OpenAI’s Localisation Problem, Aye Finance’s Q1 Report & More

Can OpenAI Meet India’s Terms?

At OpenAI’s flagship summit last week, IndiaAI Mission CEO Abhishek Singh delivered a clear ultimatum – to build in India, the AI giant must operate on India’s terms. Singh quipped that it was “high time” OpenAI emulated its name and became open source. So, what does the government want?

What The Mandate? The Indian government has lined up a slew of demands for the AI giant – open-source models, strict data localisation and tools for mass public use, not just elite institutions. The Centre’s vision extends beyond AI copilots, which the company announced last week, and seeks sovereign AI systems that run on government infrastructure, speak local languages, and reach underserved regions.

Achieving this requires models to be hosted locally and function as open public goods.

The “Noble” Clash: This demand directly conflicts with OpenAI’s closed-source model, which is deeply integrated with Microsoft’s Azure cloud and transfers data abroad. While the company has been framing its India edtech pitch around “enabling education” over revenue, its biggest investor, Microsoft, which also holds exclusive reselling rights for its APIs, has been quietly working with edtech giants like PhysicsWallah for the past two years and making a sweet buck.

What’s At Stake? For OpenAI, India is more than a market – it’s a crucial laboratory. With 250 Mn students, the country offers unparalleled scale and data for real-world testing. Indian students are already using its AI infrastructure at an unprecedented speed. In return, OpenAI is getting relevant context and feedback to sharpen its LLMs.

All said and done, OpenAI’s big edtech plans harbour a data localisation gap. Here’s why?

From The Editor’s Desk

Aye Finance’s Q1 Scorecard: The IPO-bound NBFC’s Q1 FY26 profit halved YoY to INR 30.6 Cr as impairment losses surged 78% YoY. While revenue grew 21% YoY to INR 407 Cr, sequential profit slipped 25%, adding pressure ahead of its upcoming INR 1,450 Cr IPO.

RMG Ban Widens The Divide: India’s new online gaming law has split the gaming arena. While RMG giants face an existential blow, esports and game studios see long-awaited clarity and are hoping the move unlocks investments and legitimacy for India’s broader gaming sector.

TransBnk Nets $25 Mn: The Mumbai-based banking infrastructure startup has raised the capital in its Series B round led by Bessemer Venture Partners. TransBnk provides an API-based platform that connects corporates and lenders to multiple banks through a single system. 

BNP Paribas’ Foodtech Bet: The brokerage firm bought Eternal shares worth INR 3,200 Cr via a block deal, while offloading INR 1,158 Cr worth of Swiggy shares. The moves come amid the two rivals’ cash-burning battle for dominance in India’s quick commerce space.

iPhones In India To Get RCS Boost: Apple is said to have partnered with Jio to roll out RCS messaging on iPhones in India. The move will give Jio’s 49 Cr users iMessage-like features on native SMS, boosting Apple’s push into India’s fast-growing smartphone market.

Jio Moment In AI Race? OpenAI, Perplexity, and Google are slashing prices in India, sparking talk of a “Jio moment” for AI. With ChatGPT now priced at INR 399/month, the big question is whether discounts can truly drive mass adoption in the country.

Tracking Startup FY25 Financials: Of the 44 companies that have released their FY25 numbers, 15 reported a total net loss of INR 8,086.4 Cr while 28 posted a net profit of INR 4,737.62 Cr. Their cumulative operating revenue stood at INR 1.27 Lakh Cr, up 37.8% YoY.

Inside PEP Brands’ 6P Engine: PEP Brands, parent of mCaffeine, cracked India’s BPC market by reframing the company around coffee, boosting sales manifold. Now, with Hyphen and AI-driven marketing, it eyes deeper category expansion and consumer loyalty.

Inc42 Startup Spotlight

A Fix For EV Resale Anxiety?

EV adoption is rising, but doubts persist among buyers. Beyond range anxiety and charging gaps, the second-hand EV market suffers from a bigger issue — a reliable way to determine fair resale value. This has led to hesitancy among buyers, dealers, financiers, and insurers, stalling confidence in the ecosystem.

CIBIL Score For EVs: Enter TrusTerra, an AI-driven EV reselling platform that has created TruEV Score, a CIBIL-like rating system that evaluates an EV’s health based on battery, drivetrain, and other key parts. Complementary solutions like TerraCash (instant health check and bidding system) and TerraBid (dealer auction platform) bring transparency and efficiency to the resale process.

What’s Next? With nearly 50 Lakh EVs sold in the past three years, and an estimated 20–30 Lakh expected to enter the resale market soon, TrusTerra is tapping into a fast-growing segment. 

TrusTerra is also in the process of filing two patents for its technology. It is training TerraBid, an agentic AI solution that works seamlessly through WhatsApp. But success will hinge on execution and adoption among dealers and financiers. Can it fix EV resale anxiety among Indians?