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Sachin Bansal’s Navi in slow lane; New Year spike for health, wellness D2C brands
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Happy Tuesday! Sachin Bansal’s fintech venture Navi had big ambitions to digitally disrupt the financial services sector, but two of its flagship products have not been able to shore up much traction. This and more in today’s ETtech Morning Dispatch.
Also in this letter:
■ Uber India’s FY23 financials
■ Are blue-collar jobs safe from AI threat?
■ Experts on Ravi Kumar S as Cognizant CEO
Sachin Bansal, chairman, Navi
Flipkart cofounder Sachin Bansal launched Navi Technologies in 2018 to take financial services digital, similar to what he did with commerce when he started Flipkart. However, it seems technology might not be the answer to the challenges faced by the financial services industry.
Driving the news: Two of Navi Finserv’s flagship products—home loans and insurance—have found it hard to take off, according to people in the know. Navi may need to relook at how it wants to disburse home loans, they said, adding that perhaps, a pure-play digital model is unlikely to work for these products.
General insurance, which is housed under Navi General Insurance, also has not made much headway with the fintech’s gross written premium shrinking 14% between 2022 and 2023.
This comes after the country’s central bank rejected Navi's application for an ‘on tap’ banking licence via its subsidiary Chaitanya India Fin Credit in May 2023. Navi eventually sold off its microfinance business to Svatantra Microfinance last year.
![navi gfx navi gfx](https://img.etimg.com/photo/msid-106650234/navi gfx.jpg)
Big picture: Navi is building two credit products on the extremes of the secured and unsecured spectrum: home loans and personal loans through an end-to-end digital process. Sources told us that while the personal loans market has gone digital, the housing loan industry is still very traditional. Lenders work with pre-approved projects at a scale that is difficult for a new-age NBFC to match.
Also read | Fintech lenders may face the brunt of RBI’s tightening of capital norms for unsecured lending
What about insurance? Industry data shows that Navi has written a gross premium of only Rs 42 crore till November in this fiscal. The number has fallen 14% from Rs 49 crore in the same period last year.
Its motor insurance business has drastically fallen to Rs 4.8 crore from around Rs 23 crore, per data reviewed by ETtech. This is at a time when insurance as an industry is on an upward swing with new-age players Acko and Digit growing well.
Personal loans to the rescue: Amid the slowdown, Navi’s consumer lending business is growing with an AUM ( assets under management) of Rs 7,774 crore in the first quarter of the current fiscal. Now, the Bengaluru-based group is moving into larger ticket-size loans with tenure above two years. About 74% of the personal loans are now on a tenure of over two years compared to 37% in 2021.
Also read | Unsecured loans in focus, fintechs see NBFC credit taps drying up
![How to rebuild a consistent workout routine How to rebuild a consistent workout routine](https://img.etimg.com/photo/msid-106650640/How to rebuild a consistent workout routine.jpg)
As consumers kick off the new year with a resolution to prioritise fitness and well-being, direct-to-consumer (D2C) brands and internet platforms have gained traction.
Driving the news: HealthifyMe, which offers services such as nutrition and calorie tracking as well as fitness coaching, said that it broke its all-time sales record on the first day of 2024, with sales amounting to Rs 2.5 crore on a single day.
“In the new year, there is a seasonality spike that all health and fitness brands see. We clocked more than Rs 2.5 crore of revenue on the first day of January. We also saw a huge amount of engagement and excitement from the consumers joining,” Tushar Vashisht, cofounder and chief executive of HealthifyMe, told ET.
![New Year boost for health and wellness brands Jan 2024 Graphic ETTECH New Year boost for health and wellness brands Jan 2024 Graphic ETTECH](https://img.etimg.com/photo/msid-106649963/New Year boost for health and wellness brands Jan 2024 Graphic ETTECH.jpg)
Tell me more: This surge in business witnessed by health and wellness brands in the new calendar year typically subsides moving forward. Cultsport, a division of Curefit, which sells sportswear and fitness equipment, also saw an increase in sales over the last fortnight but expects a decline in customer interest by the end of January, with an expected 30% drop in consumer interest by February.
Quote, unquote: “Given the mindshare and the wallet share of the consumers shifting significantly on the health and wellness side, as a fund we believe there could be large winners that could be created in this space... However, these are not just restricted to the new year, but we are seeing this trend emerging on a daily basis. It is complementary to the overall health and wellness theme,” said Ankur Khaitan of Fireside Ventures.
![Uber Uber](https://img.etimg.com/photo/msid-106649992/Uber.jpg)
Online mobility platform Uber India’s operating revenue grew 54% on year to Rs 2,666 crore in FY23, as the company's ride-hailing business saw a significant improvement during the period. Further, net losses also widened during the year to Rs 311 crore, from Rs 197 crore in FY22.
