Small and medium-sized enterprises (SMEs) that rely on WhatsApp commercial messages to promote their products are concerned about the impact of the app’s new pricing regime for business messaging. The new model, which takes effect from 1 June, will see businesses charged Rs 0.3082 ($0.00.0041) for each utility message and Rs 0.7265 for marketing messages, compared with a flat fee of Rs 0.48 per conversation. WhatsApp is one of the key channels brands use for sales, customer support and customer engagement, but some are turning to Google, Instagram and Facebook instead.
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Also in the letter:
■ New stock brokerage companies pay attention to loans, payments to increase income
■ tatas line up over Rs 7,600 cr to finance electronics business
■ Krithivasan to take over as TCS CEO
Now that WhatsApp means business, SMEs are hurting
WhatsApp, owned by Meta, is set to implement a new pricing regime for business messaging, a move that will affect millions of small and medium-sized businesses who rely on the app to market their products.
Driving the news: WhatsApp’s new pricing policy for business messaging, effective June 1, is likely to cause a sharp increase in marketing costs for small businesses. WhatsApp will now charge businesses Rs 0.3082 for each utility message, while marketing messages will cost Rs 0.7265. Previously, WhatsApp charged a flat Rs 0.48 per conversation.
Why does that matter? Business owners noted the burden of increased costs for both customer acquisition and retention from the new pricing model. WhatsApp has grown to become one of the key channels brands use for sales, customer support and customer engagement, experts told ET. Others, like Sleepy Owl Coffee, said they will focus on Google, Instagram and Facebook, while WhatsApp will be used with more “caution and judgment.”
Between quotation marks: “We are very dependent on WhatsApp and despite the price increase, we have to keep it in mind because we are very used to it and our customers find it the easiest channel to stay in touch with us,” Sujata and Taniya Biswas, co. -the founders of saree and textile brand Suta, told ET.
What’s in this for Meta? WhatsApp for Business is among the most promising monetization opportunities for Meta CEO Mark Zuckerberg. India, with nearly half a billion users, is the biggest market for the app. By the end of 2022, WhatsApp for Business downloads had surpassed 300 million in India. More than 40 million users view the business catalog on the app on a monthly basis.
BlackRock Cuts Byju’s Valuation To $8.2Bn; Meesho’s valuation slashed to $4.4 billion
BlackRock has cut the valuation of edtech major Byju again, this time to $8.2bn; 62.7% less than the $22 billion last time it raised fresh capital.
Driving the news: The world’s largest asset manager, BlackRock has further downgraded the valuation of edtech firm Byju’sthree months after he first reduced the value of his holdings in the Indian company.
Details: In a regulatory filing with the US securities regulator for the quarter ended March 31, 2023, BlackRock pegged Byju’s value at around $8.2 billion, which is 62.7% below $22. billion, the valuation attributed to the company at the time of its last fundraising in October 2022. BlackRock owns less than 1% in the company.
In February this year, a fund managed by BlackRock had cut the value of its investment in Byju’s by nearly 50% to $2,400 per share in its annual report for the year ending December 2022, putting the valuation at around of $11 billion.
Fidelity cuts Meesho’s valuation: According to regulatory filings with the US Securities and Exchange Commission (SEC), funds managed by US-based companies. Fidelity Investments has cut Meesho’s valuation by 10% to $4.4 billion as of March 31 from $4.9 billion in September 2021, when they had invested.
Recent sales: Swiggy, Eruditus, PharmEasy, Pine Labs, Ola and Oyo are among other late-stage Indian startups that have seen their existing investors cut their valuation.
Groww stock brokerage startups, Upstox lend loans, payouts to broaden revenue base
Hello, I am Pratik Bhakta in Bangalore. Today I have a scoop on two new age technology brokerage startups, Groww and Upstox, on how they are entering new product areas beyond stock brokerage.
Driving the news: Groww and Upstox They bet on the credit business for their future growth. Groww, which already has an NBFC license, will build products around personal loans, car loans, consumer loans, and others. Meanwhile, Upstox is looking to partner with banks and NBFCs to start its lending journey. Eventually, he will also apply for an NBFC license.
What is the meaning? While both venture-backed startups are expanding their product base, their reasons are different.
