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In today’s newsletter:

• Ola Electric restructures, lays off 1,000 
• MeitY fast-tracks DPDP Act implementation
• Unicorn startups see founders’ stakes decline

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Bhavish Aggarwal-led Ola Electric has initiated a significant restructuring, leading to layoffs of around 1,000 employees.

While the company has not confirmed the exact number, an Ola spokesperson stated that the restructuring aims to streamline operations, automate front-end processes, and eliminate redundant roles for improved efficiency. 

• The layoffs impacted employees across sales, distribution and marketing teams 

The latest layoffs come in as the company navigates a competitive EV market with players like Bajaj and TVS Motors scaling up. 

The recent restructuring isn’t Ola Electric’s first downsizing move. In November 2024, the company let go of at least 500 employees. 

• Before its IPO, Ola Electric also restructured its teams and made several changes in its leadership team 

Several industry experts say that financial challenges may be driving these decisions. 

• In its December quarter results, Ola Electric reported widening losses of Rs 564 crore, up from Rs 376 crore in the same period last year
  
  
• Revenue declined 19.4% year-on-year to ₹1,045 crore 

Find out more

India is making major strides in securing personal data and positioning itself as a global leader in AI.

The government will fully operationalise the Digital Personal Data Protection (DPDP) Act in FY 2025-26, establish the Data Protection Board (DPB), and notify 25 new rules.

• A 75% completion target has been set for establishing the DPB’s digital office, the Outcome Budget document shows

The government is also ramping up its focus on AI innovation with the IndiaAI Mission, which is set to establish:

• 80 IndiaAI labs

• 20 AI curation units across ministries

• Funding for 25 deeptech AI startups

The country is also positioning itself as a key player in the global semiconductor supply chain. 

• With a Rs 2,500 crore incentive, the government is set to establish its first semiconductor fab

• Six compound semiconductor units and 20 chip design firms will also be established

The Outcome Budget also noted that the PLI schemes for electronics are expected to drive: 

• Rs 8.12 lakh crore in incremental sales
  

• Rs 7,000 crore in investments
  
  
• Create 2 lakh jobs

Founder stakes in their respective unicorn startups have hit the skids over the last six years. Here’s a look at what this might mean for India’s startup ecosystem.

The median stake that founder groups hold in their unicorn startups has fallen to just 13% in 2024, down from as much as 24.6% in 2018, according to Tracxn.

• This comes after several founders at prominent startups, including PharmEasy and Dunzo, have recently quit, be it due to market pressures, sectoral challenges, or to start new ventures

While some industry stakeholders argue that the increasing ownership dilution is a sign of a maturing ecosystem, others say that it is a necessary trade-off to raise capital in a challenging funding environment.

“I’d rather have a smaller stake in a much larger business,” said a founder who did not want to be named.

Reducing ownership may also be a strategic move by founders to sidestep increasing regulatory scrutiny, especially for companies that are close to going public.

• Founders holding more than 10% stake in an IPO-bound company, individually or collectively, and who hold executive positions in the firm, may soon be categorised as promoters
  
  
• If classified as a promoter, compliance requirements go up significantly due to disclosures regarding the promoter group

Not being identified as promoters also makes founders eligible for employee stock options (ESOPs).

Investors expect the ownership dilution pattern among founders to even out in the long run as the funding environment improves

• Early signs of this are already visible, as the median founder group stake in unicorns improved to 13% in 2024 from 12% in 2023

Dig deeper

• Chinese smartphone maker Honor will spend $10 billion over the next five years on developing AI for its devices as the former Huawei unit prepares for a public listing. 
  
  
• Chinese startup Zhipu AI has raised more than 1 billion yuan ($137.22 million) in fresh funding, months after securing a 3 billion yuan investment.

The 2025 Academy Awards just flipped the script!

Low-budget comedy Anora turned the tables, taking home five Oscars, including Best Picture and Best Actress. 

• Zoe Saldana won Best Supporting Actress for Emilia Perez

• While Kieran Culkin bagged Best Supporting Actor for A Real Pain

Check out the full list here

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