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Unveiling The Pioneer: The Good Old Days We often think about Facebook, Instagram or Twitter when we talk about a social networking platform. Still, it was not the same for people 20 years ago as then the social networking sector was dominated by one of the earliest and most influential platforms- MySpace. MySpace was launched in 2003 to offer a virtual platform for social networking, self-expression, and discovering music. MySpace played a vital role in shaping the early landscape of online social interaction by revolutionising the way people interacted with each other through the internet. In the initial years, MySpace gained exponential growth as it was able to attract millions of users with a keen interest in creating personalised profiles, finding friends, discovering new music, and following their favourite artists. Its key defining features include customizable profiles which allow users a high degree of personalization for creating their profiles. Music integration, “Top 8 friends” etc. were among the other key features offered by MySpace. The Inaction and demise of MySpace Undoubtedly, MySpace was successful as a start-up gaining huge valuation from investors, large appeal from users, and rapid traction for growth. However, things changed as time passed and a competitor emerged - Facebook. By the late 2000s, Facebook’s user base skyrocketed, surpassing MySpace, which was already stagnated and declining in popularity, active users, and engagement. There were several factors leading to its downfall which include both the technical and the managerial fields. Firstly, the high degree of customization which attracted many users had a problem in itself, it turned out to be cluttered and led to an inconsistent user experience deviating from the fundamental principle of simplicity. Next, it has converged most of its focus on music, attracting and retaining a smaller user base. There were also many security and privacy concerns related to MySpace which included issues related to fake accounts and spam. Though these all were significant factors, the one main factor was the management of MySpace, which was under the control of NewsCorporation which had appointed a highly qualified team to manage MySpace which in turn led to rigidity due to the execution of strictly laid down plans instead of responding effectively to the market trends and changes. How did Facebook create its “Space”? The early winner showed up to be a failure, but how did it all go off-base? After the acquisition by the media giant, NewsCorportion, MySpace was given a professional viewpoint whereas Facebook was seeking after its travel through a few college undergrads and it certainly backfired the former. While the market decided where the business ought to go for Facebook, the “professional outlook” of MySpace reflected a fallacy of modern management that some way or another accepts that MBA grads would continuously make the business better off with their industry information, but the readiness to make mistakes by eager college undergrads demonstrated to be leagues superior than making complex excel calculations and relying on numbers. Facebook was one of the first social media stages to insist on real names of accounts and people, unlike its counterpart, never bothered to take the initiative and rule out the creepiness of fake names. MySpace's initial victory was built on the preface of customisation, allowing clients to customise their profiles with background pictures, music players, and unique formats. But as Facebook got prevalent, clients started floating towards more oversimplified and easy-to-use interfacing over intemperate customisation. In January 2008, many individuals got together to announce the 30th ‘International Delete Your MySpace Account Day’, inciting others to urge freedom of their Myspace accounts and connect to Facebook instead. The cluttered advertisements on website pages may make anybody feel unpleasant and that’s precisely what MySpace did, indeed if they did not expect to, whereas Facebook advertised a clean interface and didn’t have ads that would make the page horrible. Facebook composed the script of MySpace’s downfall and uprooted MySpace from 2008 to 2013 essentially as MySpace could do nothing to heal their woes. (Image: The MySpace page cluttered with ads) The “Meteoric” Rise of Facebook From its humble beginnings on the Harvard campus to a tech giant with 2.1 billion daily active users, Facebook has come a long way. Defying the prominent business mantra “first mover advantage”, Facebook put up a masterclass of “late mover advantage” to shine like a star in the competitive landscape of social media networks. Earlier social media networks provided Facebook with a list of blunders to avoid. Supervised growth added drastically to the success of Facebook as the clean and robust technological infrastructure adding value to the user experience came in handy to avoid the unattractiveness of the competitors. MySpace was eating dust after 2008 and losing its major market share to Facebook, thanks