"EDITION 79"

Published: 6/5/2020

Good morning everyone, guess who's early/on-time today! Looks like Microsoft might be the next company to invest in Jio, and given their past partnership it could make sense. It was also almost a historic day in the US, with SpaceX's launch today (it would be the first time America sent astronauts to space since 2011) but alas weather wasn't great so we shall be waiting for round 2 on Saturday. Oh and Aarogya Setu's Android app has been open sourced (with iOS & KaiOS versions coming soon)

In today's news, we have MyGate building adjacent products and BYJU's amazing FY20.

  • https://bit.ly/3eqee7R: BYJU's revenue doubled in FY20
  • ➡️ While the pandemic has resulted in some painful times for a lot of startups and small & medium businesses, it certainly has worked out for education tech companies like BYJU's, Unacademy & Vedantu. ➡️ But even prior to the main effects of this pandemic, BYJU has had a tremendous FY20 (year ending March 31 2020) doubling it's revenue to ₹2800 Cr (~$370M). The company posted standalone profits of ₹20 Cr last year, so I expect that number might go up further this year when the company releases their full financial information. ➡️ But other than just their amazing revenue growth, the company has seen massive user growth in March & April adding 13.5M users, bring the company's userbase to a total of 50M. To put this in perspective, the company added 27% of their total userbase in the last 2-3 months (which is absolutely wild). ➡️ Another interesting stat from the interview that I uncovered is that BYJU's has 3.5M paying subscribers and 85% of them renew their subscription YoY. I'm sure you can find too many subscription-based products targeted to a subset of the Indian consumer with over 3M paying subscribers.

    ➡️ Given how the pandemic has affected online education, I would bet BYJU's growth story will continue. The company is currently in talks to raise additional funding at a $10B valuation and also plans to expand internationally. Currently BYJU does generate some revenue from the Indian diaspora living elsewhere and this share might continue to grow as BYJU's focuses on that audience.

    2. https://bit.ly/3erEw9X: MyGate using tech to enable security ➡️ MyGate is one of my favorite Indian startups because it's such an India-centric problem and solution that never would really exist in the US. And the company has seen great traction with 1.6M households in 17 cities on its community management platform.

    ➡️ In pre-pandemic times, the company was doing 90M visitor validations a month. The main idea behind the app is that security guards in housing complexes can verify visitors/household workers without explicitly calling the homeowners. The platform also directly integrates with the likes of Swiggy, Zomato.

    ➡️ The company also issues household workers a 6-digit identification code, and the company has gone on to build a couple of ancillary products for household workers. Users can pay household workers their income through MyGate directly, and people can hire household workers through the app itself (I thought this was particularly interesting because MyGate could further provide verified neighbor reviews on employees).

    ➡️ MyGate also has ambitious plans to grow, following their $56M Series B from last October, as it looks to serve 15M homes in 41 cities (a 10x growth) and scale up to 60k communities by the end of 2020. One last thing that I think MyGate could expand into in a post-COVID India is also building out a low-cost IoT thermal scanner taking visitor's temperature as masks & temperature scanning might be the new norm for a while.

    Feedback & ❤️ always appreciated

    More tomorrow :) BONUS (Tweet of the day): https://twitter.com/TurnerNovak/status/1265655089601089537