One quick thing: Zomato's market cap crosses $20 billion as shares zoom to an all-time high near Rs 200, making it the most valued listed new-age company 

In today’s newsletter: 

• PaiPai vs Pincode 
• Coming soon: Amazon wallet in Google Pay
• Funding incoming for Astrotalk, Ummeed Housing

P.S.: Is India’s tech capital Bengaluru losing its cool? Read more

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The rivalry between Paytm and PhonePe is no longer solely focused on fintech. A new battlefront has emerged.

A year after PhonePe launched Pincode on the Open Network for Digital Commerce (ONDC), a company backed by Paytm founder Vijay Shekhar Sharma has begun piloting an app called PaiPai on the network.

• While Paytm does not own any shares in Pai Platforms, the 'Pai Pai' app has been developed by the fintech major's parent entity, One97 Communications

This comes two months after Paytm E-commerce Private Limited rebranded itself as Pai Platforms and acquired Bengaluru based Bitsila, a seller-side platform on the ONDC network.

• Paytm's move to clearly separate fintech and e-commerce businesses could also be a result of the Reserve Bank of India's action on Paytm Payments Bank Limited (PPBL)

• One of the major points of RBI's concerns about PPBL was the fintech company's related party transactions with multiple subsidiaries and associates

The Paytm founder said last year that ONDC will open up e-commerce for many players as it breaks down different parts of a transaction such as seller, logistics, and payment into separate parts.

"Commerce is a natural extension for us. We are committing to sign up at least 10 million merchants on ONDC before 2025 ends," he said.

Go deeper

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting today wasn't all about interest rates. 

The regulator allowed any prepaid payment instruments (popularly called wallets) to be linked to customers' UPI apps such as PhonePe or Google Pay.

• This means you'll soon be able to add your Amazon Pay balance to your Google Pay app

The timing is interesting. It coincides with the RBI imposing restrictions on Paytm Payments Bank, an affiliated company that held the fintech firm's PPI license. 

• This effectively forced Paytm, India's largest wallet player, to shut its payments bank operations

Nevertheless, this presents a win-win situation for both customers and PPI players

RBI is hoping that a new SRO (self-regulatory organisation) for fintechs will be up and running by late August.

• The regulator will release the framework for the body by the end of this month

The good news doesn't stop there! 

• UPI users can now not only withdraw cash at ATMs, but also deposit cash at designated machines! 

More from our RBI MPC coverage

• CBDCs volume increased after making it interoperable with UPI, says RBI deputy governor

• RBI allows non-bank payment system operators to distribute retail CBDC

• RBI’s decision to hold repo rates will keep housing boom on course, say real estate experts

• RBI to undertake study after May to assess India’s potential growth

• RBI to issue draft circular on LCR review for banks, says governor

After a chilly winter of cautious investments, the venture capital (VC) world in India is experiencing a thaw. 

Leading the charge is Ummeed Housing Finance, which just raised $70 million in a round led by A91 Partners. 

• Existing investors also joined the party, with A91 contributing a hefty $45 million

• This latest investment values Ummeed at a healthy $300 million

It seems the future is bright for Astrotalk! 

Just two months after securing funding, the Noida-based company is in advanced talks with StepStone and Elev8 for a fresh $30 million round. 

• The round will value Astrotalk at $250-280 million, up from the previous $200 million

What's fueling this interest? 

Global investors seem more enthusiastic about Astrotalk compared to their Indian counterparts, and the company is capitalising on this interest.

• Astrotalk's proven track record of profitability is another reason they're raking in the cash

Gurugram-based fintech Planify, which promised crowdfunding opportunities for startups, now faces accusations of covertly lining its own coffers.

Instead of using the traditional private placement route, Planify's parent company and an affiliate allegedly misused the public platform to promote their own businesses and solicit investments directly. Planify essentially raised money for itself while pretending to raise funds for other startups.

• The group companies —Planify Capital and Mayasheel Retail—reportedly raised Rs 3.89 crore from 76 investors 

Dig deeper

• In his first public remarks on the topic, YouTube CEO Neal Mohan said using YouTube videos to train OpenAI's text-to-video generator, Sora, would be a "clear violation" of YouTube's terms of use.
  
  
• Microsoft in a report has issued a warning that China will attempt to disrupt elections in the US, South Korea, and India this year using AI-generated content, following a test run during Taiwan's presidential poll. 
  
  
• Digital services company EXL Service is restructuring to focus on generative AI, resulting in a workforce reduction of about 800 employees.

This weekend, dive into the world of love and artificial intelligence! 

For a lighthearted pick, check out Teri Baaton Mein Aisa Uljha Jiya, a rom-com where Shahid Kapoor plays a scientist who falls for his own robot creation, played by Kriti Sanon. Watch it on Amazon Prime Video

If your idea of a good binge involves gripping real-life stories, She Said is a must-watch. This award-winning film takes you inside the newsroom of The New York Times as two reporters investigate the explosive allegations against Hollywood producer Harvey Weinstein. Watch it on Netflix 

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