📉 Indian IT firms facing headwinds

Start Your Day with YS Buzz: Your 8 AM Snapshot of Today's Top Startup News! 10 January 2024 [View in Browser]( Hello, ‘Twas a day of shuffles. After four-and-a-half years at Swiggy, Sidharth Satpathy is [stepping down]( as the Vice President of the company’s quick commerce vertical Instamart. His role will be taken over by Anirban Roy, who earlier worked as the head of performance marketing at Amazon India. Then, online-first home and kitchen products brand 10clubhomes has onboarded [Kavitha Rao]( as Co-founder and Chief Operating Officer. She will be key to the company entering new categories and creating an omnichannel approach post the startup's 'strategic pivot' from its D2C roll-up model. Elsewhere, Infosys Senior VP Binny Mathews quit after 15 years, joining rival Accenture as its Chief Procurement Officer. This follows a string of top-level exits from the IT services company, including CFO Nilanjan Roy who exited last month. In other news, more women cab drivers for Delhi-NCR thanks to BluSmart. The company has signed an MoU with Automotive Skill Development Council to upskill and train [250 women]( in the region and will also provide employment opportunities to trained women drivers after screening and driving tests. [ICYMI:]( It’s time for smart outdoor lighting and, of course, it dances to music. Lastly, we leave you with the story of [Satyam Sundaram]( a Bihar resident who started selling bamboo bottles on the roadside. Today, his company Manipuri Bamboo Artifacts clocks an annual revenue of Rs 25 lakh. Now, that’s a turnaround! In today’s newsletter, we will talk about - Indian IT sector to see muted growth - Fintech Slice's revenue nearly triples - Fighting China's CCTV dominance Here’s your trivia for today: In which country were gummy bears invented? --------------------------------------------------------------- Technology Indian IT sector to see muted growth Indian IT services companies are expected to see subdued numbers in the third quarter of the current fiscal year due to macroeconomic conditions. Leading Indian IT services companies like TCS, Infosys, HCL Tech, and Wipro are expected to report under 1% QoQ growth, and in some cases, it might be negative. “Over the last year, there has been a realisation among enterprises that they overspent on transformation projects and needed to rationalise," as per JP Morgan. Future outlook: - Brokerage house HSBC noted that IT stocks are likely heading towards a prolonged period of consolidation and range-bound returns. “This is similar to FY14-18 when the IT index offered mid-single digit CAGR returns,” HSBC said. - According to brokerage house Jefferies, the primary focus will be on commentary on the demand environment and 2024 IT budgets, along with company-specific issues. - The silver lining comes from the technology investment platform Recognize which noted that 73% of all CIOs foresee an increase in their IT budgets in 2024. Cyber/data security, AI, and cloud migration will be top priorities. [Read More]( --------------------------------------------------------------- Top Deals of the Week 1) Impact Analytics: $40M| Growth financing 2) makeO: $16M| Bridge 3) Grip Invest: $10M| Series B --------------------------------------------------------------- Fintech Fintech Slice's revenue nearly triples Internet Private Limited, the parent company of fintech unicorn Slice, nearly tripled its revenues in the fiscal year 2023 on the back of rising sales of services. Its revenues from operations grew to Rs 846.74 crore from Rs 283 crore earned in the preceding fiscal year. Earnings: - Slice more than doubled its income from fees and commissions. Additionally, interest income on loans surged more than 3.5X, reaching Rs 471.81 crore in FY23. - The rise in revenues was also followed by higher expenses, which more than doubled to Rs 1,272.56 crore in FY23 from Rs 542.49 crore in the year-ago period. - The company faced a 60% increase in losses, which amounted to Rs 405.78 crore in fiscal year 2023—up from Rs 253.67 crore incurred in FY22. [Read More]( --------------------------------------------------------------- Immerse yourself in a world of insightful and meticulously researched business narratives with our daily stories, weekly newsletter The Crux, and comprehensive organisation charts that map out the leadership of India's hottest startups. With hundreds of articles already in our archive, The CapTable cuts out the clutter to bring you the most important stories shaping India's economy. As a YS Buzz subscriber, enjoy early access to this limited time offer. Use code "Freedom75" to avail this discount on our annual plan. [Get Subscription Now]( --------------------------------------------------------------- From the CapTable Uber's Indian fusion: Merged venture achieves EBITDA breakeven Uber India’s results for the year ended March 2023 are out and the ride-hailing giant’s latest numbers make for an interesting read. Not only because we’re finally seeing