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5 Ways Generative AI Will Disrupt the Payments Industry in 2025

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Generative AI is one of the most hotly anticipated developments in the fintech landscape in 2025, and its disruptive influence over the payments landscape could be transformative for purchases online and in-store. 

The generative AI in fintech market was valued at $1.13 billion in 2023 and is expected to reach $7.28 billion by 2029, representing a CAGR of 36.3%. 

Fintech leaders have been quick to embrace the artificial intelligence boom, and the potential that generative AI tools bring to the industry can help support future integrations like embedded finance, super apps, the metaverse, peer-to-peer wallets, crypto payments, and BNPL services. 

The rise of generative AI can help fintech firms develop closer relationships with their customers while maintaining a greater level of security. Let’s explore five ways the generative AI boom will become a disruptive force for the payments industry in 2025: 

Hyper-Personalization

The payment landscape is undergoing a transformation from a process to an experience for consumers. Generative AI tools provide a unique opportunity for firms to build an emotional connection with their customers, whether at the point-of-sale (POS) for a customer purchase or achieving financial goals. 

World-renowned platforms like Alipay, YONO, WeChat Pay, and Grab are gaining traction for providing a comprehensive platform to comprehensively match customer expectations. 

As well as payments, these platforms can leverage experiences ranging from shopping to entertainment. They can also use the data generated by customers like their spending history to tailor recommendations at scale. 

This can pave the way for generative AI tools to deliver highly personalized interactions with customers not only in their native language but also using colloquialisms to bond with them on a more personal level, on an around-the-clock basis. 

Brands can also use generative AI to create bespoke rewards and loyalty programs for customers with the help of spending analysis. This can help firms to develop targeted incentives that are more likely to drive more engagement and loyalty. 

Risk Management

Generative AI is also improving risk management throughout the payments industry by identifying possible red flags long before a transaction is made. 

With the help of machine learning (ML), artificial intelligence tools can monitor vast quantities of structured and unstructured data to spot patterns and trends that could be beyond the capabilities of human analysts. This helps banks to make more intelligent decisions to reduce their risk exposure. 

Generative AI can also be used to bring visualization tools to these complex patterns, improving our understanding of the data and its risk assessments.  

In the world of modern payment processing, trends are changing, and the arrival of open banking can provide better risk assessment data than ever before throughout the payments landscape. 

With open banking tools capable of communicating seamlessly with one another, we’re able to use multiple data sources and interpret them using ML before generative AI tools convert these insights into actionable reports and recommendations. 

Fraud Detection

Similarly, because AI has the power to analyze big data and a series of unstructured data sources in a rapid manner, the generative AI boom is perfect for improving payment fraud detection. 

Whenever a card transaction is made, dozens of data points are instantly generated. Artificial intelligence tools can analyze this data in real-time and incorporate ML technology to actively learn from historical instances of fraud to decide to approve, deny, or quarantine the payment. 

As we move towards digital payments, cybercriminals are increasingly looking to take advantage of the vulnerabilities of legacy payment systems. However, advanced generative AI tools are capable of learning to detect suspicious behavior and act upon it. 

Today, platforms like Kount are strong examples of how artificial intelligence can help minimize the risk of fraud, and we can expect the evolution of GenAI to deliver more sophistication to the industry throughout the decade. 

Customer Service

Today, 69% of consumers already prefer to use chatbots for service-related questions, and this makes generative AI an essential tool for adoption throughout the payment processing industry in 2025. 

Generative AI tools like chatbots and artificial intelligence technology like virtual assistants can unite to handle a multitude of different customer queries during the checkout process in a fully autonomous manner. 

With the help of large-language processing (LLP), generative AI chatbots can handle queries in a conversational tone to quickly solve payment-related problems. 

Because of its convenience, we’re also seeing merchants experiment with chatbots to reduce the problems associated with handling outstanding invoices. 

This helps to illustrate the future of embedded finance, where customers can make a payment to a business through its native app or website without the need for using a third-party processing service. 

Dynamic Product Pricing

Another way that generative AI will improve the payments landscape in 2025 is through dynamic product pricing that’s capable of analyzing market dynamics, customer behavior, and live inventory data to create a bespoke pricing structure designed to drive greater sales volumes for brands. 

Dynamic product pricing will empower banks and fintechs to price products based on factors like demand, supply, seasonality, overstocking, and other important metrics. 

Although this strategy could certainly be open for abuse among more exploitative brands, dynamic pricing structures should pave the way for a fairer environment for consumers, where new bargains can be uncovered with each visit, improving foot traffic and access to underselling stock. 

This innovation can also be used among banks, fintech firms, and insurance providers, to provide dynamic pricing for loans, insurance premiums, and investment portfolios based on risk assessments, market conditions, and customer needs. 

Scaling Generative AI in Payments

We’re on the precipice of a generative AI revolution in the world of payment processing. In terms of driving security, safety, personalization, and more power to firms adopting AI solutions, we can see unprecedented levels of efficiency and insight arriving in the industry. 

The scalability of AI solutions will help to improve their integration with legacy systems why improving AI capabilities can boost product sales and the availability of financial services like loans on a more bespoke basis. 

The generative AI boom will gather speed in 2025, and for a payments industry that’s ripe for innovation, we’re set to see use cases accelerate throughout the year. The benefits of embracing this new artificial intelligence ecosystem will be felt by both consumers and institutions alike.

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Kharagpur Data Science Hackathon 2025: Bigger, Bolder, and More Exciting Than Ever!

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KDSH 2025

The Kharagpur Data Analytics Group, a student-driven research society at IIT Kharagpur, proudly presents the 5th edition of the Kharagpur Data Science Hackathon, KDSH 2025 – one of the most sought-after events that have carved its niche as India’s most prestigious data science hackathon. KDAG continues its mission of bringing together data science enthusiasts nationwide under a unified platform, fostering innovation, collaboration, and analytical brilliance.

Over the years, KDSH has grown to become synonymous with excellence in data science. Building a legacy in churning out some of the finest minds in analytics, the hackathon has, time and again, raised the benchmark for technical competitions in India. Last year’s edition was a roaring success, with over 6,000 participants from the nation’s most esteemed institutions, including IITs, IIMs, BITS Pilani, and others. The hackathon was a tough round of problem-solving on real-world problems, very competitively reaching the final rounds. Fifteen outstanding teams made it to the finals, presenting groundbreaking solutions at IIT Kharagpur.

The participants in all aspects were nothing short of extra-creative and innovative in their performances, thus setting a benchmark for KDSH 2024.

KDSH 2025: A Great Leap Forward

Building on the success of its enviable track record, KDSH 2025 is poised to reach unprecedented heights. This year, the hackathon is bigger, better, and more rewarding, with a sharper focus on solving real-world challenges through data analytics, machine learning, and artificial intelligence. Supported by Pathway as the Title Sponsor, the prize pool has been elevated to an impressive ₹2.5 Lakhs, a testament to their dedication to rewarding participants for their creativity and innovation.

The 2025 edition is further strengthened by the support of The Academic Insights and Dazeinfo as Media Partners, Youth Incorporated as the Youth Media Partner, and Stock Edge as the Education Media Partner. These collaborations ensure national visibility and a diverse participant base, making KDSH 2025 a melting pot of ideas, technical expertise, and groundbreaking solutions.

KDSH 2025’s digital presence is already creating waves, with over 6.8 lakh impressions on Unstop – a remarkable milestone that reflects the excitement and engagement surrounding this event. This year, they are geared up to surpass these numbers and make an even bigger impact.

The hackathon presents participants with rigorous, real-world challenges that demand innovative thinking, analytical aptitude, and creative problem-solving. Whether you’re a student eager to prove your mettle, a professional honing your skills, or a data science enthusiast seeking a platform to shine, KDSH 2025 offers an unparalleled opportunity to gain recognition, sharpen your expertise, and connect with the best minds in the business.

What Awaits Participants?

