We bring you the weekly dose of important Indian startup news of the week.
Ahead of the Union Budget 2017-18, the Cabinet has reportedly approved 100% FDI through the automatic route in single-brand retail. Until now, foreign direct investment of up to 49% was permitted under the automatic route. Beyond that, government permission was required. As per the current regulatory framework to facilitate foreign investments, the company’s products need to fall under a single brand and are required to be sold under the same brand globally.
Important Indian Startup News Stories Of The Week
Paytm Sets Up Paytm Money; Partners With IndusInd Bank
Paytm Money will focus on building investment and wealth management products for its users. Paytm Money has been registered as a wholly owned subsidiary of Paytm’s parent firm One 97 Communication Ltd. This is the company’s fourth consumer brand after Paytm, Paytm Mal, and Paytm Payments Bank.
In another development, Paytm Payments Bank has now partnered with Induslnd Bank to introduce a facility that creates a fixed deposit when customer balance exceeds $16K (INR 100K) at the end of day.
Also, after the restructuring exercise wherein it separated its online retail from its payments business in 2016, One97 reduced losses to $141.47 Mn (INR 900 Cr) in the financial year 2016-17 from $243.3 Mn ( INR 1,548 Cr) in FY16. As per filings, Paytm E-commerce had paid $94.46 Mn (INR 620 Cr) to One97 Communications for the transfer of assets during restructuring, which is likely to have brought down the losses for it.