Delhivery turns profitable in Q3; MSMEs react to Budget 2024

It’s round two of BYJU'S vs investors showdown.

The edtech company has alleged that certain investors are ‘conspiring’ to demand a leadership change. This comes a day after several major investors issued a notice to its parent, Think and Learn, requesting an extraordinary general meeting to address ongoing concerns.

The company also asserted that the shareholder’s agreement does not grant investors the right to vote on CEO or management changes. 

In another twist to the story, BYJU’S Alpha—a wholly-owned subsidiary of the edtech firm—has reportedly filed for Chapter 11 bankruptcy proceedings in the US Court of Delaware. Reuters reported that the unit has an estimated 100-199 creditors.

Back home, Paytm too is fighting on many fronts.

The RBI is reportedly considering cancelling the operating license of Paytm Payments Bank once depositors are safeguarded. The regulator earlier barred the digital payment firm’s banking arm from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags, among others, after February 29. 

Paytm Founder Vijay Shekhar Sharma also tried to reassure shareholders and customers. "Your favourite app is working, will keep working beyond 29 February as usual," he posted on X.

For the second consecutive session, Paytm’s stock hit the 20% lower circuit, closing at Rs 487.20 on Friday against the previous close of Rs 608.80.

ICYMI: Heard of The Cobra Effect? The term pertains to snake handlers in British India.

And lastly, meet IAS officer Himanshu Nagpal, who has been reuniting lost children living in Varanasi’s ghats, railway stations, and temples with their families across India.

A good deed is never lost.

In today’s newsletter, we will talk about 

• Delhivery turns profitable in Q3 
• MSMEs call Budget 2024 optimistic 
• Parai gets international acclaim

Here’s your trivia for today: How old is the world's oldest piece of chewing gum?

Logistics

Delhivery turns profitable in Q3 

Ecommerce logistics player Delhivery posted Rs 11.7 crore in profit in the October-December 2023 quarter as compared with a Rs 196 crore loss incurred in the same quarter a year ago.

The Gurugram-based unicorn's expenses shot up slightly to Rs 2,290 crore as compared with Rs 2,125 crore it spent in Q3 FY23. 

Green:

• In Q2 of the current financial year, the company had incurred a loss of nearly Rs 103 crore.
• The company booked Rs 2,194 crore in revenue in Q3 FY24 from contracts with customers, as compared with Rs 1,832 crore it earned in the same quarter last year.
• Delhivery, which is a delivery logistics platform that provides last-mile delivery, third-party, and transit warehousing, among other services, was listed on Indian bourses in 2022.

<Top Deals of the Week>

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Round: Series B

Startup: MoveInSync

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Union Budget

MSMEs call Budget 2024 optimistic 

The interim Budget 2024 contained a mixed bag for the micro, small, and medium enterprises (MSME) sector, which had high hopes for a favourable announcement by Finance Minister Nirmala Sitharaman that will help them grow their business. 

Nonetheless, stakeholders have taken it as an “optimistic” budget. 

Hopeful:

• The Budget introduces a series of measures–such as the revamp of the credit guarantee scheme for MSMEs– enhances support for MSMEs, says Hariom Seth, Founder of marketing agency Tagglabs.
• Seth highlighted that these initiatives align perfectly with the current momentum in digitisation, coupled with programmes like Make in India, creating new avenues for growth for small enterprises.
• Additionally, the allocations for the Khadi Gramodyog Vikas Yojana and PM Vishwakarma schemes have been raised from Rs 810 crore to Rs 1,037 crore and from Rs 990 crore to Rs 4,824 crore, respectively, compared to the previous year.

Inspiration

Tamil parai artists get international acclaim

For the last two decades, Manimaran and his wife Magizhini have been striving to get parai—the frame drum native to Tamil Nadu—international acclaim through their group, Buddhar Kalai Kuzhu. Last year, they hit an important milestone in this pursuit when they were invited to play the instrument for Emmy Awardee Ava DuVernay’s latest film, Origin.

Sound of success:

• The parai finds references as an instrument of royal stature in the Sangam literature—the earliest available Tamil literature, records of which go as far back as the third century BC—and was historically played at weddings, childbirths, temple festivals, and funerals.
• However, the widening social hierarchies of caste led to the segregation of Paraiyars—the community that generationally mastered the percussion instrument.
• In recent times, activists have turned to their traditional folklore and stories to make the parai a badge of honour and identity. 

News & updates

• National security: The US State Department has approved the potential sale of 31 armed drones, missiles and other equipment to India for nearly $4 billion. It includes the sale of 31 armed MQ-9B SkyGuardian drones, 170 AGM-114R Hellfire missiles and 310 laser small diameter bombs.
• Uncertainty: Demand for new housing in China is set to drop by around 50% over the next decade due to a decline in new urban households and a large inventory of unfinished or vacant properties, according to the International Monetary Fund’s latest staff report. The international lender predicts China’s growth will slow to 4.6% this year.
• Helping hand: Amazon unveiled Rufus, a new shopping assistant powered by generative AI that can answer customers’ questions and make recommendations based on their preferences and needs. "You can carry out a conversation with Rufus on other related or unrelated questions, and it retains context coherently," CEO Andy Jassy explained. 

How old is the world's oldest piece of chewing gum?

Answer: 5,700 years old. It was made from birch bark tar.

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