🎲 Gaming Ban Knocks UPI Off Growth Path

🌞 Good Morning, Chai Fam — Happy Tuesday!

Markets are restless, automakers are slashing prices, gaming firms are lawyering up, and even sandwich chains in London are feeling the heat.

Grab your cup — today’s brew is loaded with crunch, spice, and a big sip on how India’s gaming ban has knocked UPI off its growth streak.

📰 Chai Shots

• 🎲 Gaming ban dents UPI transactions: NPCI data shows UPI gaming transactions tumbled in August — down 23% in volume to 27.1 Cr and 26% in value to ₹7,441 Cr compared to July. Year-on-year, value fell a staggering 36%. Since 80% of RMG payments flowed through UPI, the ban has shaved a chunk off India’s payments growth story. More in the Big Brew 👇

• 🎮 SC takes charge of gaming ban challenges: The Supreme Court has pulled together all petitions against the Promotion and Regulation of Online Gaming Act, 2025, which bans real-money play. Cases pending in Delhi, Karnataka, and Madhya Pradesh High Courts will now be heard by a single bench. The Centre argued this avoids conflicting judgments, and the outcome could decide the future of India’s gaming startups and payment partners.

• ⚖️ Jane Street vs SEBI showdown: U.S. quant trading giant Jane Street is challenging SEBI’s order accusing it of manipulative trades in India’s $trillion-plus derivatives market. The firm claims the regulator withheld key emails with NSE and third parties, blocking its defense. The case is being closely tracked by other global firms like Citadel, Jump Trading, and IMC, which rely heavily on India’s booming futures-and-options market, where retail traders lost $12B last year.

• 🧾 CBIC busts fake GST 2.0 claims: The tax board dismissed a viral social post claiming new “transition benefits” — like credit on exempt supplies and unused cess — would kick in on September 22. CBIC clarified that the only approved reforms are the two-slab GST system (5% and 18%), tax cuts on essentials and life-saving drugs, and a 40% levy on luxury/sin goods like tobacco, pan masala, yachts, and private jets. Businesses have been told to rely only on official circulars.

📊 Market Masala

• 📈 Markets end just above flatline: The Sensex closed 77 points higher at 80,787, while the Nifty settled at 24,773, just below 24,800. Early gains from easing India-U.S. trade tensions and GST reforms fizzled as IT shares faced heavy late selling. Auto and metals shone — Tata Motors, M&M, and Tata Steel rallied on demand hopes, while financials like HDFC Bank and Bajaj Finserv added support. Nifty Auto surged 3.3%, while Nifty IT sank nearly 1%. Small- and mid-cap indices eked out modest gains, reflecting a “buy dips, sell rallies” approach from cautious traders.

• 💍 Ultrahuman retools smart ring after U.S. ban: Bengaluru’s Ultrahuman will begin producing a redesigned ring on September 10, shipping to the U.S. by late October — just before the October 21 import cutoff. Founder Mohit Kumar says tariffs shave margins by 10–13%, but profitability is intact. The startup is also weighing U.S. assembly to reduce import risks, even as its patent battle with rival Oura drags on.

• 🥇 RBI trims U.S. debt, piles into gold: India cut its U.S. Treasury holdings to $227B in June from $242B a year earlier while boosting gold reserves to 880 tons — up nearly 40 tons year-on-year. RBI has also repatriated more bullion back home, holding 512 tons domestically compared to 292 tons in 2020. Officials say diversifying India’s $694B reserves is a hedge against geopolitical risks, especially after the U.S. froze Russia’s assets in 2022.

🌍 Global Masala

• 💻 Nasdaq closes at record high: The Nasdaq rose 0.45% to 21,799, its second straight record, while the S&P 500 and Dow also ended higher. Broadcom (+3%), Nvidia (+1%), Amazon, and Microsoft led gains. Investors are bracing for U.S. inflation data this week (PPI Wednesday, CPI Thursday), which will likely shape Fed policy on September 17. Weak August jobs data has markets betting on at least a quarter-point cut, with some seeing room for a half-point.

