One important thing: India’s first publicly listed gaming company Nazara Technologies plans to revisit its risk management strategy and further diversify its cash reserves, in order to avoid being impacted by incidents such as the sudden collapse of Silicon Valley Bank (SVB) in the United States, founder and chief executive Nitish Mittersain told us.

• Two of Nazara’s step-down subsidiaries held a cumulative cash balance of $7.75 million (about Rs 64 crore) at SVB, the company had disclosed on March 12.

Scroll down for the latest on the ongoing saga at the crisis-hit bank and its impact on the global tech and startup ecosystem.

In today’s newsletter: 

• SVB saga: The light after the (pitch) dark
• Mobility startups pivot to e-scooter rentals
• Data privacy concerns around Meta’s Twitter rival 

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Many tech startups can finally breathe a sigh of relief after struggling to access their funds stuck in Silicon Valley Bank. HSBC Holdings Plc today announced that its subsidiary, HSBC UK Bank plc, will acquire Silicon Valley Bank UK Limited (SVB UK) for just £1.

The UK unit of Silicon Valley Bank finding a buyer is definitely instilling confidence in the startup ecosystem.

• Britain's finance minister Jeremy Hunt stated that the country's banking system is extremely secure, adding that the rescue of SVB's UK arm was necessary to help protect some of the UK's most strategic tech companies.

There is some good news in the US market as well, with the Treasury Department, Federal Reserve, and Federal Deposit Insurance Corporation (FDIC) assuring and working to protect Silicon Valley Bank clients.

US authorities today pledged to fully protect all depositors' funds while also easing short-term loan terms for any banks in need of funds.

• The FDIC, which has been made the receiver of the crisis-hit Silicon Valley Bank, said that all deposits have been transferred to a new bridge bank and that normal banking operations have resumed for SVB customers

• The Federal Reserve also said that an expansive emergency lending programme would be rolled out to prevent a wave of bank runs that would threaten the stability of the banking system and the US economy as a whole

Despite top SaaS firms like Freshworks issuing reassuring statements that they have diversified their deposits and are not at risk, the ripple effect of the collapse is upsetting!

Brokerage firm Wedbush Securities in a report said that IT firms may experience a delay in tech spending. This comes during a challenging macro environment for Indian IT companies, where firms have said they are seeing extended cycles in certain verticals and an increase in cost optimisation deals.

• The primary spending impact will be in the banking, financial services and insurance (BFSI) and high-tech verticals, Wedbush said
  
  
• This, in turn, will result in longer sales cycles and a delay in the actual budget cycle for this calendar year

Abracadabra! Are you wondering where the app-based rental bicycles in your neighbourhood have disappeared?

When app-based rental bicycles were introduced in India, people were relieved. It was seen as an affordable and practical last-mile connectivity option for public transport users and delivery workers. It also provided a modern alternative to traditional bicycle rental shops that charged hourly or daily rates.

App-based rental firms offered a cash-less and contact-less public sharing system, which was quickly adopted by cities like Bengaluru and Mysuru which announced their own Public Bicycle Sharing Systems. 

• However, the success was short-lived as the firms started exiting the market one after the other

Many app-based dockless bicycle rental services launched by mobility startups with great enthusiasm have either shut down completely or reduced their operations. 

• Mobility startups that started off with cycles are now shifting gears to e-scooters

• There are several factors that contribute to this, including the absence of proper cycling infrastructure, unfavourable weather conditions, changes in consumer behaviour, and more

App-based micro mobility firm Yulu told us that it will not be expanding its bicycle rental services. On the other hand, MYBYK.IN, which currently operates in six cities across India with a total fleet of 10,000 pedal bicycles, has plans to launch services in Mysuru next month with a fleet of 1000 electric bicycles.

Go deeper

Meta's run-ins with privacy issues are not new. In 2012, it paid $90 million to settle a case in which it was accused of user tracking. Such issues are still prevalent more than a decade later, with privacy watchdogs now raising concerns about Meta's proposal to build a Twitter competitor. 

• On March 10, we broke the story that Meta is exploring a decentralised standalone social network for users to share text updates, that could potentially take on Elon Musk’s social media firm.

The team working on the proposed new platform intends to use Instagram users' data, irrespective of their involvement in the new platform, for analytics, product enhancement, and ranking purposes.

The Internet Freedom Foundation pointed out that the proposed use of Instagram data regardless of user participation raises concerns about the lack of purpose limitation and violation of user consent.

• The Software Freedom Centre noted that the country lacked a data protection law, and that data sharing in its absence posed a risk
  
  
• Meanwhile, legal experts pointed out that the upcoming Digital Personal Data Protection Bill requires platforms to provide a detailed list of the data that will be processed by them

The Instagram data that may be shared with the new platform, according to attorneys with whom we spoke, may be limited to a user's profile photo and bio.

• Since profile photos and bio data are accessible to the public, legal experts believe that sharing such data is permissible under the law
  

Legal experts were also of the opinion that Meta's privacy policy will supplement the requirements of this cross-platform data transfer.

Go deeper

On March 13, 1986, Microsoft started trading its stock on the NASDAQ stock exchange, almost 11 years after it was founded. The initial share price was $28 per share, and it raised almost $61 million in just one day.

• Ripple CEO Brad Garlinghouse addressed concerns about the company's connection to Silicon Valley Bank and assured followers that the firm's operations would not be affected. He emphasised that Ripple's financial position remains robust and stable.
  
  
• In its Macrofinancial Implications of Crypto Assets report, the IMF warned the Group of 20 (G-20) nations that crypto assets could cause banks to lose deposits and cut lending.

Indians around the world beamed with pride at the 95th Academy Awards, as the nation celebrated a historic moment. 

The song Naatu Natu from SS Rajamouli's masterpiece RRR etched its name in the history books, becoming the first Indian film to win the Oscar for Best Original Song.

• Watch Kaala Bhairava, Rahul Sipligunj sing the Oscar-nominated song at the Red Carpet of 95th Academy Awards.

Adding to the glory, Guneet Monga's short documentary The Elephant Whisperers also emerged victorious, clinching the Oscar for Best Documentary Short Film. 

• Watch the documentary on Netflix

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