Good morning. You’re currently tuned into Earlybird, the espresso shot of Indian business, tech, and startup news.

In this edition:

• 💅 Data breach at Yes Madam

• 🛑 Amazon Pay gets penalized $370K

• 🏦 Citigroup to lay off hundreds worldwide

MARKETS: WEEK-TO-DATE

*Stock data as of market close. Source.

Markets: Commodity prices are expected to surge further next week as investors hope for a rebound in the Chinese economy, buoyed by the government's announcement of new stimulus measures. This comes after a dip in oil prices caused by concerns over the spread of the Omicron variant, which could further impact global markets.

PRIVACY

On-demand beauty services app Yes Madam found with sensitive data breach

💅 Yes Madam, an Indian startup brokering on-demand beauty and wellness services for women, is being held responsible for a data breach that exposed sensitive user information.

What happened?

• Apparently, the startup left a database of hundreds of thousands of Yes Madam users without a password that was linked to the internet at least as of February 20.

• The database contained the full names, mobile numbers, mailing addresses, and email addresses of these users.

• The database also contained information on users' devices, such as model names and IMEI numbers, as well as location information for customers, such as latitude and longitude values.

Cleaning up

According to Yes Madam, the database was secured on Friday, not long after TechCrunch contacted them with the news. Yes Madam co-founder Mayank Arya confirmed that a patch had been implemented.

However, Arya remained silent when asked if Yes Madam has the technical tools to figure out whether the accessible data was read by anyone else, such as logs.

🔍️ Looking ahead… The Yes Madam data breach underscores the need for companies to prioritize the security and privacy of their users' data. With the growing popularity of on-demand services platforms in India, it remains crucial for businesses to take proactive measures to prevent data breaches and safeguard sensitive information.

REGULATION

Indian banking watchdog penalizes Amazon Pay for breaching payment rules

🛑 The Reserve Bank of India (RBI) has fined Amazon Pay $370K for violating several provisions of Indian payment system rules. Here's what you need to know:

What happened

• The penalty was imposed after an investigation found that Amazon had breached several rules including those related to KYC (know-your-customer) and anti-money laundering norms.

• Amazon was also found to have deficiencies against certain clauses of the Master Directions on Prepaid Payment Instruments (PPIs) of 2021.

• Intent to reassure customers on their transaction safety, an RBI statement disclaimed, "This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers.”

↘️ Amazon's response. The company said it takes compliance very seriously and ready to cooperate with authorities to ensure compliance with regulations.

REGULATION

Nissan to develop left-hand-drive Magnite to ramp up exports

🚗 Nissan is reportedly working on developing a left-hand-drive version of its popular SUV, the Magnite, in order to increase its exports from India. Here's what we know so far:

Details

• Currently, the Magnite is only produced in a right-hand-drive configuration for the Indian market.

• By developing a left-hand-drive version, Nissan hopes to tap into new international markets such as Africa, the Middle East, and South America.

• The company plans to manufacture the left-hand-drive Magnite at its plant in Chennai, India, with an expected production capacity of 10,000-20,000 units per year.

Opening avenues

• India is emerging as a key production hub for automakers, with companies such as Nissan looking to leverage the country's low-cost manufacturing capabilities and skilled labor force.

• By expanding its exports, Nissan can diversify its revenue streams and reduce its reliance on the highly competitive domestic market.

• The move also highlights the growing demand for affordable SUVs in emerging markets, as well as the importance of developing flexible production lines that can cater to multiple markets and configurations.

INDIA EDITION: WHAT ELSE IS ON THE BIRDWATCH

• 💵 Local startups boo high Play Store fees. Startups and developers in India are protesting Google, and even considering legal action, for the latter charging excessive fees for digital items sold through the Play Store.

• 🚢 India lays a big ‘nope’ on sub-par imports. India is set to issue 58 new quality control orders to help block imports of sub-standard goods as the country seeks to improve product quality and up local distribution standards.

• 👆️ Foxconn remains indefinite on $700M plant. On Saturday, Taiwan electronics maker Foxconn has clarified previous reports on a new $700M investment plan in India, stating that it has not signed any definitive, ‘binding’ agreement with the Indian government.

FUNDING DEALS

Catch up on the Indian funding flows from the past 24hrs:

• Betterhalf.ai, a super app for wedding services, has raised $8.5M in a Series A round led by FinSight Ventures and Dropbox co-founder Arash Ferdowsi. The new funds will be used to improve the app's AI capabilities and expand the team, as well as develop new features such as video profiles and community-based recommendations.

• Sigtuple, a hearty healthtech startup, has raised Rs. 34.5 crore in a round led by Endiya Partners and Accel. This latest injection will be used to expand its product offerings and scale up the firm’s flagship AI-powered platform, which uses computer vision and machine learning to analyze medical images and data.

• SpotDraft, a contract lifecycle management startup, has raised $26M in a round led by Premji Invest. The funding will be used to enhance SpotDraft's AI-powered platform, which automates contract drafting, review, and management processes, and to expand its market reach.

• Sploot, a local petcare startup, has raised Rs. 5.2 crore in a funding round led by Info Edge Ventures. The newfound finances will be used to enhance Sploot's online platform, which provides pet owners with personalized nutrition and wellness solutions.

WORLD

Headline Explorer

✂️ Citigroup layoffs. Citigroup has announced that it will be slashing 1% of its global workforce, impacting several hundred jobs worldwide. The job cuts will reportedly affect employees across Citigroup’s operations, tech, and investment banking units, according to familiar sources.

🚗 Honda eyes new battery tech for its EVs. Toshihiro Mibe, CEO of Honda, is putting his faith in a new battery technology to help the company catch up in the electric vehicle (EV) race. After falling behind rivals like Tesla and Volkswagen in the EV world, Mibe is betting on solid-state batteries, which offer better energy densities and quicker charging than conventional lithium-ion batteries.

🎯The EU’s new clean tech target. The European Union is set to propose new rules to support certain green industries, including electric vehicle batteries and hydrogen, according to a draft document shared on Saturday. The proposed rules would require EU member states to submit recovery and resilience plans that prioritize investment in sustainable technologies and industries.

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