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India just started rolling out 5G networks after much anticipation and years-long delay. Service operators expect to bring next-generation cellular connectivity to every town in the world’s second-largest wireless market by as early as the end of 2023. But while the rollout is currently at its initial phase, New Delhi last week directed telecom operators to not set up 5G infrastructure around areas close to airports to avoid interference with flight operations.

The Department of Telecommunications (DoT), the government body that handles telecom operations in the South Asian nation, in its recent order to telecom operators Reliance Jio, Bharti Airtel and Vodafone Idea, directed them to restrict their infrastructure enabling C-Band 5G networks (between 3.3-3.67GHz) from over 1.3 miles (2.1 kilometers) away from runway endpoints at all airports in the country. It also ordered all three operators to limit the power emission of their equipment installed after the given range.

The restrictions were enforced in response to concerns raised by the Indian Directorate General of Civil Aviation (DGCA). In September, the aviation department suspected that 5G networks operating on the C-Band spectrum would interfere with flight altimeters — the instrument that helps pilots maintain the required altitude during flight.

The airline industry in the U.S. raised similar concerns in January when AT&T and Verizon activated their C-Band 5G networks. In June, the Federal Aviation Administration said that stakeholders in aviation and wireless industries identified steps to protect commercial flights from disruption by 5G interference and permitted AT&T and Verizon to continue to enhance their service at certain airports with the least risk of disrupting flight schedules.

Shortly after the network disruption concerns arose in the U.S., the Indian telecom minister Ashwini Vaishnaw in February assured the industry that the South Asian country would not face any such issues.

“In the U.S., especially in older airplanes, the altimeter frequency is close to the one being used to render 5G services,” he said in a press conference, adding that the frequency used by flight altimeters in India was far away from the frequencies designated for 5G services.

P D Vaghela, chairman of the Telecom Regulatory Authority of India, made a similar statement in an interview with the English daily Times of India in January.

“India will have no problems. Prima facie, there are no problems for the aviation industry within India over 5G spectrum rollout,” he had said.

C-Band frequencies — a part of the mid-band spectrum — range between 4-8GHz. Telecom operators in the U.S. have the C-Band comprising a 3.7-3.98GHz frequency range, which is possible to intercept the altimeter range between 4.2-4.4GHz in some cases. However, the Indian government auctioned the mid-band spectrum in the 3.3-3.6GHz range.

Peeyush Vaish, a partner and telecom sector leader at Deloitte, said that Indian operators have a distinct separation of 530MHz from the international altimeter band. There has been no reported interference between 5G and aircraft frequencies in Europe, South Korea and Japan — all of which have launched 5G services based on 5G bands similar to those assigned in India, he said.

Nonetheless, due to the direction from the telecom department, telcos in the country are evaluating a series of steps, multiple sources aware of the development told TechCrunch.

Airtel so far deployed its infrastructure to enable 5G connectivity at four airports in the country, while Jio also planned to make a similar move in the coming days.

Due to the restrictions, Airtel and Jio need to re-evaluate their plans. The former also needs to switch off its radios for the time being.

The DoT director general and the independent body for Indian telcos, the Cellular Operators Association of India, did not respond to requests for comment.

Experts believe that consumers in the proximity of airports are not likely to get 5G on their compatible devices.

The directive indicates that a user in Aerocity in New Delhi or one in Mumbai’s Santacruz may not get 5G for now, a source working at a telecom operator who requested not to be named told TechCrunch. The impact would, however, be less in cities including Bengaluru, where airports are miles away from local residencies, they said.

Vaish of Deloitte stated that while the current network infrastructure is not likely to be affected due to the restrictions, new tower construction near urban airports might be delayed for the time being.

Even though the directions are limited to the specific C-Band network frequencies, the impact seems significant as telcos consider the particular band for widespread 5G connectivity across various devices.

Amitoj Arya, a partner at EY, said that since the interference issue does not impact all airlines and is limited to a specific type of aircrafts, 5G can be rolled out in a phased manner while retrofitting affected aircrafts with interference-resistant altimeters. He also suggested that telcos could be directed to run 5G services around airports with reduced power levels and technology interventions on 5G antennas.

“5G has the potential to alleviate several of airports’ and airlines’ pain points, such as aircraft data analytics and predictive maintenance, autonomous apron operations, automated baggage handling, AI-based passenger monitoring and screening, etc. Hence, it is critical to identify ways to allow 5G technology near the airports while not compromising the safety and security of the passengers,” he said.

The DGCA is exploring the replacement of aircraft radio altimeter filters to overcome the roadblock for telcos. However, it would take months for all flights to get the upgraded systems.

India’s nationwide 5G rollout plan could hit turbulence due to aircraft interference concerns by Jagmeet Singh originally published on TechCrunch

Startups across Europe are on track to raise $85 billion in funding this year — a drop of $15 billion on 2021 levels when funding passed $100 billion, according to a report on the state of European tech. The figures come from London VC firm Atomico’s annual State of European Tech report, which has become a bellwether for the industry, and they underscore the pressure bearing down on the tech industry as the region grapples with an ongoing war in Ukraine, a sagging economy, and a population wobbling to get back on its feet and productive again after two years of the Covid-19 pandemic.

