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Hello,

It’s day 3 of 2024, and Indian startups have already seen a few rejigs. 

Rakesh Deshmukh has stepped down from his role as the CEO of PhonePe’s Indus Appstore, which launched in September last year. Next, BYJU’S Group General Counsel Roshan Thomas left the edtech company after 2.5 years, marking another top-level exit from the troubled firm. 

Also, upGrad appointed Asheesh Sharma as President of Short Courses and Bootcamps, replacing Subramanyam Reddy, Co-founder of skills solution company KnowledgeHut, which upGrad acquired in 2021. 

The Indian stock market, too, is trying to find its footing in the new year. 

Benchmark indexes fell on Tuesday, dragged by financials, auto, and IT stocks, as selling pressure emerged at near record high levels. The blue-chip NSE Nifty 50 fell 0.35% to 21,665.80 points, while the S&P BSE Sensex shed 0.53% to 71,892.48.

Nonetheless, investors are bullish on Asian markets, especially India, in 2024. Here’s why. 

Meanwhile, Bitcoin topped $45,000 for the first time since April 2022. According to Coin Metrics, the world’s largest cryptocurrency hit an intra-day high of $45,913.30 as investor confidence in a potential bitcoin ETF approval continued to build.

ICYMI: Check out these apps that can help you reach your New Year’s resolutions!

This year, we will get them done!

In today’s newsletter, we will talk about 

• The future of India’s SaaS sector
• Odisha focuses on education
• Zomato hikes platform fee

Here’s your trivia for today: What’s the most expensive home in the world?

SaaS

The future of India’s SaaS sector

The Indian SaaS industry has not only weathered economic downturns but has also stood tall amid the funding winter in 2023. Projections paint a promising picture, with a joint report from SaaSBOOMiand McKinsey & Company setting a revenue range of $50-70 billion and an enterprise value of $500 billion by 2030.

“The SaaS ecosystem has to adapt to the change faster, and those who do not tap into the opportunity or fail to pivot will find it even harder down the line. The year 2024 will be a make-or-break year,” says Manav Garg, CEO of Eka Software and Founding Partner at Together Fund.

Outlook 2024:

• India’s SaaS market is expected to reach $50 billion in ARR by 2030. The increase in the number of early-stage companies surpassing $10 million in revenue signifies a robust foundation for expansion, says Anant Vidur Puri, Partner, Bessemer Venture Partners. 
• AI-focused investments are at the core of many new SaaS funds. Together Fund launched Fund II in early 2023 as a $150 million early-stage fund with an AI-first investment strategy. In December, SenseAI Ventures launched its inaugural venture capital fund.
• Platform-as-a-Service is expected to expand, offering developers a flexible platform for SaaS app creation. Moreover, SaaS platforms will prioritise mobile-first development as mobile usage rises. 

Education

Odisha focuses on education

The Odisha government’s 5T High School Transformation Programme is changing the face of the education system in the state with smart classrooms, a STEM-focused curriculum, increased sports facilities, and more.

Turnaround:

• Under the programme, government schools in the state are equipped with smart classrooms, e-libraries, increased sports facilities, modern science labs, vibrant campuses, and a host of other amenities.
• Led by VK Pandian, former IAS officer and Secretary to CM-Transformational Initiatives, it aims to create young leaders of tomorrow by giving less-privileged students access to the benefits of digital education.
• In the last two years, since the launch of the programme, the state has recruited 20,000 high school teachers and created 6,000 additional posts as ‘buffer’ or ‘reserve’ posts so that the transformation is seamless.

Foodtech

Zomato hikes platform fee by 33%

Online food delivery giant Zomato has raised its platform fee for users in key markets to Rs 4 per order, marking a 33% increase from the previous Rs 3. 

“These are business calls which we take basis various factors from time to time,” a spokesperson from Zomato told YourStory.

Take rate:

• Zomato introduced a standardised flat platform fee in August 2023, initially starting at Rs 2 per order and later increasing it to Rs 3 across most major markets.
• According to an ET report, Zomato imposes the platform fee in addition to a delivery charge. While the delivery fee is waived for Zomato Gold members, the platform fee applies to the loyalty programme’s members as well. 
• In the July-September quarterly results, Zomato reported a profit after tax of Rs 36 crore and its management linked the enhancement of the percentage of revenue generated per food delivery order to the introduction of the platform fee.

News & updates

• Not allowed: Semiconductor equipment maker ASML was barred by the Dutch government from exporting some of its tools to China. ASML said a license for the shipment of its NXT:2050i and NXT:2100i lithography systems in 2023 has “recently been partially revoked by the Dutch government.”
• Scrutiny: While most of Europe was still busy with holidays late last month, ChatGPT maker OpenAI was busy firing out an email with details of an incoming update to its terms that looks intended to shrink its regulatory risk in the European Union. Its technology has come under early scrutiny in the region over ChatGPT’s impact on people’s privacy.
• Panic buying: Truckers across India joined a nationwide strike against a new law imposing harsher punishment for hit-and-run offences, leading to delays in the supply of goods and sparking fuel shortage fears. Long queues outside petrol pumps were seen in Punjab and Madhya Pradesh as people rushed to fill their tanks expecting fuel to run out.

What’s the most expensive home in the world?

Answer: Buckingham Palace, valued at approximately $4.9 billion. 

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