Nykaa’s growth outpaces estimates; Simplilearn’s revenue up 50% in FY23

Hello,

CES 2024 has kicked off in Las Vegas!

Tech giants such as Samsung, Sony, LG, and will take stage to unveil their latest gadgets. In fact, Samsung is teasing a “new generation of products that can be folded inward and outward”—fittingly deemed the “In&Out Flip”—along with “monitor-sized” folding and sliding OLEDs. 

Catch all the action from the event here. 

Moving on, Flipkart is reportedly cutting down its workforce based on annual performance reviews, which could result in a 5-7% reduction in team size. The company expects the process to be finalised by March-April. 

Also, vernacular skill-gaming platform WinZO has partnered with IIT Madras, IIT Delhi, IIT Kanpur, and Stanford University, among others to build a statistical, transparent, and unbiased model aimed at differentiating between gaming activities that hinge on skill and those influenced by chance. 

The move is driven by concerns over the impartiality of proposed self-regulatory bodies within India's online gaming sector and their access to confidential proprietary information. 

Meanwhile, potential bitcoin ETF providers, including BlackRock, Fidelity, and others, have revealed their fees as the crypto industry awaits final approval from the US SEC. As many as 13 ETFs are possibly set to list in the US in the coming days. 

ICYMI: The Hollywood awards season has commenced with the Golden Globe Awards 2024! 

While stars won big on stage, their red carpet looks won the fans!

Lastly, here are the hottest Asian IPOs planned for 2024.

In today’s newsletter, we will talk about 

• Nykaa’s industry-defying growth
• Simplilearn’s revenue up 50% in FY23
• Enabling women to take to the roads

Here’s your trivia for today: What inspired the creation of Google Images?

Beauty

Nykaa expects industry-defying growth

Beauty retailer Nykaa revealed that the growth of its beauty and personal care segment was ahead of the industry estimates in the third quarter of FY24, helped by the modest performance in the vertical in terms of gross merchandise value (GMV) and net sales value (NSV).

The outlook:

• Nykaa expects GMV growth in the segment to stand in the mid-20s range, while NSV is likely to be around 20% in the third quarter on a year-over-year basis.
• BPC—Nykaa’s largest business by revenue—reported a 23% YoY growth in GMV to Rs 2,001 crore in the second quarter of FY24 across its ecommerce, physical retail, and consumer brands portfolios.
• Nykaa Fashion—the second-largest business by revenue—is likely to see a GMV growth at around 40%, while NSV growth is expected in the low-30s on a YoY basis.

Edtech

Simplilearn’s revenue up 50% in FY23

Blackstone-backed edtech firm Simplilearn saw its revenue from operations increase by 50% in FY23 while its losses widened due to rising expenses. The company clocked Rs 683.9 crore in revenue from operations in FY23—up from Rs 455.2 crore earned in FY22.

Key points:

• Simplilearn's consolidated loss widened 36.5% to Rs 244.2 crore in FY23 from Rs 178.8 crore incurred in the previous financial year.
• The losses ballooned as the firm spent Rs 301.5 crore on advertising promotional expenses in FY23—its largest expenditure category.
• Its expenses surged 46.8%, touching Rs 944.3 crore in FY23 compared to Rs 643.2 crore reported in FY22. Simplilearn also witnessed a 41.8% surge in employee benefits expense in FY23.

Women Empowerment

Enabling women to take to the roads

From teaching two-wheeler driving to her neighbours, Amruta Mane established Women on Wheels in 2018. The all-women driving school provides two-wheeler driving (gear and non-gear bike) coaching to only women in Mumbai. To date, it has trained 3,500 women. 

“My vision is to make women independent and help them generate employment through our institution while breaking stereotypes,” she says.

Not a joyride:

• In the three months before her MBA classes started in 2018, Mane decided she would use this free time to teach two-wheeler driving to her neighbour. She initially named the training school Amruta Driving School.
• During the pandemic, with the driving school closed, Mane launched Wow Deliveries. Along with her trainers, she started delivering necessary items like medicines, food, etc., for a year.
• Mane also offers her training services to students from underprivileged backgrounds, who can either pay their fees or join as a trainer, and Women on Wheels deducts the fees from their salary.

News & updates

• Acquisition: SentinelOne’s deal to acquire PingSafe values the Peak XV-backed startup at over $100 million, TechCrunch said, in one of the strongest and fastest exits emerging from India. The NYSE-listed AI security firm disclosed the cash and stock deal to acquire the two-year-old startup last week but didn’t reveal the financial terms. 
• New plan: China is pouring money into manufacturing as property-related activity turned into a drag on growth in 2022. Part of that focus is the “new three” growth drivers of EVs, batteries, and renewable energy, aiding the world’s de-carbonisation push and fueling demand for commodities copper and lithium.
• No deal: Japan's Sony is planning to scrap the merger of its Indian unit with Zee Entertainment, more than two years after the deal was announced, over a disagreement on who will lead the $10 billion entity. Sony plans to file a termination notice before the extended January 20 deadline to close the merger.

What inspired the creation of Google Images? 

Answer: Jennifer Lopez’s green Versace jungle print dress at the 2000 Grammy Awards. At the time, Lopez in the jungle-printed dress became the most popular search query on Google Search.

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