Financial highlights: The firm’s revenue increased 75% year-on-year to Rs 678 crore. The widening of Uber India’s net loss came primarily due to an increase in its biggest cost head—employee benefit expense—which grew 56% in FY23 to Rs 2,078 crore.
![Uber India financial snapshot Uber India financial snapshot](https://img.etimg.com/photo/msid-106650014/Uber India financial snapshot.jpg)
In addition, the financials of Uber India Systems Pvt Ltd (UISPL) also include the earnings of two entities—Uber India Research and Development Pvt Ltd and Xchange Leasing India Pvt Ltd—that have been amalgamated into UISPL.
![Uber India ride hailing biz Uber India ride hailing biz](https://img.etimg.com/photo/msid-106650018/Uber India ride hailing biz.jpg)
What about the entities? UISPL earns revenue from multiple sources including service fees from users and drivers, car advertisements, and support services to its global parent. Xchange Leasing was engaged in the business of buying cars and leasing them out to drivers operating on the Uber platform.
Bhupinder Singh, founder & Group CEO, InCred
InCred Finance’s FY23 revenues soar 67%: InCred Finance, which recently entered the unicorn club, has reported total revenues of Rs 877.5 crore in the fiscal year 2023, up 67% from the previous fiscal. The NBFC also reported a net profit of Rs 121 crore in FY23, a significant jump from the Rs 31 crore it reported in FY22.
![AI job openings in India THUMB IMAGE ETTECH AI job openings in India THUMB IMAGE ETTECH](https://img.etimg.com/photo/msid-106650049/AI job openings in India THUMB IMAGE ETTECH.jpg)
Blue-collar workers may come off as being relatively less affected when it comes to losing jobs to artificial intelligence (AI), suggest experts. Research by TeamLease Services showed only 1% of such jobs as being at risk of automatation due to AI.
Bucking the trend: AI technology can enhance blue-collar workers’ productivity in ways that could improve their pay, and companies are already investing in such technology. Companies are also investing in upskilling their blue-collar employee base, and this is another area where AI, specifically generative AI, is playing a role.
Positive impact: “Counterintuitively, it (AI) is going to displace more white-collar jobs than blue-collar jobs,” Balasubramanian A, vice president and business head – TeamLease Services, told ET. “With respect to blue-collar jobs, I see AI being transformative rather than being a displacement.”
This is because blue-collar jobs typically involve physical tasks and hands-on skills with adaptability that are difficult for AI to replicate at this point, he said.
Taking AI’s help: AI has helped improve the productivity of delivery partners, dark store workers, warehouse and fulfillment centre workers. It has reduced waiting times by enabling them to predict orders, ensure the required inventory is stocked, and provide route optimisation for delivery.
Also read | India job scene sees early signs of disruption from AI
Ravi Kumar S, CEO, Cognizant
Ravi Kumar S, who completes a year as the chief executive of IT services and consulting major Cognizant later this month, is a “people's person” who is winning back competitiveness on large deals and getting back the company's old “mojo”, according to industry experts.
Driving the news: According to experts, 49-year-old Kumar, who was previously the president at rival Infosys, is getting major talent back to Cognizant and has rationalised the company with real-estate as well as headcount consolidation. However, results in terms of actual revenue growth and profits are yet to show in a tough market situation where tech spending has dwindled.
Also read | Cognizant plans to sell office assets in Hyderabad, Chennai
Expert take: “While it’s still relatively early days, Ravi has helped bring Cognizant back into a host of client conversations and boost the firm’s large deal pipeline. Several clients are encouraged with the rapid progress Ravi has made and are willing to entertain what Cognizant has to offer with his go-forward plans,” said Phil Fersht, founder and CEO of HfS Research.
Also read | IT stares at slowest quarterly revenue growth in a decade
![ONDC ONDC](https://img.etimg.com/photo/msid-106650110/ONDC.jpg)
Indian firms for ‘ONDC of App Store’ to break free from tech’s ‘walled garden’: Indian developers have called for building the “ONDC of the app store” or an open network store to take on big technology companies’ dominance on the app play stores which facilitates downloading of their apps.
AI will become companion to creative process, not its master: Anand Mahindra | Mahindra group chairman Anand Mahindra on Monday said he is a believer not in AI, but in human wisdom, and that wisdom comes from experience, during the Global Investors Meet (GIM) in Chennai.
■ The fight to unite iPhone and Android users is far from over (Wired)
■ Wi-Fi’s next big upgrade is officially here (The Verge)
■ ‘Constantly monitored’: the pushback against AI surveillance at work (The Guardian)
Also in this letter:
■ Uber India’s FY23 financials
■ Are blue-collar jobs safe from AI threat?
