And we’re onto Wednesday, but do any of these days even seem any different. We’ve been building & iterating on some cool stuff at Fast. If any of you wanna buy any swag check us out: Sign up on fast.co and then go to swag.fast.co to buy come cool stuff. As for news today, Nykaa picked up a bag & Paytm lost yet another exec:
In the slower funding cycle, Nykaa (offline + online beauty marketplace) has announced a raise of ₹100 Cr from Steadview Capital.
Nykaa has been one of few startups that actually recorded a profit in FY19 and was looking to grow that profit in FY20.
But seeing the events recently, eCommerce has been hit quit hard with disruptions in the logistics & supply chain. Nykaa’s cash flow has also been impacted and is delaying vendor payments. Moreover, they have temporarily shut down all retail stores & warehouses to comply with the government’s orders.
Nykaa is still somewhat operational (only in Delhi, Bangalore, Mumbai & Pune) and is prioritizing essential items. I also wonder how consumer behavior towards beauty products in the coming months. I believe I read somewhere recently that sales were relatively consistent in China with more people wanting to look presentable on video conferences, while sales in the US have dropped off with people maybe not focussing on their appearances as much (I’ve personally wearing shorts a lot more and it’s great).
But it seems like Nykaa will most likely miss their revenue targets for the coming financial year with FY21 also be impacted somewhat. On the bright side seems like the company is well capitalized, will ride out and survive the pandemic, and come out stronger on the other side.
In quite shocking news, Paytm has lost yet another executive. And this time it’s someone super solid- Pravin Jadhav who until recently headed up Paytm Money.
So why is this not like the other execs who’ve left the company? So Pravin quite literally built Paytm Money from the ground up and the product has probably been one of the better performing assets in the Paytm ecosystem of products.
And now that Pravin has left, the product might be in disarray now that the mastermind is no longer there. I believe everyone is still speculating on the reason for his move so I shall not comment on that but I bet Ashish Mishra is already working on a story for this.
I’m honestly quite confused where Paytm goes from here. It seems like most of the people who built up the businesses in the company are leaving quite rapidly. Meanwhile with all changes around UPI, it means that Paytm probably won’t make very much money through their actual payment products. So what does the future of Paytm hold, who knows?