Published: 6/5/2020


And we’re on to Thursday, almost wrapping up yet another week in quarantine/lockdown!

I’m sure everyone has read the countless opinion pieces on their take of the Facebook and Jio deal, and so naturally I decided to write one as well. It shall be out sometime tomorrow morning so stay tuned for that!

This has been a great month for fintech infrastructure companies as YAP raises a round, meanwhile OYO in the news for some additional cost-cutting.

  • https://bit.ly/2KtqKqs (livemint): YAP raises $4.5 in a Series A round
  • ➡️ Yet another fintech infrastructure company, albeit in a quite different space than Setu, announced today it has raised $4.5M from BEENEXT, 8i Ventures Fund, Better Capital and some angels including Ashneer Grover, Amrish Rau (who previously participated in the seed round) and Jitendra Gupta.

    ➡️ The company offers several core banking/fintech services as easy plug-and-play APIs including card issuing and other Banking as a Service products.

    ➡️ One of the founders of company wrote yesterday (in a tweet), which really shows the strengths of Infrastructure API cos: “When we started 5 years ago, it used to take 6 months to get a bank and Fintech partnership into the market. It’s down to 6 weeks now, We are challenging ourselves to being it to 6 hours. Hopefully by this year end.”

    ➡️ For companies building core banking services themselves, partnering with legacy institutions could take several months while integrating with Infrastructure service providers might only take a couple hours. And if those services are only a part of your product, it might make more sense to spend a bit more and save time by integrating with Infrastructure API cos.

    ➡️ With a growing number of neobanks in India and with the potential of a growing number of startups adopting an embedded fintech thesis (everyone company might have a fintech component), companies like YAP will have a vibrant customer base.

  • https://bit.ly/2S3qp1U (Inc42): More salary cuts at OYO
  • ➡️ OYO is now asking it’s employees to “accept” a 25% pay cut for the next couple of months, though it does seem like this isn’t necessarily voluntary (though employees making <5L won’t be affected).

    ➡️ This news comes after the significant layoffs earlier in the year as well as further furloughs in the international operation & pay cuts for the exec team just a couple a weeks ago.

    ➡️ This doesn’t really put the company in a great light with continually stressing employees out regards to employment & salary statuses.

    ➡️ But does this does probably mean that OYO might be preparing a long & hard recovery with travel (and business travel) being cut to 0% currently, along with what will probably a slow recovery.

    ➡️ I guess the only positive takeaway from this is that the company has probably cut down it’s burn rate significantly and haven’t done layoffs after COVID made its way to India, and OYO continues to live preparing itself for a life beyond the pandemic.

    Feedback & ❤️ always appreciated

    More tomorrow :) BONUS (Tweet of the day): https://twitter.com/rajeshsawhney/status/1252918303514820608