One quick thing: Kerala mulls IT jobs for locals

In today’s newsletter: 

• Deepfake crackdown coming, warns India
• DealShare vacates Bengaluru office, cuts costs
• The lever Mamaearth is banking on

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

The issue of deepfakes has rapidly gained public attention since the viral spread of a digitally altered video of actor Rashmika Mandanna. 

• In response, the government has issued advisories to social media companies and held a meeting with industry representatives today to discuss how to address this type of content

For the first time, there appears to be a clear understanding of the government's intentions in this regard.

The Indian government is set to introduce a separate regulation to address the growing threat of deepfakes, according to Minister for Electronics and Information Technology (MeitY) Ashwini Vaishnaw.

• The regulation may include provisions for penalties against deepfake creators and uploaders

Additionally, there may be a requirement to watermark deepfakes for identification purposes.

In the next 10 days, the government will unveil "clear actionable points" to combat deepfakes, focusing on four key pillars:

• Detecting deepfakes
  
  
• Strengthening reporting mechanisms
  
  
• Preventing spread
  
  
• Increasing awareness
  

Following this announcement, the government will reconvene with platforms in the first week of December to discuss and deliberate on the subsequent steps.

Find out more 

Three years and three big startup clients later, it's almost like a game of musical chairs at this building in Bengaluru's HSR Layout.

E-commerce unicorn DealShare has vacated its office space in HSR's Sector 4, which it occupied only in 2021. 

• This move is expected to reduce the company's monthly rental expenses by approximately Rs 25 lakh

• The office, spanning 35,000-40,000 square feet, could accommodate around 400 employees

Prior to DealShare, the space was rented out by B2B e-commerce company Udaan. Fintech startup Jupiter is now set to move into the same complex, according to sources.

DealShare gave up its large office space in Bengaluru as it has relocated a significant portion of its Bengaluru-based employees to Gurugram. 

• Only approximately 60 employees from the tech team remain in Bengaluru

• To accommodate these remaining employees, the company has rented out chairs at a coworking space in the same area

Over the past few months, the Tiger Global-backed company has been taking steps to reduce its expenses.

• In January, it laid off around 100 employees

• Another 120 to 130 employees were let go in September

• The company also shut down its B2B arm to further reduce its monthly cash burn

CEO and co-founder Sourjyendu Medda had previously stated that the startup's monthly burn was around $2 million, down from about $11 million during the same period last year.

Dig deeper

Those who invested in the only unicorn IPO of the year earlier this month were likely disappointed when Mamaearth shares didn't see a significant rise at its public listing.

• However, today, those same investors must be feeling relieved as Mamaearth's shares have surged, proving that a company can overcome initial setbacks

Mamaearth shares surged to the upper circuit today and closed 20% higher at Rs 422.5 apiece, a day after its first quarterly earnings report announcement following the IPO.

• The company's profit doubled to Rs 30 crore in the September quarter, while revenue surged 21% to Rs 496 crore

In addition, brokerage firm Jefferies has set a share price target of Rs 530 on the stock, which represents a 25% upside from current levels.

While the Q2 earnings may have prompted a positive reaction in the market, a closer look at Mamaearth's financials reveals that its biggest expense, advertising, is still growing faster than revenue.

• In an interview, founder and CEO Varun Alagh acknowledged that the management's focus will be on controlling the growth of advertising expenses in the long term

In a candid conversation, he admitted, "That's our biggest cost item, and that's where our biggest leverage will come from."

Alagh, however, defended the company's strategy of investing heavily in digital advertising, asserting that it has been instrumental in enabling the Mamaearth brand to challenge established names like Lakmé and L'Oréal.

• While the D2C unicorn will strive to become more cost-efficient over time, its primary objective is to maintain a growth trajectory that surpasses that of industry peers

• The company reported a 33% growth rate in the first half of FY24, outpacing the FMCG industry's median growth of 9%

Alagh further elaborated on how Mamaearth could compete with P&G and Unilever for shelf space in physical retail without significantly increasing advertising costs.

Dig deeper

• Before the firing of OpenAI CEO Sam Altman, several staff researchers sent the board a letter warning of a powerful AI discovery that could threaten humanity. Meanwhile, OpenAI's decision to bring back Altman as CEO has raised concerns about the company's governance and the potential for Altman to have too much power.
  
  
• Google’s AI chatbot Bard can now understand YouTube videos and answer specific questions regarding the content of some of them.
  
  
• AWS India launched the 'AI Ready' initiative to offer eight free AI and generative AI courses to upskill 2 million people by 2025.

The ozone hole over Antarctica, a phenomenon that once dominated headlines, has seemingly faded from public consciousness. 

However, a recent study reveals a startling truth: the Antarctic ozone hole has been among the largest on record over the past three years.

• While chlorofluorocarbons (CFCs), once the prime culprits in ozone destruction, have been successfully phased out, other forces are now at play. 

Researchers believe that changes in atmospheric circulation and the influx of air into the polar vortex above Antarctica are contributing to the persistent and expanding ozone hole. Find out more

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 500,000+ subscribers.