📉 Paytm introspects after Q4 earnings

The most interesting news selected specially for you! 23 May 2024 [View in Browser]( TOGETHER WITH Hello, It’s a pink day for Nykaa, and we are just a part of it. FSN E-commerce Ventures, the parent company of [Nykaa]( posted a 67% YoY rise in consolidated net profit for FY24 at Rs 32.2 crore, supported by strong growth and demand in its key segments. The Falguni Nayar-led beauty marketplace logged a 24% YoY rise in revenue from operations to Rs 6,385 crore in FY24. In other news, OYO has backed out on its IPO plans for the second time. As per TechCrunch, the [Ritesh Agarwal-founded]( company, once commanding a valuation of $10 billion, is reportedly attempting to raise money at a valuation as low as $2-2.3 billion. Meanwhile, [Ola Group]( has transitioned its workload to its AI firm Krutrim’s cloud infrastructure, within a week after Ola Founder Bhavish Aggarwal severed ties with the Microsoft Azure cloud computing platform. In a new twist to the BYJU’s saga, a US court has ruled that [Riju Ravindran]( the brother of Byju Raveendran, is in contempt of court for refusing to disclose or confirm the whereabouts of the $533 million from term loan proceeds. Lastly, weddings are the best place to capture the most beautiful moments in a couple’s lives. But why are couples increasingly imposing the [‘no photos’ rule]( on their guests? In today’s newsletter, we will talk about - Paytm introspects after Q4 earnings - Simpl doubles down on Pay Later service - Family-friendly podcast with Saloni Gaur Here’s your trivia for today: What is the most dense stable element? --------------------------------------------------------------- Ecommerce Paytm introspects after Q4 earnings Paytm parent One 97 Communications has had a rough 2024 so far. Due to regulatory sanctions from the RBI, the fintech player had to stop all operations at its subsidiary Paytm Payments Bank, which led to impairment losses of Rs 227 crore. During an extended earnings call, CEO Vijay Shekhar Sharma said the company has learned from its mistakes and will hire more independent directors and subject experts to bolster governance and compliance. Key takeaways: - Loss for FY24 narrowed by 20% to Rs 1,422 crore from Rs 1,776 crore in FY23, while [Q4 loss soared]( over threefold to Rs 550 crore. - The company announced that Paytm will “pivot” to focus more on a distribution-only credit model (where Paytm is not responsible for collections and, therefore, receives no collection incentive). - It also revealed that it is experimenting with secured loans, including microloans, against property for smaller merchants. [Read More]( --------------------------------------------------------------- Funding Alert 1) SAVE Group: $13M|Undisclosed 2) UnifyApps: $11M|Seed 3) NoPo Nanotechnologies: $3M|Pre-Series A --------------------------------------------------------------- Together with Dell Technologies Webinar Alert | Learn to pitch and secure angel funding your funding journey with the Empowered by Dell Technologies webinar series. Our first session dives deep into the world of angel investors, tackling the crucial question: "Cracking the 'angel' code: Where do you find them?" 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[Know More]( --------------------------------------------------------------- Fintech Simpl doubles down on Pay Later service Days after cutting 100 jobs, fintech startup Simpl has outlined a new strategy, with a special focus on its Pay Later product. The Bengaluru-based company will also enforce a hiring freeze and look for other ways to cut costs. As per LinkedIn, the company has more than 600 employees. Focus: - In an email sent to its employees, co-founder Nitya Sharma said Simpl will double down on the Pay Later service as the company looks to improve unit economics, expand its network, and reduce operational costs. - The Pay Later service lets users make purchases from Rs 1,500 to Rs 20,000 with a 15-day billing cycle and no interest if paid on time. - To address slow customer acquisitions, Simpl plans to ensure uniform consumer onboarding and education across all channels, prioritising the first 30-day consumer experiences, working with merchants to achieve joint goals of retention, and more. [Read More]( --------------------------------------------------------------- Celebrity Family-friendly podcast with Saloni Gaur If you are a fan of comic Saloni Gaur, you’d know how intrinsic her family is to her life, as well as her comedy. Most often, you’ll find her family, especially her grandmother (dadi) making appearances on her reels—cracking one up with her snark and deadpan expression. Gaur has roped in her family in a podcast series, The Pariwarik Podcast—which features Gaur, along