Mass Layoffs At Ola Electric, Paytm Under ED Lens & More

Ola Electric To Sack Another 1,000 Employees

Barely three months after Ola Electric handed pink slips to around 500 employees to spruce up its bottom line, the EV major is planning to axe an additional 1K+ employees and contract workers to rein in its cash burn. 

Attributed to the automation of its front-end operations and “better productivity”, the layoff exercise is also said to be in sync with the company’s renewed focus on turning profitable. 

Just days ago, it emerged that the EV giant had shut all its regional warehouses across India and moved to a more retail store-centric model to store inventory and spare parts. The two changes are expected to bring in roughly INR 30 Cr in monthly savings for Ola Electric. 

Not just this, working on its cost optimisation strategy, the company recently also announced that it was renegotiating contracts with vehicle registration agency partners. 

As expected, retail investors did not take the layoff news well and the stock plummeted to an all-time low of INR 53.71 apiece on the BSE during the intraday trade on March 3.

This chapter of firefighting comes at a time when Ola Electric continues to rake up heavy losses. Amid intensifying competition from legacy players, the EV maker saw its losses balloon 50% YoY to INR 564 Cr while operating revenues dwindled 19% YoY to INR 1,045 Cr in Q3 FY25. 

With more action expected from the EV maker in the coming months to keep its cash flows in check, Ola Electric mulls yet another round of layoffs. Continue reading…

From The Editor’s Desk

NSE Launches Internet Index: NSE Indices has launched the ‘Nifty India Internet & Ecommerce Index’, which will track the performance of companies that largely conduct business through online platforms, including names such as Zomato, PB Fintech, among others. 

ED Tightens Noose Around Paytm: ED has said that the fintech startup failed to report its foreign investments to the RBI. This comes days after Paytm received a notice for violating foreign exchange norms regarding acquisition of two companies between 2015 and 2019. 

Swiggy Hits All Time Low: The shares of the foodtech major dipped 5% to INR 317.15 during intraday trading on March 3 amid broader market volatility. Alongside, Unicommerce hit a record low of INR 97, dipping 9.13% during trading hours. 

Together Fund Set To Close $150 Mn Fund: The VC firm is preparing to mark the final close of its Fund II by June. Founded by Freshworks’ founder, Girish Mathrubootham, the firm has already made investments in 31 startups and is looking to back another 19-20 AI startups. 

PwC Floats Maiden Accelerator Programme: The accounting firm has launched an accelerator initiative to incubate 15 late-stage startups in AI, blockchain, spacetech and data analytics. It will offer mentorship as well as consultancy services to the selected companies. 

Tokyo Electron To Enter India? The Japanese semiconductor major is planning to set up a manufacturing unit in the country. This follows the company inking a pact with Tata Electronics last year to build the latter’s under-construction fab units in Gujarat and Assam. 

SC To Review Social Media Blocking Rules? The Supreme Court has agreed to hear a plea seeking a review of rules regarding blocking of social media accounts and content. The SC has sought Centre’s response on a petition that seeks to quash Rule 16 of the IT Rules, 2009.

Uber Pilots ‘Uber for teens’: The ride-hailing giant is currently piloting the feature in Delhi NCR, Bengaluru and Mumbai and plans to expand the offering to 35 more cities. The feature will allow individuals aged between 13 and 17 years to book rides from their devices.

Inc42 Startup Spotlight

Can Toonsutra Revive Comics Culture In India?

Amid growing clamour for reviving the dying culture of reading, many companies are stepping up to capitalise on this growing opportunity. One of them is Toonsutra, and its niche lies in comic books, which many of us grew up reading. 

Founded by Sharad Devarajan and Vishal Anand in 2022, Toonsutra is an Indian digital entertainment platform that is focussed on providing animated content and mobile-friendly comics for children.

Collaborating with global publishers and local creators, the Bengaluru-based startup provides culturally relevant animated content, including stories, songs, and educational videos, all centred around Indian stories, folklore, and mythology. 

With content in regional languages such as Hindi, Tamil and Telugu, the platform offers more than  3,100 titles and has recorded more than 2 Mn downloads to date.