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In today’s newsletter:

• Lenskart picks Telangana over Karnataka, triggers row 
• Protean's fintech ambitions 
• MapmyIndia makes about-turn after governance concerns

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One state’s gain is another’s loss. Here, Telangana gained, while Karnataka lost.

Lenskart, which had sought land near the Bengaluru airport a few months ago, is now setting up the world’s largest eyewear plant in Telangana’s Fab City.  

• Comes with an investment of Rs 1,500 crore and will create 2,100 jobs 

But the move has left a bitter aftertaste.

Lenskart demanded 100%+ subsidies which, the Karnataka government felt, was an unreasonable ask, sources told us. 

"The minister (MB Patil) directly spoke…everything was offered. But it's not right for the government to give a 100% subsidy; (Lenskart) is not a PSU. It’s a matter of ethics and morals. Tomorrow, there will be no end to this. It's a profit-making private enterprise," a source told us. 

In reaction to our story, MB Patil posted on X and said while the government will support private companies, it will not let anyone “take undue advantage of state exchequer.” 

• Telangana gave subsidies of around 100-120% to lure Lenskart, sources told us
  
  
• To be sure, both Karnataka and Telangana are governed by Congress 

For Lenskart, a plant in Bengaluru was also key since Carl Zeiss India, a company in the same space, is setting up a plant in the city. 

• This will be Lenskart’s largest plant yet, after one in Rajasthan’s Bhiwadi and another one in Gurugram 

Dig deeper

It’s everywhere—quietly running the show. Aadhaar, ONDC, Agristack, Namma Yatri, CoWIN—if it’s a public project, it’s probably behind it. Now, it wants a piece of the private SaaS and fintech pie.

Protean eGov Technologies, long known for its dominance in government services like depository, PAN card issuance, pension records and identity, is diversifying to become a competitive SaaS provider for the private sector. 

• Four key areas have been identified for the new business: open digital ecosystems (ONDC), cloud services, data stack services (BFSI), and international expansion
  
  
• Moves are made in fintech, mobility, cloud, and cybersecurity, using its vast API network to build scalable solutions

As legacy businesses provide steady cash flow, Protean aims for 25% of its revenue from new business in the next 2-3 years, while continuing to power government infrastructure.

Protean’s leap from traditional systems integrator model to an agile, product-driven company starts with ONDC.

• It moved beyond gateway service to Saas tools for buyers and sellers, including D2C brands, corporates—a transaction-fee model expected to fetch new revenue
  
  
• It secured an Account Aggregator (AA) license, bundling identity business with KYC, digital onboarding, regulatory compliance, credit scoring for banks, fintechs, and startups

With a debt-free balance sheet and significant cash reserves, Protean is well-positioned to scale its new businesses.

• Revenue grew 19% in FY24, hitting Rs 882 crore. New business lines generated Rs 32 crore, inching up from Rs 19 crore last year
  
  
• Profitability faced pressure as investments in new businesses mature.

Behind the transition from B2G to B2B2C is investment in AI, blockchain, and full-stack development, and a team of specialists operating from a dedicated Development Center in Pune, MD and CEO Suresh Sethi told us in an interview.

“It's a competitive space, but our deep involvement in public infrastructure for years and exclusive partnerships gives us a distinct edge,” Sethi said. 

Find out more

Faced with shareholder ire, MapmyIndia is backtracking on its plans to invest in the consumer business being set up by CEO Rohan Verma.

MapmyIndia today said that the company's board has reversed its decision to make any equity or debt investment in Verma's forthcoming venture.

• The board will continue to evaluate various consumer-facing opportunities, while recalibrating its investment in this area, which accounts for less than a percent of its revenues, it said

On November 29, MapmyIndia announced plans to spin off its consumer business into a separate entity in exchange for a 10% stake.

The new entity will be led by Rohan Verma who will step down as MapmyIndia CEO on April 1, following which MapmyIndia founders Rakesh and Rashmi Verma (Rohan Verma's parents) will spearhead the company.

• MapmyIndia had said it will provide an additional funding of Rs 35 crore via compulsorily convertible debentures

• The new company will use MapmyIndia’s retail brand Mappls. It will also get Mappls Gadgets, Mall, and Travel.

MapmyIndia will continue to use the brand for its B2B2C (business-to-business-to-consumer) and B2G2C (business-to-government-to-consumer) offerings. It will also have access to anonymised data collected through the Mappls app to enhance its map data.

The proposed spin-off raised concerns among minority shareholders and analysts regarding corporate governance, financial implications, and potential conflicts of interest.

• Subsequently, MapmyIndia's stock price fell below its listing price of Rs 1,581, forcing Rohan Verma to clarify that the new entity will not receive the Rs 35 crore investment from the company

MapmyIndia said that Mappls and its associated apps will continue to be held by the company. It will also keep investing in the B2B and B2B2C segments for future growth and maintain its leadership.

"We believe that the decisions taken by the Board on 29th November 2024 and today (9th December 2024) both are taken in the best interest of the company and all its shareholders including minority shareholders...MapmyIndia has always been run with the best of intent and corporate governance and will always be run like this" Rakesh Verma and Rohan Verma said in a joint statement today.

MapmyIndia's shares spiked by over 16% at market close today, more than recovering the loss incurred during the last two weeks.

Allu Arjun reigns supreme at the box office. Pushpa 2’s Hindi version alone has challenged Hindi cinema's biggest hits from stars like Shah Rukh Khan. 

• With Rs 86 crore in a single day, the movie has become the first to do so in the Hindi film industry 

Among the many box office records the movie has broken, it is also the fastest to enter the Rs 300 crore club, ahead of SRK’s Jawan and Pathaan. 

Find out more

• Jack Ma rallied Ant Group employees at its 20th anniversary, emphasising AI's potential to revolutionise the future and overcome past challenges.
  
  
• The US has approved the export of advanced AI chips to a Microsoft-operated facility in the UAE  as part of the company's highly-scrutinised partnership with Emirati AI firm G42.

Tired of the daily scrub? Japan's got your back (and front)!

Meet 'Mirai Ningen Sentakuk,' a futuristic human washing machine that promises a spa-like experience in just 15 minutes.

• Imagine stepping into a transparent pod, where high-speed water jets and microscopic bubbles work their magic, leaving you squeaky clean.

It even uses AI that tailors the wash to your mood and skin type! Find out more 

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