  • Whopping ₹2.5 Lakh Prize Pool: Compete for one of the highest prize pools in the Indian hackathon circuit and get the recognition you deserve.
  • National Recognition: Showcase analytical acumen and problem-solving skills to industry leaders, academicians, and data science experts.
  • Exclusive Rewards and Goodies: Exclusive merchandise, vouchers, and goodies to keep the excitement alive in this game of skill and competition.
  • Networking: Connect with sponsors, academic leadership, and participants from the top-rated institutions across the country.
  • Real-World Challenges: Practice solving problems that reflect real industry scenarios to help you hone your practical skills.
  • Experience the Iconic IIT Kharagpur Campus: Qualify for the finals and earn the chance to visit the renowned IIT Kharagpur campus during Kshitij, one of India’s largest techno-management fests. Experience the legacy, culture, and vibrancy of this historic institution!
  • Participate in Kshitij Events: As a finalist, you’ll also have the chance to take part in other thrilling events, workshops and competitions hosted during Kshitij, making your experience even more enriching and memorable.

Why Participate?

KDSH 2025 is much more than a hackathon; it is a place where talent meets opportunity. The participants will gain invaluable exposure, compete with the brightest minds, and be part of an event that consistently raises the bar for innovation in data science. And, of course, the association of the hackathon with IIT Kharagpur lends unmatched prestige, making KDSH the go-to platform for budding data scientists and professionals alike to prove their mettle.

Be it perfecting technical skills, finding solutions to sticky problems, or networking with industrial experts and other enthusiasts, KDSH 2025 has it all. This is a year when the stakes have never been higher but with greater rewards than ever, and hence, it will be an event not to be missed by any analytics and data-driven innovation enthusiast.

The Countdown Begins

Registrations for KDSH 2025 are now open! This is your opportunity to be part of India’s largest and most prestigious data science hackathon. Step into the limelight, take on challenging challenges and showcase your analytical brilliance.

Click the link to register and secure a place in this phenomenal event as they push the frontiers of data science and innovation. Join us at KDSH 2025 in rewriting the future of data analytics and innovation – where data meets destiny. Are you ready to make history?

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From Convenience to Questionable: 10-Minute Food Delivery Dilemma in India

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10 minute food delivery

When someone asks if you want food delivered in 10 minutes, the first thing that crosses your mind is: how long ago was the food actually prepared? This isn’t just idle curiosity; it’s a pressing question as India’s quick commerce platforms dive headfirst into the 10-minute food delivery space.

In October 2024, Swiggy surprised everyone by announcing the launch of its Bolt feature, offering food delivery in just 10 minutes. Within a month, the service expanded to over 400 cities and towns nationwide, marking an aggressive push into the quick food delivery market. It is worth noting that the curated menu strategically includes items like burgers, snacks, baked goods, beverages, sweets, ice creams, breakfast dishes, and biryani. These items require minimum preparation time or are ready to pack, ensuring speed without compromising quality.

Swiggy’s move is part of a broader trend, with players like Zomato and Zepto having piloted similar initiatives in the past, albeit failed.

Zomato introduced its quick-delivery vertical, Zomato Instant, in 2022, piloting 10-minute food deliveries in Gurugram. Similarly, Zepto briefly tested Zepto Cafe in Mumbai the same year with plans to expand to Delhi NCR, Bengaluru, and Hyderabad by mid-2024. Despite initial buzz, both efforts failed to scale significantly, largely due to logistical and cost challenges.

Meanwhile, a newer entrant, Swish, joined the fray, currently offering 10-minute food deliveries in Bengaluru.

As Swiggy strives to turn the dream of 10-minute food delivery into reality, much like it did in the grocery delivery segment, and Swish has set eyes on a sizeable chunk of the growing Q-commerce market in India, it raises a few important questions:

  1. Is there a real demand for food delivered this quickly?
  2. What are the operational challenges? 
  3. And, most importantly, can they sustain the model without compromising safety, quality, or profitability?

After all, as past efforts by larger players have shown, speed alone doesn’t guarantee success.

Rise of Quick Commerce: Meeting the Growing Demand for Convenience!

When Swiggy’s Instamart (launched in August 2020), Zepto (April 2021), Zomato’s Blinkit (December 2021), and BigBasket’s BB Now (December 2021) introduced grocery deliveries within 20 minutes, industry analysts were quick to criticise them. Many argued these platforms wouldn’t survive once the COVID-19 pandemic ended, citing Indians’ deep-rooted attachment to offline shopping and the assured freshness of veggies and other groceries from local Kirana stores.

 

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TRAI’s OTP Delay Debate: A Double-Edged for Indian Digital Ecosystem and Consumers?

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In a digital-first economy like India, One-Time Passwords (OTPs) are critical in securing transactions and online activities. With over 1.6 billion OTPs generated daily, they underpin everything from banking transactions to e-commerce checkouts. However, the growing menace of OTP-related cybercrimes and spam messages has prompted the Telecom Regulatory Authority of India (TRAI) to propose new anti-spam guidelines by mandating every operator and messaging service to trace the origin of each message, which has seeded the fear of delay in OTP delivery.

The new traceability guidelines were earlier supposed to come into effect on December 01, 2024. However, after some close consideration, TRAI has decided to delay the rollout by another 10 days, which means that consumers may start receiving OTPs with a delay of 5-10 seconds only from December 11, 2024. While TRAI has assured about instant delivery and has refuted the concerns related to delays in OTP messages, experts fear a delay until the new system stabilises.

The proposed traceability system may cause a delay—possibly 5-10 seconds—in delivering OTPs, especially during peak hours. This interval would allow telecom operators to cross-check the origin and legitimacy of the request, reducing the chances of spam messages reaching users. Industries relying heavily on OTPs, such as banking, e-commerce, and social media platforms, must adapt their processes accordingly.

While the intention is clear—to enhance security and reduce fraud—this move raises questions about its broader impact on consumers and businesses alike.

But before we dig deep into the impact, inconvenience, and pros and cons of the delay in OTP, let’s first understand the causes that have forced TRAI to revisit the instant OTP mechanism.

Anti-Spam Measures: Need of the Hour

India has one of the highest rates of digital banking, with 55% of transactions needing OTP verification. The e-commerce revolution and exploded adoption of mobile banking have led to unprecedented dependency on OTP. While 95% of online transactions and logins are verified by OTPs in India, 80% of e-commerce transactions are validated via OTPs. The exponential rise in digital transactions has led to a surge in sophisticated cybercrime.

 

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Monet Poised to Redefine Customer Retention And Engagement

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Monet report launch Dazeinfo

In today’s highly competitive Direct-to-Consumer (D2C) landscape, retaining customers and keeping them engaged has become an uphill task for brands in India. The rapidly shrinking attention span time has made the task even more difficult, with studies indicating they now average just eight seconds – shorter than that of a goldfish. In this environment, the ability to capture and sustain consumer interest has become a strategic priority for D2C brands in India.

Sensing it as a need of the hour, Monet, a blockchain and artificial intelligence (AI)-powered loyalty product, has emerged as a promising solution for hundreds of thousands of brands which are committed to delivering nothing but the very best to their customers.

Launched on November 13, 2024, Monet is committed to providing unprecedented experience and benefits to millions of customers of thousands of active brands in the ecosystem. Monet’s interoperable feature transforms the loyalty landscape by breaking down silos between brands.

Imagine earning points on an apparel purchase and redeeming them for buying groceries or streaming service subscriptions! This cross-brand ecosystem fosters deeper engagement, as consumers are more likely to participate in programs that offer flexibility and real-world value. For brands, it provides richer data on consumer behaviour and preferences, enabling personalized marketing strategies and better retention.

“Monet is fundamentally re-imagining data and loyalty monetization for the future, leveraging a robust tech stack, and creating an ecosystem where loyalty isn’t just transactional but transformational. We are aiming to get to 700-1000 brands across segments over the next 6 months,” says Abhay Mishra, Co-founder & CBO of Monet.

Monet + Dazeinfo = The Secret Sauce Behind Customer Retention

The other major attraction of the event was the launch of an industry-first report titled “Changing Landscape of Interoperable Loyalty Programs in India”. Monet and Dazeinfo, India’s leading growth media and research firm, came together to analyze the fast-changing landscape of loyalty programs in the country, and highlight a few major actionable insights essential to drive customer retention.

Sanjeev Gupta, CEO of Karnataka Digital Economy Mission, and Pankaj Rai, Group Chief Data Analytics Officer at Aditya Birla Group, unveiled the report.

One of the key findings of the report is about the flourishing loyalty market in India, which poses enormous opportunities for brands as well as merchants. The report highlights that the Indian loyalty programs market is projected to grow from $5.37 billion in 2024 to $8.02 billion by 2028, reflecting a robust CAGR of 10.5%.

