Key facts
- Contactless (tap-and-pay) card payments are experiencing significant growth in India, with annual transaction increases of approximately 40% over the last two years.
- Abu Dhabi Investment Authority (ADIA) is divesting a 2.3% stake in the eyewear retailer Lenskart through a block deal valued at Rs 1,944 crore.
- Meta Platforms and Reliance Industries are collaborating to establish India's first large-scale, AI-ready data centre campus in Jamnagar, Gujarat.
- Proposed commission caps by the IRDAI could lead to consolidation within India's insurance distribution sector, according to Acko CEO Varun Dua.
Contactless card payments are experiencing a significant surge in India, with industry estimates suggesting they now account for up to a third of card transactions at some merchants. This growth is occurring even as the Unified Payments Interface (UPI) continues to gain market share for everyday transactions.
Executives attribute the rise in tap-and-pay usage to consumers' desire for faster checkouts, particularly in high-frequency retail environments, and the wider availability of contactless-enabled payment terminals. The Reserve Bank of India currently permits pin-free tap-and-pay transactions up to Rs 5,000, and industry players believe an increase in this limit could further accelerate adoption due to enhanced payment security and fraud monitoring.
In a separate development, Abu Dhabi Investment Authority (ADIA) is set to divest a 2.3% stake in the eyewear retailer Lenskart through a block deal valued at Rs 1,944 crore. This move follows SoftBank's recent trimming of its Lenskart holding. ADIA's sale will leave it with a 9.8% stake, still worth approximately Rs 8,500 crore, representing substantial paper gains on its initial investment.
Meanwhile, Meta Platforms has entered into a partnership with Reliance Industries to establish its first large-scale, AI-ready data centre campus in India. Meta will lease 168 megawatts of capacity at Reliance's hyperscale campus in Jamnagar, Gujarat, with plans for potential expansion. The facility is designed to operate on renewable energy and utilize desalinated seawater for cooling, with Meta covering these sustainability costs. This collaboration builds on Meta's existing ties with Reliance, including its investment in Jio Platforms and their joint AI venture, Reliance Enterprise Intelligence Limited (REIL).
Furthermore, Acko founder and CEO Varun Dua commented on proposed commission caps for insurance distributors by the Insurance Regulatory and Development Authority of India (IRDAI). Dua suggested these changes could drive consolidation within the sector, pushing distributors to explore new markets and customer segments, despite potential short-term disruptions.
In other news, precision manufacturing startup Ethereal Machines successfully raised $28.5 million in a funding round led by Avataar Ventures.