The Digital Gold Dilemma, Flipkart’s Flip, and Uber x AbhiBus

Gold has remained India’s most trusted way to save for generations. Whether it is wedding jewelry or sovereign bonds, the metal represents a safety net in an unpredictable financial world. Over the past ten years, tech companies tried to turn that cultural habit into a digital one. Apps started selling digital gold, letting people buy tiny amounts for as little as ₹10. The idea was to take a national obsession and make it as easy as sending a text.

That experiment is now hitting a wall of regulation.

India’s small-scale gold boom is hitting a rough patch as the Banning of Unregulated Deposit Schemes (BUDS) Act takes effect. A product that started as a clever way to save is being scrutinized to see if it actually protects the people putting money into it. For the platforms selling digital gold, the environment has become much tougher.

The system worked by letting people buy gold through apps like Paytm, PhonePe, or Google Pay. That gold was then supposedly held in physical vaults by partners like MMTC-PAMP or SafeGold. It grew fast because it felt both safe and easy. Customers thought they were simply buying gold, and the apps thought they were just selling a convenient savings tool.

The BUDS Act changes everything.

This law was built to stop shady deposit schemes that fly under the radar. If the law is read strictly, any company that takes money with the promise of future value might be in trouble. This puts digital gold providers in a difficult spot. They have to prove whether they are selling a simple product or running an unregulated bank.

The difference is a big deal.

Millions of people in India use digital gold like a digital wallet rather than a stock market investment. They save small amounts over months and years, planning to trade it for jewelry or cash down the line. Because people treat it like a bank deposit, regulators are starting to treat it that way too.

For tech companies, this means a lot of extra work. If digital gold is treated like a deposit, the cost of following the rules will skyrocket. Companies might need better insurance, clearer disclosures, or even special licenses. Some might decide it is too much of a headache and stop offering it altogether.

However, the regulators have a point. India has seen too many informal savings plans collapse, leaving families with nothing. When a product looks and acts like a savings account, leaving it unregulated creates a massive risk for everyone.

Digital gold is stuck between being a commodity and a deposit, and the law is now forcing it to pick a side. The days of effortless, unregulated gold savings are likely over. Whatever comes next will decide if the next generation of Indian savers relies on new tech or old-school institutions.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“I Love My India”: Flipkart Completes Reverse Flip To India Ahead Of IPO

Flipkart has completed its reverse flip from Singapore to India ahead of its expected IPO, after receiving approval from the National Company Law Tribunal last December.

The ecommerce giant had moved its domicile to Singapore in 2014 to attract foreign capital, a strategy widely adopted by startups at the time. The move also comes days after Flipkart reportedly laid off 400-500 employees.

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“Hum Saath Saath Hai”: Uber Partners With AbhiBus To Foray Into Intercity Bus Ticketing

Uber has partnered with AbhiBus to launch intercity bus ticket booking in India, marking the ride-hailing giant’s first global move into the bus segment.

The integration will let users search, compare, and book bus tickets directly within the Uber app without switching platforms. The rollout signals Uber’s push to deepen its footprint in India as competition in the ride-hailing and mobility space continues to intensify.

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“Janmo Ke Saathi”: Karkhana Acquires Micron EMS To Scale Electronics Manufacturing

Karkhana has acquired Micron EMS as it looks to scale its electronics manufacturing capabilities. The startup also plans to set up a 40,000 sq ft facility in Bengaluru to build printed circuit boards in-house and strengthen its supply chain.

Founded in 2018, Karkhana is now targeting exports to the US and EU while aiming to double its customer base and reach an ARR of ₹200 Cr by FY27.

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“Let’s Get Rocking & Rolling”: Nitro Commerce Acquires Zodiac Labs AI To Offer Copilot For Quick Commerce

Nitro Commerce has acquired Zodiac Labs as it pushes deeper into quick commerce solutions for brands.

The deal will help Nitro launch an AI-powered copilot that gives brands insights into their performance across quick commerce platforms. With the acquisition, Nitro is expanding its footprint across ecommerce, retail, and the rapidly growing quick commerce ecosystem.

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“Achha Toh Hum Chalte Hai”: Cars24’s India Used Cars CEO Himanshu Ratnoo To Quit, Vikram Chopra Takes Charge

CARS24’s India used cars CEO Himanshu Ratnoo is stepping down from his role less than a year after taking charge, according to sources.

The development follows an internal note informing employees about his exit, with cofounder Vikram Chopra now taking charge of the business. The leadership change comes just weeks after Chopra signaled the company’s plans to head toward an IPO.

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1. KaarTech has raised $11 Mn from Playbook Partners to scale its data engineering capabilities and expand its global footprint, including potential acquisitions in developed markets. The company helps enterprises migrate operations to cloud-based systems.

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2. StrideOne has raised ₹100 Cr in a mix of equity and debt from undisclosed investors to expand its enterprise anchor programmes and strengthen its partner-lender network. The firm also onboarded former Axis Max Life Insurance chairman Rajesh Sud as cofounder and chairman.

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3. Ecofy Finance is set to raise ₹380 Cr in its Series B round led by British International Investment as it scales financing solutions for climate-focused initiatives. The company’s board has approved issuing equity and Series B preference shares at a face value of ₹10 each.

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