💳 Want to become a PA?
Indian firms queue up to get their PA licenses, China's new 'strictest' data privacy law and some more updates.
Hey 👋
Welcome to the mesha tribe. A biweekly newsletter by Mesha that brings you valuable insights from finance, biz, and tech to help you take your net worth #ToTheMoon🚀
Sounds good? Sign up below 👇
Awesome! let’s begin.
First up,
Market Recap 📈
This week, BSE Sensex crossed the 56000-mark for the first time but ended in red following a late sell-off, while Nifty rallied past the 16,700-point level. The US benchmark indices remained low as Fed minutes showed officials agreeing about pulling back on the central bank’s asset purchases this year.
Sensex: 55,629.49 (-0.29%) ↓
Nifty 50: 16,568.85 (-0.28%) ↓
Dow Jones: 34,960.69 (-1.08%) ↓
Nasdaq 100: 14,857.92 (-0.17%) ↓
Bitcoin: $44,348.05
Top Stories 📰
1. World’s strictest data privacy law is ITM 🔒
China is ready to take citizens' privacy to the next level.
This week, the nation's top legislative body is planning to pass a privacy law similar to Europe’s General Data Protection Regulation, which is considered the world's strictest framework for online privacy protection.
As per the latest draft, the new legislation will need organizations handling Chinese citizens' personal data to obtain prior consent and reduce data collection. It also bans firms from abusing market power to stifle competition and hijacking internet traffic to influence users' choices. While the law covers government agencies, analysts believe that the private sector, notably tech, will most likely bear the brunt of the rule.
What's happening? Since last year, China's tech sector has been under constant scrutiny by Chinese regulators, controlling everything from antitrust to data security. The new privacy law is going to ease this process as regulators will have a unified set of rules, making it easier to punish tech companies that previously had unfettered access to user data.
While the legislation restricts government agencies from collecting data beyond their “legally prescribed duties," some believe that it's still unlikely to impact police tracking and surveillance as it lacks any provision for police use.
Despite this, the law has received positive feedback from the Chinese citizens who feel that loose rules on data collection and pervasive government surveillance had left them feeling "naked" on the internet for years.
Why it matters? Public safety in China has a contentious history, which has allowed the government to broadly surveil its citizens for decades. But as the anti-tech rhetoric and heightened security concerns gain mainstream momentum once again, this trade-off seems palatable to many citizens who want to avoid online frauds and scams.
2. Indian firms are racing to get PA licenses 🏦
In hopes of making the most out of India's fintech rush, several firms have lined up before the RBI to get their Payment Aggregator licenses as the central bank makes some changes in its guidelines for non-bank payment providers.
The new rule mandates that all companies rendering payment services to merchants would compulsorily require RBI approval to operate as a licensed PA. It added that regulated banks would not require any separate approval.
At least 30 firms have applied for authorisation or are in the advanced stages of submitting their proposals to the RBI, including Amazon, Reliance Industry, Paytm, Tata group, BharatPe, Cred, Razorpay, Zomato, and PhonePe, among others. This number is expected to increase before the September 30 deadline for existing and new non-bank firms to apply.
The decision received positive responses from several industry insiders, who believe that it would result in a more standardised and regulated payments ecosystem. "For long, the operations of PAs in India have been seen as a blind spot for regulations," said a payments industry insider.
Why it matters? Fintech is a $31 billion industry in India, and it's estimated to grow to$84 billion by 2025 as rapid adoption of digital/online payments and the pandemic-induced social distancing guidelines forces firms to take their services online. Even Amazon, which recently invested in thematic investing platform Smallcase, hopes to capitalize on this newfound boom.
Deal Street 🤑
Indian gaming platform Zupee raises Series B
Zupee, a skill-based real money gaming platform, has fetched $30 million in its Series B funding round at a $500 million valuation, 5x higher than its January valuation. Co-led by Tomales Bay Capital and WestCap Group, the round saw participation from existing investors, including Matrix Partners India and Orios Venture Partners. The 2018-founded startup has over 35 million registered users and saw its revenue jump 15x in the last 12 months. Earlier, social gaming platform GetMega also raised $9 million, emphasizing India's booming gaming industry, expected to grow 113% to ₹290 billion by 2025. Zupee will use the fresh capital to hire global talent, expand its product portfolio, and widen its market reach.
PDAX raises $12.5 million in latest funding round
Crypto trading platform Philippine Digital Asset Exchange (PDAX) has raised $12.5 million in funding, co-led by Hong Kong-listed digital asset firm BC Group and an undisclosed UK-based VC firm. The company, licensed by the Philippines’ central bank, launched its crypto exchange platform in 2018 to allow citizens to buy bitcoins using local currency. The Philippines has the third-highest rate of cryptocurrency usage after Nigeria and Vietnam. Since March 2020, the startup's transaction volume grew by 80x, while monthly volume transactions increased by 25x. The funds from the latest round will allow PDAX to improve its products and services and expand Bonds.ph, Philippines' first mobile app that allows people to purchase government securities.
Tweet Of The Week ✨
Share What You Learn 🤝
If you find this newsletter insightful, forward this email to your friends and colleagues. Or share it on your social media using the link below and let us know your thoughts!
Wanna discuss the above stories yourself? Join us
Bye! 👋