Happy Friday! The RBI is formalising the gold loan market, opening doors for fintechs in the space. This and more in today’s ETtech Morning Dispatch.
Also in the letter:
■ ONDC delays fee
■ Creativity fuels growth: Adobe CEO
■ Cognizant’s financials
Gold loan fintechs get boost as RBI calls for digitisation
The Reserve Bank of India (RBI) is formalising the gold loan market, creating new opportunities for fintechs like Rupeek and Indiagold. However, digitising this cash-heavy and trust-driven sector poses significant challenges, according to industry insiders.
Driving the news:
Also Read: New gold loan rules on cards: RBI proposes stricter norms, including monitoring use of funds
What’s driving this shift:
Why it matters:
Deepinder Goyal, CEO, Eternal
Gurgaon-based Eternal, the parent company of Zomato and Blinkit, reported a 78% year-on-year (YoY) drop in net profit to Rs 39 crore for the March 2025 quarter.
Key numbers:
Business shutdown: Eternal has shuttered its 15-minute food delivery service, Quick and homely meals offering, Everyday, due to weak demand. CEO Deepinder Goyal, in a letter to shareholders, said the company saw no visible “path to profitability” for these services “without compromising customer experience.”
Food delivery slump: Goyal outlined three key reasons behind the slowdown in food delivery growth.
Also Read: ETtech Q&A | Zomato CEO Deepinder Goyal on food delivery slowdown, quick commerce burn and more
“Will grow Blinkit’s market share aggressively”: Eternal CFO Akshant Goyal
Akshant Goyal, CFO, Eternal
Eternal’s quick commerce arm, Blinkit, continued to drag down profitability during the March quarter as it ramped up its dark store network. CFO Akshant Goyal said the company remains focused on capturing market share, even at the cost of short-term profitability.
The context: Over 60% of Hyperpure’s revenue now comes from non-restaurant businesses: Zomato
Management mindset: Goyal noted that intensifying competition in the quick commerce space is driving up costs across marketing, real estate, and last-mile delivery.
Explained: Why is Zomato parent Eternal capping foreign ownership at 49.5%?
Other Top Stories By Our Reporters
ONDC postpones network fee rollout for the second time: The Open Network for Digital Commerce (ONDC) has postponed its plan to implement a network infrastructure and services fee for seller apps on the government-backed platform.
India’s creative economy to lead next growth wave, says Adobe CEO at Waves Summit: India’s next phase of economic growth will be “driven by creativity, not code,” as generative AI transforms storytelling, content creation, and digital production, said Shantanu Narayen, chief executive officer, Adobe Systems chief executive officer.
Also Read: YouTube plans to invest over Rs 850 crore to boost Indian content creators
Cognizant reports 21.4% rise in net profit; gives a flat guidance: Cognizant Technology Solutions reported a 21.4% year-on-year (YoY) and sequential increase in net profit to $663 million, fueled by strong margin gains from a land sale and a low base.
Elon Musk, Tesla board deny report on CEO succession plans: Billionaire Elon Musk and the board of EV maker Tesla have denied a bombshell report from the Wall Street Journal alleging that the company has been exploring potential successors for its CEO.
Global Picks We Are Reading
■ Sam Altman’s eye-scanning crypto project launches in the US ( WSJ)
■ Meta lawsuit poses first big test of AI copyright battle ( FT)
■ Google’s AI Mode gets expanded access and additional functionality ( TechCrunch)
Also in the letter:
■ ONDC delays fee
■ Creativity fuels growth: Adobe CEO
■ Cognizant’s financials
Gold loan fintechs get boost as RBI calls for digitisation
The Reserve Bank of India (RBI) is formalising the gold loan market, creating new opportunities for fintechs like Rupeek and Indiagold. However, digitising this cash-heavy and trust-driven sector poses significant challenges, according to industry insiders.
Driving the news:
- BankBazaar has partnered with Muthoot Fincorp to source gold loans, marking one of the first collaborations between a digital platform and a traditional non-banking financial company (NBFC).
