Indian Startups Brace for Impact as Silicon Valley Bank Fails: Govt Steps In to Help
Big news in the world of startups! Silicon Valley Bank (SVB) in US has collapsed, leaving many Indian entrepreneurs worried about the impact on their businesses. The bank had $209 billion in assets and depositors pulled out as much as $42 billion on a single day, rendering it insolvent. FDIC has taken the control of bank now and is exploring the best way out for all the affected startups.
India has one of the world’s largest startup markets, with many clocking multi-billion-dollar valuations in recent years and attracting foreign investors. Consumer internet startups, which have drawn the bulk of funding in India in recent years, are less affected. They either do not have an SVB account or have minimal exposure to it. However, many Indian founders who set up their U.S. companies and raised their initial round with SVB are affected, causing uncertainty and stress.
Rajeev Chandrasekhar, the state minister for IT, has announced that he will meet with Indian startups this week. He will try to understand the impact on them and how the government can help during the crisis.
Software firm Freshworks has confirmed it has minimal exposure to the SVB situation relative to the company’s overall balance sheet. But India’s Nazara Technologies Ltd has announced that two of its subsidiaries hold cash balances totaling $7.75 million or 640 million rupees with SVB. The impact on these businesses remains to be seen, but many are keeping a close eye on the situation.
Meta planning to launch Twitter’s new competitor
Meta, the parent company of Facebook, is looking to launch a new social media app to compete with Twitter. This comes at a time when Twitter is struggling to retain its advertising base following Elon Musk’s takeover of the platform.
Meta’s new app will be based on the framework that powers Mastodon, a Twitter-like service that has been around since 2016. It will provide a separate space for creators and public figures to share timely updates about their interests.
It’s goal will be to displace Twitter as the world’s “digital town square.” The app will allow Meta to take advantage of Twitter’s current chaos, where cost-cutting has been rampant. The move also comes at a time when Facebook is struggling to attract a younger audience and its huge investments in the metaverse show little signs of paying off. Meta’s video-sharing app, Instagram, is also facing stiff competition from TikTok.
Mark Zuckerberg’s Meta has been exploring various options to expand its social media empire. The company is investing in new technologies, such as virtual reality and augmented reality. Create a new app to compete with Twitter is the latest among them. With Meta’s vast resources and expertise in social media, it will be interesting to see how this new app shapes up and if it can displace Twitter as the go-to platform for sharing text updates.
Who Is Rohit Jawa, HUL’s Next CEO?
Rohit Jawa is all set to take charge as the new managing director and chief executive officer of Hindustan Unilever Ltd. This marks another major marketer climbing the ladder to the highest echelons of corporate leadership. Jawa has been appointed for five consecutive years, starting June 27, succeeding Sanjiv Mehta.
Jawa, who is currently the chief of transformation at parent Unilever Plc., is no stranger to HUL. Having joined the company as a management trainee in 1988. He has climbed through the ranks in the past 35 years at the consumer goods giant. His appointment comes at a time when the industry is grappling with the twin challenges of consumption slowdown and high inflation.
Jawa’s key responsibilities include:
- Expanding the GSK portfolio to become a major growth driver for HUL
- Scaling up recent acquisitions in the direct-to-consumer space
- Making HUL an even bigger player in the naturals or ayurveda segment.
With his extensive expertise in the home care, personal care, and food industries, Jawa is expected to bring a fresh perspective and energy to the table.