Trump's tariff shockwaves; Scapia's fundraise

President Donald Trump's broad import tariffs will have repercussions for the tech world. This and more in today's ETtech Top 5.

Also in the letter:
■ Bharat FIH's pivot
■ Race on to buy TikTok
■ Chart-ed: Rise of female gamers

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On Wednesday, US president Donald Trump announced sweeping new import tariffs, affecting allies and adversaries. A blanket 10% tariff applies to all imports, with select countries facing higher levies. Indian exports now face a steep 27% tariff over and above the existing rates.

Electronics hit: India’s electronic exports, valued at $14 billion, will be significantly impacted, particularly smartphones, a major component of the $3.58 billion exports recorded in December 2024. However, experts suggest India could gain as rival markets like China, Vietnam, and Indonesia face even steeper tariffs.

Biggest loser: Apple will be one of the hardest hit, as most of its export hubs face high tariffs.

• The company has shifted a significant chunk of its manufacturing to India, making it a key export base.
• It was set to export iPhones worth $8-9 billion to the US this financial year.
• It must either scale down production in India, Vietnam, and China or pass the cost to customers.

Also Read: US tech, retail stocks lead rout after tariff shock

Ecommerce impact: Trump also signed an order to plug a trade loophole that allowed companies like Temu and Shein to ship low-value packages (under $800) duty-free from China. The new rule also applies to goods from China and Hong Kong and will take effect on May 2.

Indian IT shivers: Although not directly targeted, Indian IT firms felt the heat, with Infosys, Tech Mahindra, and TCS shares dropping up to 9% after the announcement.

Also Read: Trump tantrums and client rethinks likely to slow IT recovery

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Anil Goteti, CEO, Scapia

Scapia, a travel-focused fintech startup founded by former Flipkart senior executive Anil Goteti, has raised $40 million in an equity funding round.

Participants: Peak XV Partners led the round, which was joined by existing investors Elevation Capital, Z47, and 3State Capital.

Quick lookback:

• Scapia nearly shut down due to a severe business slowdown after the Reserve Bank of India (RBI) banned Federal Bank from issuing co-branded cards in March 2024. The ban impacted customer acquisition for fintech firms such as Scapia and OneCard.
• Following last month's RBI nod, Federal Bank resumed co-branded card issuance, while Scapia had already restarted customer onboarding by late February.

(L-R) Sweet Karam Coffee founders Srivatsan Sundararaman, Anand Bharadwaj, Nalini Parthiban and Veera Raghavan

South Indian snacking brand Sweet Karam Coffee (SKC) has secured $8 million in Series A funding from Peak XV Partners and existing investor Fireside Ventures.

Growth plans: SKC plans to deploy the new capital to expand its omnichannel distribution, accelerate product launches, and strengthen its tech-driven supply chain.

New appointment: Last month, SKC hired former Unilever executive Nandhitha Indermohan as its new chief operating officer (COO). She has over 15 years of experience in supply chain management and operations.

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Young Liu, chairman, Foxconn

After a wave of board resignations in 2024, Foxconn group company Bharat FIH has overhauled its board and is now actively positioning itself in Apple’s supply chain.

Driving the news: The company is shifting strategy after a sharp decline in orders from its main client, Xiaomi. Instead of competing in the crowded electronics manufacturing services (EMS) sector, the board is steering Bharat FIH towards equipment servicing and maintenance for Apple suppliers, sources told us.

Added benefits: Industry insiders say this pivot could also help the company tap into the newly launched production-linked incentive (PLI) scheme for electronics components, providing fresh growth opportunities.

Under shadow: While Foxconn rapidly expands its India operations, Bharat FIH has seen little benefit. Experts told us last year that the company struggled to reduce its reliance on Xiaomi and failed to diversify quickly.

Also Read: World's top electronics maker Foxconn Q4 profit drops 13%

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With the April 5 deadline fast approaching, the battle to acquire TikTok’s US operations is intensifying. On Wednesday, The New York Times reported that ecommerce giant Amazon made a last-minute bid to buy all of TikTok as the White House edged closer to endorsing a deal.

State of play: According to The Financial Times, the Trump administration is nearing approval for a deal involving a group of American investors.

• Private firms, including Andreessen Horowitz, Blackstone, and Silver Lake, could take a 50% stake in TikTok US.
• Existing non-Chinese investors, such as General Atlantic, Susquehanna, KKR, and Coatue, could get a 30% share.
• ByteDance, TikTok's parent company, would be left with a 20% stake, in line with the ban-or-divest legislation that aims to force TikTok’s US separation.

Yes, but: The deal’s complexity means finalising it could take months. TikTok’s prized algorithm is a major sticking point, whose sale requires the Chinese government’s go-ahead. The FT report added that one proposed solution allows ByteDance to continue developing and operating the algorithm, with the new owners gaining access via a licensing agreement. The group could also have oversight over any changes to it.

In context: Almost immediately after taking office, US President Donald Trump signed an executive order delaying TikTok’s ban by 75 days, demanding US ownership for its continued operations. He also warned of potential tariffs on China if no deal was reached.

Also Read: Work on TikTok deal is 'in a good place,' US vice president says

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As the gaming industry evolves, more women are joining the community. With this growth, gaming preferences are also changing. A recent Statista study explores how female gamers worldwide choose between PCs and consoles.