Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The Indian stock market's major indices gained over half a per cent each on Wednesday. Sensex reached a milestone by crossing the highly sought-after 74,000 mark for the first time.

BUSINESS

Meta Eyes First Data Centre in India Amid Reels Boom

What happened:

In a bid to meet the skyrocketing demand for its short video feature, Reels, in India, Meta Platforms, the parent company of Facebook, is gearing up to establish its maiden data centre in the country. Reports suggest that Meta is gearing up for a feasibility study of the project in the first quarter of 2024.

Meta is considering a cache-focused data centre with a capacity ranging from 10 to 20 megawatts. While the exact location and investment details remain under wraps, experts estimate a potential investment of ₹500-1,200 crore, given that the average cost of setting up a Tier-4 data centre in India hovers around ₹50-60 crore.

Why it matters

The move to set up a local data centre in India aligns with Meta's broader strategy of enhancing user experience, especially as the company gears up to introduce generative artificial intelligence features. The establishment of a data centre with up to 20 MW capacity is anticipated to bolster Meta's ability to deliver improved services to Indian users.

Since the ban on TikTok in India in 2020, Instagram Reels has emerged as a key player in the short video space, making India a crucial market for Meta. In 2023, Instagram topped the list of most downloaded Android apps with 270.3 million app installs, reflecting the platform's popularity in the country. Instagram Reels effectively filled the void left by TikTok's ban, offering users a comparable platform for creating and sharing short-form videos.

Zoom out

As Meta positions itself to establish its first data centre in India, the company is not only responding to the surge in Reels' popularity but is also tapping into a thriving data centre market in the country. India's data centre industry is expected to attract $10 billion in investment over the next three years, marking a 40% growth.

With the exponential rise in data consumption and an evolving regulatory framework, Meta's foray into the Indian data centre space appears strategically timed. As the feasibility study unfolds in 2024, the move could pave the way for a localized infrastructure that not only caters to Reels' demand but also elevates Meta's overall user experience in the dynamic Indian market.

BIG MONEY MOVES

Fairfax India infuses $200 million lifeline into IIFL Finance amid RBI Gold Loan restrictions

IIFL Finance Ltd is securing a $200 million investment from Fairfax India to address liquidity concerns after RBI barred the company from disbursing gold loans. Fairfax, holding 15.1% in IIFL Finance, expresses confidence in the company's management and pledges corrective actions to meet RBI compliance standards.

Jefferies India Pvt. Ltd. downgrades IIFL Finance stock to 'hold,' anticipating earnings impact due to the RBI's loan restrictions. As of Wednesday, IIFL Finance shares plummeted 20% to ₹382.20 on NSE. The company reassures investors of a minimal impact on profitability in the near term and emphasizes addressing operational concerns raised by RBI.

Google and Walmart's payment platforms surge in India as Paytm faces regulatory challenges

Google and Walmart's payment platforms, GPay and PhonePe, are gaining ground in India, outpacing Paytm as the fintech pioneer grapples with central bank restrictions. Paytm's payments on India's Unified Payments Interface (UPI) dropped 14% to $19.9 billion in January, signaling a shift to alternative services ahead of impending disruptions.

Despite facing regulatory challenges and a nearly 50% stock decline, Paytm expects its digital payment services to continue post-March 15. PhonePe and GPay witnessed a 7% and 6% increase in transaction values, respectively, highlighting a growing market share as consumers explore alternative platforms amid Paytm's uncertainties.

BUSINESS

Fly91 Gains Wings with Air Operator's Certificate

What happened

The Directorate General of Civil Aviation (DGCA) has granted the air operator's certificate to Goa-based Just Udo Aviation Pvt Ltd, paving the way for its airline, Fly91, to take flight. This certification marks the successful fulfillment of all regulatory and compliance prerequisites for the airline's commercial operations.

Fly91, under the leadership of industry veteran Manoj Chacko, has strategically positioned itself as India's youngest airline. Acquiring its first set of routes under the UDAN scheme, it plans to connect cities like Sindhudurg, Jalgaon, Nanded, and Agatti from Bangalore, Goa, Hyderabad, and Pune.

