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4B was a mistake, says Info Edge.

In a call with analysts following the firm’s quarterly results, co-founder Sanjeev Bikchandani said that investing in the proptech startup was a mistake. Info Edge, which had invested Rs 288 crore in 4B Networks, wrote off its entire investment in the quarter that ended March 31, 2023, due to suspected financial irregularities.

Following this, in June, the investor also initiated a forensic audit of the startup for not disclosing critical business information. Now, the two parties are set to head into arbitration following a Delhi High Court order, starting August 14.

For the April-June quarter, Info Edge reported a 50% decline in its net profit compared with the same period last fiscal. CEO Hitesh Oberoi said that the company’s flagship business, Naukri, has been facing headwinds in IT hiring, adding that non-IT hiring, however, continues to “look good”.

Meanwhile, Zerodha received final approvals from SEBI to set up its asset management company, which is being launched in partnership with Amazon-backed wealth management firm smallcase. The entity will be headed by Vishal Jain who previously worked at Nippon India Mutual Fund. 

ICYMI: Even NASA is getting into streaming. The US space agency announced it is launching a no-cost, ad-free platform called NASA+ by the end of this year to put “space on demand and at your fingertips”.

Are you ready for liftoff?

In today’s newsletter, we will talk about 

• Fashion unit slowdown hurts Nykaa’s bottom line
• Iconic Indian eateries since before Independence 
• A support group for parents alienated from children

Here’s your trivia for today: In 1841, British biologist Sir Richard Owen came up with the name ‘dinosaur’ to describe fossils of extinct reptiles. What does the word ‘dinosaur’ mean literally?

Ecommerce 

Fashion unit slowdown hurts Nykaa’s bottom line

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Image credit: Shutterstock

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Beauty ecommerce company Nykaa saw a 24% increase in operating revenue to Rs 1,421 crore in the first quarter of FY24, up from Rs 1,148 crore in the same period last year. However, this was matched by a 23% rise in total expenses to Rs 1,419 crore, weighing down the firm’s bottom line.

In the red:

• Nykaa’s second-largest segment by revenue—Nykaa Fashion—has shown muted growth over the last few quarters, primarily due to rising competition from rivals including Myntra, Purplle, and TataCliq. 
• In the April-June period of FY24, the segment recorded a 12% rise in GMV given the weak sentiment in the fashion industry, particularly in the last quarter.
• The Falguni Nayar-led company’s gross merchandise value (GMV) in the beauty and personal care (BPC) business—its largest segment by revenue—grew 24% year-on-year across its ecommerce, physical retail and consumer brands portfolios.

<Top Funding Deals of the Week>

Startup: Credgenics

Amount: $50M

Round: Series B

Startup: Disprz

Amount: $30M

Round: Series C

Startup: Stable Money

Amount: $5M

Round: Seed

Food

Iconic eateries that have been around since before Independence 

From Karim’s in Delhi and Indian Coffee House in Kolkata to Mavalli Tiffin Room in Bengaluru, India has a rich history of restaurants that began their journeys before independence. Amid the crowd of contemporary and extravagant restaurants, these establishments have managed to carve out a niche for themselves.

Rewinding the clock:

• Started by Lala Hans Raj Kalra in 1942, United Coffee House is believed to be Delhi’s first Western-style café, frequented by the cognoscenti. 
• Glenary’s in Chauk Bazaar, Darjeeling, has been around for 110 years. The iconic eatery was earlier called Vado, by an Italian with the same name. 
• Built as Albert Hall in April 1876, Indian Coffee House used to be the go-to place for the students of Calcutta University and Presidency College. Even today, it teems with college students, retired professionals, and business owners, among others. 

Mental health

A support group for parents alienated from their children

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Milaap, a support group for non-custodial families

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In an effort to come to terms with her own pain after losing the custody of her son, Gazal Raina started a support group for non-custodial parents to deal with parental alienation after divorce. 

Built completely through social media, the community Milaap is now a safe space for 300 parents from across the country, in addition to mental health professionals and legal experts who offer their services to them. 

Healing hearts:

• Milaap holds sessions on legal and emotional counselling both for parents and children, to make them stronger and face the consequences of alienation and divorce.
• Raina says that in many cases, parents find themselves battling false allegations and financial struggles. When it comes to warring families and custody battles in India, things can get very ugly, she says. 
• Mental health professionals point out that parents must, with the knowledge that there is a young person looking up to them, refrain from villainising the other parent and help their children emerge as individuals in their own right. 

News & updates

• Stern measures: Amazon is cracking down on US workers who have ignored its return-to-office guidelines, in the latest example of companies attempting to reduce the amount of time employees work remotely. Amazon expects US workers in the office at least 3 days a week.
• Host for rumble: Italy’s culture minister has talked to Tesla boss Elon Musk about organising an ancient Rome-themed charity event after the U.S. entrepreneur said his planned fight with Meta’s Mark Zuckerberg would have such a backdrop.
• Space tourists: Virgin Galactic flew its second commercial spaceflight Thursday, its first carrying private-paying tourists. Called Galactic 02, it was flown by two pilots and carried four other people, including Virgin Galactic chief astronaut instructor Beth Moses and a trio of passengers.

In 1841, British biologist Sir Richard Owen came up with the name ‘dinosaur’ to describe fossils of extinct reptiles. What does the word ‘dinosaur’ mean literally?

Answer: Terrible lizard. Owen combined the Greek words “deinos”, meaning terrible, and “sauros”, meaning lizard.

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