8th April 2022
Good Morning! 

Happy Friyayyyyy!! We made it through another week and we just got to know that next week is a nice long weekend with both Thursday and Friyayy off. We love it when holidays line up perfectly like this. 

Tata finally rolled out its "one app to rule them all", aka its Super App – Tata Neu for the general public. Did you all end up checking it out? 



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- 1.54%

*As of market close

  • Markets: Stocks were down for a third straight day as financial, oil & gas, auto, IT and metal shares were all lower. Everyone's now waiting for the RBI's first policy review of FY23 which is due today.


Feeling The Pinch

A recent article in BloombergQuint has pointed out some worrying trends seen in Indian consumer spending.

Inflation seems to be rearing its ugly head, and companies are facing a double whammy - higher input prices and also now lower consumer spending.

As per retail intelligence platform Bizom, the sales value of soaps and staples fell 5% in March, vs February 2022. Commodities like pulses and oils saw sales fall by over 30%, and personal care, confectionery and homecare categories also saw a decline.

Overall, average 'Kirana' store sales were down 10%. And this data seems to be quite reliable since Bizom tracks 75 lakh stores across India.

Rural areas are seeing a sharper slowdown, and the impact of the Russia-Ukraine war is a big factor.

The likes of HUL, Parle and Dabur increased product prices more than once in the March quarter and the total impact is between 5%-30%.

A senior official at Parle Products has said that input cost-led price increases across products have led to “downtrading”, which basically means customers are switching to cheaper alternatives. Prices of raw materials like wheat and milk are up 10-15%, packaging costs are up 20-25%, and cooking oil prices are “rising unabated”.

It will be interesting to see what the RBI has to say about all this, considering they have not hiked rats so far, in order to support economic growth. The flipside of that is higher inflation, which is hampering growth. Almost 60% of India's GDP is driven by private consumption, and a slowdown in that makes the situation tricky.


The Robots Are Coming!

The Reserve Bank of India has issued a set of guidelines for India banks to set up digital banking units (DBUs)

In the budgets speech, the FM had mentioned that there will be DBUs set up in 75 districts (to mark 75 years of Independence) this year. So now to start with, all scheduled commercial banks with past digital banking experience are allowed to open such units.

But what exactly is a DBU?

Well its essentially going to be a branch with some minimum digital infra such as interactive teller machines, interactive bankers, service terminals, interactive digital walls, document uploading, self-service card issuance devices, video KYC apparatus, etc.

The rules specify that products offered in a DBU must be on both the asset and liability side of a bank's balance sheet. 

On the bank's liability side, savings account, current account opening, fixed and recurring deposit products, mobile and internet banking, debit card, digital kits for merchants and customers, UPI QR code, Point of sale terminal, etc., has been made mandatory.

And on the bank's asset side onboarding of retail, MSME customers for loans, digital processing of loans, and identified government-sponsored schemes covered under the national portal must be offered at any DBU.

Interesting times ahead, and we're really hoping this reduces the "Office Office" kind of experience many of us have become used to, especially at PSU Banks. 


CRED - The Paanchacorn 
Money gun
Not much from the world of tech today but Livemint got an exclusive where they believe CRED has just raised $200 million at a $6.5 billion valuation.

The valuation could apparently rise to $7 billion.

CRED's app rewards customers for paying their credit card bills on time and gives them access to a whole list of benefits. Not a lot of the population has access to credit cards in India so CRED does have mainly the higher-spending users here in India.

While the question of how do you even make money bro was a meme for the longest time regarding CRED, they've been addressing that as well since last year.

They launched 2 credit products over the past year.

CRED RentPay- which is exactly what it sounds like. You can pay your rent using your credit card. CRED Cash - CRED Cash offers a low-interest instant credit line.

They charge between 12% to 15% interest on these loans.
They also charge partner businesses in their E-commerce store – CRED Store a fee for increased engagement.

We are really intrigued to see what sort of revenue they are doing.
Sadly we didn't get many deets since well it's only Livemint that got an exclusive currently but we hope to cover it in much more detail when the funding does get confirmed
But hey looks like we got another 'Paanchcorn'

On a Lighter Note

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If you are a college student do check out our campus ambassador program. 
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