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Facebook: All The Scandals Of The Past Year

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Facebook All Scandals Of Past Year,Facebook Data Leaks,Startup Stories,Technology News 2018,Startup News India,Facebook Scandals Past Year,Cambridge Analytica,Facebook Data Breach,Facebook Internal Struggles,Facebook Data Leaks Breach,Facebook CEO Mark Zuckerberg,Largest Online Social Media Platform

Facebook, in recent days, has been embroiled in scandal after scandal. On Wednesday, it was revealed that the initial numbers exposed by the Facebook data leaks were far higher than the 50 million declared by the social media platform. In fact, the numbers are closer to 87 million, a good 30 million more than the declared figures! However, with Zuckerberg’s confessions in front of the Congress, the other scandals Facebook has been going through has been brought to light.

1. Cambridge Analytica 

Cambridge Analytica, the political analysis firm, acquired the data of millions of Facebook users via an app created by a Professor at Cambridge. The data breach was considered a massive violation of information and was also linked to the 2016 Trump Presidential Elections. According to recently revealed reports, the analytics firm had used the revealed information to get an idea of the voters way ahead of the elections. The revelations sparked a massive reaction from the Senators in Washington. This, in turn, led to the #DeleteFacebook moment, with Zuckerberg being summoned to testify against the issue. After a long and omminous silence, he came forward and clarified all the questions posed by the members. The issue is still going on, without a clear idea on the resolve.

2. Retaining deleted videos of the users

One of Facebook’s responses to the Cambridge Analytica incident was to allow users to download their data archive on the social network in order for users to fully understand what information Facebook stores. This move inadvertently trigged more outcry when users discovered that videos recorded on the platform they had thought they had deleted were still present in Facebook’s archives. Facebook in turn, apologized and called the retention an unintentional “bug.” But the error will likely do little to reassure the public in the wake of a much larger ongoing scandal.

3. Facebook’s internal struggles 

When the entire date leaks breach happened, Andrew Bosworth, the Vice President of Facebook, said the growth of Facebook as a company was far more important than the breach of certain individual’s privacy. This sparked off a huge controversy, with Bosworth going on record to clarify that he didn’t mean what he said.

4. The Russian Meddling 

One of the dominant scandals of the 2016 Trump Presidential elections was the fact that Facebook had allowed the Russians to spread their political propaganda on the social networking site. Facebook had admitted last year that fake Russian accounts had been purchased for more than $ 100,000 in ads. Facebook was additionally implicated in its role of distributing misinformation, also known as “fake news,” from phony news sites, more often than not targeted at Hillary Clinton during the campaign, but rampant on both sides nonetheless.

5. Photo and link scan over messenger 

One of the other privacy infringements which came to light during the data leaks breach was the fact that Facebook scans images and links sent via messenger. According to the company policy, the policy is followed to make sure the content used is as per Facebook standards. While the practice may seem standard, users took offence to the policy as they felt it was an impeachment to their privacy rights. Facebook has said it is looking into the issue and will get it fixed as soon as possible.

With Mark Zuckerberg coming forward and saying he will address everyone’s concerns with what is perhaps the largest online social media platform, the issue looks to be resolved soon.

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Greenikk’s Closure: A Cautionary Tale in the Agritech Sector!

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Greenikk's Closure: A Cautionary Tale in the Agritech Sector!,Startup Stories,Startup Stories India,Inspirational Stories 2024,Latest Technology News and Updates,2024 Technology News,Tech News,Agritech Greenikk shuts down,Agritech startup Greenikk shuts down due to loan defaults,Greenikk Closure Reasons for Shutdown,Greenikk closure,Agritech sector challenges,Lessons learned agritech industry,Startup failure reasons,Agricultural technology trends,Agritech startup closure,Market challenges agriculture,Sustainable agriculture innovation,Agricultural technology investments,Agritech industry insights,Agritech Sector

Agritech startup Greenikk has announced its closure, attributing the decision to funding challenges and adverse market conditions. Founded in 2020 by Fariq Naushad and Previn Jacob Varghese, Greenikk aimed to create a digital ecosystem for banana cultivation, addressing issues throughout the value chain from farmers to bulk buyers. Despite raising around $1 million from investors, including 100Unicorns and IIM A Ventures, the company struggled to secure additional funding, particularly for a planned $5 million Series A round.

