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In today’s newsletter: 

• Blinkit scraps zero notice period amid poaching
• NPCI CEO Dilip Asbe hints at UPI market cap deadline extension
• IndiGo to launch VC fund for startups

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While Blinkit promises 10-minute grocery deliveries, it is taking a measured approach to employee separations.

In a bid to retain top talent in the competitive quick commerce market, Blinkit has made a significant change in its employment contracts.

• It is extending notice periods from nil to two months for many staff members, especially in leadership roles, sources told us

• The company introduced the zero-day notice period policy earlier this year

To further protect sensitive information, in certain cases, Blinkit is sending employees on garden leave who are moving to direct competitors.

As the $5.5 billion rapid delivery sector in India heats up, Blinkit’s decision comes as a proactive measure against poaching by well-funded competitors like Zepto and industry giants like Flipkart.

“Blinkit’s move is pre-emptive and also is a response to what is happening now. A well-funded competitor like Zepto, or a large rival like Flipkart, can make a handsome offer and easily poach talent from Blinkit," a source told us.

In this landscape, quick commerce companies are not just waiting for talent to come to them; they are actively pursuing them.

• Companies like Swiggy are actively hiring employees from e-commerce giants like Flipkart and Amazon

Meanwhile, firms like Zepto have been known to offer highly competitive packages, including substantial annual increments and promotions.

Find out more

Picture credit: Meta.ai

The December 2024 deadline for UPI market caps might be slipping.

In an interview with us, NPCI MD & CEO Dilip Asbe hinted at a possible extension of the December 2024 deadline for third-party UPI payment apps, which would have capped their market share at 30%. 

"I think the market will balance out, but it will take some time. It will need some more time than what we earlier envisaged. But for sure the market will balance this out," Asbe said

To be sure, Asbe said that no official confirmation has been made yet on the extension.

Currently, the UPI market is dominated by PhonePe and Google Pay, with a combined market share of over 85%. 

• To ensure a more level playing field, NPCI introduced a cap in November 2020, limiting any single third-party app provider to a maximum of 30% of total UPI transaction volumes

NPCI's own UPI app, BHIM, has been gaining traction since its spin-off into a separate entity. 

• Asbe sees BHIM as a stable, government-backed option amidst the dominance of third-party UPI apps
   
• He also sees BHIM as a "starter app" for introducing new UPI functionalities.

But is there any conflict of interest with other apps?

 “Not at all. We need to see BHIM as a distinct initiative from commercial apps. It’s the country’s own app, launched by the PM, so it shouldn’t be compared to others,” he said.

On the topic of Merchant Discount Rate (MDR), Asbe clarified that NPCI isn’t in charge of those decisions; that power lies with the government and the RBI.

• Reintroducing MDR might benefit some but the small merchants aren’t ready for such a shift

One hot question on every fintech founder's mind: Is NPCI out to steal our thunder?

“You are taking too seriously what these guys are talking about. We are not holding up any data. We are not creating any context inside the NPCI. So, NPCI is just an enabler,” Asbe clarified.

Read the full interview

A new VC fund has just (web) checked in!

India’s largest domestic airline, IndiGo, has received approval from market regulator Sebi for its corporate venture capital arm, IndiGo Ventures. 

• This arm will be established in Gujarat’s GIFT City with an initial investment of Rs 30 crore

IndiGo said the fund will invest in startups that have the potential to redefine the future of aviation and beyond, seeking pre-Series A, Series A and Series B funding. 

• The fund will also invest in consumer startups: read travel, lifestyle, hospitality and transportation 

The fund will give the airline a platform to diversify and evaluate new investing opportunities at a time when interest in the new economy is rising and more family offices are investing in the private sector.

If you’re a startup founder and want some of that money, click here to know more 

Picture credit: Microsoft Copilot

From Kaju Katli to Gulab Jamuns, India's love for mithai knows no bounds! 

In a column for us, Swiggy Food Marketplace CEO Rohit Kapoor delves into India’s undeniable sweet tooth.

• Did you know? India consumes a staggering 30 million metric tonnes of sugar annually

Kapoor says that Indians don’t hold back from experimenting with sweets originating in other regions, with Kaju Barfi being the most popular sweet.

Take a bite

• Google has partnered with Kairos Power to develop small nuclear reactors to power its AI data centres, with the first reactor expected to be operational this decade and more to follow by 2035.
  
  
• Companies with artificial intelligence-led processes have outperformed peers, an Accenture study has found.

In 1989, a television show kickstarted the illustrious career of an actor who went on to become the King of Bollywood - Shah Rukh Khan. 

• Now, 35 years later, the iconic show is set to return in a new avatar

Doordarshan, in collaboration with filmmaker Sandeep Singh, has launched Fauji 2 starring Vicky Jain and Gauahar Khan in leading roles. The series will focus on the lives of soldiers, celebrating their sacrifices and dedication.

• Fauji 2 will air on Doordarshan in multiple languages, including Hindi, Tamil, Telugu, Gujarati, Punjabi, and Bangla

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