Bit by Bit 1st Sept. || Startup to Lay off Employees? || 13.5% GDP Growth || Thrasio is the Way: Marico - Bit by Bit 1st Sept.

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ECONOMY

Elephant on the Rise

Key Facts:

• India's GDP grew by 13.5% in April - June period this fiscal.

• Gross Value Added (GVA) grew by 12.7% to Rs. 34.41 lakh crore.

• The Nominal GDP at Current Prices in Q1 is estimated at Rs. 64.95 lakh crore

The Story:

Asia’s third-largest economy posted double-digit growth of 13.5% in the fiscal first quarter. A rebound in private consumption - one of the key factors for the economy - and growth in contact-intensive sectors amid declining Covid-19 fears aided economic momentum in the first quarter.

Aurodeep Nandi, India economist and vice president at Nomura, said even if the low base is discounted, the GDP reading marks a stellar rise in sequential momentum. Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in Q1 2022-23 is estimated to attain a level of ₹ 36.85 lakh crore, as against ₹ 32.46 lakh crore in Q1 2021-22, showing a growth of 13.5% as compared to 20.1% in Q1 2021-22. Softening of crude and edible oil prices following excise duty cuts and other fiscal-side measures also provided much-needed support to the economy.  

However, factors such as the scorching summer (causing heatflation), surging inflationary pressure, depreciating rupee and supply-chain disruptions caused by ongoing geopolitical tensions continued to hinder growth in the Indian economy. The finance secretary said India remains on course to achieve real GDP growth of 7-7.5% in this fiscal year.

FMCG

Marico Building Thrasio Model for Its D2C Brands

Key Facts:

• Marico to engage in Thrasio Model by the end of 2022.

• Marico’s digital brand runs under a separate unit called Engine 2.

• Engine 2 generated a revenue of INR 180-200cr in the last fiscal year.

• Marico’s recent acquisition include Beardo, True Elements, and Just Herbs

• Saugata Gupta (MD Marico) plans to build a portfolio of digital brands worth INR 450-500cr by the end of the next financial year.

Thrasio Model

A U.S. Based unicorn whose functioning has created a buzz around the world. It looks for online startups which are growing in the B2C segment and collaborates with them. The initial offer provided to these startups is almost identical to the revenues they generate. Later on, the parent firm offers all the required strategies and technologies to help the business grow.

The Story

Lately, Marico has been on an acquisition spree in the D2C space with the target of entering new categories by investing in more brands.

Engine 2, the digital entity of Marico, has already had a successful operation. Saugata Gupta wants to fully capitalize on this unit and get a fair share of the digital market. As you go down the population strata, if there is food inflation, people tend to tone down on FMCG buy and either down-trade or downgrade. To counter that, Marico aims to expand its offerings and the Thrasio model is providing a way forward.Marico wants to work with founders who intend to scale up rather than build to sell.

AUTOMOTIVE

Ola woes continue: Ola electric battery head quits; company says will hire 1000 engineers soon

Ashok Saraswat, head of advance battery engineering, has become the latest executive to resign after the recent exodus of at least 16 top executives in the last two years have left the electric mobility company.

Ola is also looking to expand its R&D at a battery innovation Centre with an investment of around $500m campus spread around half a million sq ft in Bengaluru. Ola is looking to hire around 1000 employees for its new center Ola also plans to launch its electric vehicle in the summer of 2024

TECH

Apple Acquires Popular Classical Music Streaming Platform Primephonic

Key Facts:

• Apple Music made approximately $5 billion revenue in 2021, accounting for 6.4% of Apple’s total services revenue

• 88 Million+ Subscribers

• Apple Music pays artists on average $0.0076 per listen

The Story:

In an attempt to widen its classical music range, Apple announced that it has completed the acquisition of Primephonic. Primephonic is a Dutch-based classical music streaming service that was launched in 2014.

This acquisition will allow Apple to focus on a music genre that it has overlooked over the past few years. 

Primephonic services will discontinue after September 7th as a standalone offering as it blends into Apple Music. Meanwhile, Apple is roping in considerable efforts to launch classical music streaming application on its streaming platform in 2022. 

Apple said that Apple Music Classical fans will be given a unique experience with some of the best features of Primephonic. These features include improved search and exceptional browsing experience capabilities. Besides, current Primephonic users will also be able to use Apple Music for free for six months.

Want More Bits?

Want to lay off workers more smoothly? There's a startup for it

Sacking stories seem to be everywhere nowadays, as the tech industry grapples with nosediving valuations, stingier venture capital, and an economic slowdown. Big names like Tesla, Coinbase, and Twitter are cutting workers loose. Smaller tech companies are getting hit even harder than the big dogs.

Despite the market turbulence, at least one startup is thriving. And it's an apt metaphor for the current state of technology. The company is called Continuum, and it is profiting from layoffs.

If you're a startup looking to lay off employees, this new startup can assist you. And it recently persuaded a group of venture capital firms to provide $12 million in new funding, which is rather outstanding given the present market conditions. With Continuum, you can hire gig executives to consult your business including how to more smoothly, strategically, and "humanely" lay off workers. Continuum charges a flat fee for layoff consulting services, and the price escalates with headcount.

A cynic would charge Continuum with shameless opportunism for the new introduction of their layoff product line, profiting from other people's suffering. But the founder thinks the services his business offers are extremely valuable. To this critique, he adds, "I would say have some empathy for the founders and early HR personnel who have never done this before and want to do things the correct way."