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In today’s newsletter:

• The human cost of the Infosys layoffs 
• Binance bets big on India, eyes institutional pie 
• Jumbotail looks to add Solv to cart

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“Please let me stay the night. I will leave tomorrow. Where will I go right now?”

Tears rolled down the face of a female Infosys trainee as she pleaded with officials on February 7, only to be told:

“You are no longer part of the company. Vacate the premises by 18:00.”

Infosys fired around 400 trainees last week after they failed evaluation tests three times.

• Many had waited over two years for their onboarding, only to be terminated months later
  
  
• Trainees were called in batches, their laptops in hand, and made to sit in rooms guarded by security

Emails sent the previous day warned them to maintain confidentiality.

• "Mutual separation" letters were handed over, while buses were used to shield the proceedings from visiting US clients, sources told us

Infosys claims these assessments have been part of their hiring process for over two decades. However, trainees allege that the 2024 criteria were excessively stringent.  

Trainers allegedly warned that the test was designed to fail a large number of candidates.

• While freshers previously had flexibility in completing their syllabus, the new system compresses months of learning in about 100 days
  
  
• The syllabus expanded, the passing percentage rose, and the number of coding problems doubled

The result was a dramatic surge in failure rates.  Previously, termination rates were below 10%, but now, they range from 30-40%.

The sudden firings have left trainees stranded in Mysuru, scrambling to return home after years of waiting. 

• Some are even afraid to tell their families, burdened by shame

Around 4,500 trainees still in the system now live in fear, wondering if they will be next. 

• As the Bengaluru-based company slows hiring amid a tough market, trainees wonder if they were ever meant to clear the tests

On February 14, another 450 trainees from the October 2024 batch will take their third attempt at the test—only time will tell whether they will meet the same fate or not.

Dig deeper

It has been nearly six months since world’s largest crypto exchange, Binance, registered in India following a period of ban.

• Vishal Sacheendran, head of regional markets at Binance, called India an important market for the exchange in its first interview after re-entering the country

India is a highly innovative market where the crypto community has a strong understanding of products and blockchain, Sacheendran told us.

• He praised the huge talent pool in the country, building the best deeptech infrastructures

While Binance doesn’t have an offline presence in India yet, the exchange plans to set up shop and hire local talent once they get more regulatory clarity. 

Binance has seen a massive uptick in institutional investment enquiries coming not only from its global markets, but also India, Sacheendran said.

• On the impending regulatory framework, he expects India will follow suit once the US has set its law

Sacheendran also said that Binance is still in talks with hacked exchange WazirX to help bailout its customers, but won’t be looking at an acquisition.

 Go deeper

B2B grocery deliveries, inventory management and soon a stronger credit offering vertical too – Jumbotail is making moves to take on larger rivals. 

Solv, the B2B marketplace that specialises in credit offerings and more, is in advanced stages of merging with Jumbotail, sources told us. 

• Jumbotail, largely known as a vertical B2B grocery platform, wants to strengthen its horizontal play by bringing Solv under its fold

The deal size is pegged at around $50 million (around Rs 425 cr0re) and will be a mix of cash and equity. 

• Solv’s CEO Amit Bansal will exit the company as part of the current deal negotiations, we were told 

Between the two companies, Jumbotail is larger in terms of revenue and has also raised more capital. 

• Jumbotail had a revenue of Rs 850 crore and a loss of Rs 264 crore while Solv had a topline of Rs 88 crore and its losses amounted to Rs 267 crore in FY23
  
  
• While Jumbotail has raised over $150 million (Rs 1,275 crore), Solv has secured $40 million (Rs 340 crore) from Standard Chartered’s venture arm

The B2B grocery space has shown signs of struggle for a while now. The consolidation comes at a time when: 

• B2B grocers like Dealshare have struggled and seen revenues plummet and Shopkirana has seen a contraction in sales
  
  
• Larger players like Udaan have seen valuations correct 44% too 

Dig deeper

In an interview with us, MeitY secretary S. Krishnan outlined India’s ambitious goal to reach $500 billion in electronics revenue by 2025. 

• He emphasised the importance of increasing electronics exports and forming partnerships with Chinese firms to build a competitive .supply chain 

Krishnan also spoke about the pivotal role of component manufacturing, the need for global competitiveness, and India’s focus on expanding AI, semiconductor initiatives, and the Digital Personal Data Protection rules.

Read the full interview

• President Emmanuel Macron announced that France will unveil private sector investments totalling around $112.5 billion in its AI sector at the Paris AI summit.
  
  
• The increasing use of generative AI could boost the productivity of India's $254-billion software by 43%-45% over the next five years, according to a survey by consulting firm EY India.

Apple's strategic investment in India's manufacturing ecosystem appears to be yielding significant returns. 

• iPhone exports have surged past Rs 1 lakh crore in the first 10 months of FY25, a 31% increase. 

India has emerged as a key manufacturing hub for Apple, with three major vendors - Foxconn, Tata, and Pegatron - producing iPhones for export

Find out more

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