“As Interoperable loyalty programs gain traction in India, businesses are seeing firsthand the advantages of offering rewards that resonate with customers. It’s not just about points or discounts—it’s about creating experiences that keep customers coming back,” says Sanjeev Gupta.

You can download the complete report from Monet, or Dazeinfo.

Why Monet

With new brands emerging almost daily, consumers are bombarded with choices. Traditional loyalty programs, confined to single brands, often struggle to create lasting impressions. Customers are wary of juggling multiple loyalty cards and apps, leading to reduced participation and engagement. Interoperable loyalty programs, like Monet, offer a solution by allowing consumers to earn and redeem rewards across a network of brands, enhancing convenience and perceived value.

The panel discussions with industry heavyweights from Flipkart, Diageo, Razorpay, NVIDIA, Aditya Birla, and Wix at the event also discussed the immense need for such platforms.

“Interoperable rewards will be one of the largest unlocks for retail consumption and loyalty program expansion. Excited to see how Monet drives this ecosystem for India,” says Vishnu Acharya, Head of Strategy and Corporate Development, Razorpay.

Blockchain, the underlying technology of Monet, emerges as the ideal foundation for interoperable loyalty programs. Its decentralized nature ensures transparency, security, and efficiency – key factors in building consumer trust. Each transaction is recorded on a tamper-proof ledger, reducing the risk of fraud and ensuring accurate point tracking. Smart contracts can automate reward distribution and redemption, streamlining operations for both brands and customers.

Moreover, blockchain facilitates the creation of tokenized rewards, which can be traded or transferred between users. This flexibility not only enhances customer engagement but also creates opportunities for secondary markets, where points can hold tangible value beyond the brand ecosystem.

As India’s D2C market continues to flourish, interoperable loyalty programs powered by blockchain and artificial intelligence could redefine consumer relationships. Brands that adopt this approach stand to gain a competitive edge by offering seamless, value-driven experiences that resonate with today’s fast-paced consumers. In a world where attention is fleeting, interoperability isn’t just a strategy; it’s the secret sauce to long-term loyalty.

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Navigating Payment Security: 6 Must-Know Cyber Threats for Businesses in 2024

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cybercrime

As technology advances, businesses have access to more opportunities to scale and streamline their operations. However, it isn’t all upside, and as we move forward as a civilisation, we expose ourselves to greater risks and threats.

The cybersecurity landscape is ever-evolving due to the consistent emergence of all-new cyber threats. Whether you’re making or receiving payments, there are many cyber threats out there that could threaten your financial position.

As a result the global cybersecurity market size is ballooning with each passing year, posing a bigger threat and challenges to businesses worldwide. The market is estimated to grow from $223.7 billion in 2023 to $248.65 billion in 2024, clocking 11.2% CAGR (Compound Annual Growth Rate).

That’s why we have decided to shed light on the 6 of the most common cyber threats in 2024 and what you can do to bolster POS security in your business.

1. Phishing 

Phishing is one of the most common cybersecurity threats but also, unfortunately, one of the most successful. Around 3.4 billion spam emails are sent each day, of which some could land in the inboxes of your employees.

(Source: AAG)

The way this cyber threat works is by manipulating the trust you place in a legitimate business or organisation to steal important login credentials or payment details from your business. By posing as a business that you likely know and trust, this cyber threat can catch out even the most savvy of us.

More often than not, phishing attempts will be emails containing links that will direct you to a website that can extract your confidential company data.

How to prevent it:

The best way to mitigate against phishing attacks on your business is to educate your workforce. Since phishing only needs to work on one person in your organisation to gain access to confidential data and potentially steal funds from your business, it’s important that all of your employees are on the same page.

On top of employee education, consider introducing two-factor authentication (2FA) so your employees have to go through an additional step to access your POS systems.

2. Ransomware

Ransomware is another common cyber threat that, once on your company computers, can restrict your access to important POS data by encrypting it. Typically, the hackers will then demand a ‘ransom’ to return access to your data.

In 2022, ransomware accounted for 20% of all cyber crimes, making it a threat worth taking seriously.

As a form of malware, you can only fall victim to ransomware by downloading it. You can download it without even realising it if you inadvertently visit a nefarious website or open an attachment from a phishing email.

How to prevent it:

The best way to protect your POS systems from ransomware attacks is to make sure that you regularly back up your POS data so that it’s stored securely and protected against the latest ransomware.

You can also use endpoint protection systems, which are designed to identify and block ransomware before it has a chance to get into your computer systems.

3. POS Malware

Another form of malware, POS malware, is designed specifically to target payment and POS systems. 

The main objective of this type of malware is to steal sensitive data such as cardholder information, CVVs, and other important customer payment information. Once they’ve accomplished this objective, the hackers are free to use this data themselves or sell it on the dark web.

How to prevent it:

Like ransomware, the best way to protect your POS systems against POS malware is to keep your networks up to date. In this case, your Wi-Fi networks should be encrypted and secure to ward off the threat of this malware.

You can also install anti-malware programs which can detect POS malware and stop it in its tracks before it can have an impact on your business.

4. Man-in-the-Middle (MitM) Attacks

A Man-in-the-Middle attack occurs when cybercriminals attempt to intercept a communication between a customer and the payment system.

If successful, the hacker will then have access to the customer’s payment information.

How to prevent it:

To prevent this type of cyber threat, it’s best to make sure that your POS systems and payment processes are encrypted using secure protocols such as HTTPS. 

You should also avoid using insecure or unstable Wi-Fi networks when processing customer payments, as this can make you more vulnerable to MitM attacks.

5. Data Breaches

A data breach is the result of an attempt to gain unauthorised access to your payment system. Breaches on a large scale can have huge repercussions on your business’s reputation and customer trust.

In 2023, around 50% of all businesses and 32% of charities reported having experienced some type of cyber security breach or attack.

How to prevent it:

Many data breaches come from within, so to legislate against this, make sure that only authorised personnel can access your payment systems and use role-based access controls (RBAC) to reduce the risk.

You can also use employee monitoring software to manage how and when your employees access your payment system.

6. Card Skimming

Card skimming requires the use of devices that can steal card information as payment is taking place. Sometimes, these devices will be placed on POS terminals, and other times, they can be embedded in malware to capture customer data without their knowledge.

From 2022 to 2023, the total number of compromised debit cards increased by 96%, and card skimming was one of the main reasons for this.

(Source: Fico)

How to prevent it:

To prevent card skimming, make sure you regularly check up on your POS terminals to identify any signs of tampering. 

Promoting contactless payments is another good way to reduce the risk of card skimming.

Safeguarding Against Cyber Threats in 2024

If you follow cybersecurity best practices, you’ll likely have robust defences against any form of cyber threats in your business.

Encrypt data where possible, educate your employees on the potential cyber threats they might encounter, and control who can access your payment systems so you can minimise the risk of data breaches.

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India’s Festive Shopping Spree Shatters Records: E-commerce Platforms Rake in ₹1 Lakh Crore in GMV

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India Festive Season Sale 2024

The festive season in India is more than just lights and sweets; it’s the best time of the year when people finally make those long-awaited purchases, drawn by jaw-dropping discounts and other offers. This year, e-commerce platforms such as Flipkart and Amazon set new records, achieving an astounding ₹1 lakh crore ($11.9 billion) in Gross Merchandise Value (GMV) of goods sold during their month-long festive sales. That’s an impressive 23.5% YoY surge in GMV, driven primarily by the success of flagship events like Flipkart’s Big Billion Days and Amazon’s Great Indian Festival.

It’s worth noting that approximately 55% of the total GMV was generated within the first week of the festive season sale, amounting to Rs 55,000 crore ($6.5 billion).

Interestingly, a large chunk of this year’s shopping boom came from non-metro cities in India. Amazon reported that over 85% of its customers came from these areas, highlighting the growing digital penetration and increasing purchasing power beyond major urban centres.

“There was increased demand from tier II-III and beyond, reflected across categories including smartphones, television sets, appliances and fashion,” Satish Meena, adviser at Datum Intelligence, told ET.

Via: Economic Times

Smartphones Dominate Yet Again

The demand for smartphones in India shows no signs of slowing down anytime soon. Consumers are always on the lookout for great deals to upgrade their devices, and this year has been no exception.

As new smartphones from Apple, Samsung, Vivo, etc., packed with 5G, foldable designs, and AI-powered features, these premium devices are leading the charge in the country’s shift toward “premiumization.”

