One quick thing: Deepinder Goyal has been in the news over the past week: he purchased India's first Aston Martin DB12, sparked a debate over the Veg vs Non-Veg divide, and has gotten married to Mexican entrepreneur Grecia Munoz.

In today’s newsletter: 

• 10% trouble for founders
• Accenture effect: Indian IT in the red
• Manufacturing dominates IPL sponsorship

Event alert: Moneycontrol and CNBC TV18 are hosting the ultimate event on artificial intelligence, bringing together entrepreneurs, ecosystem enablers, policymakers, industry leaders, and innovators on March 27 in Pune. Click here to register and gain access to the AI Alliance Pune Chapter.

Programming note: Wishing all our readers a Happy Holi. There will be no edition of MCTech3 on March 25 (Monday) and we’ll be back in your inbox on Tuesday (March 26)!

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For founders with considerable ownership in their IPO-bound startups, the Securities and Exchange Board of India (SEBI) and the National Stock Exchange (NSE) may have some unwelcome news. 

Previously, companies with founders holding less than 25% ownership could avoid the "promoter" tag. 

• Now, founders with over 10% stake, individually or combined, holding executive positions, will be classified as promoters

This applies even if the individual founder's stake is less than 10%, as long as the combined founder group ownership surpasses the threshold.

• Previously, companies enjoyed the flexibility of being categorized as "professionally managed" with no promoter

This move aligns with SEBI's efforts to increase scrutiny of IPOs. By classifying founders as promoters, stricter disclosure requirements come into play. 

• This includes details about the founder group, including spouses and family members

Dig deeper

Picture credit: Microsoft Copilot

Once the market's golden goose, IT stocks have lost their shine. Tepid demand and a shaky economic outlook have dampened investor enthusiasm. 

• Today, the news got even worse for Indian IT companies, sending their stocks down over 2%

IT giant Accenture sent shockwaves through the industry by revising its fiscal year 2024 revenue forecast downward. 

• Citing persistent macroeconomic uncertainty, Accenture anticipates full-year revenue growth between 1% and 3%, significantly lower than their previous projection of 2% to 5% 

This news triggered an immediate sell-off, with Accenture's stock dropping 5% in pre-market trading on the New York Stock Exchange.

The US market is a major source of revenue for Indian IT players. 

• So, Accenture's performance serves as a warning sign for what's to come 

The upcoming Q4 earnings season, kicking off on April 12 with industry giant TCS, is likely to reveal the extent of the damage. 

• Analysts expect Indian IT companies to start FY25 with a cautious guidance given the weak demand

Go deeper

Picture credit: Microsoft Copilot

The Indian Premier League (IPL) is back, and with it comes the big bucks from sponsors. 

• But this year's sponsorship landscape has seen some shifts

Manufacturing companies are the heavy hitters in 2024, accounting for a whopping 60 sponsorships across various teams.

• Entertainment and finance sectors follow closely behind, with banks, insurance companies, and card providers retaining or establishing new partnerships

Remember the NFT boom of 2023? Not so much in 2024. Cricket NFT platform Rario, a sponsor last year, is absent due to market headwinds and internal challenges.

• The decline in startup ad spending has also impacted team sponsorships

Despite a tougher sponsorship climate, the IPL's immense popularity continues to attract new brands. 

• Health and fitness brand BoldFit, NBFC Hero FinCorp, and wood panel manufacturer Greenpanel are some exciting newcomers this year

Find out more

• Microsoft has agreed to pay AI startup Inflection about $650 million in cash in an unusual deal that would allow Microsoft to use Inflection's models and hire most of the startup's staff including its co-founders.
  
  
• The United Nations General Assembly unanimously adopted the first global resolution on AI that encourages countries to safeguard human rights, protect personal data, and monitor AI for risks.
  
  
• Indian businesses are rapidly incorporating AI training into their development programs, driving a surge in edtech enrollment by up to 500%.

The IPL cricket extravaganza begins today with the much anticipated battle between arch-rivals RCB and CSK on JioCinema. 

But if you are not in the mood for cricket, let the colours of patriotism fill your screen this Holi weekend.

First up, delve into the inspiring true story of Usha Mehta in Ae Watan Mere Watan. 

This biographical film throws you right into the heart of the Quit India Movement. Experience the bravery of a young woman who establishes an underground radio station to fight for freedom. Watch it on Amazon Prime Video

Want an action-packed follow-up? Strap in for Fighter! This aerial warfare thriller puts you in the cockpit alongside India's elite Air Force pilots, the 'Air Dragons'. Watch it on Netflix

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