to the smart engineers who worked day and night to innovate, not just for the sake of it, but for the users to experience convenience like never before and get used to it. Acquiring Instagram in 2012 and WhatsApp 2 years later put Facebook in a spot where there was no looking back and the masterclass thrived further when it allowed live video streams in 2016 and these chronological events - all in the gap of 2 years intensified the way Facebook flourished. Creating a “Facebook Watch” section allowing the users to watch video content, was proven to be a significant bite of Facebook’s success meal and allowed it to thrive further. To sum things up, “MySpace was defeated by White Space The blue took over, inserting the internet craze, Where others are grappling for a spot in the social palace, Facebook's king-sized masterclass still reigns” Authors : Md Imran and Sai Advaith Kandi Illustrator: Japneet Sources: Forbes Telegraph Convince and Convert

Fall in love with learning or learning about falling? BYJUs, the Icarus of the Indian ed-tech ecosystem that flew too high, used to be at the forefront of India's educational technology industry. It started small but grew incredibly fast, becoming a symbol of innovation and entrepreneurial drive. Their story captured the imagination of many, promising to revolutionise education. But just like any story of success, BYJUs took a sharp turn and landed in a deep financial crisis that shook the entire ed-tech world. Let's explore what went wrong and break down the reasons behind this downfall. A Look Back at BYJU's Golden Age Let's rewind the clock to a time when BYJUs was the undisputed champion of the ed-tech empire. Founded by Byju Raveendran, the company's journey began in the quaint village of Kerala, where a passion for teaching mathematics ignited a spark of innovation. From humble origins, BYJUs swiftly rose to prominence, leveraging exceptional teaching methodologies to attract millions of subscribers. With strategic investments and high-profile endorsements,  BYJUs emerged as unicorns, signalling a new era in digital education. The years between 2015 and 2021 witnessed an unprecedented surge in valuation, propelling BYJUs to the forefront of India's startup ecosystem. Yet, amidst the applause and admiration, ominous clouds began to gather on the horizon. The Lapses Disclosed: How BYJUs It’s Way! The downfall of BYJUs, once respected as a trailblazer in the field of educational technology, can be traced back to a series of mistakes in strategy that shifted its attention from teaching methods to aggressive sales tactics. Established in 2011 by Byju Raveendran and Divya Gokulnath, BYJUs initially disrupted the landscape of online learning with its innovative platforms tailored for learners spanning from early childhood to professional development. However, the company's departure from its educational mission towards relentless marketing, alongside dubious accounting practices, signalled the beginning of its downfall. Despite initial triumphs and a global footprint, BYJUs encountered setbacks as it prioritised sales volume over the delivery of educational excellence, leading to disappointment among its user base. A pivotal factor contributing to BYJUs downfall was its adoption of aggressive sales strategies. They got really pushy, trying to pressure parents and teachers into buying their products and services. Moreover, the company's financial troubles, including accusations of hiding financial information and failing to repay loans, made its situation even worse. The departure of key board members and auditors, coupled with significant workforce reductions, underscored the company's struggle to regain stability. Despite once commanding a valuation of $22 billion and being hailed as a frontrunner in EdTech, BYJUs rapid expansion without adequate financial governance ultimately precipitated its demise, underscoring the imperative of sustainable growth and ethical business practices in the EdTech sector. BYJUs's rapid rise in the Indian educational technology landscape, from its humble beginnings to a leading industry player, seemed like a typical modern success story. However, underneath its surface of fast growth from 2015 to 2021, lay the beginnings of its eventual failure. Despite the excitement about its growth, fueled by big investments and global expansion, BYJUs aggressive actions started to come apart. Expensive marketing efforts and notable acquisitions, like WhiteHat Junior and the billion-dollar acquisition of Aakash, stretched its finances and made stakeholders uncertain. Additionally, the weight of large debts, including a massive $12 billion loan, made BYJUs’s financial situation worse, leading to its eventual downfall. BYJU’s Present Performance Palette BYJUs, is facing a legal battle with four investors who have accused the company of "oppression and mismanagement." These investors filed a lawsuit with the National Company Law Tribunal (NCLT) seeking a stay on the company's $200 million rights issue, alleging it was illegal and lacked transparency. Despite ongoing financial struggles, BYJUs