■ Experts on Ravi Kumar S as Cognizant CEO
Home loan, insurance business drag Sachin Bansal’s Navi into slow lane
![Sachin Bansal profile ETtech Sachin Bansal profile ETtech](https://img.etimg.com/photo/msid-106649884/Sachin Bansal profile ETtech.jpg)
Flipkart cofounder Sachin Bansal launched Navi Technologies in 2018 to take financial services digital, similar to what he did with commerce when he started Flipkart. However, it seems technology might not be the answer to the challenges faced by the financial services industry.
Driving the news: Two of Navi Finserv’s flagship products—home loans and insurance—have found it hard to take off, according to people in the know. Navi may need to relook at how it wants to disburse home loans, they said, adding that perhaps, a pure-play digital model is unlikely to work for these products.
General insurance, which is housed under Navi General Insurance, also has not made much headway with the fintech’s gross written premium shrinking 14% between 2022 and 2023.
This comes after the country’s central bank rejected Navi's application for an ‘on tap’ banking licence via its subsidiary Chaitanya India Fin Credit in May 2023. Navi eventually sold off its microfinance business to Svatantra Microfinance last year.
![navi gfx navi gfx](https://img.etimg.com/photo/msid-106650234/navi gfx.jpg)
Big picture: Navi is building two credit products on the extremes of the secured and unsecured spectrum: home loans and personal loans through an end-to-end digital process. Sources told us that while the personal loans market has gone digital, the housing loan industry is still very traditional. Lenders work with pre-approved projects at a scale that is difficult for a new-age NBFC to match.
Also read | Fintech lenders may face the brunt of RBI’s tightening of capital norms for unsecured lending
What about insurance? Industry data shows that Navi has written a gross premium of only Rs 42 crore till November in this fiscal. The number has fallen 14% from Rs 49 crore in the same period last year.
Its motor insurance business has drastically fallen to Rs 4.8 crore from around Rs 23 crore, per data reviewed by ETtech. This is at a time when insurance as an industry is on an upward swing with new-age players Acko and Digit growing well.
Personal loans to the rescue: Amid the slowdown, Navi’s consumer lending business is growing with an AUM ( assets under management) of Rs 7,774 crore in the first quarter of the current fiscal. Now, the Bengaluru-based group is moving into larger ticket-size loans with tenure above two years. About 74% of the personal loans are now on a tenure of over two years compared to 37% in 2021.
Also read | Unsecured loans in focus, fintechs see NBFC credit taps drying up
Health and wellness D2C brands cash in on new year resolutions
![How to rebuild a consistent workout routine How to rebuild a consistent workout routine](https://img.etimg.com/photo/msid-106650640/How to rebuild a consistent workout routine.jpg)
As consumers kick off the new year with a resolution to prioritise fitness and well-being, direct-to-consumer (D2C) brands and internet platforms have gained traction.
Driving the news: HealthifyMe, which offers services such as nutrition and calorie tracking as well as fitness coaching, said that it broke its all-time sales record on the first day of 2024, with sales amounting to Rs 2.5 crore on a single day.
“In the new year, there is a seasonality spike that all health and fitness brands see. We clocked more than Rs 2.5 crore of revenue on the first day of January. We also saw a huge amount of engagement and excitement from the consumers joining,” Tushar Vashisht, cofounder and chief executive of HealthifyMe, told ET.
![New Year boost for health and wellness brands Jan 2024 Graphic ETTECH New Year boost for health and wellness brands Jan 2024 Graphic ETTECH](https://img.etimg.com/photo/msid-106649963/New Year boost for health and wellness brands Jan 2024 Graphic ETTECH.jpg)
Tell me more: This surge in business witnessed by health and wellness brands in the new calendar year typically subsides moving forward. Cultsport, a division of Curefit, which sells sportswear and fitness equipment, also saw an increase in sales over the last fortnight but expects a decline in customer interest by the end of January, with an expected 30% drop in consumer interest by February.
Quote, unquote: “Given the mindshare and the wallet share of the consumers shifting significantly on the health and wellness side, as a fund we believe there could be large winners that could be created in this space... However, these are not just restricted to the new year, but we are seeing this trend emerging on a daily basis. It is complementary to the overall health and wellness theme,” said Ankur Khaitan of Fireside Ventures.
Uber India sees revenue climb 54% to Rs 2,666 crore
![Uber Uber](https://img.etimg.com/photo/msid-106649992/Uber.jpg)
Online mobility platform Uber India’s operating revenue grew 54% on year to Rs 2,666 crore in FY23, as the company's ride-hailing business saw a significant improvement during the period. Further, net losses also widened during the year to Rs 311 crore, from Rs 197 crore in FY22.
Financial highlights: The firm’s revenue increased 75% year-on-year to Rs 678 crore. The widening of Uber India’s net loss came primarily due to an increase in its biggest cost head—employee benefit expense—which grew 56% in FY23 to Rs 2,078 crore.
