One quick thing: Amazon India narrows FY24 net loss to Rs 3,470 cr, revenue up 14% 

In today’s newsletter:

• Starlink inches closer to India entry
• Inside the crisis at Bitbns
• Groww expands user base despite market dip

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After months of regulatory back-and-forth, Starlink appears to be clearing key hurdles in its quest to launch its services in India!

After a series of meetings with the Department of Telecommunications (DoT), the Elon Musk-led satellite broadband firm has made in-principle commitments to meet India's data localisation and security guidelines. 

• This brings Starlink closer to securing the GMPCS (Global Mobile Personal Communications by Satellite) licence

Data localisation has been a major hurdle for global companies like Starlink aiming to enter India's satellite communications market. 

• Under current regulations, companies must store all data within the country

Starlink’s commitment to comply with these conditions paves the way for finalising the GMPCS licence, though the company has yet to formally submit its agreement. 

• Starlink will also need to demonstrate how intelligence agencies could access and monitor data if required

While Starlink inches ahead, it faces stiff competition from both local telecom giants and other global players like Amazon Kuiper. 

• Indian telecom companies, including Reliance Jio, Bharti Airtel, and Vodafone Idea, are raising concerns about the level playing field

• Telcos argue that satellite broadband services should be subject to spectrum auctions, ensuring that domestic providers aren’t sidelined

Starlink, however, said that satellite communications are fundamentally different from terrestrial services and should be treated separately when it comes to spectrum allocation.

Find out more

Picture credit: Microsoft Copilot

The crypto world is buzzing as Bitcoin surges to new heights, fueled by Donald Trump’s recent US presidential election victory. 

• However, amid this frenzy, a shadow looms over one of India's leading crypto exchanges, Bitbns

Bitbns users have filed a complaint with the National Cybercrime portal, alleging that they've been unable to withdraw their funds for months. 

• Users' investments, ranging from Rs 20,000 to Rs 1.5 crore, have been stuck with the exchange for months

• While Bitbns is allowing deposits and trading on the platform, users have been unable to withdraw their funds
  

In some cases, users have even claimed that their withdrawal requests have been mysteriously cancelled and their funds have vanished.

Bitbns CEO Gaurav Dahake has a different story to tell. He attributes the withdrawal delays to several factors, including ongoing legal battles and the complexities of dealing with banking restrictions in India. 

“There are arbitrary blocks that have happened on our bank accounts from law enforcement agencies (LEAs). This restricts our ability to serve users withdrawals,” Dahake said.

Another red flag for users is the significant price discrepancies between Bitbns and other crypto exchanges. 

• Some users claim that these disparities make it difficult to liquidate their investments and withdraw their funds 

Dahake explains that these price differences are primarily driven by market dynamics and limited withdrawals on the platform.

Find out more

Picture credit: Meta.ai

Even as the stock market experienced its worst month since the pandemic, India's top broking firm, Groww, continued its upward trajectory. 

Groww's rapid growth has propelled it to the top, outpacing industry giants like Zerodha and Angel One.

• With 3.5 lakh new users added in October alone, Groww's active investor base surpassed the 1.25 crore mark

• The platform now has a 50% larger active investor base than Zerodha

• Meanwhile, Zerodha has maintained a steady pace of user growth, adding 1.25 lakh new users a month

Although Groww leads in terms of user base, Zerodha continues to dominate in terms of revenue. For FY24, Zerodha’s revenue soared to Rs 8,320 crore, while Groww’s revenue came in at Rs 2,900 crore.

However, the future for brokers is not entirely rosy. 

Recent regulatory changes, including the removal of broker rebates and tighter F&O trading restrictions, have the potential to impact the industry's revenue streams.

• Many brokers expect a decline in revenue and profits, with estimates ranging from 30% to 50%

Dig deeper

Karnataka is set to launch a dedicated GCC City designed to boost the state’s position as a global tech hub and attract Global Capability Centres (GCCs) from across the world.

• Spearheaded by the Karnataka Innovation and Technology Society (KITS), the project will focus on creating a cutting-edge ecosystem for emerging technologies

• With government support and PPPs, the GCC City will provide the infrastructure needed by multinational corporations.

Location and policy details will be unveiled at the Bengaluru Tech Summit 2024 happening from 19-21 November. Find out more

• AI companies like OpenAI are seeking to overcome unexpected delays and challenges in the pursuit of ever-bigger LLMs by developing training techniques that use more human-like ways for algorithms to "think".
  
  
• China's Zhipu AI has launched new AI features for its video tool Ying to compete with other AI-powered video creation tools.

Wondering how many gamers in India actually pay? It was nearly 150 million in FY24. 

This figure is from a new report by gaming and interactive media venture fund Lumikai.

People are also spending more on games. The average revenue per paying user (ARPPU) grew 15% year-over-year to $22 in FY24.

• The country's overall gaming revenues was at $3.8 billion for FY24, driven by a 41% surge in in-app purchases. By FY29, it is expected to grow to $9.2 billion. Read on for more details

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