received some temporary relief, with the National Company Law Tribunal (NCLT) allowing the company to proceed with its rights issue, a potential source of additional capital. However, the situation remains uncertain, as the NCLT reserved judgment on interim orders requested by four investors in their lawsuit alleging "oppression and mismanagement." Both parties must now submit written arguments and await the NCLT's April hearing. BYJUs also face separate insolvency petitions from entities like the BCCI and US lenders, further complicating their situation. This mess of lawsuits, coupled with financial difficulties,  hangs over BYJUs future like a dark cloud and leaves us with a question: Can they fight their way out of these problems and get back on track? The Restructuring Journey In response to increasing financial challenges and regulatory scrutiny, BYJUs has undertaken a significant journey of restructuring and cost-cutting measures aimed at overcoming difficult times. A pivotal milestone in this journey has been the resolution with leading creditors, wherein BYJUs negotiated terms to avert loan acceleration and enforcement actions, opting instead to pay the interest component upfront and defer repayment over instalments. Concurrently, the company has implemented aggressive cost-cutting initiatives, including employee layoffs and office space optimisation, symbolised by the vacating of significant square footage at Knowledge Park and the closure of certain offices in Bengaluru. These measures underscore BYJUs commitment to streamlining operations, enhancing efficiency, and alleviating immediate financial pressures while also positioning the company for sustainable growth in the long term. Amidst these restructuring efforts, BYJUs has prioritised transparent communication and stakeholder engagement to reassure investors, employees, and the media about its strategic direction and commitment to recovery. Proactive engagement with stakeholders, coupled with regular updates on restructuring initiatives, aims to foster trust and credibility in Byjus' resilience and forward-thinking approach. As the company charts its path forward, guided by a vision of sustainable growth and long-term viability, strategic partnerships and a culture of innovation will play instrumental roles in shaping its future direction. In dealing with the complexities of its restructuring journey. Nuggets of Insights from the Incident The BYJUs incident, involving allegations of mismanagement, aggressive sales tactics, and financial concerns, has several potential lessons to be learned. The one thing that easily comes to our mind when we start to ponder what went wrong with BYJUs is definitely its shady sales tactics. Unethical business practices must be avoided at all costs. Building trust through ethical sales tactics and responsible financial management is crucial for its long-term success. Implementing robust governance structures and ensuring regulatory compliance can prevent potential legal and reputational risks for the company. This incident has awakened the startup ecosystem to be more aware and empathetic of its strategies. The ed-tech sector may face heightened scrutiny regarding its business practices from investors, regulators, and consumers. Companies may need to prioritise ethical sales and marketing strategies to maintain consumer trust and to help them believe in their company again. Sustainable financial management and responsible debt practices may become crucial for maintaining potential investments. Conclusion In the words of Warren Buffet, "It takes 20 years to build a business but 5 minutes to ruin it," a sentiment that rings true in BYJU's journey. Once valued as India's most valuable startup at $22 billion, it now stands at a mere $3 billion. However, the rapid rise and fall of BYJUs serve as a poignant reminder of the necessity for ethical practices, responsible growth, and robust governance in the EdTech industry and beyond. The journey of BYJUs, from innovation to uncertainty, stands as a cautionary tale within India's ed-tech landscape. Once hailed as a symbol of innovation and success, BYJUs experienced a dramatic downturn characterised by financial crises and legal disputes. Its fall underscores the vital importance of ethical business practices and sustainable growth strategies in the startup ecosystem. As BYJUs initiates restructuring efforts and faces legal challenges, the incident underscores the critical need for transparency, responsible financial management, and adherence to regulatory compliance. Sources Fincash Moneycontrol The Economic Times Authors: Manan Alagh and Mayank Kumar Illustration: Prateek