- Groww needs to expand its revenue channels, attract more customers, and eventually diversify its user base. Currently, it makes more than 80% of its revenue from F&O merchants, which is a micro-segment within the larger fintech space.
- Upstox needs to keep his herd together, as he has been losing customers at a faster rate than he had acquired them. To keep them engaged, Upstox is trying to build long-term investment and credit products on the app.
Between quotation marks: “With a substantial customer base exceeding Rs 1.1 crore, Upstox sees this as a significant opportunity to offer comprehensive money management solutions under a unified platform,” said Ravi Kumar, Co-Founder of Upstox.
ET Ecommerce Index
We have launched three indices: ET Ecommerce, ET Ecommerce Profitable and ET Ecommerce Non-Profitable, to track the performance of recently listed technology companies. This is how it has gone so far.
Tatas lines up over Rs 7,600 crore to finance electronics business
The Tata group has created a war chest for its contract manufacturing business and brand new electronic components through Tata Electronics, having raised funds worth more than Rs 7,600 crore through a combination of equity infusion by the parent and collateralized loans, according to the company’s latest regulatory disclosures.
Driving the news: Tata Electronics received a capital injection of over Rs 608 crore in 2022-23 from its holding company Tata Sons, the highest in a single financial year, bringing the total capital injection so far to Rs 1820 crore. in the last three years since its creation. The authorized capital of the company is Rs 2000 crore. The filings also show that the company has taken out secured loans of Rs 5,799 crore to date.
Whats Next: Once the deal with Wistron is complete, Tatas will be the first local entity to assemble Apple’s iPhones in India. The group is also supposedly watching a bigger play in electronics which may include semiconductors.
Wipro Venture arm increases stake in personal care startup LetsShave
Wipro Consumer Care Companies has acquired an additional stake in Chandigarh-based personal care company LetsShave for an undisclosed amount.
Offer details: Following the latest funding round, South Korea-based Wipro and Dorco, one of the world’s largest razor manufacturers, together own a 25% stake in LetsShave. With this, the startup has now raised a total of $6 million since its inception. Founded in 2015, LetsShave started as a brand of shaving products for men and women. Since then, it has expanded its presence in the men’s grooming portfolio.
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H World Group sells 19% of its total stake in Oyo
H World Group Limited, formerly known as China Lodging, has sold one million equity shares in Oyo (Oravel Stays Limited) to a group of UAE-based family offices and institutional investors in a series of transactions, sources told ET.
Details of the transaction: The transactions, which took place in multiple tranches, mostly over the course of 2022, have netted H World Group more than Rs 75 crore, the people quoted above said. The partial exit of H World Group translates into a 500% return on the sale of the stake and values its residual stake at more than Rs 300 crore. The stake sale puts Oyo’s valuation at $6.6 billion.
Gopinathan leaves, Krithivasan to take over as CEO of TCS
India’s largest software services company Tata Consulting Services (TCS) will see a changing of the guard this week as its boss for six years, Rajesh Gopinathan steps down and K Krithivasan takes over as CEO and Managing Director on June 1.
Krithivasan to take over: During more than 33 years at TCS, Krithivasan has held various leadership roles in delivery, customer relationship management, large program management and sales, successfully leading TCS’s largest BFSI vertical in his most recent role.
Read also | Won’t Give Up Margins For Growth: TCS CEO Appointed K Krithivasan
Quick catch up: TCS had announced on March 17 Gopinathan’s sudden resignation and appointed the president of banking and financial services, Krithivasan, as chief executive officer-designate.
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High-level outings continue at major IT company Wipro: The greatest of TI Wipro is in front of a large number of high-level departures with Mohd Haque, Senior Vice President (SVP) and Head of Medical Devices and Healthcare for the Americas, and Ashish Saxena, Senior Vice President and Head of High Technology and Manufacturing Business Unit, the latest to leave the company.
Unacademy launches a gamified app for UPSC aspirants: Unacademy Tuesday exam preparation platform launched a self-paced learning app to create a gamified experience for those preparing for the Union Public Service Commission (UPSC) tests.
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https://m.economictimes.com/tech/newsletters/morning-dispatch/whatsapps-new-pricing-to-hit-small-businesses-byjus-meesho-hit-by-valuation-cuts/amp_articleshow/100634946.cms
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