Happy Tuesday! Flipkart's former chief product and technology officer is set to join Reliance Retail Ventures as CEO. This and more in today’s ETtech Morning Dispatch.
Also in the letter:
■ TCS CFO on productivity
■ ETtech Done Deals
■ Karnataka’s gig worker tax
Scoop: Flipkart product, tech head Jeyandran Venugopal may join Reliance Retail Ventures as CEO
Jeyandran Venugopal, Flipkart’s outgoing chief product and technology officer, will likely head Reliance Industries Limited’s (RIL) consumer-facing businesses.
Driving the news:
But why: Bringing in Venugopal is seen as a strategic move by RIL to reinforce its retail narrative with a focus on technology-led growth. Sources say Reliance aims to leverage his tech leadership to drive its retail empire's next phase of expansion.
Track record:
Financials: In 2023, RRV raised $1 billion from the Qatar Investment Authority in 2023, valuing the RIL subsidiary at around $100 billion. However, recent brokerage reports have halved this valuation amid ongoing restructuring within its retail arm.
For the quarter ended December, RRV posted revenue of Rs 90,333 crore ($10 billion), a 9% year-on-year increase, with a net profit of Rs 3,485 crore.
Context: ET reported in August that RIL cut 42,000 jobs in FY24 due to a cost-efficiency drive and a hiring slowdown, with most reductions in the retail segment. The company has also shuttered some stores and scaled back expansion efforts.
Small-town India takes to wealth advisory services in a fresh twist
Wealth management startups are seeing growing interest from smaller towns, driven by India’s financial growth and improved access to information.
What’s the news: Portfolio management (PMS) firms, alternative investment funds (AIFs) and wealth advisory firms report that nearly 30% of their new clients now come from beyond the top 18 state capitals.
What's driving the shift?
Building presence: Digital platforms democratise access to financial services, but a physical presence remains essential.
Stock market high: This trend coincides with a rise in retail participation in the stock market. Online brokerages like Zerodha, Angel One and Groww report that over 80% of new users come from outside metro cities.
Also Read: Smallcase raises $50 million in funding led by Elev8 Venture Partners as wealthtech heats up
GenAI will aid margins despite cannibalisation of productivity gains: TCS CFO
Samir Seksaria, CFO, TCS
Samir Seksaria, the chief financial officer at Tata Consultancy Services (TCS), said that while generative AI (genAI) may cannibalise revenues, it enhances productivity, allowing IT firms to deliver the same output with fewer people. He described it as a “win-win”.
Jargon buster: Revenue cannibalisation occurs when a company's new product or service reduces sales of its existing offerings. Though it eats into current revenue streams, it often creates new ones, expanding overall opportunity.
India’s IT industry traditionally charges clients based on the number of engineers deployed per project. The rise of artificial intelligence and genAI is disrupting this model.
Also Read: TCS to delay salary hikes on uncertain business environment
Optimisation high: “At a deal or transaction level, if ten people handle a task, it can now be done by eight; you could call that cannibalisation. But if I can take on more work, my volumes rise, Seksaria explained. This, he said, helps maintain profit margins.
Productivity perspective: Seksaria added that IT companies will retain better productivity gains as they transition to milestone or outcome-based pricing models. Clients, in turn, will see clearer value in the services delivered.
Soft outlook: On April 11, TCS reported a slight profit dip and missed analyst expectations. Seksaria noted that ongoing volatility in global trade discussions will keep IT companies cautious in the near term.
Other Top Stories By Our Reporters
Sandeep Shah, founder, Optimized Electrotech
Deeptech imaging startup Optimized Electrotech raises $6 million: Optimized Electrotech, a deeptech imaging and surveillance startup, has raised $6 million in a Series A funding round led by Blume Ventures and Mela Ventures.
Guilt-free ice cream brand Noto raises Rs 21 crore: Noto, the guilt-free ice cream brand backed by actor John Abraham, has raised Rs 21 crore in a funding round led by Equentis Angel Fund, the early-stage investment arm of Mumbai-based wealth management firm Equentis Wealth Advisory.
Explained: How Karnataka’s gig worker tax could change the app economy | Karnataka is mulling a differential fee on app-based services to fund social security for gig and platform workers. The move could set a precedent for other states and influence the broader policy landscape around India’s gig economy.
ETtech Explainer: Trump targets semiconductors as tariff relief for tech firms nears end | US President Donald Trump is set to impose fresh tariffs on semiconductors, with an announcement expected within the week. The move reverses earlier tariff reprieves on key electronics items and underscores his push to tackle what he describes as unfair trade practices, especially by China.
Tech layoffs: Google, Microsoft, Meta among companies leading 2025 layoffs | A few months into 2025, major tech companies, including Google, Microsoft and Meta, are pushing ahead with significant layoffs as they streamline operations, cut costs and refocus on areas like artificial intelligence.
Global Picks We Are Reading
■ The most dangerous hackers you’ve never heard of ( Wired)
■ Jack Dorsey and Elon Musk would like to ‘delete all IP law’ ( TechCrunch)
■ DeepSeek and chip bans have supercharged AI innovation in China ( Rest of World)
Also in the letter:
■ TCS CFO on productivity
■ ETtech Done Deals
■ Karnataka’s gig worker tax
Scoop: Flipkart product, tech head Jeyandran Venugopal may join Reliance Retail Ventures as CEO
Jeyandran Venugopal, Flipkart’s outgoing chief product and technology officer, will likely head Reliance Industries Limited’s (RIL) consumer-facing businesses.