Paytm vs. Regulations: Will it Fly Again? The Rise of the Wallet Wizard You might have paid your kirane wala and heard "Paytm karo", satisfying isn't it? Transforming an economy that solely relied on cash to an economy that started dealing in cashless transactions more often, Paytm emerged as a game changer. Paytm, initially founded as a mobile wallet-based startup, commenced its journey in 2010. Cheered by many, the prominent fintech startup has done much more to celebrate than just mere numbers. Nonetheless, it is to be acknowledged that Paytm has hunted significant glory across India recently. The master plan kicked things off with people paying for bills and recharges. The user base of Paytm showed a meteoric rise from 1.18 Crores to 10.4 Crores recording a significant 781% growth from August 2014 to the same month in 2015. This performance was owed to the introduction of its own mobile wallet and collaboration with the heart of retail grocery purchase – The Kirana Stores. The seamless integration of technology into payments whispered an easy-to-understand and convenient payment system into the ears of Indians. The revolutionary emergence didn’t stop there. Rather it intensified further when the Indian government made 500 and 1000 RS notes cease as legal tenders and called for digitalization of the economy in one way or another. This shift made Paytm the go-to platform to support Indian payments’ digitalization. Let alone looking back, Paytm moved forward aggressively with its compelling marketing strategies for tier 2 and 3 cities. The infusion of Unified digital payments (UPI) by the Indian government in 2016 and the acquisition of a license to operate as a full-fledged bank in 2021 further immersed the fintech giant in success. Cracks in the Facade Most of today’s Indian markets are fiercely competitive and the Indian fintech market is no different with major competitors like PhonePe, Google Pay, and Amazon Pay along with new entrants hindering Paytm’s business objectives while vying for market share. Paytm’s initial excitement started to wear off over time due to the new entrants offering lucrative offers to acquire customers. Many question Paytm over the unsustainability of its business model, arguing that it relies heavily on discounts and cashback offers, eventually questioning the long-term profitability of the adorned startup with Macquarie research report going so far as saying  ”Paytm’s business model lacks direction and focus”. On top of that, Warren Buffet’s only Indian investment didn’t live up to the hype it had when it underwent the IPO listing. The One97 Communications subsidiary was alleged to be overpriced at the same time. The expectations of the IPO soaring on the initial day of listing were hit when its opening price fell apart and recorded a 27% decrease on the opening day. Furthermore, the Paytm Mall, the e-commerce diversification of Paytm, had been allegedly involved in a major data breach in 2018 on 30 August. Not only this, Paytm Mall was never found good enough to be profitable as it crashed heavily on the front of valuation as it curtailed from $3 billion in 2019 to $13 Million. A forgettable journey for Paytm, isn’t it? Unfortunately, the attempt to mark a significant presence in the insurance sector was found to be a vain attempt. The unsuccessful diversifications into new segments along with frequent regulatory blows added to the woes of the pioneer in mobile payments apps. The Regulatory Hammer Blow The Reserve Bank of India wielded its regulatory hammer with precision, delivering a crippling blow to Paytm Payments Bank. The fallout from this action reverberated through the financial ecosystem, leaving scars on growth prospects and investor sentiment. The company’s stock plummeted by 20% in one day. This sharp decline wiped out approximately ₹609 per share, erasing around $1.2 billion in value from the company It all started in 2019 when the Office of Banking Ombudsman (a body created by the RBI to take care of the banking complaints of the general public in India) issued a show-cause notice for Paytm Payments Bank’s failure to monitor a certain account maintained with it that had shown a sudden increase in the velocity of daily transactions involving immediate transfer to other banks. These actions were found to be in violation of RBI’s provisions on KYC norms. In July 2021, the central bank issued a show-cause notice to Paytm for submitting false information about the transfer of an operating unit from One 97 Communications to Paytm. By October the same year, Paytm was charged a ₹1 crore penalty for contravention of the Payment and Settlement Systems Act, 2007. From the RBI’s point of view, a row of red flags was popping up: Paytm did not monitor payout transactions or carry out risk profiling of entities availing those services. In several cases, the regulatory ceiling of end-of-day balance in customer advance accounts was breached. The banking regulator also found that Paytm Payments Bank had reported a cyber security incident late, and had failed to implement device-binding control measures related to “SMS delivery receipt check”. In October 2023, another penalty of Rs.5.93 crore was imposed on the payments bank after the RBI found several non-compliances—once again highlighting the bank’s failures around the identification of account owners. While reports pointed to money laundering concerns, Paytm and its management vociferously denied any such violation. However, the final blow came in 2024. The Comprehensive System