with her mother and grandmother—as an extension of their daily conversations. Tune in: - While humour is aplenty, the conversations touch upon a variety of subjects, like gender roles, marriage, fashion, and parenting, and introduce thought-provoking opinions from her family. - The Pariwarik Podcast is less of gyaan (advice) and more of everyday things relatable to a middle-class family. - Gaur aims to keep her content relatable and focus on trending topics. “My family is very entertaining; there is no dearth of relatable topics in a middle-class household,” she laughs, adding that her writing has become more refined, and so have her jokes in the process. [Read More]( --------------------------------------------------------------- From the CapTable Startups retreat from IPL 2024 sponsorships; packed cricket season impacts ROIs per event The past few IPL editions each have added sponsorship revenues of roughly Rs 1,000-1,200 crore to the BCCI’s coffers. In 2024, however, there was a likely shortfall of a few hundred crores. The differential, though not very pronounced, brings forth an interesting trend that has played out this year. With three high-profile cricket tournaments—ICC Men’s Cricket World Cup 2023, IPL 2024, and ICC Men’s T20 World Cup 2024—crammed into a 7-8-month window, along with the Lok Sabha Elections thrown into the mix, advertiser budgets were pulled in multiple directions, resulting in low ROIs per event, industry insiders told The CapTable. Several advertisers, including traditional FMCG firms, automobile companies, and a handful of new-age digital firms which were common across all three events were compelled to reassess their IPL spending. “We’ve seen three very high-profile cricket sponsorship vehicles in a short span. If I’m a marketing head who’s been given a Rs 100-crore budget for sponsorships, I’d want to allocate it evenly. Last year, marketing managers didn’t have this challenge. They put everything on the IPL. But this year, companies have cut down their IPL budgets because they have other options and they expect better ROIs from the World Cups,” Santosh N, managing partner at valuation services and consulting firm D & P India Advisory Services, tells The CapTable. Key takeaways: - In 2020-21, about 60% of IPL sponsors were new-age startups. That has come down to ~20% in IPL 2024, with legacy advertisers making a return. - In the absence of free-flowing VC money, cash-strapped startups have stayed away from IPL associations. The likes of Byju’s, CRED, Swiggy, Paytm, Unacademy, which had spent heavily until 2022, are missing from the IPL advertiser roster this year. - The price of a 10-second ad slot has more than doubled in the last 2-3 years compared to pre-COVID editions of the IPL, mostly because of free-spending unicorns. - Several brands such as Angel One and Astral Pipes which are looking to increase their visibility in Tier-2+ towns have amped up their ad budgets and associations with IPL. [Continue Reading]( --------------------------------------------------------------- News & Updates - [Ad business:]( TikTok is the latest tech company to incorporate Gen AI into its ads business, as the company announced it’s launching a new “TikTok Symphony” AI suite for brands. The tools will help marketers write scripts, produce videos, and enhance current assets. - [Delivery:]( French car giant Peugeot is partnering with German mobility startup Vay to integrate so-called “tele driving” tech—an alternative to autonomous cars—into its vehicles. The deal will see the two companies assess the technology’s use on “last-mile delivery” vans and smaller logistics vehicles, with a focus on B2B customers. - [More AI:]( Amazon is upgrading its decade-old Alexa voice assistant with Gen AI and plans to charge a monthly subscription fee to offset the cost of the technology. Amazon’s subscription for Alexa will not be included in its annual Prime offering, and Amazon has not yet nailed down the price point. Here's what else we have for you Why you need to embrace zero-party data and decentralised identity for enhanced digital trust Discover the future of digital trust! Dive into insights from DevSparks 2024 keynote, where Affinidi’s Giriraj Daga explores the power of zero-party data and decentralised identity. Explore the path to enhanced digital trust and user control. [Know More]( Did you know? What is the most dense stable element? Answer: Osmium. We would love to hear from you! To let us know what you liked and disliked about our newsletter, please mail nslfeedback@yourstory.com. If you don’t already get this newsletter in your inbox, [sign up here](. For past editions of the YourStory Buzz, you can check our [Daily Capsule page here](. [Feedback]( [Unsubscribe]( [Newsletters](