Ola Electric Feels Regulatory Heat

Troubles seem to be the norm for Ola Electric these days. Now, the Karnataka High Court (HC) has rejected the EV maker’s petition to quash a notice issued by the Central Consumer Protection Authority (CCPA).

The consumer protection watchdog had sought additional documents as part of a probe into the company in connection with thousands of complaints filed by its consumers.

Just as the listed EV juggernaut was reeling under the impact of HC’s directions, SEBI, too, issued a warning to Ola Electric for flouting disclosure norms. The company invited the market regulator’s ire for announcing the planned expansion of its store network on social media before informing the bourses first.

SEBI warned the company that such future transgressions would invite enforcement action against it.

As anticipated, markets reacted sharply to the news and the Ola Electric stock nosedived as much as 5% during the intraday trading on January 8. However, the EV major bounced back and closed the day 0.48% higher at INR 79.54 on the BSE.

Notably, regulatory troubles seem to be the least of Ola Electric’s worries. The EV maker has seen multiple top-level exits in the past few months, including its chief technology and marketing officers. Then, there is the problem of rising competition as legacy players, Bajaj Auto and TVS Motor, are fast catching up to overtake Ola Electric.

On top of this, the EV giant’s stock has been witnessing heavy volatility on the bourses. While it remains to be seen whether the Bhavish Aggarwal-led company is able to tide over the challenges, here is our short read on Ola Electric shares nosediving amid regulatory crackdown. Continue reading…

From The Editor’s Desk

What’s In Store For Fintechs? Having borne the brunt of capital drought for the past two years, industry watchers see heightened investor interest in fintech startups this year. The year will also see fewer compliance-related challenges and more fintechs moving back to India.

BluSmart To Raise $50 Mn: The EV cab-hailing startup plans to raise the capital as part of its Series B round at a pre-money valuation of $335 Mn, which will see participation from existing and new VCs. The startup has already received $25 Mn as part of the first tranche.

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Swiggy Rolls Out New Apps: The foodtech giant has rolled out SNACC in Bengaluru to deliver quick bites, beverages and meals in 15 minutes. It also launched another app “Pyng” to enable professionals to list their services on the platform.

WOW Skin Science Seeks Buyer: The beauty and skincare startup is seeking a strategic buyer at a reduced valuation of $250 Mn, down 38% from the $400 Mn at which it was last pegged. This comes on the back of investors looking to make their exit from the startup.

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Paytm Shares Spiral: Shares of the listed fintech major slipped nearly 9% to INR 895.25 apiece during the intraday trading on January 8 after the NPCI’s data showed that Paytm had a stagnant growth in UPI transactions in December.

Inc42 Startup Spotlight

How Vodex Is Helping Enterprises Automate Sales Calls

As India’s tech ecosystem embraces the GenAI revolution, more and more businesses are now seeing merit in automating their sales processes. The reasons range from reduced operational costs to enhanced analytics and insights.

Looking to make a splash in the space, Anshul Shrivasthava and Kumar Saurav founded Vodex in AI. Unlike other SaaS-based products that target just the sales process, Vodex streamlines voice-based communications, too, using GenAI.

The startup offers an AI-powered sales agent for outbound calls that can automate up to 10,000 calls daily, providing a human-like voice. With use cases across ecommerce, fintech, and real estate sectors Vodex’s call automation platform can be used by companies to cross-sell or upsell to existing customers.

Backed by Unicorn India Ventures, Pentathlon VC, and 100, Vodex claims to have clocked an annual recurring revenue (ARR) of $1 Mn in FY24. It also claims to have scaled its contracted revenue to $10 Mn with an average order value (AOV) of over $1 Mn in 2024.

By FY25, the company has set its eyes on achieving an ARR of $4 Mn and reaching $10 Mn in contracted revenue by FY25.

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