From AI storm taking over the world to chess surge in India, our top stories of the week

In this week's newsletter you can read more about the knots and tangles involving SEBI chief Madhabi Puri Buch, succession at Federal Bank, and how Khatri brothers are preparing to take Noise global

By Forbes India

Published: Sep 28, 2024 10:00:00 AM IST

Updated: Sep 27, 2024 04:50:38 PM IST

1) Path after succession

Shyam Srinivasan, former MD and CEO of Federal Bank Ltd. Image: S Kumar/Mint via Getty Images

In October 2010, Shyam Srinivasan was appointed as managing director and CEO of Federal Bank. Srinivasan and his top leadership team, who helped the bank grow from a regional to a national, digital-focused bank, appear to have done things right over the past seven to eight years. Federal Bank is one of India's three private sector banks, which grew by 15 percent CAGR in total business. It expanded by 125 percent to 1518 branches across India. It now serves 1.89 crore customers. But the time has come for a leadership change. KVS Manian, a former Kotak Mahindra Bank veteran, has stepped into Srinivasan's shoes. Here's what awaits him.

2) A curious case of knots and tangles

SEBI chairperson Madhabi Puri Buch. Image: Getty Images

Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India (SEBI), is amid a controversial storm caused by the allegations made by Hindenberg Research and the opposition Congress Party. She is the first woman to lead SEBI and the first person from the private sector to be appointed to helm one of the world’s largest stock markets’ overseer, with around $5.3 trillion in market capitalisation. The accusations about conflict of interest from various factions come amid a bull run in India's stock markets. The situation raises several questions about SEBI's integrity, transparency and competency. Here's an attempt to untangle the story so far.

3) Lightspeed and AI funding

Team Lightspeed: (standing, from left) Dev Khare, India partner, Bejul Somaia, global partner, Rahul Taneja and Shuvi Shrivastava, India partners; (sitting) Harsha Kumar and Hemant Mohapatra, India partners Image: Mexy Xavier

VC firms and startups have been bruised through the lengthy funding winter, rising geo-political tensions due to three wars, high rates of interest across economies and weakening demand for consumption. This has all meant a sharp cut in valuations in technology companies and delayed fundraising in recent months. However, discussions about artificial intelligence (AI) begin, and VCs find more than change in their pockets. Reflective of the trend, Lightspeed has, globally and in India, doubled down significantly, focusing on generative AI and AI-backed startups. In the last 18 months, Lightspeed, globally, has invested $1.1 billion across 72 deals and 61 AI companies through all its funds. What is driving this push from Lightspeed? Here are some answers.

1) Sarvam AI: Make for India

Vivek Raghavan (left) and Pratyush Kumar, Cofounders, Sarvam AI Image: Selvaprakash Lakshmanan for Forbes India; Digital imaging: Kapil Kashyap

If we discuss Lighspeed's AI investments, one cannot forget its participation in the $53 million seed round of Sarvam AI. Why did the VCs show such confidence in the vision shared by cofounders Vivek Raghavan and Pratyush Kumar? First and foremost, because Sarvam AI is among the precious few ventures in the country to be working on their own foundation-level AI tech, all leading to their own GenAI technologies on which they and others can build practical applications. So, how does the dream of building India's sovereign AI stack look like in reality? This article is here to show you.

2) How and when will AI make money?

Illustration: Chaitanya Dinesh Surpur

The focus of the latest issue of Forbes India is the current status of AI in the country. This is why you are seeing the newsletter also lean towards stories exploring that sector. Venture capitalists are flocking to invest in promising startups in AI's space, valuations are soaring, and they just got a morale boost when Sam Altman's OpenAI, the torchbearer of the industry, decided to leave its not-for-profit status. Of course, advancements in AI, especially generative AI (GenAI), are a generation-defining technology wave. Therefore, all the tech giants are in a race to dominate it. But if we look at the lacklustre earnings of these companies, it makes one wonder if the billions of dollars invested in these AI projects will ever make money for investors.

3) Noise cofounders on Pathbreakers

For the new episode of Forbes India Pathbreakers, Noise cofounders, Amit and Gaurav Khatri, talk about how they moved from selling mobile phone covers to hi-tech wearables, such as smartwatches, to remain relevant in a competitive industry. Shifting their focus from outsourcing to manufacturing, the Khatri brothers discuss how they invest in R&D to drive innovation and differentiation. "We are creating technologies, and that's a piece that can't be copied," they claim. And now, with audio giant Bose Corp on board as a strategic investor, the Khatri brothers are confident that their Rs2,000 crore homebred brand is on the cusp of massive growth. Tune in now.

4) Inside the chess surge in India

Chess players Srinath Narayanan, Praggnanandhaa R, Gukesh D, Harika Dronavalli and others pose for a picture with their 45th FIDE Chess Olympiad 2024 gold medals. Image: Sanjeev Verma/Hindustan Times via Getty Images

When Viswanathan Anand became India's first grandmaster in 1988, chess wasn't really a thing in India. Cut to 2024, and India now has 85 grandmasters, has won two gold medals in the recently-concluded Chess Olympiad, and teenager D Gukesh is all set to fight grandmaster Ding Liren for the World Championship title in Singapore in November. What has caused the chess surge in the country? Anand, a five-time world champion and the man who started it all for India, shares his thoughts on the Sports UnLtd podcast.