 Morning Dispatch |
TReDS sees a festive boost; Nykaa’s growth strategy
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Happy Friday! Festive inventory demand has lifted invoice financing on TReDS platforms. This and more in today’s ETtech Morning Dispatch.
Also in the letter:
■ ECMS to support chip ecosystem
■ Amagi Q2 profit jumps
■ GCCs to add 35k jobs in 2027
Programming note: We'll be back in your inbox on November 11. Wishing all our readers a happy and prosperous Diwali.
 entity. C2FO runs C2Treds and also has the same licence, which it may surrender going ahead..jpg "M1xchange is an RBI-licensed Treds (Trade Receivables Electronic Discounting System) entity. C2FO runs C2Treds and also has the same licence, which it may surrender going ahead.")
Invoice discounting platforms regulated by the Reserve Bank of India (RBI) recorded a jump in financing activity this festive season, as small and medium businesses turned to them to fund inventory purchases and other working capital needs.
By the numbers: The five platforms operating under the Trade Receivables Discounting System (TReDS) financed invoices worth Rs 75,788 crore in August and September, a 36% increase from Rs 55,549 crore in the same months last year, according to RBI data.
How it works: TReDS allows MSMEs to upload invoices approved by their corporate buyers, which banks and NBFCs then bid competitively to finance. The MSMEs receive early payment, while the financiers collect the amount from the buyers on the due date.
Growing TReDS platforms:
Beauty and fashion etailer Nykaa’s latest acquisition of celebrity makeup artiste Namrata Soni's firm Simply Nam reveals the platform’s broader strategy of growth.
What is House of Nykaa: House of Nykaa is its portfolio of 13 owned and partner brands across beauty and fashion, including Dot & Key, Kay Beauty, Nykaa Cosmetics, Earth Rhythm, and Aminu.
Three routes to growth: House of Nykaa has eight brands across beauty and personal care (BPC) and five fashion brands. Nykaa is using all three routes — building in-house brands, partnering with experts and celebrities, and acquisitions — to build its BPC portfolio.
The strategy: “The objective is to fill out the portfolio in a way that makes sense, focussing on categories where we see significant growth opportunities and the ability to build something differentiated,” House of Nykaa CEO Adwaita Nayar said.
Margin gains: Brokerage firm Motilal Oswal highlighted in its report that House of Nykaa is already one of the platform's important margin drivers. “Gross margin improved about 106 bps to 46%, supported by a rising House of Nykaa mix and higher marketing income,” it said.
The government may prioritise approval under the Electronic Component Manufacturing Scheme (ECMS) for companies building parts directly linked to India’s burgeoning semiconductor supply chain, officials told ET.
Why it matters: The move aims to ensure that local units supplying electronics, chemical and mechanical components can seamlessly integrate with domestic chip packaging operations as they come online, cutting import dependencies, they added.
Building the ecosystem: Five major outsourced semiconductor assembly and test (OSAT) or assembly, testing, marking, and packaging (ATMP) facilities by Micron Technology, Kaynes Semicon, CG Semi, CDIL and Suchi Semicon became operational this year. Sahasra Semiconductors and RRP Electronics have also begun production at their units this year.
L to R: Baskar Subramanian, Srividhya Srinivasan & KA Srinivasan, cofounders of Amagi
Amagi Media Labs reported robust revenues and profits for the July-September quarter, as the company saw growth across its cloud modernisation, streaming, and advertising businesses.
Financials:
Shiprocket CEO Saahil Goel
Logistics firm Shiprocket posted its first quarterly profit in Q2FY27, aided by growth in its core shipping business.
Moneyview cofounder and CEO Puneet Agarwal
In its first quarterly results post-listing, digital lending startup Moneyview reported a more than fivefold jump in net profit.
Financials:
Indian GCCs set to add 35k jobs in 2027: India is expected to add up to 35,000 jobs in greenfield global capability centres (GCC) next year, showed estimates by an Accenture-backed firm helping set up such facilities locally, as tighter H1B laws and talent availability prompt mid-sized American companies to explore the country for tech team expansions.
AI fails to curb rising IT staff costs: Indian IT services companies are facing rising employee costs. The pressure is likely to intensify in the second half of the current fiscal year as they spend more on premium talent, reskilling and higher compensation, experts said. Although AI and automation are changing the traditional labour-intensive model of IT services, they have yet to bring down employee costs for the country’s top six IT services companies.
■ Gates says Trump inaction leaves world exposed to AI bioweapons (FT)
■ The Blue Wave Has Tech Bros Scrambling for Data Centers in Space (Wired)
■ A rare strike in Taiwan exposes labor unrest beneath the global AI rush (Rest of World)
Also in the letter:
■ ECMS to support chip ecosystem
■ Amagi Q2 profit jumps
■ GCCs to add 35k jobs in 2027
Programming note: We'll be back in your inbox on November 11. Wishing all our readers a happy and prosperous Diwali.
Festive stocking drives 36% jump in TReDS volumes as small businesses seek working capital
Invoice discounting platforms regulated by the Reserve Bank of India (RBI) recorded a jump in financing activity this festive season, as small and medium businesses turned to them to fund inventory purchases and other working capital needs.
