📚 Upskilling is the way for edtech

The most interesting news selected specially for you! 21 August 2024 [View in Browser]( Hello, TRAI is on the offensive against pesky telemarketers. On Tuesday, the Telecom Regulatory Authority of India told telecom companies to get serious about reducing [spam messages]( and protecting consumers from scams. Starting September 1, all access service providers will be prohibited from transmitting messages containing URLs, OTT links, or callback numbers, which are not 'whitelisted' (authorised) by the senders, the regulatory body said. Meanwhile, global technology giants, including Amazon, Google, and Netflix, are pushing back against attempts by India’s telcos to bring internet services under [stricter regulation](. Up ahead: A stand against AI. iPad design application Procreate has vowed it will [never use]( Gen AI in any of its products. By not giving in to AI as its competitor Adobe Photoshop, Procreate CEO James Cuda believes the company is “on the right path supporting human creativity”. Also, a growing number of Fortune 500 companies are [flagging AI risks](. Lastly, meet Chubby, the [AI-generated cat]( that finds itself in sad situations. In today’s newsletter, we will talk about - Upskilling is the way for edtech - The key to success in India VC market - Erekrut changing the hiring game Here’s your trivia for today: The Atlas Mountains stretch across which three countries? --------------------------------------------------------------- Interview Upskilling is the way for edtech Co-founder Ronnie Screwvala, in an exclusive interview with YourStory, pointed to the recent Union Budget as a clear signal of the vast opportunities ahead for India's edtech sector. “If you look at it, the Union Budget, for example, is screaming across the rooftops about this sector because they're saying skilling is the most important, internship is the most important,” said Screwvala, whose Swades Foundation successfully listed a project on the NSE’s Social Stock Exchange. Necessary steps: - He said the ambitious goals of the Union Budget cannot be met without online help. - "We cannot actually learn, educate and skill people who are in jobs by asking them to go back into a training centre or learning centre in that sense," said Screwvala. - While the Indian edtech segment has been struggling with funding drying up—only $710 million was raised in 2023—upGrad recently raised Rs 287.5 crore in debt from EvolutionX Debt Capital. [Read More]( --------------------------------------------------------------- Investor The key to success in India VC market in India's VC market hinges on mastering exit strategies, exercising patience, and strategically timing investments to seize the most opportune exit moments, Blume Ventures’ General Partners told its investors or Limited Partners in the latest newsletter sent to them. Blume’s take on the exit environment in India comes when the exit debate is hotting up in the country, with many domestic venture capital firms coming to the end of the cycle for their first fund. Strategies: - In an interview, Karthik Reddy, Co-founder and Managing Partner of Blume, said that the VC managed to generate returns in the ‘high teens’ from the first fund, slightly lower compared to the average return of over 25% typically expected from a seed-stage fund. - Blume’s General Partners said that large dollar exits, typical in the range of $50-500 million, usually occur between years 3 to 8 of a company's lifecycle as a majority buyout by a financial or strategic investor. - Super-large M&A outcomes, on the other hand, worth over $500 million are rare in India, and only acquirers with large cap tables or massive cashflow can afford these acquisitions, Blume said. [Read More]( --------------------------------------------------------------- Startup Erekrut changing the hiring game 2019, while volunteering for Amity University's campus-to-corporate programme, fashion student Ajay Goyal recognised the inefficiencies in traditional hiring, including lengthy cycles, delayed responses, and an impersonal approach that failed to attract top talent. To solve this, Goyal—along with his father, Dr Ravinder Goyal, who had nearly three decades of experience in vocational training and placement—founded Erekrut in 2020, a platform that automates and streamlines the hiring process to enhance efficiency and reduce delays. Finding jobs: - In response to the lengthy hiring processes typical in India, where it takes an average of 32 days to hire an employee, Erekrut introduced its "One Day Hire" feature in June. - Powered by AI-driven system Erika, this feature aims to complete the entire recruitment process—from job posting to offer acceptance—within a single day. - Erekrut also runs an internship programme that provides substantial learning and practical experience. The programme, which has trained over 800 individuals, offers interns access to research and development resources, enabling them to work on real projects. [Read More]( --------------------------------------------------------------- Application open for Tech30 you a visionary founder at the helm of a startup poised to redefine industries? Look no further than Tech30, the ultimate platform to showcase your innovation. Tech30 is more than just a recognition; it's a catalyst for the future. We're on a mission to bring together India's brightest tech minds to unravel the next big thing. If you're building groundbreaking solutions that have the potential to reshape our world, Tech30 is your launchpad. Join us as we celebrate the pioneers driving India's tech revolution. [Apply for Tech 30]( --------------------------------------------------------------- From the CapTable Karthik Reddy on preparing startups for IPOs and Blume’s track record and future prospects On the morning of August 14, as we sat down with Karthik Reddy, co-founder and managing partner of venture capital (VC) firm Blume, the obvious topic of conversation was the surge in startup IPOs—a hot topic in the country’s startup ecosystem. Three of India’s new-age technology companies, all backed by the globally aggressive tech investor SoftBank, had recently debuted on the country’s stock exchanges. Two of these—Ola Electric and FirstCry—were the largest initial public offerings in India this year, and all three companies saw their stock prices soar post-listing after garnering positive responses from public market investors. Unlike its peers—such as Peak XV, Accel, and 3One4 Capital—Blume Ventures, despite being one of India’s most active homegrown venture capital firms, has found it challenging to take its portfolio companies public. Reddy, however, is determined to turn things around. “I want to exit 10-15 companies in the next three years, and at least half of them through public listings,” Reddy, who is seated in his plush South Mumbai office, tells The CapTable over a video call. Key takeaways: - Blume’s Karthik Reddy wants to exit 10-15 companies over the next three years, half of them through public listings - Blume Ventures returned 60% of its capital of Fund I by 2018 and has generated returns in the ‘high teens' - Blume Ventures has written down its stake in Dunzo, in which the VC invested from its Fund II in 2016 - Besides Dunzo, Reddy said that exits from Fund II have been harder with many companies such as Unacademy, slice, Spinny, etc., witnessing slowdowns [Continue Reading]( --------------------------------------------------------------- News & Updates - [Black myth:]( A new video game titled, Black Myth: Wukong, launched on Tuesday by a Tencent-backed startup has quickly become the most-played game on a major online platform, highlighting growing interest in Chinese-developed titles. - [Chip war:]( Taiwan Semiconductor Manufacturing Co. broke ground in eastern Germany on its first European plant as the continent seeks to safeguard its chip supplies amid growing US-China tensions. - [Electric vehicles:]( The European Union on Tuesday said planned tariffs on Tesla vehicles imported from China would be cut to 9% from 20.8%, while also reducing a number of planned import duties on other Chinese electric vehicle firms. Did you know? The Atlas Mountains stretch across which three countries? Answer: Morocco, Algeria, and Tunisia. We would love to hear from you! To let us know what you liked and disliked about our newsletter, please mail nslfeedback@yourstory.com. If you don’t already get this newsletter in your inbox, [sign up here](. For past editions of the YourStory Buzz, you can check our [Daily Capsule page here](. [Feedback]( [Unsubscribe]( [Newsletters](