One quick thing: Karnataka BJP's manifesto promises Rs 5,000-crore startup fund and more

In today’s newsletter:

• Indian startups slash 6,000 jobs in 2023
• How Indian IT cos are embracing generative AI
• IAMAI faces backlash for 'pro-Big Tech' stance

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

Summer in India may be in full swing already, but the startup community in the country is still feeling the icy grip of the funding winter. 

Unfortunately, this has had a ripple effect on the employees who were hired by these startups during the pandemic when salaries were sky-high.

The first four months of 2023 have seen Indian startups lay off nearly 6,000 employees, as they grapple with uncertainty about the next funding round.

More importantly, 41 startups have resorted to downsizing this year, which is nearly five times higher than the same period last year, when only eight startups had to let go of their employees.

“Founders, who earlier had the mindset, ‘If we need capital, give me 3-6 months, we will get it,’ know they cannot rely on that anymore,” Scaler co-founder Abhimanyu Saxena told us.

Also Read | Life after layoffs: How people are coping after losing jobs in Indian startups

As startups resort to downsizing, they are also taking measures such as reevaluating their burn rate, pivoting from their current business model, and diversifying revenue streams in an attempt to appear more attractive for funding. 

• Now, many startups are focused on achieving positive unit economics and profitability, which used to be concerns for the future, just a year ago.

Find out more

Generative AI has been a hot topic this earnings season, despite major IT services firms grappling with poor Q4 performances.

IT services firms such as TCS, Infosys, Accenture, HCLTech, Tech Mahindra, and Wipro are optimistic about the potential business applications of AI technology.

They have formed partnerships with major tech companies like Google and Microsoft, as well as Microsoft-backed OpenAI, to create industry-specific generative AI solutions for their clients.

Some of these IT companies shared with us their AI game plans and outlook.

• While the exploration continues, TCS and Tech Mahindra see numerous use cases ranging from anomaly detection to developing conversational AI, document AI, or low-code/no-code solutions, among others.
  
  
• TCS also created an 'AI Factory' to industrialise AI adoption in enterprises
  
  
• Tech Mahindra said that it is helping clients in saving millions by integrating AI into their operations
  
  
• Wipro has set up a Centre of Excellence (CoE) for Generative AI to work with technology partners and academic institutions to drive research
  
  
• Accenture sees the potential for generative AI to transform customer service and knowledge management into creative production and scientific research

While the technology may seem promising, it is plagued by several cybersecurity concerns.

• Companies are interested in harnessing the power of generative AI to increase employee productivity, but are concerned about the possibility of IP leaks

Many firms, particularly in the BFSI sector, such as Bank of America, Goldman Sachs, Citigroup, JPMorgan Chase, and Wells Fargo & Co, have banned the tech in their offices globally

Go deeper

P.S.: Do check out our interview with LTIMindtree CEO Debashis Chatterjee, in which he discusses the macroeconomic climate, fresher onboarding delays, top-level exits, and more.

The Internet and Mobile Association of India (IAMAI) was founded in 2004 by a group of entrepreneurs to represent Indian companies in the digital space.

Fast forward nearly two decades, the industry body, which has over 550 members, is accused of being dominated by Big Tech companies and parroting their narrative.

Several Indian entrepreneurs and startups have criticised the industry body's position that a separate Digital Competition Law is unnecessary for the country.

“Startups are strongly in favour of a strong anti-monopoly Digital Act,” Shaadi.com founder Anupam Mittal said.

The need for a Digital Competition Law was first mentioned in a report by the Parliamentary Standing Committee on Finance, which highlighted anti-competitive practices by Big Tech companies.

This recent squabble is over a draft version of a document that the industry body intends to submit to a committee charged with determining whether the country requires a separate digital competition law. 

• In it, IAMAI claimed that a new competition law would stifle innovation, harm startups, raise regulatory costs, and so on

Indian entrepreneurs have been quick to point out that the current chairperson and vice chairperson of IAMAI work for Big Tech firms.

• Startups are also calling for changes to be made in IAMAI

Go deeper

Thirty years ago, the internet was made available to the public for the first time. On this day in 1993, CERN, the European research organization, released Tim Berners-Lee's code for the World Wide Web into the public domain.

The first-ever website in the world was established at CERN and was dedicated to the World Wide Web project. Check out the world's first public web page.

• Coinbase's head of business operations Conor Grogan claims to have discovered a "jailbreak" for ChatGPT that allows it to calculate the probability of unconventional crypto price scenarios.

• Mastercard has introduced a new Web3 solution that focuses on improving user verification standards and limiting opportunities for fraudulent activity in the digital asset industry.

The Super Mario Bros. Movie has smashed box office records, grossing over $1 billion globally in less than a month since its release. 

It is the first animated movie of 2023 to reach this milestone and has also become the most successful video game movie ever made. 

Directed by Aaron Horvath and Michael Jelenic, the movie follows the adventures of Mario and Luigi as they journey through the magical Mushroom Kingdom with Princess Peach to stop Bowser from taking over. 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.