One quick thing: 83 IAMAI members are contesting for 24 Governing Council seats as the industry body faces accusations of pro-Big Tech bias.

In today’s newsletter:

• SoftBank-backed Indian startups cut costs by 50-75%
• Foxconn to invest $500 million in Telangana
• What Bengaluru wants from the new K'taka Govt

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‘Total defence’ was the most-used phrase by SoftBank's Masayoshi Son and his deputy, Yoshimitsu Goto, during the company's earnings presentations in the past four quarters.

• This reflects the company's heightened conservatism amid worsening macroeconomic headwinds. Notably, SoftBank's investments witnessed a significant decline of more than 90% between April 2022 and March 2023.

Interestingly, SoftBank was not the only one to adopt a "total defence" strategy. Its Indian portfolio companies also followed suit and embraced a conservative approach.

SoftBank’s Indian portfolio companies cut costs by 50-75% over the last 15 months through layoffs and other cost-cutting initiatives, effectively increasing their runway by at least 12 months.

• Its India portfolio companies have laid off more than 5,000 employees since the start of 2022

Meesho, Unacademy, Cars24, and Swiggy are the companies that reduced costs the most.

The upcoming festival season, starting in August, is expected to be highly significant for the mentioned companies.

• These companies are expected to complete the process of cleaning up their balance sheets by June and then shift their focus to capitalising on the festival season

Although these companies experienced minimal growth over the past year, given their late-stage status and preparations for a potential public listing, they will be required to demonstrate substantial growth in the current year.

If these companies manage to showcase strong growth during the festival season, they may have the opportunity to raise funds by the end of this year, which would provide additional momentum to their growth trajectory. Stay tuned to this space for updates on what unfolds next.

In March, after signing an agreement with the Telangana government for the establishment of an electronics manufacturing facility, the chairman of Foxconn, Young Liu, praised the government for what he termed "Telangana speed"—referring to the state's rapid development.

Foxconn is set to invest $500 million in Telangana, with the Taiwanese contract manufacturing giant conducting a groundbreaking ceremony today to establish a manufacturing facility in Kongara Kalan called KK Park, located outside Hyderabad.

• The State's IT and industries minister KT Rama Rao was quick to point out that this was a result of Telangana's "speed"

Foxconn Interconnect Technology (FIT), a Foxconn subsidiary, will immediately begin construction on the 186.7 acre site, which is expected to generate direct employment for 25,000 people in its first phase.

• FIT, which specializes in the production of precision cables, connectors, and cable assembly products, aims to begin operations within 9 months

The manufacturing facility will utilize solar panels for green energy, LED lighting, and incorporate other environmentally friendly mechanisms.

• The living area for employees will offer secure accommodations and a range of facilities, including clinics, clubs, supermarkets, fitness centres, and banks

Find out more

Bengaluru, especially its startup and tech community, is eagerly anticipating the new government of the state to address the city's old problems. 

As the city continues to grow at a rapid pace, infrastructure remains a major concern, with persistent issues such as traffic congestion and flooding.

• In the recent state elections, the Congress party secured 135 out of the 224 assembly seats, displacing the previous BJP-led administration

Currently, Bengaluru finds itself in a unique political scenario. The Bharatiya Janata Party (BJP) holds power at the Centre, while the Congress is in control of the state. Additionally, new-age parties are vying for entry into the Bruhat Bengaluru Mahanagara Palike (BBMP) council, which is the civic body.

• This political scenario has implications for crucial infrastructure projects, particularly the upcoming Phase 3 of the Metro. As these projects require approval from the BJP-led central government, navigating the political dynamics becomes essential

We spoke to several CEOs, startup founders, investors, and venture capitalists who shared their concerns about the city's poor infrastructure and emphasized the urgent need for attention from the new government.

As Bengalureans eagerly await the new government's actions to address the city's infrastructure issues and implement its promised policies, there are lingering questions about the outcomes that will be achieved. Only time will tell.

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On May 15, 1958, the USSR launched Sputnik-3, which weighed 1,327 kg and carried 12 instruments to study Earth's upper atmosphere and space. It was the heaviest satellite at that time. 

Quick trivia: Originally intended to be the first satellite, Sputnik-3's complexity and size prompted the Soviets to launch the simpler Sputnik-1 to beat the United States into space. (Picture credit: Wikipedia)

• OpenAI CEO Sam Altman is close to securing $100 million in funding for Worldcoin, a global cryptocurrency project utilising iris-scanning technology for enhanced security.
  
  
• North Korean hacker groups have stolen $721 million in cryptocurrency assets from Japan since 2017, per a study by UK-based blockchain analysis provider Elliptic.

Lost your mobile phone? Don't despair! 

The government has rolled out an ingenious tracking system to combat mobile phone theft. With the Central Equipment Identity Register (CEIR) in place, you have the power to block and track your precious device. 

That's not all - you can even find out more about second-hand smartphones before making a purchase. Curious to know how this works? 

Find out more

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