Smartphones emerged as the hottest-selling category, accounting for nearly 65% of all online sales during the recent sales season. Both Flipkart and Amazon reported that smartphones topped their sales charts, reflecting India’s growing appetite for advanced, premium devices that keep pace with the latest innovations.

Flipkart saw an impressive 17% YoY surge in demand for premium devices, while Amazon achieved its highest YoY growth in sales for models priced above Rs 30,000. Notably, over 70% of these premium smartphone sales on Amazon came from Tier II cities and beyond, reflecting the increasing purchasing power in smaller cities.

The demand for premium items extended well beyond smartphones. Amazon reported a 30% increase in premium large appliance sales and an extraordinary 400% spike in premium fashion and beauty categories. This growth was driven by watches, fragrances, K-beauty products, jewellery, handbags, sportswear, luggage, and kids’ wear.

D2C Brands Shine with Record-Breaking Sales

Amazon reported that direct-to-consumer (D2C) brands experienced remarkable growth during the festive season. Demand for categories such as beauty, footwear, apparel, and luggage increased by an eye-popping 700% YoY.

In particular, Wakefit recorded over 50% growth in revenue, while personal care brand Pilgrim saw 40-50% growth on marketplaces and a 50% increase on its own channel.

Meesho’s ‘Mega Blockbuster Sale,’ held from October 6 to 15, 2023, witnessed 120 crore customer visits. Categories such as Home & Kitchen, Fashion, and Beauty & Personal Care saw high demand, with over 72 orders placed per second. Remarkably, 80% of the orders came from tier II and III cities, such as Amravati, Aurangabad, Dehradun, Nellore, Solapur, and Warangal.

Meanwhile, quick commerce platforms such as Blinkit, Zepto, and Swiggy Instamart also exceeded expectations this festive season, generating approximately $1.1 to $1.2 billion in GMV. Although these platforms often face criticism for their business models, it’s clear that the convenience of quick commerce is winning over a growing base of consumers who value speed and accessibility.

In a nutshell, the 2024 festive season sale on Amazon, Flipkart, and other platforms was a tremendous success, with record-breaking sales and revenue. This achievement reflects India’s evolving consumer shopping behaviour and rising purchasing power, particularly among consumers in non-metro areas. And this shopping frenzy isn’t over yet! December brings another opportunity with the “End of Season Sale” for the New Year, offering consumers a chance to indulge in more shopping with huge discounts and attractive offers.

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Happy Birthday Alan Mamedi: The Man Who Turned Spam Calls Frustration into a Mobile Security Empire

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alan mamedi

With over 5.6 billion unique mobile subscribers globally, the surge in spam calls and messages has reached unprecedented levels. As technology advances, so do the tactics of cybercriminals, who use sophisticated methods to infiltrate users’ data, accessing personal and financial information to profit in the billions. To address this growing issue, Truecaller, a Swedish company founded by Alan Mamedi, provides a robust solution.

More than just a caller ID app, Truecaller serves as a digital gatekeeper, identifying unknown callers, flagging potential scams, and empowering users to take control of their communications. Through its vast database and innovative approach, Truecaller has transformed how we stay connected, making mobile safety a reality for millions.

The unique idea of an online call directory began as a simple hobby project, but it quickly gained 10,000 users within its first week of inception. Today, Truecaller has 420 million monthly active users worldwide, with nearly 60% coming from India alone.

On the 40th birthday of Alan Mamedi, the co-founder and CEO of Truecaller, we bring a few lesser-known yet interesting facts about him.

Name: Alan Mamedi

Date of Birth: October 30, 1984

Net Worth: Unknown

  • Alan Mamedi, a Swedish entrepreneur of Kurdish descent, began his career as a salesman at The Phone House while pursuing his Bachelor of Science at KTH Royal Institute of Technology in 2004. After two years, he ventured into entrepreneurship, launching Bidding.se, a unique bid auction site, in 2006, followed by Möbeljakt.se, Sweden’s largest search engine for home interiors, in 2007. Within just three months, Bidding.se was acquired, marking Mamedi’s first major success. In 2008, he joined Birdstep Technology as Chief Architect, further honing his skills in tech and innovation.
  • Frustrated by a barrage of spam calls, Alan Mamedi and his friend from KTH Royal Institute of Technology, Nami Zarringhalam, had a quick brainstorming session that led to the idea of Truecaller. However, they later discovered some of the annoying calls had been from their relatives abroad. This experience sparked the concept of an online phone directory that could include numbers from across the globe, and thus “Truecaller” was born. Driven by their own frustration with fraudulent calls, the co-founders built the app entirely themselves, tackling both the design and coding aspects from scratch.
  • Truecaller’s early days were challenging, as founders Alan Mamedi and Nami Zarringhalam struggled to find investors who believed in their vision for a global phone directory. Many potential investors saw the concept as too ambitious and risky, which left the duo with no choice but to bootstrap their project. Despite these obstacles, Truecaller’s rapid, organic growth eventually drew the interest of investors. Four years after its founding, in 2014, Truecaller secured $8.8 million in funding from Sequoia Capital, marking a significant turning point for the company and fueling its expansion.
  • Today, Truecaller is the world’s largest verified mobile phone community, dedicated to helping smartphone users avoid hoax calls. In 2023 alone, the app identified over 2.4 trillion unknown calls and flagged more than 47 billion spam and fraud calls worldwide, underscoring its impact in enhancing mobile security on a global scale.
  • Unlike his previous venture, Bidding.se, Alan Mamedi has no plans to sell Truecaller. “If I were forced to sell the company, then I would start crying because I love what I do,” he expressed his deep commitment to the platform. Mamedi believes his mission is to build something truly innovative and impactful.
  • In 2015, Alan Mamedi and Nami Zarringhalam were honoured as “Best Startup Founders,” a recognition of their visionary work in establishing Truecaller as a global leader in caller identification and spam prevention. Truecaller was nominated for the “Best Enterprise, SaaS or B2B Startup.”
  • There is a famous 50-word statement that Alan always uses to convince smartphone users to use Truecaller:

“Do you ever experience an unknown number calling you and you wished you knew who it was? Truecaller has an extensive database of public, mobile, and even prepaid numbers. The app also has a built-in spam filter, unwanted call protection, and a new name feature to look up anyone in the world!”

At such a young age, Alan Mamedi has already made a remarkable impact through his innovative contributions. On his birthday today, let’s celebrate his achievements and wish him continued success and groundbreaking advancements in the tech world.

The post is a part of a B’day Series where we celebrate the birthday of renowned personalities from the Tech Industry, very frequently. The series includes Entrepreneurs, C-level Executives, innovators or renewed leaders who moved the industry with his exponential skill set and vision. The intent is to highlight the person’s achievements and touch base on the little-known but interesting part of his life. You can see the list of all earlier celebrated tech personalities, including Mark Zuckerberg, Marissa Mayor, Sean Parker, Andy Rubin, Julian AssangeSir Richard Branson, and Sergey Brin, by following this link or subscribing to your daily newsletter.

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The New YouTube Shopping Feature Will Allow Content Creators Mint More Dollars Than Ever Before

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Shopping on YouTube Dazeinfo article

Imagine watching your favourite content creator on YouTube showcasing a stunning dress, a must-have gadget, or a life-changing beauty product, and with just one click, it’s on its way to your doorstep. This seamless shopping experience is finally becoming a reality as YouTube expands its digital shopping space with the launch of the YouTube Shopping affiliate programme in India.

YouTube, owned by Google, has partnered with India’s two largest e-commerce platforms, Flipkart and Myntra, enabling creators to transform videos into interactive shopping experiences.

Through YouTube’s shopping affiliate program, eligible content creators can tag products in their videos and earn commissions when viewers purchase through affiliated e-commerce platforms. This is a game-changer for India’s booming creator economy, where trusted recommendations and visual appeal often drive purchasing decisions.

In May this year, Google strategically invested $350 million in Flipkart as part of a $1 billion funding round led by Walmart.

Shopping on YouTube: A Game-Changing Move!

YouTube’s decision to launch its shopping affiliate program in India is not a spur-of-the-moment move but a strategic response to the growing popularity of video commerce. India is YouTube’s largest market, with 476 million active users in 2024.

Consumers are increasingly turning to video platforms for product recommendations and inspiration, with over 30 billion hours of shopping-related content watched globally in 2023 alone. India is no exception, and a similar trend is being observed in the country as well.

