Qcomm's worker woes; Capillary's IPO moves
Happy Friday! Quick commerce platforms are facing challenges in hiring and retaining delivery partners. This and more in today's ETtech Morning Dispatch.
Also in the letter:
■ Foxconn expands in India ■ Krutrim exits, layoffs■ Groww expands offerings
Quick commerce players running out of delivery riders as demand shoots up
India's booming quick commerce sector is facing a key operational hurdle: hiring and retaining delivery partners. As demand for rapid deliveries surges, incumbents are scaling up and new players are joining the race. But recruitment has struggled to keep pace with growth.
Tell me more: Recruitment platform Vahan, which works with leading gig economy firms, confirms the pressure. Hiring is getting harder as 'manpower availability is not rising in proportion to demand.'
Dark store managers echoed the concern. Several said they need more riders, with daily orders nearing 1,500.
Quote, unquote: 'Bikers are getting more demanding for all of us. It's becoming tough to hire and retain. These aren't good signs. It's reasonably acute, though not unmanageable yet,' said an executive at a quick commerce firm.
Ground reality
ET spoke to delivery partners in Bengaluru and New Delhi, most of whom said that falling per-order payouts are making the job unsustainable.
A Flipkart Minutes rider said promised referral bonuses aren't being honoured, pushing many to switch platforms for better pay.
Harsh weather conditions are adding to the strain on operations.
Also Read: Quick commerce fires up record discounts with rivals getting quicker
Loyalty tech firm Capillary Tech files draft IPO papers; eyes Rs 430 crore via fresh issue
Aneesh Reddy, founder, Capillary Technologies
Customer engagement and loyalty tech provider Capillary Technologies India has filed its draft red herring prospectus (DRHP) with Sebi for an initial public offering (IPO), joining a growing list of new-age companies eyeing the public markets.
IPO details: Fresh issue: Rs 430 crore.
Rs 430 crore. Offer for sale: 18.3 million shares.
18.3 million shares. Promoter Capillary Technologies Pte, backed by Peak XV Partners and Avataar Venture Partners, will offload 14.2 million shares.
JM Financial, IIFL Capital, and Nomura are book-running lead managers.
Second attempt: The company initially filed its DRHP in December 2021, but the proposal did not receive Sebi's nod. ET had first reported in November that Capillary Technologies was reviving its IPO plans and was aiming to file this year.
Objectives: Capillary Technologies will use the proceeds from the fresh issue to: Cover its cloud infrastructure costs.
Invest in product and platform R&D.
Fund inorganic growth through acquisitions.
The funds will be deployed between fiscal years 2026 and 2028.
Foxconn plans to make iPhone enclosures in India
Apple's largest supplier, Foxconn, is setting up a unit in Oragadam, Tamil Nadu, to manufacture iPhone enclosures, as ET first reported on September 25 last year. The move is part of the Taiwanese contract manufacturer's broader efforts to expand and diversify its operations in India.
Foxconn India footprint: iPhone assembly unit at Sriperumbudur, Tamil Nadu.
New facility in Devanahalli, near Bengaluru.
New AirPods assembly unit in Hyderabad.
Progress so far: Construction has commenced at the ESR Industrial Park in Oragadam, close to Foxconn's upcoming display module facility, according to one person aware of the developments.
Quote, unquote: "This gives Apple more leverage and also provides Foxconn with ease of integration and boosts value addition," said Neil Shah, vice president, Counterpoint Research. "This improves supply chain effectiveness for Foxconn as well as Apple."
Tariff troubles: Apple is keen to move iPhone production to India to avoid potential US tariffs on Chinese-made devices. However, US President Donald Trump has threatened a 25% duty on devices made overseas. Despite this, Foxconn is pressing ahead with its expansion plans for India.
Applied Materials says Bengaluru chipmaking centre to rake in $2 billion
Suraj Rengarajan, head of semiconductor products group, Applied Materials India
American chip equipment manufacturer Applied Materials plans to establish a chip manufacturing centre in Bengaluru for $400 million over four years, Suraj Rengarajan, managing director at Applied Materials India, told ET. The company expects the plant to attract investments up to $2 billion in the future.
Other Top Stories By Our Reporters
Bhavish Aggarwal, founder, Krutrim
Fresh exits at Krutrim: Three senior executives heading engineering and AI product execution at Bhavish Aggarwal's Krutrim have left, as the company laid off over a dozen people from their linguist teams across multiple languages early this week, sources familiar with the matter told us.
Groww to apply for corporate bond trading licence: Stockbroker Groww is planning to seek Sebi's approval to offer trading in corporate bonds through its mobile application, according to two people in the know.
AI, automation, geopolitics in focus at TCS AGM: Tata Consultancy Services (TCS) will focus on four strategic pillars: establishing a large pool of AI agents to work alongside the human workforce, delivering solutions for a human-plus-AI model, investing in AI data centres, and partnerships, said director Keki Mistry during the company's 30th annual general meeting (AGM).
Insurtech firm Renewbuy bags $10 million: Insurance broking startup Renewbuy has secured $10 million (approximately Rs 86 crore) in a funding round from its existing investors, London-based Apis Partners and 360 One (previously IIFL Wealth).
Global Picks We Are Reading
■ How much energy does AI use? The people who know aren't saying (Wired)
■ Samsung is desperate to compete on chips. Workers say it comes at a cost. (Rest of World)
■ I tried the future of smart glasses at WWDC. They weren't made by Apple (CNET)
Updated On Jun 20, 2025, 07:27 AM IST
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