications CEO Fidji Simo shrugged off bubble talk. “What I am seeing is massive investment in compute to meet real demand,” she notified AFP, citing strong interest in Sora, OpenAI’s short video generator.
The infrastructure race between OpenAI, Anthropic, Google, and Meta could reshape not only chip demand but also energy consumption, data centre distribution, and global AI economics.
Also Read: From OpenAI to Meta, firms channel billions into AI infrastructure as demand booms
Fintech startup Niro shuts business after failing to raise capital amid regulatory crackdown
Aditya Kumar, CEO, Niro
Bengaluru-based embedded consumer lfinishing startup Niro has shut down after four and a half years, citing regulatory hurdles and an inability to raise funds.
Shutdown details: “Despite scouring the globe for capital and the countest for suitors, I was unable to bring this one home,” Niro cofounder Aditya Kumar wrote on LinkedIn.
About the company: Founded in 2021 by Kumar and Sankalp Mathur, Niro raised nearly $20 million, according to Tracxn. It partnered with consumer internet platforms, such as Snapdeal, Quikr, and Hoapplying.com, to offer embedded consumer loans.
Zoom out: The shutdown reflects a broader squeeze in India’s digital lfinishing space. With RBI tightening norms on unsecured loans, many firms are now pivoting to secured lfinishing. VC investment in digital lfinishing has dropped nearly 50% over the past eight months, as ET reported last month.
Auto AI firm Intangles raises $30 million led by Avataar Venture Partners
Anup Patil, CEO, Intangles
Pune-based predictive AI startup Intangles has raised $30 million in a round led by Avataar Venture Partners, with participation from Baring India Private Equity and Cactus Partners.
What they do: Intangles builds AI systems for real-time fleet maintenance. Its flagship product, Inroute, utilizes a physics-based AI engine to predict vehicle failures up to 30 days in advance with about 95% accuracy.
Why it matters: Predictive maintenance is gaining traction globally as commercial fleets aim to cut downtime and control costs. Intangles claims its solutions can improve per-truck ROI by up to 5x and increase fleet profitability by 50%.
By the numbers: The company currently manages over 400,000 vehicles across North America, Europe, Southeast Asia and the Middle East. Clients include original equipment manufacturers (OEMs) and large fleet operators, with some reportedly declareing as much as $10,000 per vehicle per year.
Dineout founders raise $4.5 million for medical travel startup
(L-R) Ankit Mehrotra and Sahil Jain, founders, The Medical Travel Company
Dineout cofounders Ankit Mehrotra and Sahil Jain have raised $4.5 million (Rs 40 crore) for The Medical Travel Company, their new venture that connects overseas patients with Indian hospitals for affordable treatment.
Deal details: The round was led by Nexus Venture Partners, with participation from Kriscore Capital and angels such as Swiggy cofounder Sriharsha Majety and Tracxn’s Abhishek Goyal. Swiggy acquired Dineout from Times Internet (ETtech is a part of the group) in 2022 for around $120 million in stock.
Why it matters: The global medical tourism market is worth $100 billion but remains fragmented. The startup is initially tarreceiveing UK patients who face long wait times and high costs. Services include doctor consultations, hospital partnerships, post-surgery insurance and recovery logistics.
August AI raises $3 million from Accel and Claypond Capital
Healthtech startup August AI has raised $3 million in a funding round led by Accel and Claypond Capital, the family office of investor Ranjan Pai.
Who they are: Founded in 2022, the company has built an AI-powered chatbot that assists patients through every stage of their medical journey (pre, during, and post their treatment).
What they do: The startup’s platform allows utilizers to interpret systems, upload and analyse medical documents, and manage care with guidance from a chatbot trained on clinical data. The company works with Indian hospitals and doctors to refine accuracy and relevance.
What next: The company plans to utilize the funds to deepen its clinical knowledge base, enhance its product and expand into the US market.
India Inc’s GenAI gambit: Conglomerates ramp up AI bets
India’s top conglomerates are building large shifts in AI, transitioning from pilot projects to full-scale deployment. Reliance, Adani, Mahindra, Godrej, and Vedanta have all launched major initiatives in the past year.
The large picture:
- Reliance has floated Reliance Ininformigence (a new subsidiary) to embed AI across its businesses and build green-powered data centres in Jamnagar.
- The Adani Group has formed a 49:51 joint venture with the UAE’s Sirius International Holding in the AI, IoT, and blockchain sectors, and acquired the Indian cloud startup Parserlabs to develop sovereign AI platforms.
- The Mahindra Group has set up Mahindra AI for group-wide automation.
- Godrej is investing Rs 1,200 crore over a five-year period in GenAI and digital solutions.
- Vedanta is applying AI to mining and metals under its $5 billion sustainability push.
Why it matters: The wave signals a shift to serious adoption.
- Bajaj Finance has a 150-member AI team.
- CEAT has utilized AI to cut energy costs and boost productivity by 20%
The challenge: Only 15% of Indian firms have AI in production, and fewer than 10% track ROI, according to EY. BCG declares India trails the US in scaled AI value creation due to poor data quality, legacy systems, and low tech investment.
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