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In today’s newsletter: 

• CCI blow for Google 
• More deals brewing in consumer space 
• Paytm UPI minus Paytm Payments Bank is here

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India's antitrust regulator, the Competition Commission of India (CCI), has dealt yet another blow to Google over its contentious app billing policy.

In an order issued today, the CCI said that Google's new payments policy violates several provisions of the Competition Act on a prima facie basis.

• This move comes about 10 months after the CCI said it would inquire whether the policy complies with its October 2022 order

 The competition watchdog has now instructed its investigation arm to conduct a probe and complete it within 60 days.

Last year, Google changed its payment policy to offer a third-party billing system to developers with reduced commission. 

• In May, the tech giant claimed that this new policy complies with CCI's order and it would enforce this policy in the country

However, several local developers disagreed and sought the suspension of this policy. The battle subsequently went to the court, with the Supreme Court set to hear the plea in the near future.

On March 1, Google delisted over 100 apps of digital companies, including Bharat Matrimony, Info Edge (which runs Naukri, 99acres, and Jeevansathi), and Shaadi.com, from the Play Store for not complying with the company's app billing policy for an extended period of time.

• Following the government's intervention, Google said it is temporarily reinstating these apps on its app marketplace

However, Google said that it will begin invoicing its full applicable services fees in the interim but is extending the payment timelines.

Consumer tech is the new darling of the investment world, and for startups, raising capital seems to be a walk in the park. 

• From veterinary care to fashion, VCs are lining up to throw money at promising new ventures

Vetic, a veterinary hospital chain, is likely to raise $14-16 million from Bessemer Venture Partners. 

• Separately, Nexus Venture Partners is in talks to invest in Kisah, a fashion company, sources told us

It’s not just those two companies. Supertails, NIC Ice Cream, Foxtale, Mokobara, AbCoffee, Cureskin, among several others, have also secured VC funding.

Promising liquidity events, higher discretionary income, and ease of launching brands are among the other reasons behind the increased VC interest in consumer companies.

“A lot of the larger funds which have been doing tech have realised that their tech portfolios have not performed as well as they would have liked it to…so suddenly, everyone's jumping into consumer. One can question if this strategy works in the long-term or not…” an investor in the space said.

Mamaearth's recent successful IPO has served as a major inspiration. Early investors saw massive returns, proving the potential for high profits in the consumer tech space

• Mamaearth’s investors like Fireside Ventures earned Rs 550 crore on Rs 30 crore invested 

• Snapdeal’s Kunal Bahl and Rohit Bansal earned around Rs 160 crore by investing Rs 2 crore 

Find out more

The Paytm we know is changing! 

As the sun set on Paytm Payments Bank Ltd (PPBL) on March 15, marking the last day of its existence as a full-fledged payments bank, Paytm began its journey as a third-party UPI app, similar to its rivals Google Pay and PhonePe.

• PPBL is an associate company of One97 Communications, Paytm's parent. Until recently, PPBL powered UPI payments on the Paytm app

Yesterday, Paytm received crucial approval from the National Payments Corporation of India (NPCI) to function as a Third-Party App Provider (TPAP). 

• In less than 24 hours, Yes Bank and Axis Bank were integrated into Paytm’s UPI platform

Starting today, new users registering for UPI handles on Paytm will receive handles such as @ptyes (Yes Bank) or @praxis (Axis Bank).

The close to 90 million users with existing "@paytm" handles will be gradually migrated to new handles by Yes Bank for now. 

• SBI and HDFC Bank are expected to join the party soon, offering "@ptsbi" and "@pthdfc" handles respectively

The familiar @paytm handle will eventually become a thing of the past as all banks migrate users.

Find out more

Crypto ads are back in India after a two-year hiatus! 

This time around, the focus is on educating users about the risks and benefits of crypto first before onboarding them, playing it safe after past scrutiny. 

• Industry players say crypto players are “not the government’s favourite children,” and are being seen with a “magnifying glass''

Go deeper

• Abu Dhabi's state-backed investment firm MGX is in early stage discussions to invest in ChatGPT-maker OpenAI's chip venture.

• Apple acquired Canadian AI startup DarwinAI to bolster its AI team in preparation for a generative AI push in 2024.

For those seeking chills and revelations, delve into the Malayalam masterpiece Bramayugam, starring the legendary Mammootty. This isn't your average horror flick.

• Imagine narrowly escaping slavery in 17th century Kerala, only to stumble upon a mansion harboring dark secrets. Catch it on SonyLIV

Need a dose of real-life inspiration? Dive into the captivating documentary Frida. 

• This intimate portrait offers a rare glimpse into the life of the iconic artist Frida Kahlo, using her own letters, diaries, and interview. Watch it on Amazon Prime Video

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