One quick thing: TCS creates new AI and Services Transformation unit, appoints Amit Kapur as head

In today’s newsletter: 

• RMG Ban: Razorpay, PhonePe, Cashfree, Easebuzz hit
• Why Big Techs love India despite Trump 
• Dhan parent to unveil Agentic AI model Fuzz

Programming note: Wishing all our readers a Happy Ganesh Chaturthi. There will be no edition of MCTech3 on August 27, and we’ll be back in your inbox on Thursday (August 28)!

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There was real money for everyone on the table. 

• From real-money gaming (RMG) companies to payment gateway firms facilitating the transactions

According to sources, Cashfree, Easebuzz, PhonePe and Razorpay are likely to see a major dent in revenues after the law banning RMG took effect last week.

Payment companies were facilitating around 350–400 million transactions through UPI every month.

• These transactions were worth Rs 1.2 lakh crore annually

Of this, RMG contributed nearly two-thirds of both value and volume.

A back-of-the-envelope calculation shows that payment aggregators together generated around Rs 1,500 crore annually from these transactions.

In RMG, one of the key requirements was crediting customers' winnings through automated bulk transfers.

• Payment aggregators built custom software for these payouts, helping them forge close partnerships with gaming companies

Unlike regular UPI transactions, these payouts were highly profitable. PAs made a flat fee of Rs 1 per transaction — sometimes 10 times higher than the commission they usually charge merchants, depending on transaction value.

• On RMG platforms, the average transaction size was around Rs 20 

After Dream11, another larger RMG firm, Gameskraft, has said it will not challenge the government law in courts.

• The company says that its decision is based on respect for the legislative process

Dig deeper

As Trump fumes over trade, India is cashing the cheques, showing Big Tech’s latest expansions as proof.

US President Donald Trump may be busy rattling sabres over tariffs, but American Big Tech seems unfazed and firmly headed to India.

• Google has cut the ribbon on its sprawling Ananta campus in Bengaluru, Microsoft signed a fat lease for 2.65 lakh sq. ft. in Hyderabad, Apple has taken up a shiny multi-floor tower in Bengaluru, and Meta is hiring engineers

Even Gen AI pioneer OpenAI, the latest entrant, is plotting its India push.

"Cheaper" doesn’t quite cut it anymore, as India now offers a depth of talent, scale, and a digital economy that’s growing faster than Trump can draft a tweet.

• The result: Hyderabad and Bengaluru are seeing Grade A office demand shoot up, with real estate developers cashing in and rentals climbing

For American giants, India is insurance against Washington’s policy mood swings and Beijing’s tightening walls.

Big Tech’s hiring spree is bound to make the Indian IT pack sweat, as engineers will chase dollar salaries and global projects.

• Startups, too, could feel the pinch in the war for talent.

But the bigger picture is unmistakable, no matter how loud the tantrum in DC, the quiet recalibration on the ground is making India a cornerstone of American tech strategy.

Dig deeper

Fuzzing the finance frontier

Raise Financial Services, the parent company of Dhan, is launching Fuzz, an AI model built specifically for investors, analysts, and finance professionals.

• The tool synthesises deep research, regulatory filings, and official financial data to deliver nuanced and timely insights, according to a deck Dhan presented to its investors, seen by us.

A free tier will be available, while advanced capabilities will come under premium plans, signalling Raise’s push into high-value AI for Indian markets.

Fuzz is trained on large-scale India-specific financial datasets and continuously ingests market, news, company, and sector data in real-time.

• It can also integrate user-specific financial data, including portfolios and income tax returns, for personalised recommendations

Developed by an internal team of over a dozen experts, the beta version will be available soon on askfuzz.ai, with apps expected by late 2025.

Fuzz claims to provide high domain expertise and source-backed outputs, designed for users who need more than surface-level market insights.

• Raise’s AI ecosystem already powers content, analysis, and customer support across Dhan and ScanX, handling millions of interactions daily with strong accuracy

With Dhan ranking among India’s top 10 stockbroking apps and a growing user base nearing one million, Fuzz could shape how retail and professional investors access and act on market intelligence.

Dig deeper

• Global private equity majors are ramping up bets on India’s fast-growing digital infrastructure sector, drawn by stable, data-driven returns as the country pushes toward its $1 trillion digital economy goal by 2030.
  
  
• Nikkei and Asahi Shimbun have sued Perplexity AI in the Tokyo District Court, seeking injunctions and $15 million each in damages for alleged copyright infringement.

Unlike monsoon rains, solar storms don’t show up on Doppler radars. 

• They strike without warning, frying satellites and confusing GPS 

That’s why IBM and NASA built Surya, an open-source AI trained on nine years of fiery solar snapshots. 

It not only predicts flares with 16% higher accuracy but also shows where they’ll erupt two hours in advance.

Find out more

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