Driving the news:
- Venugopal is expected to take charge of Reliance Retail Ventures (RRV), which operates platforms such as Reliance Retail Brands, JioMart, Ajio, Tira and other online and offline retail businesses.
- At Flipkart, he led product management, user research, data science and platform growth.
- His departure was announced internally in February, and he is set to leave the Walmart-backed ecommerce giant in May formally.
But why: Bringing in Venugopal is seen as a strategic move by RIL to reinforce its retail narrative with a focus on technology-led growth. Sources say Reliance aims to leverage his tech leadership to drive its retail empire's next phase of expansion.
Track record:
- Venugopal led the overhaul of Myntra in his early years at Flipkart.
- He previously spent six years at Yahoo and held roles at Snapdeal and Amazon Web Services.
Financials: In 2023, RRV raised $1 billion from the Qatar Investment Authority in 2023, valuing the RIL subsidiary at around $100 billion. However, recent brokerage reports have halved this valuation amid ongoing restructuring within its retail arm.
For the quarter ended December, RRV posted revenue of Rs 90,333 crore ($10 billion), a 9% year-on-year increase, with a net profit of Rs 3,485 crore.
Context: ET reported in August that RIL cut 42,000 jobs in FY24 due to a cost-efficiency drive and a hiring slowdown, with most reductions in the retail segment. The company has also shuttered some stores and scaled back expansion efforts.
Small-town India takes to wealth advisory services in a fresh twist
Wealth management startups are seeing growing interest from smaller towns, driven by India’s financial growth and improved access to information.
What’s the news: Portfolio management (PMS) firms, alternative investment funds (AIFs) and wealth advisory firms report that nearly 30% of their new clients now come from beyond the top 18 state capitals.
What's driving the shift?
- Technological advancements that reduce client servicing costs
- India’s expanding financial landscape.
- Greater access to financial education and information.
Building presence: Digital platforms democratise access to financial services, but a physical presence remains essential.
- Wealthtech platform Dezerv now serves clients across 200 pin codes supported by relationship managers (RMs) in smaller cities.
- Centricity has established 55 branches across India to meet rising investor demand.
Stock market high: This trend coincides with a rise in retail participation in the stock market. Online brokerages like Zerodha, Angel One and Groww report that over 80% of new users come from outside metro cities.
Also Read: Smallcase raises $50 million in funding led by Elev8 Venture Partners as wealthtech heats up
GenAI will aid margins despite cannibalisation of productivity gains: TCS CFO
Samir Seksaria, CFO, TCS Samir Seksaria, the chief financial officer at Tata Consultancy Services (TCS), said that while generative AI (genAI) may cannibalise revenues, it enhances productivity, allowing IT firms to deliver the same output with fewer people. He described it as a “win-win”.
Jargon buster: Revenue cannibalisation occurs when a company's new product or service reduces sales of its existing offerings. Though it eats into current revenue streams, it often creates new ones, expanding overall opportunity.
India’s IT industry traditionally charges clients based on the number of engineers deployed per project. The rise of artificial intelligence and genAI is disrupting this model.
Also Read: TCS to delay salary hikes on uncertain business environment
Optimisation high: “At a deal or transaction level, if ten people handle a task, it can now be done by eight; you could call that cannibalisation. But if I can take on more work, my volumes rise, Seksaria explained. This, he said, helps maintain profit margins.
Productivity perspective: Seksaria added that IT companies will retain better productivity gains as they transition to milestone or outcome-based pricing models. Clients, in turn, will see clearer value in the services delivered.
Soft outlook: On April 11, TCS reported a slight profit dip and missed analyst expectations. Seksaria noted that ongoing volatility in global trade discussions will keep IT companies cautious in the near term.
Other Top Stories By Our Reporters
Deeptech imaging startup Optimized Electrotech raises $6 million: Optimized Electrotech, a deeptech imaging and surveillance startup, has raised $6 million in a Series A funding round led by Blume Ventures and Mela Ventures.
Guilt-free ice cream brand Noto raises Rs 21 crore: Noto, the guilt-free ice cream brand backed by actor John Abraham, has raised Rs 21 crore in a funding round led by Equentis Angel Fund, the early-stage investment arm of Mumbai-based wealth management firm Equentis Wealth Advisory.
Explained: How Karnataka’s gig worker tax could change the app economy | Karnataka is mulling a differential fee on app-based services to fund social security for gig and platform workers. The move could set a precedent for other states and influence the broader policy landscape around India’s gig economy.
ETtech Explainer: Trump targets semiconductors as tariff relief for tech firms nears end | US President Donald Trump is set to impose fresh tariffs on semiconductors, with an announcement expected within the week. The move reverses earlier tariff reprieves on key electronics items and underscores his push to tackle what he describes as unfair trade practices, especially by China.
Tech layoffs: Google, Microsoft, Meta among companies leading 2025 layoffs | A few months into 2025, major tech companies, including Google, Microsoft and Meta, are pushing ahead with significant layoffs as they streamline operations, cut costs and refocus on areas like artificial intelligence.
Global Picks We Are Reading
■ The most dangerous hackers you’ve never heard of ( Wired)
■ Jack Dorsey and Elon Musk would like to ‘delete all IP law’ ( TechCrunch)
■ DeepSeek and chip bans have supercharged AI innovation in China ( Rest of World)
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