One quick thing: Swiggy IPO sees 35% subscription on day 2 

In today’s newsletter: 

• Layoffs hit Freshworks, Sharan Hegde's 1% Club
• ED searches Amazon, Flipkart vendors in FEMA probe
• How Trump 2.0 will hit Big tech, AI and chips

Was this newsletter forwarded to you? You can sign up for Tech3 here

It’s a bit of a gloomy day for Freshworks as the Nasdaq-listed SaaS giant hit the workforce reset button today!

In a major shake-up, the company announced that its laying off 13% of its workforce, which translates to around 660 employees. Tough news for the Freshworks family or Freshworks Kutumba as it's popularly known. 

• The newly designated CEO Dennis Woodside has said that it’s all part of a bigger plan to improve efficiency and focus on key priorities like customer experience, employee experience and AI

And, this isn’t Freshworks’ first round of layoffs. Since last year, the company has been trimming its workforce in waves and conducting management rejigs.

Along with layoffs the firm also announced its Q3 financials where it has clocked a revenue of $186.6 million. And, has announced a share buyback of $400 million.

Sharan Hegde-led The 1% Club, the popular financial education platform backed by Zerodha's Nikhil Kamath, has laid off 15% of its workforce.

• The company is implementing AI automation to streamline operations and reduce redundancies

• The layoffs are across content, research and marketing verticals

• The layoffs come at a time when market regulator Sebi has tightened its norms against financial influencers
  

The company had last year raised Rs 10 crore in a pre-series A funding from entrepreneur Nikhil Kamath's venture capital firm Gruhas.

Picture credit: Microsoft Copilot

The Enforcement Directorate (ED) is going after Amazon or Flipkart vendors.

Sellers like Appario Retail, Shreyash Retail, Darshita Retail, Ashiana Retail are some of the entities related to the e-commerce majors that are on ED’s scanner. 

• Flipkart and Amazon are also being investigated for violating of FDI rules by influencing the sale price of goods or services and not providing a level playing field
  
  
• Earlier the CCI had also said the two companies and their sellers violated competition laws by giving preference to select sellers on their platforms

The searches were conducted at 19 premises located at Delhi, Bengaluru, Mumbai, Hyderabad and Panchkula (Haryana), sources told us. 

• ED confirmed the developments in an official statement 

Praveen Khandelwal, MP, Chandni Chowk, and Secretary General, Confederation of All India Traders (CAIT) said more companies are responsible. 

“In response to multiple complaints filed by the trading community regarding FDI violations and the anti-competitive practices of quick-commerce companies such as Blinkit, Swiggy, and Zepto, we urge both the CCI and the ED to take swift action to prevent any further, irreparable damage to the businesses of small traders."

Dig deeper 

Picture credit: Micorsoft Copilot

With his comeback to the White House, President-elect Donald Trump has signaled a potential overhaul of tech policies, stirring excitement and uncertainty alike. 

• From AI deregulation to a possible soft spot for TikTok, here’s what the tech world can expect from Trump 2.0

Reports suggest Trump plans to dismantle Biden’s AI executive order, which set voluntary safety and privacy standards. 

• The new administration may instead back “free speech”-focused AI policies, potentially removing guardrails designed to prevent algorithmic bias

Trump may continue antitrust actions but ease restrictions on mergers and acquisitions.

• Leadership may shift at the Federal Trade Commission (FTC) and Department of Justice (DoJ), which may soften regulatory approaches under his watch

Trump has criticised the CHIPS and Science Act and may lean towards high tariffs over subsidies to boost US semiconductor production. This could tighten supply chains and raise costs globally.

"A Trump administration could bring mixed effects for India’s semiconductor sector,” said Ashok Chandak, president of India Electronics and Semiconductor Association (IESA).

Elon Musk’s relationship with Trump could influence policy, particularly in sectors like electric vehicles and space. 

• Given Musk’s support, Tesla and SpaceX could see favorable regulatory terms and contracts.

Go deeper

Picture credit: Kalaido.ai

• Perplexity is finalising a new $500 million funding round that would value it at $9 billion, tripling its valuation in just a few months.
  
  
• Google accidentally revealed its AI system, Project Jarvis, designed to control web browsers and execute tasks, on the Chrome Web Store.
  
  
• Saudi Arabia is planning a new AI project with the backing of as much as $100 billion as it seeks to develop a technological hub to rival the UAE.

What does Donald Trump’s second term mean for the United States? The answer isn’t simple!

• Trumpcast brings you closer to the truth with conversations and expert insights

Hosts Virginia Heffernan and León Krauze dig into Trump’s presidency like no one else, speaking to reporters, historians, and psychiatrists.

Check it out  

Note: By subscribing to Tech3 you have already made the right choice. Top it up with a premium offering, the Moneycontrol Pro Panorama, a newsletter that gives you a sharp take on macros, markets, business and finance. Sign up for Pro from this link to get this newsletter in your inbox and also a host of content enjoyed by over a million subscribers.