One quick thing: Delhivery posted a surprise profit after tax for the first time in a quarter since its IPO in 2022

In today’s newsletter:

• FM Sitharaman allays fintech fears
• Why RBI crippled Paytm
• Byju's hits back at investors

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At a time when the fintech sector is on its toes due to Paytm’s brush with regulators, Finance Minister Nirmala Sitharaman has expressed a vote of confidence in the sector in an interview with Network18.

• While refraining from commenting on Paytm, she said that the government is 'enthusiastic' about fintech 

"Our youth have contributed a lot in building capacities for themselves. This is an area we would certainly like to work with and encourage" the finance minister said in the interview.

When asked about weak placements at top campuses like IIMs, the minister stressed the importance of taking the job creation in the informal economy into account while discussing employment.

• She also said that job requirements for both fresh recruits and senior employees are changing due to artificial intelligence

The minister also highlighted the effect of digitisation and connectivity in the rural economy, while ruing that this impact hasn’t yet been captured in economic indicators.

• When asked about income tax sops for the salaried class, she said that direct tax reforms were a “steady job in the pipeline.” 

• The minister said that the government is confident of managing inflation while maintaining robust economic growth.

• The government will table a white paper in Parliament on the impact of the mismanagement of the economy during the UPA regime

• The finance minister also said that the government is open to lowering its stakes in public sector companies like SBI and ONGC

• The government's emphasis on reforms will continue and it has given rewards, she said.

Watch the full interview

It is not a cheerful start to 2024 for Paytm! The banking big boss, RBI is not very happy with the firm's banking operations under Paytm Payments Bank and ordered to stop the bulk of its activities from February 29.

Although this came as a shocker to many in the ecosystem, sources tell us that there have been longstanding issues and violations before the ultimate order was thrown on Paytm.

• Several violations of regulatory norms, including rules related to related-party transactions were noted and informed to Paytm and there has been repeated failure to heed warnings from the RBI, sources tell us.

Also, a system audit conducted by the RBI into Paytm Payments Bank found several lapses in adherence to anti-money laundering laws regarding know-your-customer (KYC) documents.

The negative impact on Paytm's reputation and its share price has been massive. The stock fell another 20% to hit a lower circuit for the second consecutive day.

The order has also sent shockwaves across the fintech industry, with many terming it as one of the harshest decisions undertaken by the regulator. 

"The move will destroy the spirit of the fintech sector and restrict newer players from coming into the banking business," a fintech founder said.

While banking operations will stop, Paytm founder Vijay Shekhar Sharma tried reassuring users, saying the app will continue to work beyond February 29.

Go deeper

It appears the gloves are off between Byju’s and its top investors and the boardroom drama is now spilling over to the public domain.

In a letter to employees, Byju’s management accused its investors of conspiring in a moment of crisis.

• This comes a day after these investors launched a campaign to oust the company’s leadership team led by founder Byju Raveendran.

Meanwhile, the company has also delayed January salaries for its employees, and later blamed an “artificially induced crisis by select investors," for it.

Byju's topped this up with a statement saying that its shareholder agreement does not give investors the right to vote on CEO or management change.

• The edtech major claimed that the $200 million rights issue, announced earlier this week for existing shareholders, has already been oversubscribed.

And we are not done yet! Byju's US unit, Alpha, which had been in control of its lenders, filed for Chapter 11 bankruptcy proceedings in a Delaware court.

Byju's assured employees it will make all salary payments by February 5. 

Meanwhile, the Bengaluru-based firm said that it continues to update the working group on all crucial matters, including ongoing business restructuring, financial position and audits.

“The company, along with the advisory board consisting of Rajneesh Kumar and Mohandas Pai, constituted a working group with the investors to find a constructive way forward," it said in the statement.

Go deeper

If you travel via Metro trains, standing in long queues at stations to purchase tokens and figure out last-mile connectivity will soon be a thing of the past. An end-to-end digital journey is set to become the new norm in India.

• Chennai Metro Rail Limited (CMRL) became the first Metro operator today to join ONDC, with more Metro operators in Kochi, Kanpur, Pune, and Bengaluru set to follow suit.

The idea is to enable commuters to use one ONDC-integrated app for all their urban mobility needs, people familiar with the developments told us.

Read our special story

• Amazon is adding an AI shopping companion called Rufus to its retail store in an effort to help shoppers comparison shop and seek answers to complex queries.

• Apple CEO Tim Cook said they are spending a tremendous amount of time and effort on its generative AI features that will be available to consumers later this year.

The 1Malaysia Development Berhad scandal, more popularly known as the 1MDB scandal, in which the Malaysian sovereign wealth fund was systematically embezzled, has been one of the world's greatest financial scandals.

A new crime documentary Man on the Run chronicles the multibillion-dollar fraud and its mastermind, Jho Low, who worked with a group of co-conspirators including former Malaysian Prime Minister Najib Razak to pull it off. 

Watch it on Netflix

If you are in the mood for spy comedy, check out Mr and Mrs Smith. The television show reboots the 2005 film starring Brad Pitt and Angelina Jolie with a new star cast that includes Donald Glover and Maya Erskine with a whole bunch of cameos. 

Watch on Amazon Prime Video