Byju's one-on-one tuitions🧑🏻‍🏫, Tech Mahindra results📉, Fintechs ask RBI📜

Byju’s tests at-home one-on-one tuitions, Tech Mahindra's net profit falls 5%, Fintechs ask RBI for clear framework, Funding Deals and more.

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Jan 31, 2023

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Byju’s tests at-home one-on-one tuitions for K12🧑🏻‍🏫

Amid multiple controversies ranging from a delay in reporting financials, unpaid loans, governance, and layoffs, Byju’s has been testing out a new business model within K12 – home tuitions.

Started as a pilot program in August 2022, Byju’s has now hosted around 650 demo classes and has about 100 teachers under this service. Byju’s Home Tuitions is available across all city pin codes.

The home tutoring space is extremely fragmented in India. A top challenge for Byju’s in trying to scale home tuitions includes disintermediation, wherein tutors undercut Byju’s pricing by teaching the existing students directly and going independent.

Tech Mahindra's net profit falls 5% YoY to Rs 1,297 crore but beats estimates📉

Tech Mahindra’s consolidated net profit for the quarter that ended December declined 5.3% year-on-year (YoY) to Rs 1,297 crore. Revenue from operations increased 20% YoY to Rs 13,735 crore.

Revenue from operations increased 20% YoY to Rs 13,735 crore. Operating profit, calculated as earnings before interest, taxes, depreciation, and amortization (Ebitda), rose 8% sequentially and 4% YoY to Rs 2,144 crore, the company said.

Similar to other IT services firms, Tech Mahindra, too, saw a sharp moderation in attrition. Its last twelve months (LTM) attrition rate dropped to 17% in the quarter under review from 20% in the previous quarter.

Hot Shorts⚡

Real estate firm IndoSpace has secured an investment of $205 million led by Canada Pension Plan Investment Board (CCP Investments) for its fourth fund.
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Edtech startup Moat School has raised an undisclosed pre-series A round from Anurag Verma.

Growth Hacks📈

Fintechs ask RBI for clear First Loss Default Guarantee framework📜

Even as several months have passed since the Reserve Bank of India (RBI) notified the industry of its digital lending rules, several fintechs have continued to hold consultations with the banking regulator asking for clarity on the first loss default guarantee (FLDG) arrangements and rules for unregulated entities.

An FLDG is a mechanism through which a third party guarantees to compensate up to a certain percentage of default in a loan portfolio of a regulated entity.

FLDG arrangements made new-age fintech NBFCs with little credit experience a viable proposition for banks and financial lenders, offering even unregulated fintechs (without licenses) to have skin in the game.

Further, with regulatory changes creating havoc for fintech business models, these new-age businesses now want to shun uncertainty and want a clear view of operations.