One quick thing: Google appoints Preeti Lobana as India country manager

In today’s newsletter:

• MeitY invites proposals for ethical AI
• Didn't scale service fast enough: Ola Electric's Bhavish Aggarwal
• Citykart eyes Rs 340 crore funding

Event alert: You're invited to Moneycontrol's India Fintech Conclave. We have a star-studded lineup featuring policymakers, bankers and top founders who are reshaping the fintech landscape in India. 

• It's happening on December 18 in Mumbai. RSVP here.

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As applications of artificial intelligence (AI) increase, it is equally important to take into consideration ethical and safety concerns surrounding it.

The IT ministry, under the Rs 10,738 crore IndiaAI mission, has invited applications from startups and academia to develop solutions that can detect deepfakes, label AI-generated content and so on. 

• Safe and responsible AI is one of the seven key pillars of the IndiaAI Mission launched in March 2024

The Ministry of Electronics and Information Technology (MeitY), wants the proposed solution for detecting deepfakes to be integrated into browsers and social media platforms.

• It should deploy deep learning algorithms, and other detection techniques to indicate the likelihood of manipulation in content

This comes at a time when AI-generated deepfakes have caused user harm and aided in the spread of misinformation.

The ministry wants solutions across themes such as:

• Watermarking AI-generated content
  
  
• Creating ethical AI frameworks
  
  
• Risk assessment tools
  
  
• Stress testing methodologies

Go deeper

It seems like Ola Electric just hit the pause, learn, and reboot button on its after-sales service game.

Ola Electric’s CEO Bhavish Aggarwal said at NW18’s Green Bharat Summit on December 13 that the company has completely cleared its service backlog—a speed bump that came with its rapid growth.

“It wasn’t a major complaint issue, but we didn't expand our service network fast enough. This was a lesson we learnt,” Aggarwal admitted, emphasising that regular service availability is essential to building customer trust, especially for EVs.

The Central Consumer Protection Authority (CCPA) in November initiated a probe into alleged deficiencies in Ola Electric's services and products, particularly scooters.

The company now faces the challenge of not only fixing issues but also ensuring it doesn't lose customer trust as EV adoption continues to grow.

• As Aggarwal put it, even if EVs don’t always need immediate service, customers want the assurance that a service center is nearby when they do.

Aggarwal also said that 2025 will be the 'year of product' for Ola Electric, as they will be launching one product every month. 

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Bharat, or the markets beyond top metro cities, seems to be the flavour of the season for venture capital (VC) firms.

Vishal Mega Mart’s (VMM) bumper IPO seems to be having a positive rub off effect on other companies in the same space. 

• Citykart, a company founded by a former VMM executive, is negotiating a Rs 290-340 crore ($35-40 million) round, sources told us

A91 partners will likely lead the primary round and TPG NewQuest will mop up a bulk of the shares in the secondaries market. 

• Early investors in Citykart, such as Investcorp and India SME Investments, are planning to sell some of their shares, sources said

Of the $35-40 million (Rs 290-340 crore): 

• Secondary share sales will amount to around Rs 210 crore ($25 million)

• The remaining Rs 85-130 crore ($10-15 million) will be in the form of primary capital
  
  
• CityKart is being valued at Rs 1,350-1,500 crore ($160-180 million) during the current fundraise

A valuation of Rs 1,350-1,500 crore is on the back of $80-90 million (Rs 680-765 crore) in sales which translates to a 2X revenue multiple. 

• Its rival, VMM, which is also the largest in the space, commands a revenue multiple of 4-5X

If the talks go through, this will mark the return of TPG into the India retail scene. 

• TPG had acquired VMM for Rs 70 crore ($8 million) in 2011 and scaled it through the years to sell it for Rs 5,000 crore ($588 million) in 2018
  
  
• VMM is now going public at a valuation of over Rs 35,000 crore ($4.1 billion)
  
  
• The turnaround in fortunes and the returns is what is likely making TPG interested in the round 

Dig deeper

• LTIMindtree launched its AI-driven Cyber Defense Resiliency Centre (CDRC) in Bengaluru to help clients automate and enhance security operations.
  
  
• Former Google CEO Eric Schmidt raised alarm bells about the rapid advancement of AI, warning that systems capable of self-improvement could pose unforeseen risks.

The world of music mourns the loss of a true legend, Ustad Zakir Hussain.  

• From his early days as a child prodigy to his later years as a global icon, Hussain's contributions to music are immeasurable

Let's revisit some of his iconic hits:

• With Ustad Alla Rakha: Their collaborations, like the mesmerizing performances of Teentaal, remain etched in the annals of Indian classical music.
  
  
• With Ali Akbar Khan, L Subramaniam and Ramnand Raghavan: The enchanting Raga Sindhi Bhairavi showcased the interplay of tabla, sarod, violin and mridangam.
  
  
• With John McLaughlin and L. Shankar in Shakti: This fusion band introduced Indian classical music to a global audience. 

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