YouTube’s General Manager, Travis Katz, recognises the immense potential of connecting creators, viewers, and brands through video commerce. He believes that India, with its diverse creator base and high mobile video consumption, is the ideal market for this expansion.

The launch of YouTube’s shopping affiliate program in India is a significant step forward for YouTube’s creator economy, which has already generated over Rs 16,000 crore in revenue and created over 7,50,000 jobs in 2022. The program introduces a new revenue stream for creators to complement their existing monetisation options like ad revenue, YouTube Premium, channel memberships, and fan-driven features.

YouTube’s move opens up new possibilities for fashion influencers, tech reviewers, lifestyle creators, and everyone to show, recommend, and benefit from the products they’re passionate about.

For e-commerce platforms like Flipkart and Myntra, the YouTube Shopping affiliate program offers a valuable marketing tool. By collaborating with popular creators, these platforms can reach wider audiences and increase brand awareness.

One of the most exciting aspects of this YouTube shopping affiliate program is the seamless integration with Flipkart and Myntra platforms, letting viewers browse and buy products without leaving the app or interrupting their video experience. This will make it more likely for consumers to complete the purchase as there is no extra effort, such as leaving the current platform to shop on another platform.

By clicking on a tagged product, viewers access real-time visuals, recommendations, and testimonials, creating a richer and more engaging shopping journey guided by creators they trust most. Therefore, this program isn’t just about offering convenience; it’s about creating a truly immersive, interactive shopping experience. Fascinating, isn’t it?

Shopping on YouTube is also exciting news for India’s over 250 million online shoppers, mostly tech-savvy youngsters. For those in smaller cities where social media influencers have a strong impact, this video shopping model closes the gap between local preferences and access to curated products.

Flipkart and Myntra: Leading the Way in Video Commerce

One might wonder why YouTube India chose Flipkart and Myntra as its partners for this new shopping affiliate program instead of any other online platform. They’re not randomly picked. It is worth noting that Walmart-owned these two companies are no strangers to video commerce.

In recent years, Flipkart and Myntra both have championed video-based shopping initiatives like Myntra Minis, Ultimate Glam Clan, and Flipkart’s Affluence program. This background makes them the perfect fit for YouTube’s affiliate program, which only deepens the connection with India’s online shoppers.

With 98% of Flipkart’s creator network made up of micro and nano influencers, the company’s focus is on reaching audiences in personal and genuine ways.

Ravi Iyer, Flipkart’s Senior Vice President of Corporate Development and Strategic Partnerships, emphasized their goal of making shopping more personalized and engaging, covering key categories like fashion, beauty, personal care, and home decor. Video commerce allows consumers to make informed choices with the help of real product demonstrations, building trust in a way that traditional online shopping simply can’t match.

The launch of the YouTube shopping affiliate program in India is a win-win for all – e-commerce platforms, content creators and consumers. It’s time to say goodbye to traditional shopping. So, are you ready to shop straight from your favourite videos?

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Global Smartphone Shipments Grew 4% YoY in Q3 2024: Samsung Continues to Face Stiff Competition from Chinese OEMs

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Global Smartphone Shipments Q3 2024

The global smartphone market has experienced its fair share of ups and downs over the past two years. After consistent declines in the first three quarters of 2023, the market rebounded in the fourth quarter and has shown steady, albeit modest, growth ever since. The trend continued in Q3 2024 as approximately 316.1 million smartphones shipped globally, with an increase of 4% YoY. On a quarterly basis, the shipment grew an impressive 10.8%, according to the latest data from IDC.

However, in contrast to the trend, Samsung emerged as the only company among the top five that witnessed a decline in smartphone shipments worldwide during the September quarter. The Korean giant has been struggling to attract customers for its smartphones, as the shipments have steadily fallen since the start of 2023 till Q3 2024. Even in Q2, the brand attained only a negligible 0.7% YoY growth in shipments.

Let’s dive deeper into the performance of the top five smartphone players in Q3 2024.

World’s Top 5 Smartphone Brands Q3 2024

  • Samsung remained the global leader in the smartphone market in Q3 2024 despite declining shipments and market share. The company shipped 57.8 million units of smartphones during the third quarter, with a 2.8% YoY decline. Consequently, Samsung’s market share fell from 19.6% in Q3 2023 to 18.3% in Q3 2024. However, on a quarterly basis, the company recorded an appreciable 7.2% growth in shipments.
  • Apple shipped 56 million iPhones in Q3 2024, showing 3.5% YoY and an impressive 23.9% QoQ growth. Despite this performance, the Cupertino giant experienced a slight decline in market share, dropping 0.1 percentage points from 17.8% in Q3 2023 to 17.7% in Q3 2024.
  • Similarly, Xiaomi’s share in the global smartphone market declined 0.1 percentage point to 13.5% despite witnessing 3.3% YoY shipment growth during Q3 2024. The Chinese OEM shipped 42.8 million units worldwide.
  • In Q3 2024, Oppo reclaimed its fourth spot from Vivo, which briefly took it in Q2. During the September quarter, Oppo shipped 28.8 million units of smartphones, achieving a 5.9% YoY growth and capturing a 9.1% market share.
  • It was Vivo that emerged as the biggest attraction of the quarter. It recorded an impressive 22.8% YoY growth in smartphone shipments, totalling 27 million units in Q3 2024. As a result, Vivo’s market share rose from 7.2% to 8.5% in just one year.

Worldwide Smartphone Shipments: What’s Driving the Growth?

Strong performances from Chinese vendors like Vivo, OPPO, Xiaomi, Lenovo, and Huawei primarily drive the yearly growth in worldwide smartphone shipments. In particular, Vivo’s remarkable success can be attributed to aggressive product launches and a strategic focus on affordability.

Even though Samsung witnessed a drop in shipments, the company continues to expand its market share in the premium segment. The introduction of AI features in its high-end devices, such as the Galaxy Z Fold6 and Galaxy Z Flip6, has significantly enhanced performance in this segment, positioning Samsung as a formidable competitor in the premium smartphone market.

In contrast, Apple iPhone shipment growth in Q3 2024 was primarily fueled by strong demand for the older models, particularly the iPhone 15 lineup. This surge in demand came on the heels of the launch of the iPhone 16 lineup, which prompted a price drop for the iPhone 15 models, making it more appealing to consumers worldwide.

The exceptional performance of the iPhone 15 can also be attributed to extensive promotional efforts and heightened marketing activities surrounding Apple Intelligence.

As the holiday season (Oct-Dec) has always been the best quarter for Apple, the company anticipates many loyal iPhone users will upgrade from the iPhone 13, iPhone 12, and prior models to either iPhone 15 or 16 models.

The global smartphone market is undergoing a transformative phase as consumer preferences shift towards devices with advanced AI features. With rising demand for both premium and budget smartphones, it will be interesting to see which brand capitalizes on this trend and emerges as a leader.

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PVR Inox Records ₹191 Crore Loss in H1 FY25: Rise of OTT Platforms a Major Threat!

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PVR INOX revenue net loss Q2 FY25

When your company’s success hinges on the fortunes of the film industry, the ups and downs can be quite pronounced. PVR Inox, India’s largest multiplex chain, recently revealed its financial results for Q2 FY25, the three months ending September 30, 2024. The figures are no less than shocking, showing a considerable decline in performance, sparking concern among investors.

PVR Inox’s revenue from operations declined a notable 18.9% YoY to ₹1,622 crore during the second quarter of fiscal 2025.

What’s even more surprising is that PVR Inox incurred a net loss of ₹12 crore in Q2 FY25, a sharp contrast to the ₹166 crore profit recorded during the same quarter a year ago.

However, it’s not all doom and gloom. On a quarterly basis, PVR Inox’s performance improved, with revenue growing an impressive 36.2% QoQ and net losses declining a whopping 93.3%. Even though these improvements are promising, a massive ₹191 crore net loss recorded in the first half of the ongoing fiscal 2025 remains a major concern that cannot be overlooked.

Let’s examine the factors contributing to PVR Inox’s revenue decline in Q2 FY25.

The Bigger Picture: Box Office Struggles

A whopping 97% of PVR Inox’s revenue comes from the movie exhibition business. However, due to disappointing box office performance, revenue from this segment fell 19.8% YoY in Q2 FY25, to ₹1,579 crore. It’s important to highlight that a significant portion of this revenue is generated from food and beverage (F&B) sales. Therefore, even if a large number of people buy tickets to watch movies at PVR Inox but do not spend on popcorn and drinks, it can severely dent the bottom line.

