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Tech

India’s booming tech sector hit by crisis

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India’s tech industry, once hailed as a beacon of innovation and growth, is facing a significant setback as two of its leading startups, Byju’s and Paytm, grapple with regulatory scrutiny.

The past couple of years have been a reality check for India’s corporate governance practices, according to Karan Mohla, a general partner at venture capital firm B Capital Group. Paytm, once revered as a fintech success story, has been embroiled in controversy since March 2022 when the Reserve Bank of India ordered its banking unit to cease onboarding new customers due to regulatory concerns.

The central bank’s subsequent audit revealed persistent non-compliances and supervisory concerns, leading to restrictions on Paytm’s operations, including the suspension of accepting fresh deposits.

Moreover, the company is under investigation by the federal anti-fraud agency for potential violations of foreign exchange laws.

Amidst this turmoil, Paytm’s stock price has plummeted over 70% since its IPO in November 2021, prompting major investors like SoftBank and Ant Group to reduce their stakes.

Drastic fall

Byju’s, once valued at $22 billion, has also witnessed a drastic fall in its valuation to $1 billion amidst allegations of accounting irregularities and mismanagement.

The edtech giant, which attracted substantial investments during the pandemic, is under scrutiny following an inspection ordered by the Indian government into its financial practices.

The downfall of these tech giants reflects broader challenges in India’s startup ecosystem. While the country experienced a surge in startup registrations and funding during the pandemic, funding for Indian startups plummeted by 83% in 2023 from its peak in 2021.

Byju’s valuation plummeted by 95%, and Paytm’s valuation decreased to $3 billion, indicating a sharp decline from their previous highs.

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TikTok dismisses report of U.S. sale to Musk as fiction

TikTok has categorically denied a report suggesting that Chinese officials are considering selling its U.S. operations to Elon Musk amid potential bans.

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TikTok has categorically denied a report suggesting that Chinese officials are considering selling its U.S. operations to Elon Musk amid potential bans.

The company described the claims, initially reported by Bloomberg News, as pure fiction.

TikTok’s parent company, ByteDance, is currently appealing to the U.S. Supreme Court to contest the potential ban.

Chinese officials reportedly prefer TikTok to remain under ByteDance’s ownership, dismissing any immediate plans to sell the U.S. operations.

Speculation about a partnership with Musk’s platform X to manage TikTok’s U.S. business has been refuted by TikTok, and no credible sources have verified the claim.

No official comments have been made by TikTok, ByteDance, Elon Musk, or X regarding the report. Additionally, Chinese government agencies, such as the Cyberspace Administration and Ministry of Commerce, have not provided any statements on the matter.

The Supreme Court is expected to deliberate on legislation tied to TikTok’s future, with a decision potentially compelling a sale or ban by January 19, driven by national security concerns. However, TikTok remains firm in its stance, refuting these reports as baseless.

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The coming battle of Big Tech vs The State

Musk forced to comply with Brazil’s court order against far-right accounts, highlighting tech companies’ struggles with global regulation.

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Elon Musk was forced to comply with Brazil’s court order against far-right accounts, highlighting tech companies’ struggles with global regulation.

The influence of social media platforms like X extends beyond economic factors; they also impact public perceptions and democratic values. Governments in India, Turkey, and Brazil have pressured X to remove content they consider harmful or misleading.

Last year, Elon Musk faced legal challenges in Brazil regarding the removal of far-right extremist accounts from X, his social media platform. Despite resisting a court order for months, Musk complied after the court threatened to block access for 20 million Brazilian users. It incident highlights the ability of nation-states to regulate powerful tech companies, which they accuse of spreading misinformation and hate speech.

Many governments say tech giants like Meta, Google, and Amazon often dominate markets, causing issues with misinformation and monopolistic practices. Their algorithms can lead to user addiction, while private data misuse raises concerns about competition and market fairness.

Governments have attempted to regulate these companies, with varying degrees of success. The European Union has made notable advances, including imposing significant fines on Apple and requiring interoperability between messaging services. In the U.S., Google faced a $700 million antitrust settlement.

Critics argue that government interventions can resemble censorship. Musk has positioned his actions as a defence of free speech, particularly after his acquisition of Twitter and subsequent reduction in content moderation.

While some tech companies are implementing self-regulation measures to safeguard users, these efforts may not be sufficient. As artificial intelligence evolves, regulation may become increasingly challenging for governments.

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The Future of Technology Unveiled in Las Vegas

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CES 2025 is lighting up Las Vegas with a showcase of groundbreaking technology.

AI-Powered Beauty and Health Devices

One standout is Samsung’s AI-powered beauty mirror, which delivers personalised skincare analysis and recommendations, setting a new standard for at-home beauty routines. Joining the health revolution is Withings’ Omnia, a smart body scanner that provides comprehensive health insights through advanced sensors and AI technology.

Innovative Robotics

CES 2025 is buzzing with robots designed to make life easier and more interactive. Yukai Engineering’s Mirumi is a pastel-coloured robotic companion that clings to your bag, offering baby-like interactions for comfort on the go. For those needing a helping hand at home, Roborock’s Saros Z70 vacuum robot features an extendable arm to pick up household items while cleaning.

Revolutionary Transportation

Pushing the boundaries of mobility, Atmos Gear’s electric skates promise a thrilling ride, reaching speeds of up to 18 mph with a 16-mile range. Controlled by a waist-worn battery pack and controller, these skates are perfect for commuters or adrenaline seekers.

Health Tech Innovation

FlowBeams’ BoldJet is revolutionising healthcare with its needle-free injection technology, using high-velocity liquid jets to deliver medications painlessly while reducing needle waste. This prototype points towards a future of more comfortable and sustainable medical procedures.

Empowering Robotics for Independent Living

Enchanted Tools’ Mirokai robot is tailored for elderly care, offering assistance and companionship to support independent living. Combining functionality with emotional connection, it’s a heartening example of how robotics can transform lives.

The Future of Smart Living

With its innovative range of devices, CES 2025 is also highlighting the intersection of convenience and technology. From smart home devices to AI-driven solutions, this year’s event underlines the industry’s commitment to making life simpler and more enjoyable.

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