One quick thing: Demat account additions reach record high riding on Dalal Street rally 

In today’s newsletter: 

• MobiKwik takes a second shot at IPO
• AI won't replace jobs completely, says IBM HR head
• Google purges eSIM apps amid DoT crackdown

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In an interesting turn of events, fintech unicorn MobiKwik has refiled its draft IPO papers, reducing the size from Rs 1,900 crore to Rs 700 crore.

Earlier in July 2021, MobiKwik filed its draft red-herring prospectus (DRHP) with Sebi for a Rs 1,900-crore IPO. However, a challenging funding environment and a crackdown on the fintech segment by the RBI led the company to reconsider its decision.

• Despite these challenges, analysts and industry experts remain bullish on Mobikwik's IPO. 

Why?

The 14-year-old digital payments firm claims to have reported profitability (profit after tax) in the first two quarters of FY24, with Rs 3 crore and Rs 5 crore, respectively.

The IPO will be a pure fresh issue, with no Offer for Sale component. 

• The company may also consider issuing additional securities worth Rs 140 crore through a pre-IPO placement

The funds raised through the IPO will play a crucial role in Mobikwik's future expansion. Notably, the company's subsidiary, Zaakpay, recently received RBI’s in-principle nod to operate as Payment Aggregator. 

• In its DRHP, MobiKwik said that around Rs 135 crore of the raised funds will be allocated to fuel financial services growth

Additionally, the company plans to invest around Rs 135 crore in data and technology infrastructure, Rs 70.28 crore in payment device capital expenditures, and the remaining amount will be allocated for general corporate needs.

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Do you recall when IBM CEO Arvind Krishna mentioned that the company would temporarily halt hiring for positions that could be automated, affecting around 7,800 non-customer facing roles over the next five years? 

• Now, the company's Chief Human Resources Officer, Nickle LaMoreaux, has clarified that Krishna's words were "a little bit out of context."

LaMoreaux believes that very few jobs will be completely replaced by AI at IBM. 

• She explained that if 2% of jobs are lost, perhaps another 2% of new jobs will be created

As AI supplements certain roles, it will help employees move up the value chain by focusing on more relevant work, she said.

While LaMoreaux did not disclose specific hiring target numbers, IBM primarily recruits from campuses in India, with some targeted senior-level hiring.

• As IBM prioritises skill-based hiring, onboarding and training fresh graduates in essential AI skills and capabilities have become standard practice

Currently, 50% of IBM's global workforce is AI-trained, with the percentage slightly higher in India, where nearly 80% of its R&D workforce is engaged in researching and developing AI capabilities for the company

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In recent weeks, several influencers have been endorsing apps like Holafly and Airalo. 

• These highly popular apps offer international eSIMs for multiple countries at a nominal fee and have garnered millions of downloads on app stores

However, they now find themselves in trouble.

Following a Department of Telecommunications (DoT) notice alleging their lack of proper authorisation for selling international SIM cards, Google has removed Holafly and Airalo from the Play Store in India.

• The DoT issued takedown orders to both Apple and Google, but as of January 5, the apps are still available on Apple's App Store

Entities wanting to sell foreign SIM cards in India must obtain a no objection certificate (NOC) from the DoT. 

• However, these foreign SIM cards cannot be used within India

The DoT has also instructed internet service providers to block access to the websites of such apps for Indian users

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With the upcoming inauguration of the Ram Temple on January 22nd, Ayodhya is giving beach and hill travel destinations a serious run for their money. 

Travel platforms have reported a staggering 300% surge in searches for Ayodhya, and domestic flight searches have jumped over 100% week-on-week since the city's new airport opened.

• Hotels are also seeing brisk demand, with occupancies soaring above 80% and room rates skyrocketing

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• OpenAI has proposed licensing agreements worth $1 million to $5 million annually to media companies for access to their news articles allowing the ChatGPT-maker to use them to train LLMs.
  
  
• According to a survey of artificial intelligence researchers, nearly 58% believe there is a 5% chance that AI could pose an existential threat to humanity.

Pack your bags (mentally, of course) for a double dose of adventure this weekend!

Buckle up for a tale of resilience and the will to survive against all odds with Society of the Snow. This survival thriller hurls you back to the 70s, where a Uruguayan plane takes a nosedive into the unforgiving Andes. The movie showcases the survival of the passengers as they grapple with the harsh conditions. Watch it on Netflix

Need a lighter touch after that adrenaline rush? Take a breather and hop on a journey with James May: Our Man in… India. The series follows the ever-curious May as he embarks on a coast-to-coast odyssey across India. Stream it on Amazon Prime Video

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