🐛 Reddit's painful new paywall
PLUS: Swiggy pilots entry into e-commerce
Good morning. It’s Earlybird here swooping in with a 5-minute file transfer of business and tech news, straight to your brain.
In this edition:
🎥 Netflix to trim fees in 116 countries
🛍️ Swiggy takes on Flipkart and Amazon
⚠️ A brand new Reddit paywall
*Stock data as of market close. Source.
Markets: Everything’s fiiiiine. Nifty continued to decline for the third consecutive day, with a significant drop with 17,500 being the new level to watch. The bearish trend was drooped down by tech, banking, and FMCG firms, along a relatively narrower trading range.
Netflix trims fees in 116 countries after success in India
🎥 Netflix, the leading streaming giant worldwide, has announced a reduction in its subscription fees for its viewers in 116 countries, and it’s all thanks to India (a.k.a the guinea pig). Here’s what you need to know:
After introducing a low-cost membership option in India in 2021, Netflix has experienced a 30% increase in user engagement and a 24% increase in income year over year.
In a global first, the corp had lowered membership fees by 20–60% to better suit the Indian market and increase penetration.
On top of this, the rise of F/X (forex) neutral revenue accelerated to 24% in 2022 (from 19% in 2021).
In conclusion. Netflix's decision to reduce subscription rates in 116 countries is a smart move to keep up with the changing times. Its success in India has shown that the company has a bright future in the emerging markets, and with its new rates, more people will be able to enjoy its content.
FOOD & LOGISTICS
Swiggy to take on Flipkart & Co. with 1hr online shopping delivery
🛍️ India's leading food delivery platform, Swiggy, is set to take on e-commerce giants Flipkart and Amazon, with its latest foray into the online shopping market. How? By piloting 1-hour e-commerce delivery . Here’s the quick take:
What’s the pitch
Under a new vertical named Maxx, Swiggy is testing 1-hour e-commerce delivery of toys, electronics, gadgets, and home and culinary goods.
Although there are presently only a few product categories, more are anticipated to be introduced shortly.
These include gardening, essential apparel, beauty and grooming, home furnishings and décor, and health and fitness.
More on the pilot
The pilot is only available in a few areas in Bengaluru, such as Indiranagar.
As part of this experimental program, the business is providing free delivery on purchases over $99 and a $100 discount on the first order (priced at more than $249).
Additionally, the platform is discounting its whole product line by 30% to 60%.
Wrapping up. As Swiggy enters the highly competitive e-commerce market, it will be interesting to see how it competes with established players like Amazon and Flipkart. With its focus on quick and efficient delivery, Maxx has the potential to become a game-changer in the Indian e-commerce space.
Palm Oil Premiums lead to a nationwide ‘wash out’
The Better India
🌴 Indian buyers have been left with a bitter taste in their mouths as premiums on crude palm oil (CPO) imports continue to rise, leading to a sharp decline in demand. Here’s what’s going on:
A slippery slope
For the first time in many years, Indian merchants have chosen to quit buying a total of 75,000 tonnes of palm oil in favor of soft oils like sunflower oil and soy oil
Sun oil and soy oil have been more appealing to buyers than palm oil, which typically trades at a discount due to import regulations.
The move toward alternatives
Buyers are actually able to reduce their palm oil purchases by cancelling their orders via a mutual agreement with local importers (also know as a ‘wash out‘).
INDIA EDITION: WHAT ELSE IS ON THE BIRDWATCH
🛠️ Indusind Bank is reeling in Japanese building materials. Indusind Bank has signed a $100M agreement with the Japan Bank for International Cooperation (JBIC) to help Indian companies purchase Japanese construction equipment.
💻️ Service exports may jump to $400B this fiscal. India's service exports are expected to witness a massive surge and may touch $400B during the fiscal year 2023-24, according to a statement by the Services Export Promotion Council (SEPC).
🤷 India out-peoples China. India has become the world's most populous country, surpassing China, according to a report by the United Nations. The report states that India's population stood at around 1.39B as of 2022, while China's was 1.38 B.
Catch up on the Indian funding flows from the past 24hrs:
Speciality Restaurants, the fine-dining restaurant chain operator, has raised Rs 127 crore through a preferential issue to fund its expansion plans and enhance the dining experience for customers. The company plans to use the funds to renovate existing restaurants, open new outlets, and improve technology infrastructure.
Aequs, a Bengaluru-based aerospace manufacturing company, has raised $27.5M in a funding round led by Amicus Capital, with participation from existing investors. The funds raised will be used to expand the company's global operations, invest in good ol’ R&D, and enhance its technology capabilities.
DSG Consumer Partners, a VC that invests in consumer businesses in India and Southeast Asia, just got some undisclosed backing from L'Oreal India. The investment will help DSG Consumer Partners to continue supporting early-stage startups in the consumer sector, with a focus on areas such as beauty, personal care, and wellness.
Giphy / NickRewind
🎈 UK’s inflation bloats food. UK inflation remained above 10% in March on soaring food prices. Inflation in the UK refuses to back down and is continuously making the country a more expensive place to live, despite the government hiking interest rates in recent attempts.
⚠️ New paywall alert on Reddit’s API. Reddit has announced that it will begin charging for access to its API. The move is expected to impact developers especially, who use the platform's data to build applications and services.
✂️ The cuts just keep on coming. Amazon is still laying off employees, particularly in its advertising unit this time around. Meanwhile, Meta is on yet another round of cuts, which are expected to impact not only Facebook, but WhatsApp and Instagram as well.
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