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Hello,

One account for only one household.

Netflix’s crackdown on password sharing has begun. On Tuesday, the streaming giant started sending emails to users in the USA and 100 other countries stating that only one household can access the same account, meaning those living outside their four walls will soon be cut off.

Feels like betrayal from the company, which once believed “love is sharing a password”. 

ICYMI: Researchers are using drones to map volcanoes. 

Meanwhile, the upcoming Digital India framework will have a chapter on emerging technologies, particularly AI, and how to regulate them, said Union Minister Rajeev Chandrasekhar, asserting that India will do “what is right” to protect its citizens and keep the internet safe.

Oh, and Snapchat’s doing quite well in India. The social media company announced that it has reached the milestone of 200 million monthly users in the country, adding that the time spent by Indian users on the platform’s Spotlight feed has more than tripled.

In today’s newsletter, we will talk about 

• Expenses erode Nykaa’s profits
• What’s next for Cashfree?
• A desktop app for MSMEs

Here’s your trivia for today: When and where was the first-ever connected device made?

Ecommerce

Expenses erode Nykaa’s profits

Mumbai-based beauty retailer Nykaa’s profit in the fourth quarter fell 71% to Rs 2.4 crore, down from Rs 8.5 crore in the year-ago period hurt by increased expenses, as well as a slowdown in consumer spending and stagnant demand for fashion and beauty products. 

A tax expense of Rs 4.4 crore further weighed down the company’s bottom line, CEO Falguni Nayar told investors on Wednesday, adding that this quarter also saw lower consumer demand than the last, which had been driven by festive discounts and events.

Lacklustre: 

• Nykaa’s revenue for fiscal 2023 grew 36% to Rs 5,143 crore, while profit more than halved to Rs 19.2 crore from Rs 41 crore last year.
• It spent Rs 18.2 crore on setting up retail stores under its beauty and fashion brands while Rs 32.4 crore for expanding warehouses.
• Beauty and personal care (BPC), Nykaa’s biggest segment, recorded a GMV growth of 29% to Rs 1,628 crore in Q4 compared to last quarter and an increase of nearly 33% to Rs 6,649 crore in FY23 compared to FY22.

<Funding Alert>

Startup: Hopscotch

Amount: $20M

Round: Undisclosed 

Startup: Walko Food

Amount: $11M

Round: Growth

Startup: Thena

Amount: $5M

Round: Seed

Fintech 

Cashfree’s Akash Sinha on RBI pause, growth

It’s been five months since the Reserve Bank of India (RBI) asked Cashfree Payments, along with other payment gateways, to pause onboarding new merchants until it received its full Payment Aggregator licence.

Despite the uncertainty, Cashfree’s Co-founder and CEO Akash Sinha remains unfazed as the startup keeps its focus on non-payment products and new services. 

A waiting game:

• The Bengaluru-headquartered startup, backed by SBI and Y Combinator, has also hit a pause on fundraising plans. It has secured $42 million in funding so far. 
• After posting profits for five consecutive years, it registered a loss of Rs 2.94 crore in FY22 even as revenue grew by over 53% at Rs 349.8 crore.
• Besides payment gateway, it offers a bouquet of services to merchants, including payouts, collections, verifications services (for banks), reimbursements, loyalty and rewards. 

MSME

A desktop app for small businesses

Business coach for micro, small, and medium enterprises (MSMEs) Rajiv Talreja launched QL One—a desktop app designed to empower India’s thriving small-scale businesses at Proficorn 2023. QL One is a rebranded version of Quantum Leap, a training and coaching company started by Talreja in 2006. 

Stepping stone:

• QL One offers features such as networking and funding for MSME owners, currently accessible to existing members of QL
• The programme plans to implement a small maintenance fee for its users sometime next year. It will also generate revenue from advertorials in its magazine as well as advertisements, Talreja said. 
• QL One will also likely be available as a mobile app next year. Its first rollout to non-members will be done next month. 

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News & updates

• Crashing down: Rocket company Virgin Orbit has shut down, just months after a major mission failure. It had been selling off items to survive, including converted jet Cosmic Girl. In January, its first-ever satellite mission in the UK reached space but fell short of its target orbit.
• Trimming force: Meta Platforms started carrying out the last batch of a three-part round of layoffs on Wednesday as part of a plan announced in March to eliminate 10,000 roles. Overall the cuts have hit non-engineering roles most heavily, reinforcing the primacy of those who write the code at Meta.
• Racing to the top: Amazon’s cloud customers are clamouring to get their hands on the ChatGPT-style technology the company unveiled six weeks ago. But instead of being allowed to test it, many are being told to sit tight, prompting concerns the AI tool isn’t fully baked. 

What you should watch out for

• New Vande Bharat Express to launch in Uttarakhand.
• Khelo India University Games starting in Uttar Pradesh.

When and where was the first-ever connected device made?

Answer: In 1982, a group of students at Pennsylvania’s Carnegie Mellon University modified a Coca-Cola vending machine, the first-ever connected device made.

Anyone connected to the ARPANET   or the institute’s local Ethernet could track its inventory and whether the drinks inside the machine were cold.

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