Equipped with a fleet of two ATR 72-600 aircraft leased from Dubai Aerospace Enterprise, Fly91 aims to enhance air connectivity, particularly in tier-2 and tier-3 cities. It proudly claims the title of the first Indian airline to call Goa’s Manohar International Airport its home base.

Why it matters

Fly91's ambitious five-year plan aims to establish last-mile connectivity in 50 cities across India. Backed by investor Harsha Raghavan's Convergent Finance, the airline has a project outlay of ₹200 crore. Manoj Chacko envisions a warm and friendly airline experience, promising a straightforward fare policy and emphasizing simplicity.

Underlining its global aspirations, Fly91 is in talks with both domestic and international carriers to collaborate and provide last-mile connectivity. The airline's unique selling proposition lies in offering competitive airfares for distances that typically take 8-12 hours by road or rail.

Zoom out

Fly91's journey from securing the air operator's certificate to outlining an extensive route plan showcases its determination to revolutionize regional aviation. With a seasoned leader at the helm and strategic alliances in the pipeline, Fly91 aims not only to connect Indian cities but also to position itself as a globally recognized brand.

BIG PICTURE

Zuckerberg's $3 billion loss sparks global outage fallout

Meta, under Mark Zuckerberg's helm, suffered a massive $3 billion blow in the aftermath of a global outage affecting Instagram and Facebook. On March 5, 2024, Meta's stocks plunged 1.6% to $490.22, causing Zuckerberg's wealth to dip by over  $2.79 billion to $176 billion. Despite the setback, he maintains his position as the world's fourth-richest person.

During the outage, Elon Musk cheekily taunted Meta on the platform formerly known as Twitter, highlighting the tech giant's momentary stumble. 

NPCI and IISc forge alliance for Blockchain and AI research

The National Payments Corporation of India (NPCI) has partnered with the Indian Institute of Science (IISc), Bangalore, for extensive research on blockchain and Artificial Intelligence (AI). This collaboration will also establish the 'NPCI-IISc Centre of Excellence (CoE) for Deep Tech Research & Development,' fostering innovation.

The focus includes scalable blockchain platforms and multi-modal analytics in fintech data. The initiative aims to tackle complex technological issues related to scalability, privacy, neural networks, Graph AI, and Large Language Models (LLM).

BUSINESS

Accenture Dives into EdTech with Udacity Acquisition

What happened:

Global consulting giant Accenture has set its sights on the ed-tech realm, announcing the acquisition of California-based Udacity. The undisclosed deal is part of Accenture's ambitious plan to pump $1 billion into upskilling initiatives over the next three years. The acquisition aligns with Accenture's broader goal of catering to the rising demand for enhanced skills, particularly in the generative AI sector, within the global IT services industry.

Founded in 2011 by Sebastian Thrun, Udacity gained unicorn status in 2015 following a substantial $105 million Series D funding round. Renowned for providing job-ready certified skills, Udacity's programs focus on cutting-edge technologies such as AI and machine learning, with notable clients including industry giants Google, Microsoft, IBM, and AT&T.

Why it matters

Udacity's journey took an interesting turn as it engaged in talks with Ronnie Screwvala's UpGrad for a majority stake sale at a $100 million valuation. This move comes against the backdrop of challenges faced by the ed-tech industry, particularly in the wake of Byju's downturn, which significantly impacted Udacity's valuation. The broader ed-tech industry, both in India and China, faces headwinds, influenced by policy changes and broader economic challenges.

Accenture simultaneously unveiled its upskilling platform, LearnVantage, designed to cater to clients seeking technology learning and training services in areas such as technology, data, and artificial intelligence (AI). The move comes as the demand for upskilling becomes increasingly prominent, signifying potential growth for top software outsourcing firms worldwide.

Jeff Maggioncalda, CEO of Coursera, highlighted the evolving landscape, noting a shift from a boom during the COVID-19 pandemic to a more conservative investment environment. The financing landscape for local content firms has changed, with language no longer a differentiator, and content domain expertise losing its appeal. 

Zoom out

Accenture's bold move to acquire Udacity positions the consulting giant at the forefront of the evolving ed-tech landscape. The strategic investment and launch of LearnVantage reflect the growing importance of upskilling in the technology-driven global economy. Udacity's integration into Accenture brings valuable expertise, providing a seamless bridge between online education and practical workplace skills.

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