Reasons for Shutdown

Several factors contributed to Greenikk’s decision to wind down operations:

  • Funding Challenges: Initially thriving during a period of low-interest capital availability in 2022, the startup faced difficulties as market dynamics shifted. Naushad admitted that the company pursued “the wrong metrics” for growth during its early success, ultimately leading to unsustainable practices.
  • Loan Defaults: Greenikk extended loans totaling ₹6 crore but encountered significant defaults from borrowers. Naushad reported spending six months attempting to recover about 80% of these receivables, highlighting ongoing challenges within the agritech sector regarding loan recoveries.
  • Lack of Product-Market Fit: Cofounder Jacob Varghese noted that despite developing a comprehensive app and ecosystem, Greenikk struggled to establish itself beyond being seen as a vendor for working capital. This failure to find a sustainable product-market fit hindered its scalability and revenue generation.

Investor Impact

In light of its closure, Greenikk plans to return 50% of the capital to investors. The funds recovered from liquidation will primarily be used to repay its lead investor, 100Unicorns. The founders have also committed to using their own resources to pay back angel investors, reflecting an effort to maintain transparency amid the shutdown.

Employee Welfare

Greenikk has pledged support for its employees during this transition by providing two months’ severance pay and job placement assistance for nearly 25 affected staff members. At its peak, the company employed around 30 individuals but had been reducing its workforce in response to ongoing financial difficulties.

Broader Agritech Landscape

The challenges faced by Greenikk are indicative of broader trends within the agritech sector, which has seen a significant decline in venture capital interest. In 2024 alone, agritech startups raised only about $150 million across more than 30 deals—a stark contrast to the $772 million raised in 2022. This downturn underscores the increasing difficulties startups face in securing funding as market conditions evolve.

As Naushad and Varghese look toward their next entrepreneurial ventures, Greenikk’s story serves as a cautionary tale for other startups navigating the complexities of agritech investment and operational sustainability.

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Josh Talks FY24: Reduced Losses and Modest Revenue Growth Signal Positive Momentum!

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Josh Talks FY24: Reduced Losses and Modest Revenue Growth Signal Positive Momentum!,Startup Stories,Startup Stories India,Inspirational Stories 2024,Latest Technology News and Updates,2024 Technology News,Tech News,Josh Talks FY24,Reduced Losses,Josh Talks FY24 Reduced Losses,Modest Revenue Growth,Financial Results FY24,Growth Strategy,Business Performance,Profitability Improvement,Revenue Trends,Strategic Initiatives,Josh Talks Report,Josh Talks Revenue,Josh Talks FY24 Report

Josh Talks, a prominent platform dedicated to empowering individuals through inspirational narratives and skill development, has released its financial results for the fiscal year 2024 (FY24). The company has demonstrated notable progress in reducing its losses while achieving modest revenue growth.

Financial Performance

In FY24, Josh Talks reported a loss of INR 9.8 crore, which is a 25% decrease from the previous fiscal year. This improvement signals a positive trend in the company’s financial health as it continues to optimize its operations and business model. On the revenue front, Josh Talks generated INR 19 crore, reflecting a 2% increase compared to FY23.

Strategic Initiatives

The management attributes this improved financial performance to strategic adjustments in its operational approach. By enhancing user engagement and diversifying content offerings, Josh Talks aims to create a more sustainable business model. The platform has actively worked on expanding its revenue streams, contributing to the slight uptick in revenue.

Competitive Landscape

Operating in a competitive environment, Josh Talks faces challenges from various digital content and educational platforms. The company’s commitment to delivering quality content that resonates with its audience has helped maintain its relevance. As part of its growth strategy, Josh Talks is exploring partnerships and collaborations to further enhance its reach and impact.

Future Prospects

Looking ahead, Josh Talks remains optimistic about its growth trajectory. The management is focused on leveraging technology and data analytics to better understand user preferences and tailor content accordingly. This approach aims not only to boost revenue but also to enhance overall user satisfaction.