On a brighter note, PVR Inox’s revenue from movie production and distribution skyrocketed 77% YoY, amounting to ₹108 crore during the same period. This diversification highlights PVR’s strategic efforts to enhance its revenue streams beyond traditional box office earnings.

It is important to note that analysts had already anticipated a 23.2% YoY drop in PVR Inox’s revenue for the September quarter, driven largely by an estimated 19.7% YoY drop in overall box office performance. This dip was expected given that only four movies, Stree 2, The Greatest of All Time (GOAT), Devara (Part 1), and Deadpool & Wolverine, surpassed the ₹100 crore mark at the box office.

The challenge of matching the remarkable box office benchmark set in Q2 FY24 – which saw an unprecedented surge in audiences returning to cinema halls following the long-awaited easing of COVID-19 restrictions – further compounded the situation. The enthusiastic return of moviegoers last year created high expectations for subsequent quarters, making the current performance all the more striking.

Besides, the rise of OTT platforms has significantly influenced consumer viewing habits, contributing to declining revenues for both PVR and other multiplex chains.

Many people in India now prefer to wait for films to debut on streaming services like Netflix and Amazon Prime, choosing to visit cinema halls only when a movie justifies the ticket price, which can range from ₹230 to ₹750 or even more, depending on the type of film, whether it’s in 2D or 3D, and overall ticket demand.

The absence of movies led by Bollywood’s biggest stars – Shahrukh Khan, Salman Khan, Amir Khan, and Ranbir Kapoor – during the quarter was another reason for the below-par Box office collection. These four actors enjoy the most loyal and massive fan following, which keeps the ticket windows flooded.

Strategic Initiatives

Despite PVR Inox’s 19% YoY decline in revenue during the September quarter of fiscal 2025, the situation isn’t as dire as it may seem. The company’s strategic decision to re-release classic films like Tumbbad, Laila Majnu, Rehnaa Hai Terre Dil Mein, and Veer Zaara during quieter periods proved to be a successful move.

Interestingly, these re-releases of Hindi movies by PVR Inox accounted for approximately 6% of the September quarter’s admissions, indicating a growing demand for nostalgic content among moviegoers.

PVR Inox witnessed a massive turnout on National Cinema Day, celebrated on September 20, when over 1 million guests visited its theatres. This event, held in collaboration with 11 multiplex chains across India, highlighted the enduring love that Indians have for the big-screen experience.

Despite the challenges, PVR Inox remains committed to improving its financial performance. The company has reduced its net debt by ₹1,409 million in the first half of FY25, indicating its efforts to strengthen its financial position. As the film industry continues to evolve, PVR Inox must adapt its strategies to navigate the changing landscape and ensure long-term sustainability.

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AI App Downloads in India Highest But Revenue Disappoints: Rise of Companion Apps is Concerning

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AI app downloads 2024

The increasing number of AI app downloads in India has caught the attention of companies like NVidia and Microsoft, leaving no stone unturned to cement their domination in this space.

The year 2024 has been witnessing a digital revolution as Artificial Intelligence (AI) apps have taken the world by storm. Developers are leaving no stone unturned to integrate advanced AI features into their apps, particularly targeting tech-savvy people worldwide. Interestingly, India, once again, emerged as the frontrunner in new technology adoption, leading the charge in AI app downloads.

According to the latest report by Sensor Tower, the number of AI app downloads exceeded 2.2 billion worldwide between January and August 2024. This figure is projected to surpass 3.3 billion by the end of the year, with an impressive 26% YoY growth. The financial side is just as remarkable, with in-app purchase (IAP) revenue from AI apps topped $2 billion in the first eight months of 2024. This revenue is projected to climb to $3.3 billion by December, with a strong 51% YoY growth.

Given the global excitement surrounding artificial intelligence and its potential benefits, the jaw-dropping figures for AI app downloads and revenue are not really surprising. The launch of ChatGPT by OpenAI has also ignited a wave of AI app development as companies strive to capitalise on the growing interest among tech-savvy individuals. And guess which country has emerged as the biggest consumer of AI-powered content and tools? It’s India!

India’s Dominance in AI App Downloads

India has become the largest market for AI app downloads, accounting for a significant 21% of the global total in 2024. This translates to an astounding 462 million downloads, proving the nation’s enthusiasm for AI-driven solutions. Following closely behind are Latin America with 20%, Europe with 15%, and Southeast Asia with 14% of total downloads, showing the global reach and appeal of AI apps.

However, it’s important to highlight that despite India’s remarkable achievement in download numbers, it has not ranked among the top six revenue-generating countries for AI apps in 2024, so far. This paradox highlights an essential aspect of the Indian market: while the population is large and enthusiastic about technology, it is also notably extremely price-sensitive. Indias often seek free or low-cost solutions, limiting the revenue potential of AI applications in this region.

In stark contrast, North America, which accounted for only 11% of downloads, has emerged as the top revenue generator for AI apps globally during the first eight months of 2024. The region accounted for a whopping 47% of the global AI app revenue, amounting to $940 million. This financial success is largely attributed to a combination of higher spending power and a robust consumer willingness to invest in premium apps.

Europe (21%), Latin America (8%), and China (6%) followed North America in revenue contributions between January and August 2024.

World’s Most Downloaded AI Apps 2024

The world’s five most downloaded AI apps in 2024 are Chatgpt, Remini, Photoroom AI photo editor, Google Gemini and Doubao (ByteDance’s AI smart assistant). What’s noteworthy is that among the top 30 most downloaded AI apps globally, the majority are either chatbots or photo/video editors. This trend indicates a growing interest among users, particularly those under 50, in tools that enhance communication and creativity.

AI Chatbots Take Center Stage

AI chatbot apps, in particular, have experienced unprecedented growth over the past year. Global downloads surged over 14x YoY to nearly 600 million in 2023 and exceeded 630 million in just the first eight months of 2024.

The revenue generated by AI chatbot apps has also skyrocketed, increasing nearly 10x YoY in 2023 to $380 million. So far, in 2024, the AI chatbot IAP revenue has reached $580 million, largely driven by the popularity of ChatGPT, which continues to dominate the market.

Speaking of dominance, ChatGPT’s monthly active users (MAU) have steadily risen, reaching over 190 million in August 2024, placing it ahead of all other AI apps globally. Notably, India ranks as the third market for ChatGPT by MAUs, representing 13.4% of its global user base. The top two markets – Europe and Latin America – accounted for 24.8% and 19.7% of global active users, respectively. This highlights not only the app’s widespread appeal but also the competitive landscape in which it operates.

From January to August 2024, ChatGPT generated $230 million in revenue, accounting for an impressive 39.7% of the total revenue in the AI chatbot market.

Interestingly, the United States, despite having only 12.7% of ChatGPT’s MAUs, emerged as its leading revenue generator, contributing a significant 42.4% to its global revenue so far this year.

Meanwhile, European markets, including Germany, the UK, and France, collectively accounted for 29.7% of ChatGPT’s total revenue in the first eight months of 2024. Japan and South Korea followed with 4.6% and 3.4% shares, respectively. India isn’t among the top five revenue-generating countries for ChatGPT, even though the country has a large user base for this AI chatbot.

To better understand the demographics of ChatGPT’s user base in the United States, we see that the 25-34 age group leads in usage, commanding a substantial 39% share, followed by 18-24-year-olds at 25%. Overall, a remarkable 64% of ChatGPT’s user base is under the age of 35. Although this demographic data is specific to U.S. ChatGPT users, a similar trend emerges globally, as most tech professionals using chatbot apps tend to be under the age of 40.

While it’s true that chatbot apps like ChatGPT are predominantly used by tech professionals, this raises an interesting question: what about the other segments of society? Specifically, those in the media and entertainment industries, or the many college students, especially females – are they also leveraging AI applications to enhance their creative processes or streamline their work? The answer is a resounding yes.

AI Art Generators: A New Creative Frontier

The popularity and usage of AI image and video apps are soaring like never before. AI Art Generators apps have emerged as the top-grossing subgenre within the AI app market, revolutionizing the way users create and share visual content. Between January and August 2024, these innovative apps accounted for a whopping 53% of the total AI app market revenue, amounting to nearly $1.1 billion.

