Quick commerce slices into festive sales; Changing the game in rental housing

Hello,

Microsoft is betting big on its AI-powered products. 

A week after rolling out updates for its products that run on Copilot, it is launching new Windows capabilities, including a tool that can understand and respond to questions about what’s on users’ screens.

Its Paint and Photos applications on Copilot Plus PCs are also getting new enhancements. The company seems to be taking AI tools in Adobe Photoshop with its latest Generative Fill and Generative Erase. 

Next, a fun feature on WhatsApp.

The platform will soon give users access to ten filters that adjust colour or add things like a “Fisheye” lens and “Vintage TV” grain effects. Users will also get ten virtual backgrounds that blur the environment, or replace it entirely with a beach, cafe, office, and more.

Moving on, while technology has improved productivity, it has also created “hidden work” for women. According to researchers, women are 1.6 times more likely than men to juggle dual-high digital communication both at work and at home.

Lastly, new research suggests that the decrease in human activity during the COVID-19 pandemic probably made the Moon a little colder!

In today’s newsletter, we will talk about 

• Quick commerce changes festive spending
• Changing the game in rental housing
• What it takes to build high-growth biz

Here’s your trivia for today: What show, debuted in 1963, has become the longest-running sci-fi series?

Quick commerce

Quick commerce changes festive spending

Quick commerce is projected to generate $1 billion in GMV during the festival season, as consumers increasingly shift from traditional offline shopping to faster, on-demand channels, according to a research note by BofA Global Research which cited a survey done by Datum Intelligence.

“With increased dark stores, wider assortment, and improving popularity we expect the festive season growth to be strong for these companies (quick commerce) leading to a stronger y-o-y growth (hardly any sales last year),” the report said. 

Key takeaways:

• Depending on inventory access and model availability, smartphones could become a growing category in the quick commerce space, the note said.
• Grocery and beauty and personal care are expected to witness much faster growth compared to other categories, driven by quick commerce players.
• While bigger players like Flipkart, Amazon, Reliance and BigBasket are looking to enter the quick commerce space, experts are unsure how they will gain traction as a wider assortment may not be a competitive advantage.

Funding Alert

Startup: WayCool

Amount: Rs 100 Cr

Round: Debt

Startup: ClayCo Cosmetics

Amount: $2M

Round: Series A

Startup: IG Drones

Amount: $1M

Round: Equity

Startup

Changing the game in rental housing

The rental market in the metros has long been riddled with inefficiencies. To simplify and elevate the renting experience, Shail Daswani, along with Mayank Lalwani and Rishabh Agnihotri, founded Flent in 2023 with Rs 30 lakh from their personal savings.

The Bengaluru-based startup offers fully furnished, designer turnkey homes with minimal deposits and zero brokerage. 

Full-stack solution:

• Flent refurbishes properties in 3-5 days, adding furniture, decor, and appliances. It also ensures timely rent, real-time updates, rental guarantees, and property insurance, working with over 50 vendors across India.
• The startup charges a commission or convenience fee ranging from 20% to 45%, depending on factors like location, property size, acquisition price, and selling price. In August, the startup generated a revenue of Rs 32 lakh. 
• It plans to develop category-focused tech products within 5-10 years, including a demand and supply tracking model for real-time rental pricing optimisation for landlords.

TechSparks

What it takes to build high-growth biz

With India's startup ecosystem facing a funding slowdown, startups face the tough choice of whether to cut back on spending and prioritise profitability over growth. 

At TechSparks Bengaluru 2024, the founders of Homelane and Akshayakalpa, two of India’s emerging 'soonicorns' argued that instead of choosing between growth and profitability, companies should instead focus on sustainable growth, especially as shifting global macroeconomic conditions reshape investor expectations.

Profit vs growth:

• “By spending money, growth won’t accelerate. Often, we get distracted from focusing on growth. But focus on the fundamentals and the core, and the results will come,” said Shashi Kumar, Founder and CEO of Akshayakalpa Organic.
• Choudhry and Kumar both highlighted how investor sentiment has shifted. Unlike a few years ago when startups easily attracted capital amid favourable macroeconomic conditions, investors are now asking tougher, more scrutinising questions.
• “Profitability, runway, the desire to be able to stay in the race and how much stamina the management has, are some things that are back in the focus,” said Tanuj Choudhry, Co-founder and COO of Homelane.

News & updates

• Mixed reality: Meta Platforms will expand investment in AI innovation in Vietnam, including the production of its latest mixed reality headsets from 2025, its latest effort to boost its footprint in the country.
• Acquisition: Mastercard is acquiring Minna Technologies, a software firm that makes it easier for consumers to manage their subscriptions. The move comes as Mastercard is attempting to expand beyond its core credit and debit card businesses into technology services, such as cybersecurity, fraud prevention, and pay-by-bank payments.
• Uncertainty: French video game publisher Ubisoft is facing questions over its future, as it grapples with a lacklustre games pipeline and pressure from investors to seek a sale. The company has postponed the release of the next title in the popular game series—called “Assassin’s Creed Shadows”—by three months.

What show, debuted in 1963, has become the longest-running sci-fi series?

Answer: Doctor Who.

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