Non-consensual image rings are turning small UPI transfers into tickets to abusive, closed Telegram groups. This and more in today’s ETtech Morning Dispatch.

Also in the letter:
■ Govt to draft new AI law
■ H1 venture debt deals stay flat
■ Mumbai rains disrupt online deliveries

ETtech in-depth: Pay Rs 99 via UPI, get access to Telegram’s privacy abuse economy

A Rs 99 UPI transfer

where women’s images are sold, traded, and discussed without consent.

We reviewed multiple such groups and at least 70 posts across Reddit, Instagram, and other platforms that funnel users into closed Telegram channels carrying non-consensual photos, candid shots taken in public, demands for “leaks” and a stream of abusive chatter.

Payments power the model:

• Operators typically collect Rs 50-150 via P2P UPI transfers into personal bank accounts, with no website, merchant account or payment gateway in sight.
• Industry insiders say some of these operators juggle multiple UPI IDs, intermediaries and mule or rented accounts to pool and reconcile payments.
• Experts point out that such transfers are difficult to police because payment apps cannot see or infer the underlying purpose of a P2P transaction.

Telegram as the distribution layer:

• Telegram’s large groups, seamless file‑sharing, persistent usernames and easy link rotation make it an efficient distribution stack for operators shifting users off mainstream social platforms.
• AI‑generated and morphed images add another layer of risk, as the same channels can blast synthetic abuse content at scale.
• Legal experts warn that even people who actively seek out or join groups sharing non‑consensual imagery can face prosecution under existing law.

Flipkart rolls out $50 million Esop buyback, second payout in a year

Kalyan Krishnamurthy, CEO, Flipkart Group

Flipkart

employee stock ownership plan (Esop) liquidity programme, giving eligible staff a fresh chance to cash out a slice of the stock options vested over the past three years.

Driving the news:

• Walmart‑owned Flipkart has set aside a $50 million corpus for the programme.
• Eligible employees can liquidate up to 5% of the stock options vested over the past three years at Rs 713.4 per option, according to an internal email from group chief executive Kalyan Krishnamurthy.
• The payout is scheduled for August 2026.

Previous liquidity event: In July 2025, Flipkart announced

employee stock buyback programme that was expected to provide liquidity to about 7,000‑7,500 employees.

In 2023, it enabled

to current and former employees after PhonePe’s separation from Flipkart, which remains the largest Esop buyback by an Indian internet company.

Yes, and: The new programme lands as Flipkart enters what Krishnamurthy called its “next chapter as an India‑domiciled company”. The group has been working to shift its holding structure to India, a move widely seen as a precursor to an eventual public listing.

New AI law may focus on graded, risk-based regulations: Officials

A proposed artificial intelligence (AI) law may sort systems by risk and regulate them accordingly, an official told us.

Driving the news: Low-risk tools like chatbots and recommendation systems may face light-touch requirements, while high-risk uses in sectors like banking, finance, healthcare and critical infrastructure are likely to see see tougher rules.

The law could act as an umbrella framework under which sectoral regulators – including Reserve Bank of India and Securities and Exchange Board of India (Sebi) – issue more specific norms, the official added.

The missing link: The legislation is expected to build on the national AI governance guidelines released by the Centre last November. Those guidelines flagged the IT Act’s broad definition of “intermediary” as outdated and called for clearer classification of modern AI systems.

Setting context: Last week, electronics and information technology secretary S Krishnan said the government is considering a separate AI law to counter evolving threats. Existing rules have so far helped tackle early concerns around deepfakes and online harms, he said, but rising cybersecurity threats now demand a dedicated statue.

Deep‑tech pipeline offers hope as venture debt deals stay flat in H1

Venture debt deployment in India

in the first half of 2026 as fewer late‑stage equity rounds shrank the pool of companies eligible for such loans.

Jargon buster: Venture debt financing is a loan extended to companies that have already raised institutional equity capital and want to fund their next phase of growth. Venture lending typically tracks equity fundraising cycles closely.

Data decoded: Between January and June:

• Alteria Capital deployed about Rs 680 crore across 48 companies
• Trifecta Capital invested nearly Rs 600 crore in roughly 30 startups
• Innoven Capital India deployed around Rs 400 crore across 16 companies.

Separately, Tracxn data showed that late‑stage rounds fell to 44 from 94 a year earlier, even as total deal value increased.

Why deployment stayed flat: Venture debt shadows equity cycles; with fewer growth‑stage rounds, lenders saw fewer immediate opportunities. Most meaningful venture debt becomes available from Series B onwards, while seed and Series A companies remain too early for this kind of capital.

Other Top Stories By Our Reporters

Mumbai rain hits online deliveries: Heavy rainfall across Mumbai

quick‑commerce operations and ecommerce deliveries, with companies warning customers of service interruptions and longer delivery timelines.

Rentomojo gets IPO greenlight: Furniture and home electronics rental startup Rentomojo

from the Securities and Exchange Board of India for its proposed initial public offering. The IPO will comprise a fresh issue of shares worth Rs 150 crore and an offer for sale of up to 28.4 million shares by existing shareholders.

Suzuki subsidiary launches Rs 2,000 crore fund: Next Bharat Ventures, a subsidiary of Suzuki Motor Corporation, has launched

, among the largest of its kind in India, to back startups building businesses for rural and under‑served communities.

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