AI Art Generators Apps like Remini and clay AI filters are particularly gaining traction among youngsters, generating millions in revenue. These apps are also strongly favoured by females eager to enhance the quality of their pictures and videos before sharing them on social media platforms like Instagram and TikTok.

India, boasting the highest number of social media users globally, accounted for 36% of the total downloads of AI Art Generator apps, while the US accounted for 43% of the total IAP revenue during the first eight months of 2024.

The Rise of Companion AI Apps: A New Kind of Relationship

Even though AI chatbots and photo/video editing apps have been dominating the AI app market, another type of app is capturing the public’s interest – companion AI apps. These apps offer personalized companionship and emotional support, catering to the growing desire for human-like interactions.

Leading the charge is Character AI, which reached a historic high of 22 million MAU in August 2024, with nearly 19 million downloads recorded so far this year.

Interestingly, the top three revenue-generating companion AI apps in 2024 are Replika, Character AI, and Talkie AI. Between January and August 2024, Replika generated over $9 million in IAP revenue, bringing its total global earnings to nearly $90 million.

What’s particularly fascinating about companion AI apps is their high user engagement. Character AI users, for example, average 25 sessions per day, with each session lasting nearly 4 minutes. This translates to over 1.5 hours of daily usage, significantly surpassing the engagement levels of ChatGPT users. Other companion AI apps, such as Talkie AI, Linky AI, and HiWaifu, also boast impressive daily usage times of around or exceeding one hour.

Does this mean humans are feeling lonely and are turning to AI apps for companionship? It’s a thought-provoking question.

What’s most surprising and concerning is that these companion AI apps are especially popular among younger users, with those aged 18-35 accounting for over 70% of the user base in the United States.

Character AI, in particular, has a strong following among 18-24-year-olds, with 66% of its users falling within this age group.

This trend raises important discussions about social dynamics and the nature of human connections in an increasingly digital world. As people seek companionship in AI, it highlights a potential shift in how relationships are formed and maintained, prompting us to consider what this means for our social interactions and emotional well-being.

In conclusion, the global AI app market is experiencing remarkable growth, driven by the increasing popularity of AI chatbots, photo/video editors, and companion AI apps. Predominantly embraced by tech-savvy young people worldwide, these innovations are reshaping how we interact with technology.

As AI technology continues to advance, we can expect to see even more innovative and impactful AI apps shaping our digital future. However, it is also important to acknowledge the potential downsides of these advancements, as they may contribute to feelings of loneliness and disconnection among individuals.

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Empowering Users Through Design: The Art of User-Centric AI Solutions

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AI has been widely recognized for its potential, especially in improving customer relationships. According to a recent survey, 64% of business owners believe AI-powered solutions can strengthen these interactions. 

However, achieving this requires a solid understanding of how to blend user-focused design with AI’s capabilities.

What is User-Centric AI?

At its core, user-centric AI design focuses on developing products that truly understand and address user needs. This means creating AI systems that enhance, rather than complicate, the user experience. According to Elsewhen, harnessing the power of generative AI to foster user-centricity involves seamlessly combining market insights with practical, real-world applications. This approach ensures that digital products are not just innovative but evolve organically, adapting to genuine user behaviour and addressing real needs as they emerge.

Why Does User-Centricity Matter in AI?

A customer-centric organization makes every business decision with the customer’s best interests in mind, while also balancing financial goals and employee needs. 

These organizations have a deep understanding of their customers, gathering and analysing data from every stage of the customer journey—ranging from purchase behaviour and interaction history to demographic insights. 

To deepen their understanding, many customer-centric companies now leverage AI to deploy sentiment analysis and predictive analytics to extract more valuable insights and anticipate customer needs.

But what makes AI design different from traditional software development? 

Unlike standard applications, AI systems:

• Learn from user behaviour: AI continuously adapts based on user inputs and interactions.

• Evolve over time: The system refines itself, but this can sometimes lead to unexpected outcomes.

• Make mistakes: AI isn’t foolproof, and errors can arise from biased data or incorrect learning.

Designing AI for User Needs: The Unique Challenges

Designing user-friendly AI isn’t just about creating sleek interfaces. There are specific challenges that designers must navigate, as highlighted by ScienceDirect and CMSWire:

1. Data Quality and Bias

AI is only as good as the data it learns from. If the data is biased or incomplete, the AI’s outputs will reflect those flaws. A staggering 76% of consumers are cautious about the potential for AI systems, like chatbots, to provide incorrect or misleading information.

2. Ethical Considerations

AI systems can unintentionally perpetuate biases from the datasets they are trained on. This can result in unintended discrimination or exclusion. Ethical AI design is therefore crucial, ensuring that AI-powered tools respect user diversity and privacy, a point emphasized in studies published by ScienceDirect.

3. Privacy and Data Handling

Handling user data responsibly is not only a legal obligation but also a key factor in building trust. Users expect transparency regarding how their data is collected, stored, and used. As more regulations, like GDPR, come into play, designers must ensure that their AI systems are only collecting the data necessary to function effectively.

Principles of Effective User-Centric AI Design

So, how do we create AI systems that are not only powerful but also centred around the user? 

Here are some key considerations:

1. Usability

The primary goal of user-centric AI is to simplify tasks and improve the user experience. The interface should clearly communicate what the AI can and cannot do, making it easy for users to interact with the system without needing deep technical knowledge. As UX Collective points out, designers should focus on making AI tools intuitive and accessible, so even users with minimal technical expertise can use them effectively.

2. Accessibility

Accessibility is a crucial part of AI design. An AI system should cater to a broad spectrum of users, including those with disabilities. AI offers a unique opportunity to enhance accessibility, such as through voice-activated commands or personalized interfaces. These capabilities, as Capgemini highlights, allow AI tools to be used by a wider range of people, making technology more inclusive.

3. Control and Transparency

A well-designed AI system should give users control over the interaction. Users need to feel that they are in charge and can override or adjust AI decisions when necessary. Transparency is also key: users should understand how the AI is making decisions, and there should be clear explanations for the system’s actions. This builds trust, as noted by the Institute of Product Leadership.

The Path to User-Centric AI Design

The effectiveness of AI lies in its ability to simplify and enhance user interactions while addressing their specific needs. Usability plays a vital role, ensuring that even users with minimal technical expertise can easily interact with AI systems. By making interfaces intuitive and user-friendly, AI can transform complex tasks into seamless experiences that improve overall user satisfaction.

Control and transparency are key to building trust in AI. Users need to feel empowered by the technology, knowing they can override decisions and fully understand how the AI operates. Providing clear explanations for AI actions fosters a sense of trust and ensures that users remain in charge of their interactions with the system.

To implement user-centric AI effectively, personalization, error handling, and onboarding are crucial. AI should anticipate user needs and deliver tailored experiences while also being designed to handle mistakes gracefully. A clear onboarding process that educates users on the system’s capabilities and limitations helps set realistic expectations, leading to better user engagement and satisfaction.

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India’s Quick Commerce Sector Heats Up: Can Nykaa’s 10-Minute Delivery Service Disrupt the Status Quo of Established Players?

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Nykaa in quick commerce Dazeinfo Article

India’s quick commerce sector is heating up like never before, with new and established players capitalising on the rising demand for instant deliveries, particularly in metro areas. What once began with grocery essentials has now diversified into electronics, fashion, beauty, and even food. One of the most intriguing entrants in the quick commerce arena is Nykaa, the beauty and fashion retailer, which has recently launched a 10-minute delivery pilot in Borivali, Mumbai.

With this strategic move, Nykaa has joined the elite list of major players in the quick commerce sector, including Zomato’s Blinkit, Swiggy Instamart, Zepto, and Tata’s bigbasket. These companies are not just competitors; they are all vying to redefine the convenience economy and set new standards for what customers can expect in terms of delivery speed and product variety.

It’s important to note that Nykaa’s entry into the quick commerce space is driven by more than just fear of missing out (FOMO). It’s a strategic decision informed by the remarkable demand for beauty products delivered within minutes.

As beauty has emerged as a top-grossing category on quick delivery platforms, Nykaa aims to capitalize on this significant opportunity. To enhance its position in the market, the company is also planning to expand its quick delivery service under a separate brand name.