The report — which encompasses a survey of VCs and founders, as well as research from third party firms like Dealroom — also notes that tech layoffs in the region will shape up to be about 14,000 for the year, a giant figure, but still only a 7% of the total number of layoffs globally, which number about 200,000, it said.

The total raised figure also is not entirely a grim message when put into context. Atomico noted that funding for the year was actually on track to exceed 2021 levels until the middle of year, when activity dropped off a cliff — not a great sign going into 2023. But 2021’s $100 billion raised was also an outlier year. Figures from 2020 were just $39 billion, a year when all kinds of activity grounded to a halt with the start of the pandemic.

Atomico’s other big conclusions confirm what many of us have been seeing play out. IPO markets, Atomico says, are totally shut down. There were just three this year, compared to a startling 86 the year prior, a drop of 30%.

And the number of “unicorns” being produced — that is, companies reaching a valuation of more than $1 billion — also dropped. There were 31 of these this year, versus 105 in 2021. But again, as with funding, this appears to be indicating last year was an outlier: 2020 had 25, and 2019 had 35 companies with $1 billion or higher valuations.

Similarly, it found that funding rounds themselves were came down in size as the year progressed. Again, as with overall funding, the first half of the year broke records, with 133 rounds of equity funding at $100 million or more (not including debt rounds or secondaries), which was more than 2019 and 2020 combined. It may have been however founders looking to make hay while the sun was still shining: by the second half of the year, that total dropped to a “mere” 37 rounds of that size. U.S. investors are also making less moves into the region: their participation was down by 22% on 2021.

Notably, it’s not just those on the growth end of the spectrum that are feeling the pinch: “82% of founder respondents to the survey believe it is now harder to raise venture capital than it was 12 months ago,” the report notes.

One silver lining of the trickle-down effect on tech — where the biggest companies (those that are publicly traded, or very mature and privately held) might be feeling the biggest pinch — is that early stage still is doing very well overall in Europe, relatively speaking. Younger startups in the region account for a whopping 51% of investment going into “purpose-driven” tech companies. (Note: these are startups that either are mixing science with tech, or bringing tech to bear to fix bigger issues in the world such as climate change — not the same as investment going into allearly-stage startups.)

And just as we have been charting a number of venture funds in the region raising in excess of $1 billion this year, Atomico connects the dots on this to note that there is indeed a lot of “dry powder” out there — funds ready to be invested when the right opportunities arise.

At the end of 2021 (the last full period available), InvestEurope estimated that there was some $84 billion of uninvested funds across Europe — coincidentally not far off from the total amount startups will have raised this year. That $84 billion includes both VC and Given the amount of fundraising collectively across the industry this year, and the subsequent drop-off in investing, especially in the latter half of this year, Atomico believes dry powder reserves could be even higher when all is tallied, although right now it appears to be half as much:

“The technology ecosystem as we know it is barely twenty years old and in that time we’ve matured at an incredible rate. Real success for the sector is about talent, innovation and long-term company building,” writes Tom Wehmeier, Atomico’s partner and head of insights, and co-author of the report. “The crucial pieces of this puzzle remain in place, with $44 billion in European venture capital funds ready to be invested in the right opportunities. In terms of the underlying strength of our ecosystem, far less has changed than we think.”

Atomico report: European startups on track to raise $85B this year, down from $100B+ in 2021 by Ingrid Lunden originally published on TechCrunch

Shein, the world’s largest fashion ecommerce site, has taken significant steps to ramp up its environmental, social, and governance — or ESG — efforts. But responsible fast fashion sounds like an oxymoron. How can clothes be so cheap, if their designers don’t copy luxury brands and if the factories behind aren’t squeezed out of their margins?

Nonetheless, Shein is trying to elevate its business practice to global standards by hiring a clutch of industry veterans. One of the major allegations against the fashion giant is labor exploitation, according to numerous reports including one saying workers are made to toil 75 hours a week. Earlier this week, the fashion ecommerce site said it had committed $15 million to improve the standards of 300 of its partnered factories over the next four years. The fund will focus on making physical enhancements to its suppliers’ factories.

That amounts to $50,000 per factory, which doesn’t seem like a lot. But put to good use, the money is doing to China’s clothing industry what Apple has brought to the country’s hardware manufacturing — improving worker conditions over the years in response to ongoing pressure from watchdogs in the West.

Shein’s relationship with its suppliers is love-hate. Instead of running its own factories, it relies on a large network of contract manufacturers in southern China. Thanks to its sheer sales volume — the platform is expected to generate $30 billion in GMV this year — Shein’s procurement orders are large and stable, making it a coveted client for factories.

The company also has a reputation for paying suppliers on time, which is important to manufacturers that live on healthy cash flow. Despite its notoriously thin margins and demanding production timeline, factories scramble to secure Shein orders and keep their people sewing for long hours to meet deadlines.

Shein knows investors around the world are increasingly focusing on ESG, so to prepare for a public listing down the road, it needs an ethical makeover.

