Also in this letter:
■ Wipro Q2 results: profit down 9% YoY; turnover up 14.6%
■ Global venture capital funding drops to 21-month low in India: report
■ Will Twitter relax its content moderation rules under Elon Musk?
Byju to lay off up to 2,500 employees in ‘streamlining’ bid
After providing its audited financial statements for FY21 18 months later in September, edtech major Byju’s said it would cut — or “streamline” — about 5% of its 50,000 employees in departments such as as products, content, media and technology in phases. A 5% reduction in the workforce would result in approximately 2,000 to 2,500 layoffs. The final number may be different.
Byju said in a statement that the changes are in line with its goal of becoming profitable by FY23.
Second round: Earlier this year, the company laid off at least 600 people from group companies Toppr and WhiteHat Jr.
Changes: Byju’s K-10 business in India, which includes Toppr, Meritnation, TutorVista, Scholar and HashLearn, will now be consolidated under a single business unit. Only Aakash Institute and Great Learning will continue to operate as separate organizations.
The company said it will conduct sales pitches over the phone, video calls and email to cut costs. He also said he would reduce his marketing expenditure in India and focus on expanding his presence overseas.
The CEO speaks: “As a mature organization that takes its responsibility to investors and stakeholders seriously, we aim to deliver sustainable growth alongside strong revenue growth. These measures will help us achieve profitability within the defined timeframe of March 2023,” said Mrinal Mohit, CEO of Byju’s. Indian Affairs.
“These measures should result in considerable savings without impacting growth,” she added. “None of these measures will impact our revenue execution rate.”
Accounting controversy: The edtech company has come under scrutiny over its accounting practices in recent months. Byju’s operating revenue for the year ending March 2021 has been readjusted to Rs 2,280 crore, down 48% from the projected revenue of around Rs 4,400 crore in its unaudited results, as we reported it last month. It suffered massive losses of Rs 4,588 crore in its audited results for FY21 compared to just Rs 262 crore in FY20.
Wipro Q2 Results: Earnings Drop 9.3% YoY to Rs 2,660 Crore; turnover up 14.6%
IT major Wipro on Wednesday reported a 14.6% year-on-year (YoY) increase in second-quarter revenue to Rs 22,540 crore while its after-tax profit fell 9.3% to Rs 2 660 crore. The profit figure was lower than the Rs 2,820 crore predicted in an ET NOW poll.
By the numbers: The company’s operating margin in the IT services segment increased 16 basis points quarter-on-quarter (QQ) to 15.1%. On a constant currency basis, IT Services segment revenue increased 4.1% quarter-on-quarter and 12.9% year-on-year.
Wipro derived 35.2% of its revenue from BFSI, 18.8% from consumption and 11.4% from healthcare. The top 10 customers contributed approximately 21% of its revenue.
Tips: In its guidance for the December quarter, Wipro said it expects revenue from the IT services business to be between $2,811 million and $2,853 million, translating into sequential growth. from 0.5% to 2%.
Wear: India’s third-largest software exporter reported a slight moderation in attrition to 23% for the quarter, an improvement of 30 basis points from the previous quarter.
The company said it onboarded 14,000 freshmen in the first six months of fiscal 2022 and its headcount grew by 600 in the September quarter. Total headcount at the end of the quarter was 259,179.
HCL technical results: Meanwhile, HCL Technologies reported a 5.2% sequential increase in its consolidated revenue for the September quarter to Rs 24,686 crore. Consolidated net profit increased by 6.3% to Rs 3,489 crore. Net profit increased 7.1%, revenue 19.5% year-on-year. Revenue and profit were above analysts’ average estimate of Rs 24,382 crore and Rs 3,418 crore, respectively.
Global venture capital funding drops to 21-month low in India: report
According to a report by CB Insights, global venture capital funding into startups was shaken between July and September as global macroeconomic headwinds such as high inflation, rising interest rates and the Russian- Ukrainian market has shaken the confidence of investors around the world.
The story has been bleak in India with major funding drying up over the past six months as investors remain cautious about betting on startups.
By the numbers: According to the report, venture capital funding in India hit a 21-month low in the July-September quarter with 387 deals raising a meager $2.8 billion, compared to $9.8 billion raised in the July-September quarter. 525 transactions during the same period last year.
Funding numbers fell about 58% from the $6.6 billion raised by startups in the April-June quarter.
Late-stage deals are the hardest hit: Late-stage equity financing in India was the hardest hit. ET reported on Wednesday that late-stage startups such as Udaan and PharmEasy are resorting to debt securities such as convertible notes to ride out the recession. Convertible notes convert to stock at a later date and require no valuation to be assigned to the startup.
Several late-stage startup founders have told us they don’t expect major funding to resume until at least the next fiscal year, prompting them to seek alternative avenues during the funding winter.
Read also : Is the free lunch over at startups?
Will Twitter relax its content moderation rules under Elon Musk?
Rapper Kanye West, legally known as Ye, returned to Twitter on Saturday after a two-year hiatus and was quickly welcomed by Elon Musk.
The big question: Given that Musk – a self-proclaimed “free speech absolutist” – is set to complete his on-and-off takeover of Twitter (maybe) in the coming weeks, it begs the question: social media change its policy? about locking, suspending and banning accounts under Tesla CEO?
After signing a $44 billion deal to buy Twitter in May, Musk pledged to change the social media platform’s content moderation practices. He also said he would overturn former US President Donald Trump’s Twitter ban.
Ongoing changes: And according to a report in the Financial Times on Wednesday, the social media platform has already begun to review its policies for permanently banning users, which could align its content moderation with Musk’s vision.
The platform has explored whether there are other content moderation tools that could replace a ban, its most severe penalty for violating the rules, the report added, citing multiple sources.
Yes, but: The report says any policy changes are unlikely to pave the way for Trump’s return to the platform, as Twitter is not considering overturning bans issued for violating its policy against incitement. violence. Instead, employees are looking at areas where they think Twitter may have banned users for less serious offenses, such as sharing misleading information.
Tweet of the day
Facebook users complain about losing followers, Zuck loses 119 million
Several Facebook users are complaining about losing majority of their followers on the social media platform due to unknown reasons.
Damn also: Meta founder and CEO Mark Zuckerberg has lost more than 119 million subscribers, bringing his subscriber count to less than 10,000.
“Facebook created a tsunami that wiped out my approximately 900,000 followers and left only 9,000 on the shore. I like Facebook’s comedy a bit,” tweeted Bangladeshi writer-in-exile Taslima Nasreen.
Answer: A Meta spokesperson said: We are aware that some people are seeing inconsistent follower counts on their Facebook profiles. We are working to get things back to normal as quickly as possible and apologize for any inconvenience.
Malicious apps: Last week, Meta warned that more than 400 malicious Android and iOS apps were targeting Facebook users with the aim of compromising their accounts and stealing their data. The company said it raised the issue with Apple and Google and helped those potentially affected learn more about how to secure their accounts.
Today’s ETtech Top 5 newsletter was curated by Zaheer Merchant in Mumbai and Gaurab Dasgupta in New Delhi. Graphics and illustrations by Rahul Awasthi.