Indian IT sector expects muted growth
Indian IT companies are expected to put in a modest performance for the fourth quarter of FY23 given the macro-economic challenges and outlook for FY24 remains muted.
Hello,
Tamil Nadu will continue to ban online gambling.
Governor R N Ravi has given his assent to the Tamil Nadu Prohibition of Online Gambling & Regulation of Online Games Bill, 2022, which was adopted by the state assembly for a second time in March. Advertisement in any form promoting online gambling or playing online games of chance with money or other stakes is prohibited in the state, specifically rummy and poker.
Meanwhile, Gurugram-based Doubnut joins the legion of edtech startups facing the challenges of diminishing demand for online learning after a pandemic-led boom of two years. The startup is reportedly reducing its workforce by over 30%, according to Entrackr, and is exploring potential acquisition deals.
ICYMI: NASA’s James Webb Space Telescope shows the supernova remnant Cassiopeia A (Cas A) created by a stellar explosion 340 years ago from Earth’s perspective.
Elsewhere, UAE-based multinational telecommunication services provider e& has signed a binding agreement with Uber and its subsidiary Careem to acquire a majority stake in the latter’s spinout "super app" for $400 million.
Uber will continue to own all of Careem’s ride-hailing business. All three of Careem’s co-founders will also be shareholders in the super app.
Last but not least, here’s a visual guide on how to tip across the world.
While tipping is integral to the service industries of several countries, there are some places tipping is actually considered offensive!
The more you know…
In today’s newsletter, we will talk about
- Indian IT sector expects muted growth
- From organ donor to serial entrepreneur
- Zomato's focus on profitability hits growth
Here’s your trivia for today: What is the duration of the world’s shortest commercial flight?
Corporate
Indian IT sector expects muted growth
Indian IT sector's performance for Q4 FY23 is expected to be subdued given the tougher macroeconomic environment in its key markets of North America and Western Europe. Industry body NASSCOM predicts the sector will close the financial year with a 9.4% growth in export revenue to $194 billion.
Outlook:
- The banking and financial services and insurance (BFSI) sector—currently impacted by the banking crisis—is the largest revenue generator for the Indian IT industry.
- TCS is expected to register 1% QoQ growth in revenue for Q4 FY23, while Infosys, Wipro, and HCL Technologies will see a flattish or a marginal decline.
- The global IT services segment is expected to see a 9.1% increase in spending for 2023 at $1.36 trillion.
Funding Alert
Startup: JSW One Platforms
Amount: Rs 205 Cr
Round: Series A
Startup: Logistics
Amount: Rs 100 Cr
Round: Series A
Startup:
Amount: $2M
Round: Series A1
Inspiration
From organ donor to serial entrepreneur
At the age of 18, Ankita Shrivastava donated 74% of her liver to her mother who was suffering from liver cirrhosis. Today, she holds two world records at the World Transplant Games and is also a serial entrepreneur, helming many brands in media and entertainment.
On a mission:
- Shrivastava has built eight brands, including edutainment brand Purple Turtle whose books are available in 25 countries.
- She won two golds and one silver in the World Transplant Games 2019. She also won medals in the 100 m race, long jump and shot put.
- She’s also working and raising funds for her early-stage startup, Airfit, which plans to open cross-fit centres at airports for quick workouts.
Foodtech
Zomato's focus on profitability hits growth
Food delivery firm is likely to grow at a compound annual growth rate (CAGR) of 21% over FY 23-27—down from 25% forecast earlier, JM Financial said in a note. The brokerage firm remains bullish on the company’s long-term prospects in the hyperlocal delivery space.
The findings:
- Zomato is now investing in customers whose order frequencies are high rather than focusing on expanding the long tail on customers ordering infrequently.
- The re-pricing of the membership fee and the closure of operations in loss-making cities are likely to help achieve profitability.
- The company continues to report strong sequential growth in gross order value driven by volume as it focuses on expanding the transacting base.
Picture credit: Unsplash
News & updates
- Steepest fall: Apple’s personal computer shipments declined by 40.5% in the first quarter. Shipments by all PC makers combined slumped 29% to 56.9 million units, falling below the levels of early 2019, as demand surge driven by pandemic-era remote work evaporated, according to IDC.
- Pricing gains: Shares in 10 Chinese companies soared almost 100% on average on Monday, as the first batch of IPOs under a new streamlined listings regime debuted in Shanghai and Shenzhen. The top gainers included Shenzhen CECport Technologies and Shaanxi Energy Investment.
- Old is gold: A delicate porcelain bowl, measuring under 4.5 inches in diameter, sold for more than $25 million. Described by Sotheby's as ‘highly important’, the antique hails from a rare group of ceramics decorated at Beijing's imperial workshops in the 18th century.
What is the duration of the world’s shortest commercial flight?
Answer: 2 minutes. Operated between the Orkney islands of Westray and Papa Westray in Scotland, it covers a distance of 2.7 km, usually taken by students and teachers to study the archaeological sites on Papa Westray.
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