Big Tech earnings continue to disappoint.
Facebook parent Meta reported a drop of over 50% in its profit while its revenue fell 4.5% from a year ago for the quarter ended September 30, 2022. However, Instagram Reels continue to be a lucrative offering, reporting more than 140 billion plays each day.
In other news, YourStory is now branching outside the Indian startup ecosystem with the launch of YS Gulf.
Through YS Gulf, we hope to showcase and celebrate the extraordinary journeys of entrepreneurs and changemakers across the Gulf, and enable innovation and cross-border collaboration between India and the Middle East.
Check out our launch edition here and tell us what you think.
Oh, and here’s some positive news: BCCI Secretary Jay Shah took to Twitter to announce that match fees for both men and women cricketers (contracted) will now be equal.
Speaking of Twitter, Elon Musk has claimed that he is buying the social media company to “help humanity”.
Just in case you are one of the few still unaware of the whole Twitter vs Musk saga, here’s a nice not-so-little timeline.
Kinda hard to believe all of this happened in 2022 alone.
In today’s newsletter, we will talk about
- NSE asks stock gaming apps to ‘cease & desist’
- Unacademy’s net losses soar
- BYJU’S borrows for business
Here’s your trivia for today: In a deck of playing cards, which king doesn’t have a moustache?
Putting a check on the emerging stock gaming sector, the National Stock Exchange’s unit—NSE Data and Analytics—has issued notices to fantasy stock trading apps to stop using its data for gaming platforms based on real-time movement of shares.
“A lot of apps are running under the garb of being an educational platform. But at the end of the day, they all are making money via betting, gambling, predictions, creating pools, and so on,” an NSE executive told YourStory.
Unpacking ‘educational’ gaming:
- While fantasy stock trading apps don’t involve actual shares or money, they use real-time stock market data.
- Many of these apps position themselves as educational platforms and charge for courses and content around stock markets.
- Indian Trading League (ITL) and Stock Race app would offer cash prizes for predicting the increase or decrease in stock price.
Unacademy had a bittersweet FY 2022 as its losses widened by 85% while, at the same time, revenue also rose by more than 80%.
While the edtech unicorn resorted to cost-cutting measures and layoffs in the fiscal gone by, its job-hunting platform Relevel became a saving grace despite the gloomy macroeconomic conditions affecting the startup ecosystem.
Counting the cost:
- Unacademy spent Rs 1,771.6 crore on employee benefits, which makes for the largest expense made by the startup.
- The edtech giant spent Rs 814 crore on teachers—up by 50.4% from FY21.
- Its advertising costs also went up by 33.5% during FY22 to Rs 549 crore.
Edtech giant BYJU’S has borrowed Rs 300 crore ($36.45 million) from Aakash Educational Services as an unsecured loan.
This comes at a time when the edtech decacorn is bracing for the funding winter and has resorted to laying off 5% of its workforce. It is also facing the heat in Kerala as it looks to close down operations in Thiruvananthapuram.
- According to the filings, the loan was granted at an interest rate of 7.50% per annum.
- The loan will be used by BYJU’S for marketing activities and campaigns for Aakash.
- BYJU’S acquired Aakash in April 2021 for a cash and stock deal of close to $950 million.
News & updates
- Plateaued: Cryptocurrency price increases have mostly stalled following two days of gains that had spurred optimism for a more sustainable rally. Bitcoin, the largest token by market value, declined as much as 1.5% on Thursday to once again trade around $20,000.
- Not lovin’ it: McDonald’s is bracing for an economic downturn in the US and Europe. The company said global same-store sales, or those in stores open at least 13 months, rose 9.5% during the latest quarter, compared with the same period last year.
- Under scanner: European antitrust regulators are investigating Google Play Store, a move that could expose it to another billion-euro fine. Over the last decade, Google has incurred $8.24 billion in EU antitrust fines following three investigations into its business practices.
What you should watch out for
- Indian Railways’ month-long mega safety drive starts today.
- Start of 3-day travel bazaar in Bhubaneswar.
- Prime Minister Narendra Modi to address home ministers of states through video conferencing.
- Kerala Startup Mission (KSUM) to organise Internet of Things (IoT) summit at Thiruvananthapuram.
In a deck of playing cards, which king doesn’t have a moustache?
Answer: King of hearts
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