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Today: Jun 14, 2024

Meesho’s fintech win; Byju’s worth tumbles 99%.

2 mins read

TLDR:

  • Meesho is expanding its revenue streams by venturing into financial services, including credit marketplace and grocery delivery.
  • Byju’s has launched a $200 million rights issue, resulting in a 99% valuation cut for the edtech company.

Ecommerce platform Meesho is following in the footsteps of its larger rivals Flipkart and Amazon by diversifying into financial services. It plans to launch a credit marketplace and expand its grocery delivery offering, aiming to increase revenues and profitability. While Meesho is not the first company to make this move, it will face intense competition in the crowded fintech market. Flipkart and Amazon both have dedicated financial services divisions, while Tata Neu recently entered the space with a credit offering for users. Meesho hopes that offering credit to sellers on its platform and eventually moving into consumer lending will provide a new revenue stream and boost its bottom line.

Meanwhile, edtech firm Byju’s has initiated a rights issue to raise up to $200 million. The company’s valuation is expected to be around $20-25 million following the issue, representing a staggering 99% decrease from its peak valuation of $22 billion. Byju’s is offering its existing shareholders the opportunity to participate in the capital raise. The funds will be used to prevent further value impairment and support the company’s mission.

Additonally, Meesho has joined other e-commerce platforms in diversifying its revenue streams by entering the financial services sector. Meesho plans to launch a credit marketplace and expand its grocery delivery offering to increase its revenues and move towards profitability. Various e-commerce firms, including Amazon and Flipkart, have already established their own financial services divisions, offering payment and credit services to their customers. By venturing into financial services, these platforms hope to generate fresh revenues and hefty commissions. However, the crowded nature of the fintech market may make it difficult for Meesho to differentiate itself from other players.

On the other hand, edtech company Byju’s has initiated a rights issue to raise $200 million. As a result of the issue, the company’s valuation is expected to be around $20-25 million, which represents a 99% decrease from its peak valuation of $22 billion. Byju’s aims to offer its existing shareholders the opportunity to participate in the capital raise, supporting the company’s mission and preventing further value impairment. The funds raised will be crucial to Byju’s in order to continue delivering strong shareholder value and equip the company with the necessary resources.

To address cybersecurity incidents, the Indian government may soon mandate public and private companies in critical sectors such as banking, telecom, power and energy, and public health to adhere to a common ‘cyber crisis management plan.’ These organizations may be required to conduct mandatory internal and external information security audits and report their findings to their respective sectoral regulators. They may also need to adopt internationally accepted methodologies for auditing their IT systems and information security management systems. The proposed measure aims to enhance cybersecurity in critical sectors and ensure a cohesive response to cyber incidents.

The Delhi High Court has ordered social media applications such as Telegram, WhatsApp, and YouTube to suspend accounts that were impersonating venture capital firm Peak XV Partners and Sequoia Capital. The accused party created fake investment platforms and conducted webinars to dupe unsuspecting investors. The court instructed various tech platforms to block access to all services for the accused. It also directed IndusInd Bank and Bharti Airtel to suspend the payment ID and mobile number used in the process, respectively. The accused individuals are suspected to be Indonesian hackers engaged in hacktivism with a political or social agenda.