As part of its responsible sourcing initiative, Shein promised that “all contracted manufacturing suppliers agree to comply with the Shein Code of Conduct, which is aligned to International Labour Organization core conventions, and local laws and regulations.”

Furthermore, Shein said it has set up a feedback system through which workers can “anonymously submit complaints, feedback and suggestions via email, phone or WeChat, to support the company’s efforts in monitoring and managing compliance to its Code of Conduct and upholding the labour rights of workers.”

These are encouraging signs, of course, but the question is how will Shein balance incredible affordability and fast product cycle with responsible manufacturing, which will likely raise its costs. Its effort to reduce its impact on the planet through a new recycling platform is already raising skepticism — how can the consumerist nature of fast fashion ever be compatible with sustainability?

Consumers claim to care about the environmental impact and the workers who make their garments, but Shein’s breakout success shows that at the end of the day, speed and price are the utmost determinants for many people’s consumption.

As its fashion empire booms, Shein wants an ESG makeover by Rita Liao originally published on TechCrunch

Indian venture firm Blume has raised over $250 million for a new fund, its fourth and largest, as it looks to get more aggressive in courting early-stage startups and go deeper into supporting its portfolio firms at a time when the deal flow activity in the South Asian market has taken a hit from the broader global reversal in the public markets.

The 12-year-old firm, which employs about three dozen people, said it originally sought to raise $200 million but broadened its goals following in-bound requests. Some of India’s finest family offices, global family offices, sovereign wealth funds of India and overseas and emerging market funds of funds have backed the new fund, it said without disclosing any specific names. (VCs rarely disclose the names of their LPs.)

Blume Ventures – which manages over $600 million in assets under management– will deploy the larger fund to back about 35 startups, up from 25 in the previous fund.

The broader focus is to write larger checks and participate in multiple rounds of portfolio firms, Karthik Reddy, founder and general partner of Blume Ventures, told TechCrunch in an interview. It’s something that the firm couldn’t afford to do because of its size, he said. “The founders now know that we can support them for longer. We didn’t have the firepower before, but we do now.”

The fund will also look to back select pricier startups, usually those from second- or third-time founders, he said. “Now I have the money power to do such deals, go 50-50 with somebody. We could have never done it before. We neither had the courage nor the risk-modelling,” he said.

The Indian fund, whose partners are widely respected and considered among the most founder-friendly in the ecosystem, has grown in stature in the past half decade as many of its earlier picks gained broader adoption and raised larger follow on rounds. Its portfolio includes Unacademy, Slice, Spinny, Dunzo, Classplus, Servify, Exotel, Lambdatest, Smallcase, Euler and Pixxel.

As the global public markets jumped last year, thanks to low interest rates and infusion of stimulus checks into the system, Indian startups were beneficiary of the euphoria, raising a record $39 billion in the year. Tiger Global, SoftBank and Alpha Wave Global aggressively wrote checks and minted dozens of unicorns in the country.

But as the markets reverse much of the gains from the 13-year bull run, deal activity has just as dramatically slowed in the country. In a remarkable exchange, Flipkart chief executive Kalyan Krishnamurthy warned the ecosystem last month that the so-called funding winter is likely to continue for another 12 to 18 months and the industry may have to grapple with a “lot of turmoil and volatility.”

Reddy, slightly uncomfortable talking about larger funds, said many of the firms that aggressively deployed capital in the country are arguably not venture players.

“It’s not venture capital, it’s classic growth investing. They can wake up one day and move all the allocation to public markets, move into PE assets, move into commodities. They can do whatever they want. Some of them tried venture. Some will stick around, others might retreat,” he said.

Despite the market slump, Reddy said Blume has written several checks in recent months and continues to see the quality improve in the teams and the problems new age startups are attempting to tackle. But he agreed that many startups that raised capital at unrealistic valuations last or early this year will have to either prove their worth with fast and sustainable growth or take a haircut in pricing in the following rounds.

“We are grateful to our anchor supporters and new believers who have emphatically backed Blume IV,” said Sanjay Nath, co-founder and general partner of Blume Ventures, in a statement.

“Whether building domestically or for global markets, the best founders and LPs would like to work with a Fund that can be considered world-class, which has spurred us to keep institutionalizing and bolstering our platform, team and capabilities. Thanks to an increasing reality of IPO and M&A exits, there is a resurgence of 2x founders and operators, as well as higher quality first-time founders. We’re excited for Blume to become the preferred seed partner of choice for both categories.”

As the Indian startup ecosystem grows and shows signs of maturing, another trend at play in the country has been the rise of homegrown funds and just how fast their own fund sizes have scaled in recent years. Chiratae Ventures, Arkham Ventures and 3One4 Capital have raised larger funds, sometimes going above the $300 million mark. (Blume itself has grown from $20 million in 2011, to $60 million in 2015, and $102 million in 2018.)

Reddy said homegrown firms in India, many of which are focused on specific sectors, raising larger capital shows that they have gained the underlying believes that they can go deeper into their sectors and have the mark-ups from existing portfolio startups to show signs of path to prosperity for LPs. Many firms have returned funds, he said.

India’s Blume Ventures more than doubles in size, raises over $250 million for new fund by Manish Singh originally published on TechCrunch