PhonePe revenue jumps 77%; Wipro’s Q2 profit declines

Hello,

IBM is betting on Indian startups.

The software major has signed an MoU with the MeitY to offer Indian startups access to semiconductor research facilities, fostering chip design initiatives and creating an AI innovation sandbox environment. As per the MOUs, IBM will also develop an AI innovation sandbox environment to help startups solve challenges in the field.

Elsewhere, a report by Ecom Express and ISB revealed that Lucknow and Jaipur have the highest percentage of online shoppers, adding that 70% of online purchases consist of clothing, fashion accessories, skincare, and make-up products.

And, even as our fintech ecosystem grows, cash is still king for Indian shoppers.

ICYMI: Stunning photos of landscapes covered by fog.

Lastly, a look at the five-star hotel inside a 120-year-old UNESCO-listed palace.

Modern fittings with a side of royalty!

In today’s newsletter, we will talk about 

• PhonePe revenue jumps 77%
• Soaring high to the top
• Wipro’s Q2 profit declines

Here’s your trivia for today: What is the most common colour of toilet paper in France?

Fintech

PhonePe revenue jumps 77%

PhonePe reported a 77% jump in its consolidated revenue to Rs 2,914 crore in FY23. Boasting a UPI market share of 50.54% (in terms of total payments value) as of March, PhonePe India Pvt Ltd, which houses its payments business, recorded an operating loss of Rs 1,755 crore in FY23.

Yields:

• The Walmart-backed firm's adjusted earnings (EBITDA) stood at Rs 159 crore in FY23, up from an operating loss of Rs 455 crore in FY22. 
• Rival Paytm reported an overall positive adjusted EBITDA at Rs 31 crore in the third quarter of FY23, up from a loss of Rs 393 crore in the year-ago period.
• PhonePe credited its growth numbers to diversified revenue coming from non-payment businesses and new products, including smart speakers. As of August 2023, the company deployed 4.1 million smart speakers.

Women in Tech

Soaring high to the top

In our Women in Tech series, we feature Hema Sharma, Technology Director – Enterprise Product Transformation Lead, India and Philippines. She takes us through her journey of 23+ years and different experiences while explaining the biases that hold women back.

A journey:

• After four years at Influence, a trading house, Sharma decided to be part of the IT boom in India in the early 2000s. She joined as a developer in an IT company as part of a young group working on diverse solutions.
• She is the co-chair of the WiT (Women in Technology) chapter at Wells Fargo. WiT is an advocacy group for the women who work across Wells Fargo Technology and the allies who support them.
• On why women find it difficult to sustain themselves in tech careers, Sharma says they often drop out because they don’t get the right support at their workplaces or homes or they can’t be as aggressive about their work.

Corporate

Wipro Q2 FY24 profit declines

Wipro, India’s fourth largest IT services exporter, reported a net profit of Rs 2,649.1 crore for the second quarter of FY24—a decline of 0.5% compared to the same quarter last year. Consolidated revenue during this period dipped 0.1% YoY to touch Rs 2,25,159 crore, impacted by the slowdown in the business environment. 

Headwinds:

• Its mainstay IT business registered a revenue of $2.71 billion—a 2.3% decline compared to the first quarter. 
• Additionally to this below-par performance, Wipro provided a lowered revenue guidance for the third quarter of FY24. It projected revenue growth in the range of -3.5% to -1.5%.
• In the second quarter, Wipro also reduced its employee headcount by 5,051 to end at 244,707. 

News & updates

• Mega deal: Microsoft is preparing to bring on Amazon as a major customer of its 365 cloud productivity tools, a megadeal that would transform bitter rivals into business partners. The latter has committed more than $1 billion over five years to secure more than one million Microsoft 365 licence seats.
• Scaling up: OpenAI has partnered with G42 in a push to drive AI adoption in the UAE and other Middle Eastern markets. G42, founded by the emirate of Abu Dhabi, will utilise OpenAI's generative AI models in areas, including financial services, energy, healthcare, and public services.
• Fork out: X will begin charging new users in New Zealand and the Philippines $1 annually as part of what the company called an anti-bot program. The idea of a paid subscription model was first teased by Elon Musk in a September livestream with Israel Prime Minister Benjamin Netanyahu.

What is the most common colour of toilet paper in France?

Answer: Pink. The French affinity for pink toilet paper stemmed from a regional preference dating back to the 60s. 

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