Daybreak

On Monday, Physics Wallah fired over 100 of its employees and also announced it was going to hire more than a thousand more in the coming months. India's only profitable edtech unicorn is on a relentless expansion spree. So much so that its investors want it to slow down.From establishing itself as the leader of NEET-JEE test preparation, Physics Wallah (PW) wants to dip its toes in a bunch of other areas—from banking and defence to civil services now. Not to forget short-term skilling courses and even tie-ups with schools.Despite this hyper growth phase coming after PW became the only profitable edtech unicorn in the last financial year, cracks are appearing on its armour now.Tune in.Recommended reads:Physicswallah vs the popstarDaybreak is produced from the newsroom of The Ken, India's first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, analytical business stories. 

Varun Alagh, CEO and co-founder of skincare company, Mamaearth, discusses the challenges faced by D2C startups in the current market. The podcast explores the rise and fall of D2C brands, the unsustainability of the D2C boom, the shifting landscape of digital-first D2C brands, and the contrasting narratives regarding the future of Indian D2Cs.

Discussion on the issue of misinformation and fake news during India's elections. Impact of AI and deep fakes on spreading fake content. India's approach to combating misinformation and lack of clear definition of fake news. Contrasting strategies of Meta and YouTube in battling misinformation.

PVR INOX had a blockbuster quarter with triple the revenue. Despite this, occupancy levels remained low. They introduced a subscription plan called Passport to tackle the issue, but it had hidden terms and conditions. The podcast explores the revenue success of PVR INOX, the struggles faced during the pandemic, and the challenges of implementing a subscription model.

Byju’s, edtech giant, lost a case against a group of creditors who wanted the company to repay part of a $1.2 billion loan. The podcast highlights Byju’s financial mismanagement as a major factor in the creditors' lack of confidence. It also discusses the tough job market for job seekers in 2023 and how companies are rectifying their past hiring mistakes. Additionally, the podcast explores the financial issues faced by Byju's, including revenue booking changes, problems highlighted by Deloitte, and the inability to obtain credit ratings.

Tim Cook, CEO of Apple Inc., discusses the extraordinary growth of Apple in the Indian market, with record revenue from iPhone sales and a projected revenue of $10 billion. The podcast explores Apple's initial struggles, its strategy of offering zero-interest financing and partnerships with banks, and its shift towards India as a manufacturing hub. It also highlights concerns about potential competition with China and the impact of Apple's own stores on smaller offline retailers.

Swiggy's expansion into groceries and careers during the pandemic has led to concerns about the well-being of its delivery partners. Recent strikes in Mumbai highlight the discontent and operational challenges faced by the company. Swiggy's delivery partners face difficulties such as reduced pay, increased distances, and a lack of opportunities. Despite profits, Swiggy's losses are increasing, and the company is adjusting operations to ensure sustainable margins.

PhonePe, a leading UPI payments company, diversifies into selling health insurance to boost revenue. Despite limited success, PhonePe continues to invest in health insurance. The challenges of selling health/life insurance are explored, including customer retention and limitations of monthly payment plans.

The podcast discusses Mamaearth's IPO, highlighting its success as a digital-first D2C company. However, retail investors showed little interest in the IPO compared to institutional buyers. The podcast explores factors such as offline sales, net loss, overpricing concerns, and limited product diversity that may have contributed to this lack of interest.

The podcast discusses Vivo becoming India's No.1 smartphone brand despite facing challenges such as arrests and raids. It explores how Vivo recovered its market share after the crackdown, their success in the Indian smartphone market through offline sales and good relations with retailers, and the challenges they face as competitors adopt their strategies and new regulations are introduced.