By the numbers: The five platforms operating under the Trade Receivables Discounting System (TReDS) financed invoices worth Rs 75,788 crore in August and September, a 36% increase from Rs 55,549 crore in the same months last year, according to RBI data.
How it works: TReDS allows MSMEs to upload invoices approved by their corporate buyers, which banks and NBFCs then bid competitively to finance. The MSMEs receive early payment, while the financiers collect the amount from the buyers on the due date.
Growing TReDS platforms:
- M1xchange: Financed over Rs 20,000 crore in invoices in the 30 days from Navratri’s start, up 33% YoY.
- KredX: September financing volumes rose over fivefold YoY to Rs 231 crore; festive-season volumes were nearly three times a typical month.
ETtech Explainer: How House of Nykaa is emerging as a growth and margin driver
Beauty and fashion etailer Nykaa’s latest acquisition of celebrity makeup artiste Namrata Soni's firm Simply Nam reveals the platform’s broader strategy of growth.
What is House of Nykaa: House of Nykaa is its portfolio of 13 owned and partner brands across beauty and fashion, including Dot & Key, Kay Beauty, Nykaa Cosmetics, Earth Rhythm, and Aminu.
Three routes to growth: House of Nykaa has eight brands across beauty and personal care (BPC) and five fashion brands. Nykaa is using all three routes — building in-house brands, partnering with experts and celebrities, and acquisitions — to build its BPC portfolio.
The strategy: “The objective is to fill out the portfolio in a way that makes sense, focussing on categories where we see significant growth opportunities and the ability to build something differentiated,” House of Nykaa CEO Adwaita Nayar said.
Margin gains: Brokerage firm Motilal Oswal highlighted in its report that House of Nykaa is already one of the platform's important margin drivers. “Gross margin improved about 106 bps to 46%, supported by a rising House of Nykaa mix and higher marketing income,” it said.
Centre planning to use component scheme to feed chip ecosystem
The government may prioritise approval under the Electronic Component Manufacturing Scheme (ECMS) for companies building parts directly linked to India’s burgeoning semiconductor supply chain, officials told ET.
Why it matters: The move aims to ensure that local units supplying electronics, chemical and mechanical components can seamlessly integrate with domestic chip packaging operations as they come online, cutting import dependencies, they added.
Building the ecosystem: Five major outsourced semiconductor assembly and test (OSAT) or assembly, testing, marking, and packaging (ATMP) facilities by Micron Technology, Kaynes Semicon, CG Semi, CDIL and Suchi Semicon became operational this year. Sahasra Semiconductors and RRP Electronics have also begun production at their units this year.
Amagi’s Q2 revenue grows 27% to Rs 476 crore, profit rises
Amagi Media Labs reported robust revenues and profits for the July-September quarter, as the company saw growth across its cloud modernisation, streaming, and advertising businesses.
Financials:
- Revenue from operations: Up 27% to Rs 476 crore.
- Profit after tax: Up nearly 30-fold to Rs 75 crore, from approximately Rs 2.5 crore in the year-ago quarter.
- Adjusted Ebitda: Up 114% to Rs 89 crore.
Shiprocket posts maiden profit on strong core business growth
Logistics firm Shiprocket posted its first quarterly profit in Q2FY27, aided by growth in its core shipping business.
- The company swung to a profit of Rs 60 lakh in the quarter from a loss of Rs 20.29 crore a year ago.
- Revenue from operations rose 35% to Rs 674 crore.
- Revenue from its core business, which covers domestic shipping and related software tools, rose 25% to Rs 462 crore.
Moneyview net profit jumps to Rs 201 crore in Q2
In its first quarterly results post-listing, digital lending startup Moneyview reported a more than fivefold jump in net profit.
Financials:
- Net profit: Rs 201 crore, up from Rs 38.7 crore in the year-ago period.
- Revenue from operations: Rs 1,120 crore.
- Disbursed loans: Rs 7,701 crore in Q2, up 41% on-year.
Other Top Stories By Our Reporters
Indian GCCs set to add 35k jobs in 2027: India is expected to add up to 35,000 jobs in greenfield global capability centres (GCC) next year, showed estimates by an Accenture-backed firm helping set up such facilities locally, as tighter H1B laws and talent availability prompt mid-sized American companies to explore the country for tech team expansions.
AI fails to curb rising IT staff costs: Indian IT services companies are facing rising employee costs. The pressure is likely to intensify in the second half of the current fiscal year as they spend more on premium talent, reskilling and higher compensation, experts said. Although AI and automation are changing the traditional labour-intensive model of IT services, they have yet to bring down employee costs for the country’s top six IT services companies.
Global Picks We Are Reading
■ Gates says Trump inaction leaves world exposed to AI bioweapons (FT)
■ The Blue Wave Has Tech Bros Scrambling for Data Centers in Space (Wired)
■ A rare strike in Taiwan exposes labor unrest beneath the global AI rush (Rest of World)
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