Nykaa’s 10-minute delivery service can also be seen as a threat to established platforms like Blinkit, Instamart, BigBasket, and Zepto, as sales of beauty products on these competing platforms will take a hit. With the allure of rapid delivery, an increasing number of shoppers may now prefer Nykaa’s platform over its competitors, potentially reshaping the market dynamics.

In this evolving landscape, while horizontal quick commerce platforms like Blinkit and Zepto currently dominate grocery delivery, industry insiders believe there’s ample room for vertical platforms that specialize in specific categories. Beauty, fashion, and even home decor are becoming key areas where platforms like Nykaa and Myntra can leverage their expertise and optimize their supply chain networks to gain a competitive edge.

Food Delivery in 10 Mins: A Risky Proposition?

Now, the concept of getting groceries and other products delivered in 10-20 minutes can still be understood, considering it relies on dark stores that facilitate rapid access. However, the notion of food delivery within 10 or even 30 minutes seems almost unbelievable and raises concerns about its practicality.

Just last week, Swiggy launched its 10-minute food delivery service, Bolt, which raised many eyebrows. This move has not been well-received by consumers and industry experts, as it raises questions not only about food quality but also about the safety of delivery guys rushing to meet these tight deadlines.

In response to Swiggy’s new service, rival Zomato is also planning to introduce its 10-minute food delivery option. However, this will be limited to certain food items, such as samosas, puffs, and cream rolls.

Zomato’s founder, Deepinder Goyal, believes food delivery in 10 minutes could be the next big thing in the quick commerce space, targeting those who currently lack access to canteen-style food. He envisions this as an opportunity to create a new market and stimulate additional demand, potentially serving as a significant growth engine for restaurants.

Meanwhile, Licious, a direct-to-consumer meat brand, is another exciting player making waves in India’s quick commerce sector. The company has recently launched a pilot program to deliver ready-to-eat non-veg food items in Gurgaon within 30 minutes. This decision follows its successful track record of delivering meat products within one to two hours in several metro cities, where it has consistently received positive feedback from customers.

Changing Consumer Habits

One of the core reasons quick commerce is thriving in India is the shift in consumer behaviour.

Since the Covid-19 pandemic, people, mostly in urban areas, have increasingly preferred online ordering for everything from groceries to food and electronics. This evolving mindset reflects not just a preference for convenience but also a broader cultural shift toward digital solutions in everyday life. This trend is further fueled by increasing buying power, which drives the demand for quick orders and fast deliveries.

Data shows that the average frequency of grocery and household essentials purchases in India is 2.2 times a week, significantly higher than in Western markets, where it averages 2.4 times a month. This difference highlights a fundamental aspect of the Indian market: smaller basket sizes and more frequent purchases make it an ideal environment for quick commerce to flourish.

In line with this shift, Myntra and Nykaa’s same-day delivery service, currently available in four metros, is another example of how companies are adapting to these changing expectations.

A significant 10-15% of Nykaa’s orders in these cities are delivered on the same day, while next-day deliveries account for 85-90% of the total orders. In order to enhance its same-day and next-day delivery rate to 65% in the top 12 cities and 60% in the top 110 cities, Nykaa is actively focusing on improving supply chain efficiency without making major investments.

Moreover, the quick delivery of beauty products extends beyond Nykaa. Varun Alagh, CEO of Mamaearth, emphasised the crucial role of quick commerce in his company’s strategy, stating that it is the fastest-growing sub-segment within its online commerce channel.

In August, Mamaearth reported that over 10% of its online revenue came from quick commerce sales, primarily from the top 10 cities. This shift indicates that even established brands are prioritising speed to meet the demands of urban consumers.

In conclusion, the quick commerce sector in India is more than just a passing trend; it’s a dynamic race to capture the hearts (and wallets) of the country’s urban consumers. As more companies jump on board, the competition will only intensify, pushing the boundaries of speed and efficiency. Nykaa’s bold move into the 10-minute delivery space, along with other players’ rapid expansions, shows that the sector is here to stay. The real question now is, who will win the race? Only time will tell.

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Bhavish In a Fix: The Government is Tightening the Noose On Ola Electric

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Bhavish Ola Electric issues

Ola Electric has been making headlines lately, mostly for all the wrong reasons. Customer complaints about their electric two-wheelers have skyrocketed, surpassing over a lakh. Now, a recent heated exchange on the X platform between CEO Bhavish Aggarwal and comedian Kunal Kamra only added fuel to the fire. This confrontation drew widespread criticism and backlash, with many calling out Bhavish’s ego, ultimately damaging the company’s brand value.

Surprisingly, the surge in complaints against Ola’s two-wheeler electric vehicles has escalated to such an extent in recent months that the Indian government has felt compelled to intervene.

On October 3, 2024, the Central Consumer Protection Authority (CCPA) issued a show-cause notice to Ola Electric, citing potential violations of the Consumer Protection Act, 2019. The notice followed a flood of complaints from consumers about service deficiencies and unmet promises, with Ola Electric required to respond within 15 days. The move signals a serious effort by the government to tackle the widespread grievances.

So, what went wrong for Ola Electric? Let’s dig deeper into the mounting issues the electric vehicle company faces.

Consumer Complaints Against Ola Electric Reach a Boiling Point

Complaints against Ola Electric have been piling up, primarily revolving around service inefficiencies, unfulfilled refund requests, and recurring issues with vehicle components. Allegations of misleading advertisements have also damaged the company’s credibility, once seen as a visionary leader in eco-friendly transportation.

In a shocking incident that highlights the growing discontent, a 26-year-old mechanic set fire to an Ola Electric showroom in Kalaburagi, Karnataka, causing damages amounting to ₹850,000. This drastic act was triggered by his repeated visits to the showroom to address ongoing issues with his recently purchased two-wheeler electric vehicle, only to have his requests for assistance repeatedly ignored by the outlet staff. This incident is a stark reminder of the escalating tensions between consumers and the company.

The severity of the situation is further underscored by media reports revealing that Ola Electric receives an average of around 80,000 complaints monthly, overwhelming its service centres. On peak days, this number can spike to 6,000-7,000, resulting in long wait times, overburdened staff, and growing customer dissatisfaction.

According to data from the National Consumer Helpline, a staggering 10,644 complaints were documented against Ola Electric between September 1, 2023, and August 30, 2024. Among these, 3,389 complaints were related to service delays, 1,899 to delayed deliveries of new scooters, and 1,459 involved unfulfilled service commitments. This growing wave of discontent has led to regulatory scrutiny, with the CCPA demanding answers from the e-scooter manufacturer.

The Aggarwal-Kamra Feud

The tipping point for public scrutiny arrived on October 6 when comedian Kunal Kamra took to the X platform to criticise Ola Electric’s customer service, sharing images of scooters gathering dust at a dealership. Kamra tagged prominent figures like Nitin Gadkari, the Minister of Road Transport and Highways, and the Department of Consumer Affairs, raising questions about EV adoption in India. In a follow-up post, he tagged Bhavish Aggarwal, stating, “This @bhash has no responsibility, just posturing.”

Aggarwal quickly fired back, accusing Kamra of engaging in a “paid tweet” to harm Ola’s reputation. He even offered Kamra more money than what he supposedly made in his comedy career if he would help improve Ola’s services. The back-and-forth quickly escalated, capturing the attention of frustrated customers and industry watchers alike.

Ola Electric Shares Reaches All-Time Low

The ripple effects of the public spat between Bhavish Aggarwal and Kunal Kamra didn’t just end on social media.

The very next day, on October 7, Ola Electric’s share prices took a nosedive, dropping over 9% to ₹89.98 by 1:48 PM. This decline marks a staggering 38.5% drop from the company’s all-time high of ₹146.38 on August 19, although it still maintains an 18.4% lead over its IPO price of ₹76.

Ola Electric’s financial picture isn’t looking too rosy either. Though the company controls nearly 50% of the two-wheeler EV market in India, the 30% YoY surge in net losses amounting to ₹347 crore in Q1 FY25 is quite worrisome. This alarming rise is primarily driven by a 26.6% YoY jump in operating expenses, reaching ₹1,849 crore during the same period.

Additionally, Ola Electric’s increasing dependency on Chinese imports poses a significant concern that cannot be overlooked.

As Ola Electric grapples with rising customer complaints, financial losses and declining market confidence, the question remains: Could this be a wake-up call for Ola Electric, or is it indicative of deeper issues within the company that could threaten its ambitious goals? The need for effective resolution strategies has never been more urgent.

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