Today’s MVP: Bitcoin; upGrad’s Yin and Yang biz

Hello,

It’s up and up for Zerodha.

The online brokerage platform saw its net profit soar 89% YoY in the financial year ended March 2024, buoyed by strong growth in revenue. Meanwhile, revenue from operations reached Rs 9,372 crore or a little over $1.1 billion in FY24, compared to Rs 6,832 crore in FY23.

However, SEBI’s new fee circular could put a damper on the company’s growth in the near future, Co-founder and CEO Nithin Kamath cautioned in an earlier blog post.

Meanwhile, his brother and Zerodha co-founder Nikhil Kamath believes the next sureshot industry is men’s grooming, noting in a LinkedIn post that the search for ‘men’s skincare routine’ has surged 857% in the last five years. 

The reason for the blow-up, or rather, glow-up? Social media validation and cultural shift surrounding male grooming.

Next up: A foldable iPhone.

Big upgrades are reportedly in store for the Apple iPhone. According to The Wall Street Journal, the tech giant could release foldable phones in 2025. Besides, a larger 19-inch screen, also in the works, could compete against desktop monitors.

Lastly, 2024 saw global temperatures touch record highs. However, there were several small climate wins along the way. 

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In today’s newsletter, we will talk about 

• Bitcoin rallies on strong
• upGrad’s Yin and Yang biz
• The AI bet to profitability

Here’s your trivia for today: What was the first sequel to be nominated for Best Picture at the Academy Awards?

In-depth

Bitcoin rallies on strong

What goes up must come down, and this holds true for Bitcoin as well. Consider the price fluctuations of the cryptocurrency this year alone. In January, Bitcoin hovered around $42,000. Come March, its price zoomed to $73,000, only to later hit $60,000. 

On Monday, the Bitcoin price was $103,873, after rising as high as $106,509 on Sunday. But how long will the current rally last?

Why’s the rush?:

• According to several industry experts YourStory spoke to, the Bitcoin price is expected to increase in the coming year, but it is also expected to undergo some correction during this climb.  
• Former US president Donald Trump has taken a pro-crypto stance, signalling hopes of a more friendly regulatory approach to the crypto market. If Trump changes his stance on the asset, the ecosystem can witness a drastic change. 
• While the rallies in 2017 and 2020 can be attributed to investors being introduced to crypto and a large-scale token frenzy, the current rise is due to “mature reasoning,” as described by industry experts.

Edtech

upGrad’s Yin and Yang biz

B2B or B2C? Which segment to place bets on? Where should the money go? These questions have confounded edtech firms for a long time now. But Srikanth Iyengar, CEO of upGrad Enterprise—the enterprise arm of upskilling platform upGrad—believes it is not an either-or decision anymore. 

“B2C and B2B are in some ways Yin and Yang,” Iyengar tells YourStory in an exclusive interview. “B2B is a very integral part of our business, and it complements what we have on the B2C side,” he adds.

Growth drivers:

• upGrad enterprise is clocking robust revenue growth and is poised to become a major contributor to upGrad’s overall profitability in the future. Currently, 20-25% of the edtech’s revenue comes from the B2B segment, while the rest is from the B2C space.
• The growth in its enterprise segment can be broadly attributed to three major factors—deeper relationships with clients; focus on tech, including data and AI; and global expansion, particularly in North America and Europe.
• According to Iyengar, upGrad Enterprises’ programmes not only explain the foundational concepts of ML and AI but also highlight how businesses are using/expect to use GenAI, how the technology integrates into the broader landscape, and what unique capabilities and applications it brings to the table.

Startup

The AI bet to profitability

Bengaluru-based full-stack customer engagement platform Exotel has reported profitability with positive EBITDA in the third and fourth quarters of FY24. Adarsh Kumar, CFO of Exotel, credited the company’s turnaround to its focus on AI-driven initiatives, which have become a cornerstone for the company’s growth. 

“It's a combination of multiple factors. First, we are growing our business in the space that we think is a future for all of us—the AI side of the business. That has excited us, and we are seeing a fair amount of traction in that space, making it a key driver for future-proofing our business and creating growth opportunities,” Kumar told YourStory. 

Roadmap:

• It pared down its annual losses by 65%, from Rs 108.8 crore in FY23 to Rs 38.8 crore in FY24, while revenue inched up from Rs 420 crore to Rs 445 crore during the same period.
• With this momentum, Exotel is projecting 100% year-on-year EBITDA growth for FY25 as it strengthens its market leadership by adopting emerging technologies.
• Looking ahead, Exotel aims to sustain its growth trajectory by continuing to invest in AI, expanding its global footprint, and helping enterprises achieve better customer outcomes. 

News & updates

• Investment: Softbank CEO Masayoshi Son will announce a $100 billion investment in the US over the next four years during a Monday visit to President-elect Donald Trump’s residence Mar-a-Lago. Son will also promise in the joint announcement with Trump to create 100,000 jobs focused on AI and related infrastructure.
• Chip dispute: The trial in a legal battle between Arm and Qualcomm that could disrupt a wave of AI PCs will begin on Monday in a Delaware courtroom. A more than two-year fight has pitted Arm, which licenses fundamental technology used to design chips, against Qualcomm, one of its largest customers.
• Online safety: The UK officially brought its sweeping online safety law into force on Monday, paving the way for stricter supervision of harmful content online and potentially massive fines for technology giants like Meta, Google and TikTok.

What was the first sequel to be nominated for Best Picture at the Academy Awards?

Answer: The Bells for St. Mary’s. Nominated in 1945, the film was a direct sequel to the previous year’s Best Picture, Going My Way. 

Godfather II was the first sequel to win an Oscar for Best Picture.

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