Dec 01 2023, 10:00
3 insights to kick-start your day,
Amazon's, BharatPe's Ebitda profit; and Byju's woes:
Amazon's India marketplace losses widened in FY23 even as revenues remained flat.
Amazon continues to bleed in India in its core marketplace business even a decade after entering the market. To be sure, rival Flipkart has also been largely unprofitable in its e- commerce marketplace business. Amazon's losses grew to INR4,854 crore in FY23, up 33% year-on-year. However, total expenses saw only a 5% rise and the losses were largely on account of a higher depreciation. The US-based company also shut down some newer verticals such as food delivery and ed-tech during the fiscal to cut costs. It reported operating revenues of INR22,198 crore in FY23 in India, up 3% from the previous year, pointing to a slow year amid intense competition and a fall in consumption.
The past year-and-a-half has been challenging for Bharat Pe, marked by various battles including legal disputes with former managing director Ashneer Grover amid reported issues of corporate governance. Nearly 18 months after Grover's ousting, the company has achieved its first- ever Ebitda profit, a significant turnaround from the monthly loss of INR60 crore reported not long ago. The goal now is to maintain profitability for the financial year ending March 2024, aligning with the company's objective of a public listing within the next 18 months. It is also closely working with Unity Small Finance Bank and plans to launch co-branded credit cards shortly.
One last thing. The key challenge is to get the right CEO, a pivotal position left vacant since the departure of Suhail Sameer earlier this year. Although chief financial officer and interim CEO Nalin Negi is acknowledged for stabilising Bharat Pe's operations, the company now requires a visionary leader, a 'zero to one' individual, to spearhead its growth from this point onward.
The devaluation was highlighted in Prosus' financial report for the first half of FY24. This marks the second valuation cut for Byju's by Prosus. The H1FY24 earnings report also revealed a -24% internal rate of return (IRR) at Byju's, a stark contrast to the previous year's figures. Additionally, Blackrock, another investment management giant.
The past year-and-a-half has been challenging for Bharat Pe, marked by various battles including legal disputes with former managing director Ashneer Grover amid reported issues of corporate governance. Nearly 18 months after Grover's ousting.
Prosus has cut Byju's valuation by 86% to USD3 billion from its peak of USD22 billion last year.
source:et
Dec 02 2023, 12:36
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