![Uber India financial snapshot Uber India financial snapshot](https://img.etimg.com/photo/msid-106650014/Uber India financial snapshot.jpg)
In addition, the financials of Uber India Systems Pvt Ltd (UISPL) also include the earnings of two entities—Uber India Research and Development Pvt Ltd and Xchange Leasing India Pvt Ltd—that have been amalgamated into UISPL.
![Uber India ride hailing biz Uber India ride hailing biz](https://img.etimg.com/photo/msid-106650018/Uber India ride hailing biz.jpg)
What about the entities? UISPL earns revenue from multiple sources including service fees from users and drivers, car advertisements, and support services to its global parent. Xchange Leasing was engaged in the business of buying cars and leasing them out to drivers operating on the Uber platform.
![Bhupinder singh incred ettech thumb Bhupinder singh incred ettech thumb](https://img.etimg.com/photo/msid-106650030/Bhupinder singh incred ettech thumb.jpg)
InCred Finance’s FY23 revenues soar 67%: InCred Finance, which recently entered the unicorn club, has reported total revenues of Rs 877.5 crore in the fiscal year 2023, up 67% from the previous fiscal. The NBFC also reported a net profit of Rs 121 crore in FY23, a significant jump from the Rs 31 crore it reported in FY22.
Blue-collar jobs may weather raging AI storm better: experts
![AI job openings in India THUMB IMAGE ETTECH AI job openings in India THUMB IMAGE ETTECH](https://img.etimg.com/photo/msid-106650049/AI job openings in India THUMB IMAGE ETTECH.jpg)
Blue-collar workers may come off as being relatively less affected when it comes to losing jobs to artificial intelligence (AI), suggest experts. Research by TeamLease Services showed only 1% of such jobs as being at risk of automatation due to AI.
Bucking the trend: AI technology can enhance blue-collar workers’ productivity in ways that could improve their pay, and companies are already investing in such technology. Companies are also investing in upskilling their blue-collar employee base, and this is another area where AI, specifically generative AI, is playing a role.
Positive impact: “Counterintuitively, it (AI) is going to displace more white-collar jobs than blue-collar jobs,” Balasubramanian A, vice president and business head – TeamLease Services, told ET. “With respect to blue-collar jobs, I see AI being transformative rather than being a displacement.”
This is because blue-collar jobs typically involve physical tasks and hands-on skills with adaptability that are difficult for AI to replicate at this point, he said.
Taking AI’s help: AI has helped improve the productivity of delivery partners, dark store workers, warehouse and fulfillment centre workers. It has reduced waiting times by enabling them to predict orders, ensure the required inventory is stocked, and provide route optimisation for delivery.
Also read | India job scene sees early signs of disruption from AI
Cognizant gets its mojo back under new CEO
![Cognizant CEO Ravi Kumar S Cognizant CEO Ravi Kumar S](https://img.etimg.com/photo/msid-106650086/Cognizant CEO Ravi Kumar S.jpg)
Ravi Kumar S, who completes a year as the chief executive of IT services and consulting major Cognizant later this month, is a “people's person” who is winning back competitiveness on large deals and getting back the company's old “mojo”, according to industry experts.
Driving the news: According to experts, 49-year-old Kumar, who was previously the president at rival Infosys, is getting major talent back to Cognizant and has rationalised the company with real-estate as well as headcount consolidation. However, results in terms of actual revenue growth and profits are yet to show in a tough market situation where tech spending has dwindled.
Also read | Cognizant plans to sell office assets in Hyderabad, Chennai
Expert take: “While it’s still relatively early days, Ravi has helped bring Cognizant back into a host of client conversations and boost the firm’s large deal pipeline. Several clients are encouraged with the rapid progress Ravi has made and are willing to entertain what Cognizant has to offer with his go-forward plans,” said Phil Fersht, founder and CEO of HfS Research.
Also read | IT stares at slowest quarterly revenue growth in a decade
Other Top Stories By Our Reporters
![ONDC ONDC](https://img.etimg.com/photo/msid-106650110/ONDC.jpg)
Indian firms for ‘ONDC of App Store’ to break free from tech’s ‘walled garden’: Indian developers have called for building the “ONDC of the app store” or an open network store to take on big technology companies’ dominance on the app play stores which facilitates downloading of their apps.
AI will become companion to creative process, not its master: Anand Mahindra | Mahindra group chairman Anand Mahindra on Monday said he is a believer not in AI, but in human wisdom, and that wisdom comes from experience, during the Global Investors Meet (GIM) in Chennai.
Global Picks We Are Reading
■ The fight to unite iPhone and Android users is far from over (Wired)
■ Wi-Fi’s next big upgrade is officially here (The Verge)
■ ‘Constantly monitored’: the pushback against AI surveillance at work (The Guardian)
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