Conclusion

In summary, Josh Talks’ FY24 results reflect a cautiously optimistic outlook as the company navigates the evolving digital content landscape while striving for profitability and growth. With ongoing efforts to improve operational efficiency and expand its offerings, Josh Talks is well-positioned to continue making a significant impact in personal development and education.

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Mobikwik Secures SEBI Approval for ₹700 Crore IPO: A Major Step in India’s Fintech Landscape!

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Mobikwik Secures SEBI Approval for ₹700 Crore IPO: A Major Step in India's Fintech Landscape!,Startup Stories,Startup Stories India,Inspirational Stories 2024,Latest Technology News and Updates,2024 Technology News,Tech News,MobiKwik Gets SEBI Nod,Mobikwik Secures SEBI Approval,Fintech firm MobiKwik gets Sebi approval,Mobikwik IPO 2024,Mobikwik IPO,SEBI approval IPO 2024,India fintech IPO news,Mobikwik IPO latest updates,Mobikwik IPO details,Fintech companies IPO India,Investment in Mobikwik IPO,SEBI approval for Mobikwik IPO,Mobikwik IPO launch date,IPO Overview,Mobikwik,SEBI,IPO

Mobikwik, a leading digital payment platform in India, has recently received approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO), targeting a substantial ₹700 crore. This marks a pivotal moment for the Gurugram-based fintech company, which has been navigating the complexities of the IPO process since its initial attempt in July 2021.

IPO Overview

The upcoming IPO will consist entirely of a fresh issue of equity shares, with no component for an offer for sale (OFS). According to the Draft Red Herring Prospectus (DRHP), the shares will have a face value of ₹2 each. The allocation strategy for the shares is designed to cater to various investor categories: 75% will be reserved for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail individual investors. This structure aims to ensure broad participation in the offering.

Fund Utilization Plans

Mobikwik has outlined specific plans for how it intends to utilize the funds raised through this IPO:

  • ₹250 crore will be directed towards expanding its financial services business.
  • ₹135 crore is earmarked for enhancing its payment services.
  • Additional investments will support growth initiatives in data and artificial intelligence.
  • Over ₹70 crore will be allocated for capital expenditures.

These allocations reflect Mobikwik’s strategic focus on strengthening its market position and enhancing its service offerings within the competitive fintech landscape.

Market Context and Timing

The approval from SEBI comes at a time when there is growing investor interest in technology and fintech sectors in India. Mobikwik’s strategic emphasis on digital payments and financial services places it favorably within this rapidly evolving market. The company had previously filed its DRHP with SEBI but withdrew it due to challenging market conditions before refiling in January 2024.

Industry experts speculate that Mobikwik may launch its IPO before Diwali, which falls on November 4 this year, taking advantage of favorable market conditions. The book-running lead managers for this IPO are SBI Capital Markets Limited and DAM Capital Advisors Limited, while Link Intime India Private Limited will serve as the registrar.

Competitive Landscape

Founded in 2009 by Bipin Preet Singh and Upasana Taku, Mobikwik initially started as a digital wallet but has since evolved into a comprehensive fintech platform offering services such as credit, insurance, and gold loans. The company has garnered significant backing from prominent investors including Sequoia Capital India, Bajaj Finance, American Express, Cisco Systems, and Abu Dhabi Investment Authority.

Mobikwik faces competition from other fintech giants like Paytm, which is also preparing for an IPO. Paytm’s parent company, One97 Communications, has filed its own DRHP aiming to raise ₹16,600 crore through a combination of fresh issues and an OFS.

Future Outlook

While specific details regarding the price band and lot size of Mobikwik’s IPO remain to be finalized, the approval from SEBI is a crucial milestone in the company’s journey toward becoming a publicly traded entity. With a last reported valuation of approximately $700 million following a funding round earlier this year, Mobikwik is eyeing a valuation that could exceed $1 billion upon its public listing.

This IPO represents not only an opportunity for Mobikwik to enhance its market presence but also reflects broader trends within India’s burgeoning digital economy as consumer preferences increasingly shift towards online transactions and financial services. As Mobikwik prepares for this significant transition, it aims to solidify its position as a key player in India’s fintech ecosystem.

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