• 📈 Nikkei rockets past 44,000: Japan’s Nikkei 225 surged nearly 1% to fresh highs after PM Shigeru Ishiba resigned, fueling hopes of new stimulus under his successor. Tech powered the rally — Advantest soared 7.6%, Tokyo Electron 3.6%, and Renesas 2.6%. Analysts expect the index to climb to 46,000 within a year, though political transition may bring short-term volatility.

• 🥪 Pret A Manger writes down £553M: The UK café chain swung to a £452M loss in 2024 after booking its first-ever goodwill impairment since JAB Holdings bought it in 2018. Rising food and labor costs plus higher UK taxes hit profits, even as sales rose 10% to £1.2B. Pret still added new stores globally (717 across 21 markets) and is doubling down on city centers, travel hubs, and U.S. expansion, with an IPO under consideration.

☕ The Big Brew 🎲 Gaming ban dents UPI payments

India’s ban on real-money gaming is already shaking the broader digital economy — especially UPI, the country’s payments backbone.

• August slump: UPI gaming volumes fell 23% month-on-month to 27.1 Cr transactions, while value dropped 26% to ₹7,441 Cr.

• Year-on-year pain: Compared with August 2024, transaction count slid 11%, and value plunged 36%.

• Payments exposure: About 80% of RMG transactions ran on UPI, meaning apps and payment aggregators are losing a significant revenue stream.

👉 What does this mean?
The crackdown has revealed how dependent UPI’s growth was on gaming. With SC now consolidating all challenges to the ban, fintech players await clarity. If the ban stands, UPI’s next growth spurt will need to come from categories like retail, utilities, and credit-linked services — a tougher climb than easy gaming volumes.

🚀 Startup Scoop

• 💊 PharmEasy trims FY25 loss by 40%: Online pharmacy unicorn PharmEasy narrowed losses to ₹1,517 Cr in FY25, down from ₹2,522 Cr a year earlier, on revenues of nearly ₹5,872 Cr. A sharp drop in exceptional item losses and stronger diagnostics helped its second straight year of improved results.

• ♟️ Ziffi Chess raises $5M for quick-play app: Gurugram’s Ziffi Chess secured $5M in Series A led by Tanglin Venture, valuing it at $23.5M. The 2-minute, 6-move chess format has pivoted to free-play after the gaming ban but is banking on user engagement. Co-founders Akshat Bansal and Aditya Dubey earlier helped drive Blinkit’s quick-commerce pivot.

• 🏢 Flipspaces extends Series C to $50M: Commercial design-tech firm Flipspaces added $9M to its Series C, bringing the total to $50M. With profitable operations in India and the U.S., UAE expansion next, and IPO plans for 2026, Flipspaces is leaning on its 3D visualization and supply chain tools to compete with Livspace and HomeLane.

• 💳 PayU to raise $300M before IPO: Prosus-backed PayU is planning to sell a minority stake worth up to $300M ahead of a 2026 listing, with HSBC advising. Serving 5 lakh merchants and running its own NBFC, PayU grew India payments revenue 12% to $498M last year, with total revenue up 21% to $669M.

🎲 Chai Break Trivia

Did you know 🌊 More than 80% of the world’s oceans remain unexplored — we’ve mapped Mars and the Moon in greater detail than our own seabeds. Scientists say we know more about outer space than the depths of Earth’s waters!

🔮 What’s Brewing Next

• 📅 Sept 22: GST 2.0 two-slab system (5% & 18%) kicks in with new rates.

🌟 That’s a wrap for today’s brew!

From gaming bans shaking UPI to automakers serving festive discounts and Pret taking a giant write-down, today was proof that business is never boring. Keep your cups filled — tomorrow’s headlines could bring a whole new blend. Until then, sip easy and stay sharp, Chai Fam! ☕✨