Tech3 | Nykaa Q3 profit plunges 71%; India takes UPI to the global stage; and more

One quick thing: Three of the largest cloud service providers - Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform (GCP) - are under the weather with a cloudy future, according to industry experts.?

These firms registered a modest 6% growth in deal win by annual contract value (ACV) in Q4CY22 vs 57% growth in Q1, signalling slowing demand for cloud migration amidst clients reprioritising tech budgets, according to ISG data.

• Among those slashing spending include global social media and content companies, tech companies, and startups
• Edtech, e-commerce, and fintech startups have slowed spending in the past 2-3 quarters

In today’s newsletter:

• Nykaa Q3 profit plunges 71%
• India takes UPI to the global stage
• The Bengaluru firm powering Gaganyaan mission

Nykaa Q3 profit plunges 71%

Nykaa's debut on the stock market 15 months ago was celebrated. Because it was the only profitable tech company amidst a sea of loss-making tech companies like Zomato, Policybazaar, and Paytm.

But, the online beauty and fashion retailer seems to be moving in the opposite direction now.

Q3 report card

Nykaa's profit in the December quarter (Q3) fell by 71% year on year to Rs 9 crore .

• However, its revenue has increased by 33% to Rs 1,463 crore, and its gross merchandise value has grown 35% to Rs 2,796 crore

Nykaa CEO Falguni Nayar attributed the decline in net profit to investments in warehouses for e-commerce shipments and retail stores

• Those who sacrifice long-term growth for short-term profit would be making a mistake , she stated

Standing by stock split

Meanwhile, Nayar defended the contentious bonus issue from the previous quarter, claiming that it was fair to all shareholders and aimed to create value.

• She did, however, admit that the beauty and lifestyle retailer made a mistake in estimating when the bonus shares could be traded
• This is because the company assumed that shareholders would be able to begin trading bonus shares within 4-5 days of voting on the issue

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