January 9, 2024 | Posted in News
Apple and Google have blocked two eSIM apps – Airalo and Holafly – from their Indian app stores following a government directive. This and more in today’s ETtech Top 5.
Also in this letter:
■ India-Maldives row: EaseMyTrip suspends flight bookings
■ Why foodfluencing is not bringing money for creators
■ Infographic Insight: Charting the consumer landscape of India
Tech giant Google and Apple have removed the international eSIM apps Airalo and Holafly from their Indian app stores following directives from the Department of Telecommunications (DoT).
Details: The DoT has also instructed internet service providers and telecom companies to block access to websites associated with these apps, the Times of India reported.
Reason: The decision to ban these apps came after it was found that fraudsters were exploiting unauthorized eSIMs with international phone numbers for cybercrimes and defrauding people.
Also read | Government issues orders to ban Mahadev, 21 other illegal betting apps
Apple, Google comply: Both Airalo and Holafly were removed from the Google Play Store and Apple App Store in India, but there is no official statement from either Apple or Google on this action.
What’s more: Providers of eSIM services, offering digital SIM cards for voice calls and internet data without requiring a physical SIM card, are required to obtain a no-objection certificate (NoC) from the DoT. In contrast, other eSIM providers like Nomad eSIM and aloSIM remain accessible for users in India to download and use through these app stores.
Also read | Chinese company BabyBus is taking kids for a ride
Indian IT companies are expected to report a “soft” third quarter with higher-than-usual furloughs weighing on revenue growth, industry watchers said. Demand outlook commentary is likely to be unchanged as clients continue to scrutinise discretionary spends and prioritise cost optimisation, they cautioned.
Details: Top tier IT companies are slated to announce December quarter numbers this week. Tata Consultancy Services and Infosys will declare their Q3FY24 report card on January 11, followed by Wipro and HCL Technologies a day later.
Key focus area: All eyes will be on management commentary from the IT pack on prevailing customer sentiment across BFSI and technology services, as well as the demand scenario panning out in key markets such as the US and Europe.
Also read | IT stares at slowest quarterly revenue growth in a decade
Quote, unquote: “We expect IT companies to report soft quarter-on-quarter constant currency revenue growth in Q3FY24 due to higher-than-usual furloughs for most companies in our coverage universe. We expect margins to be impacted due to furloughs and wage hikes (rolled out by Infy, Wipro, HCLT),” ICICI Securities said in its results preview.
On IT spending: Signs of any improvement in IT spending in the near term remain elusive, with continued scrutiny on discretionary spends and focus on cost optimisation.
Also read | After a dry spell, IT sights green shoots with higher budget for 2024
Flat order books: “Given the absence of mega deal announcements in the Dec ’23 quarter, we see flat order books on a YoY-basis with a dip sequentially for most companies in our coverage,” ICICI Securities said.
Tough times: Motilal Oswal Financial Services in its results preview said the weakness in IT services demand has been “further intensified” by higher-than-expected furloughs in the third quarter of FY24. The seasonality is likely to hurt revenue growth and margin performances of both tier-1 and tier-2 IT companies.
Also read | IT spending to return after 2023 dip, expect 10.7% jump: Gartner
EaseMyTrip cofounder and CEO Nishant Pitti
Online travel platform EaseMyTrip has suspended all flight reservations for the Maldives following derogatory remarks made by Maldivian ministers against Prime Minister Narendra Modi and India.
What’s the controversy? Three deputy ministers in the Ministry of Youth Affairs in Maldives — Maryam Shiuna, Malsha Shareef, and Mahzoom Majid — made the comments following Modi’s recent visit to Lakshadweep to promote local tourism.
Following the controversy, several people on social media claimed to have cancelled their trips to the island nation.
‘Want Ayodhya, Lakshadweep as top destinations’: “In solidarity with our nation, @EaseMyTrip has suspended all Maldives flight bookings,” EaseMyTrip cofounder and CEO Nishant Pitti posted on X. “We want Ayodhya and Lakshadweep to turn out as international destinations,” he said.
Searches surge for Lakshadweep: Online travel portal MakeMyTrip’s chief marketing and business officer Raj Rishi Singh said Lakshadweep has seen a 3,400% increase in on-platform searches ever since Modi’s visit. Aloke Bajpai, cofounder and group CEO of online travel agency Ixigo, said on X that there has been a “2900% increase in searches to Lakshadweep in the last 3-4 days!”.
‘Overrated, ultra expensive’: Snapdeal cofounder Kunal Bahl posted on X that Maldives is “overrated and unnecessarily ultra expensive.” “#Lakshadweep has the chance to build more similar supply in the region and make it more accessible for a broader audience,” he said.
Foodfluencing now has perhaps the largest number of subcategories of content creators — from village-cooking and gourmet-baking to meal-prepping and myth-busting. But the monies in the space haven’t grown proportionately. Meanwhile, short-video format is also altering the way the art of cooking food gets documented on the internet.
Expert take: The launch of any food brand needs foodfluencers to create content around reviews and recipes, but the monetary growth has not been exponential, says Lakshmi Balasubramanian, cofounder of Greenroom Network, an influencer marketing agency. “Unlike finance, which has fewer creators attracting larger audiences, food content is saturated with participants.”
Also read | New-age endorsement deals: Virtual influencers now making real money
Deconstructing the biz: The ability to make money is directly proportional to social media reach. As per industry stakeholders, while top tech influencers command Rs 10-15 lakh for a YouTube video, celebrity chef creators get Rs 5-6 lakh. A mega influencer, with over 1 million followers, often opts for long-term collaborations, and could earn Rs 40-50 lakh a year through multiple videos
For nano influencers (with 1,000-10,000 followers), income comes from online reviews on food aggregator apps. Brand collaborations fetch most regional influencers (nano or micro) meagre compensations of Rs 5,000-10,000 per month. If they are hugely popular in the region, they may get four-five brand deals of Rs 30,000-40,000 a month.
Also read | How short video apps are fuelling big ambitions for content creators from small towns
‘It gets tiring’: Besides influencing the politics of food, foodfluencers are united on one thing: exhaustion from posting. Instagram Reels initially granted content creators reach and influence. But this soon evolved into a demanding cycle, leaving them fatigued. “There’s so much pressure to keep posting new recipes every day,” says Shivesh Bhatia, a baker and cookbook author from Delhi.
Also read | Gaming influencers in big league as companies hike spends by 35%
India’s consumer tech sector stood at $100 billion in FY22, something that is expected to go up to $300 billion by 2027, growing at an annual growth rate (CAGR) of around 25%, as per a report by Chiratae Ventures.
Titled ‘Cracking the code: Unveiling India’s consumer landscape’, in partnership with Google and 1Lattice, the report cast an eye at India’s consumption potential.
Key findings: The report showed that tier-II and tier-III cities are rapidly adopting digital technology and are aware of the various platforms and apps. Wide usage of fintech platforms is driven in India by payment apps, even in remote cities. There is a growing willingness to pay for premium and personalised subscription models, the report observed.
Today’s ETtech Top 5 newsletter was curated by Erick Massey and Gaurab Dasgupta in New Delhi.