the true picture of the company’s post-pandemic resurgence but also the structural changes the San Francisco-based company has made to its India business. In its latest filings with the Ministry of Corporate Affairs, Uber India’s revenues stood at Rs 2,666 crore. In the year prior, the company’s operating revenues amounted to just Rs 396 crore. This significant jump in revenue, though, was not solely due to the post-pandemic resurgence of the mobility sector, but a result of amalgamating multiple entities which were being accounted separately by Uber in India. Earlier, Uber India System Private Limited largely only housed the ride-hailing entity. Now, it has been merged with Uber India Research and Development Pvt Ltd and Xchange Leasing India Pvt Ltd, propelling its revenues over Rs 2,500 crore. Key Takeaways: - Uber India’s FY23 latest financials showcase a consolidated entity with a much larger revenue than in previous years - The combined entity houses not just its ride-hailing business, but also the Indian R&D operations that service Uber’s global business and a cab-leasing business, too - By merging these entities, not only does Uber India build a bigger balance sheet, but it has also gotten closer to profitability - While Uber India’s ride-hailing business has grown admirably, it remains minuscule compared to Uber’s global markets [Continue Reading]( --------------------------------------------------------------- Security Fighting China's dominance in CCTV sector Between 2010-2015, Sparsh CCTV (Sparsh Securitech) faced difficulties due to China’s growing control over the CCTV industry despite having an approximately 12% domestic market share. Today, it has 200 SKUs, with a range of CCTV solutions, IoT devices, AI-based software, and accessories, and is an active part of the 5G movement in India. Behind the pivot: - “We were one of the first to develop homegrown remote operating switches for CCTV cameras and from there the manufacturing journey started,” says Founder and CEO Sanjeev Sehgal. - During the 'Make in India' campaign, Sparsh CCTV pivoted to the government sector for the deployment of a security surveillance system. - At Indian Mobile Congress 2023, the company presented 20 5G use cases like facial recognition and driver alert systems for railways and airports, intelligent traffic monitoring system explosion-proof cameras etc. It also launched an indigenous cloud platform. [Read More]( --------------------------------------------------------------- News & Updates - [Predictions:]( Samsung Electronics expects to post a 35% drop in operating profit in the fourth quarter of 2023, missing expectations by a wide margin as a rebound in semiconductor prices likely narrowed losses in the company’s biggest profit-driving segment. - [Investigation:]( Microsoft’s $13 billion investment into OpenAI risks a full-blown investigation. The European Commission is examining whether Microsoft’s involvement should be vetted under the bloc’s merger rules, paving the way for a formal probe and even a potential unwinding if it’s found to hamper fair competition. - [Deal talks:]( TikTok owner ByteDance is in talks with multiple prospective buyers of its gaming assets, including the world's largest video games company, Tencent, as the Chinese social media firm retreats from the gaming industry. Talks are ongoing but no deal has been reached. Here's what else we have for you Beyond boundaries: Space tech startups and the evolution of global markets In association with MathWorks 🚀🌌 Explore the cosmic journey of spacetech startups in "LIFT OFF: How Spacetech Startups Can Change the Global Economy." Gain insights from industry leaders, uncover challenges, and witness the collaborative force shaping the future of space exploration! [Click Here]( --------------------------------------------------------------- Spheron Network launches groundbreaking Edge Containers at Web3 re:invent, redefining the future of Web3 infrastructure In association with Spheron Spheron Network's Web3 re:invent event was a resounding success! The unveiling of the first-of-its kind Edge Containers stole the show, witnessed by an enthusiastic crowd of 1,500 attendees. Read the highlights of the event here. [Click Here]( --------------------------------------------------------------- 5 strategic initiatives to revolutionise the omnichannel experience In association with Airtel Business [🚀] Dive into the future of omnichannel excellence with Airtel Business! Avinash Deepak, SVP & Business Head, shares leadership insights on the leadership experience in a thought-provoking blog post on ‘five strategic initiatives to revolutionise the omnichannel experience’. Read on to get a glimpse into the future of customer interaction. [Read More]( Did you know? In which country were gummy bears invented? Answer: Germany. They were first created by Hans Riegel Sr, Founder of Haribo, in 1922. 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](. 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