- PhonePe has formed sourcing partnerships with various gold loan players.
- Traditionally, banks have relied on fintechs such as Rupeek, Manipal Fintech and Oro to offer technology-led gold loans, competing with large NBFCs.
Also Read: New gold loan rules on cards: RBI proposes stricter norms, including monitoring use of funds
What’s driving this shift:
- The RBI’s new draft guidelines aim to standardise the gold loan sector and enhance transparency.
- The regulator wants lenders to adopt digital tools and improve underwriting, fostering a role for tech-enabled players.
- New entrants, including Poonawalla Fincorp, InCred Finance, and L&T Finance, are now venturing into the gold loan market.
Why it matters:
- Fintechs, facing pressure in the unsecured lending sector, view secured gold loans as a safer entry point to expand their portfolios.
- Despite regulatory scrutiny and valuation challenges, formalisation may lead to a more straightforward path to sustainable growth.
Gurgaon-based Eternal, the parent company of Zomato and Blinkit, reported a 78% year-on-year (YoY) drop in net profit to Rs 39 crore for the March 2025 quarter.
Key numbers:
- Revenue surged 64% YoY to Rs 5,833 crore.
- Food delivery gross order value (GOV) grew 16% YoY but declined 1% quarter-on-quarter (QoQ).
- Blinkit’s operating losses rose sharply to Rs 178 crore, up from Rs 108 crore in Q3FY25.
Business shutdown: Eternal has shuttered its 15-minute food delivery service, Quick and homely meals offering, Everyday, due to weak demand. CEO Deepinder Goyal, in a letter to shareholders, said the company saw no visible “path to profitability” for these services “without compromising customer experience.”
Food delivery slump: Goyal outlined three key reasons behind the slowdown in food delivery growth.
- A sluggish demand environment.
- Temporary delivery worker shortages due to the expansion of quick commerce.
- Rising competition from quick commerce platforms delivering packaged food.
Also Read: ETtech Q&A | Zomato CEO Deepinder Goyal on food delivery slowdown, quick commerce burn and more
“Will grow Blinkit’s market share aggressively”: Eternal CFO Akshant Goyal
Eternal’s quick commerce arm, Blinkit, continued to drag down profitability during the March quarter as it ramped up its dark store network. CFO Akshant Goyal said the company remains focused on capturing market share, even at the cost of short-term profitability.
The context: Over 60% of Hyperpure’s revenue now comes from non-restaurant businesses: Zomato
Management mindset: Goyal noted that intensifying competition in the quick commerce space is driving up costs across marketing, real estate, and last-mile delivery.
Explained: Why is Zomato parent Eternal capping foreign ownership at 49.5%?
Other Top Stories By Our Reporters
ONDC postpones network fee rollout for the second time: The Open Network for Digital Commerce (ONDC) has postponed its plan to implement a network infrastructure and services fee for seller apps on the government-backed platform.
India’s creative economy to lead next growth wave, says Adobe CEO at Waves Summit: India’s next phase of economic growth will be “driven by creativity, not code,” as generative AI transforms storytelling, content creation, and digital production, said Shantanu Narayen, chief executive officer, Adobe Systems chief executive officer.
Also Read: YouTube plans to invest over Rs 850 crore to boost Indian content creators
Cognizant reports 21.4% rise in net profit; gives a flat guidance: Cognizant Technology Solutions reported a 21.4% year-on-year (YoY) and sequential increase in net profit to $663 million, fueled by strong margin gains from a land sale and a low base.
Elon Musk, Tesla board deny report on CEO succession plans: Billionaire Elon Musk and the board of EV maker Tesla have denied a bombshell report from the Wall Street Journal alleging that the company has been exploring potential successors for its CEO.
Global Picks We Are Reading
■ Sam Altman’s eye-scanning crypto project launches in the US ( WSJ)
■ Meta lawsuit poses first big test of AI copyright battle ( FT)
■ Google’s AI Mode gets expanded access and additional functionality ( TechCrunch)
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