Audit report, coupled with compliance validation by external auditors, exposed glaring lapses. Paytm’s transgressions ranged from failing to identify beneficial owners to breaching regulatory balance limits. The RBI’s patience had worn thin, and it acted decisively. Paytm’s Stock price falling by 20% on the same day RBI issued the notice. During their deposit drought, the bank was prohibited from accepting further deposits or top-ups in various customer channels, including accounts, wallets, FASTags, and NCMC cards. Although customers retained the ability to withdraw or utilize their balances without constraints, the once-bustling banking services of Paytm came to a grinding halt with the suspension of fund transfers, Bharat bill payment operating unit (BBPOU), and UPI facilities. “The bigger issue is that Paytm has not been on the good books of the regulator and going forward, their lending partners also could possibly re-look at the relationships,” Macquarie analysts wrote after the RBI’s action against Paytm Payments Bank. Paytm, once a fintech disruptor, faced a seismic impact. Its growth stalled, and investor confidence wavered. We cross fingers as India asks, Can it regain trust? Is profitability still possible? Reflecting on a Larger Problem In the aftermath of the Paytm crisis, several key players come into focus. The Securities and Exchange Board of India (SEBI) appears sidelined—its hands wringing as an ineffective bystander. SEBI played no role in determining the IPO pricing or mitigating the stock’s subsequent hammering. Meanwhile, venture capital firms continue to wield immense power, often valuing businesses at staggering multiples. Paytm’s primary market debut, at 27 times enterprise value or gross profit for fiscal 2024, exemplifies this trend. Amidst this turmoil, India’s entrepreneurial ecosystem takes center stage. Start-up founders petition RBI Governor Shaktikanta Das and Finance Minister Nirmala Sitharaman, urging a reconsideration of the “proportionality of restrictions” on Paytm. Their plea underscores the broader impact on the payments bank, the fintech landscape, and the economy at large. With the RBI's sanctions worsening the woes, the fintech giant seeks remedy amidst the proliferation of doubt. One hopes, for the sake of Paytm’s depositors, investors, and users, that it is now time to do what is right rather than do what is braveThe rise and fall of Paytm serves as a cautionary tale within the rapidly evolving fintech sector. Its initial success was undeniable, but a series of missteps, combined with increased competition and regulatory scrutiny, have cast a shadow over its future. The RBI's actions send a clear message that compliance and sound financial practices are paramount, even for innovative disruptors. Whether Paytm can regain trust, navigate regulatory hurdles, and chart a path to sustainable profitability is a question that will define its future, and potentially shape the trajectory of the broader Indian fintech landscape. Authors : Sachkeerat Singh and Md Imran Illustrator: Kumari Janawi Sources: Verdict The Economic Times Linkedin

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Finance and Investment Cell Hansraj College about us The Finance and Investment Cell, Hansraj College embarked upon its journey to promulgate financial literacy in the year 2014. Since then, we at FIC have been disseminating quintessential information on finance and related concepts. Be it organizing multifarious events or hosting regular speaker sessions with eminent personalities, the Cell has managed to build a significant presence for itself and has lived up to its reputation of being one of the finest societies in the Delhi University circuit. Know More About FIC 6K+ Event Footfall 750+ Fellowship Registrations 8500+ Newsletter Subscriptions ₹900K+ Cash Prizes Given We Take Pride in Our Numbers 12k+ Facebook Likes 7 Years of Service 6 Finance Platter Speaker Sessions 9 M&C Projects Our Past Partners 1/16 BLOG | FIC Hansraj Refined FIC Hansraj Mar 8 4 min CRACKING THE CODE: THE TALE OF FACEBOOK’S TRIUMPH Unveiling The Pioneer: The Good Old Days We often think about Facebook, Instagram or Twitter when we talk about a social networking... FIC Hansraj Mar 3 5 min Breaking Down BYJUs' Financial Crisis Explore BYJU's EdTech journey, from highs to lows, amidst industry evolution, emphasising ethics and sustainable growth for the future. fictechhrc Feb 27 5 min PAYTM'S COMPLIANCE CONUNDRUM: THE SANCTION SAGA Paytm vs. Regulations: Will it Fly Again? The Rise of the Wallet Wizard You might have paid your kirane wala and heard "Paytm karo",... Check out all the articles Our Services Mentorship and Consulting (M&C) Department The Finance and Investment Cell realizes the dynamic industry needs advanced skillsets. The Consulting wing was set in motion to help students apply their skills by undertaking live projects. The wing has executed live projects spanning Financial Modelling, Technical Analysis, Market Research, etc. Know About MNC Departments Collaborate With Us Organizing and Sponsorship (O&S) Department The Organizing and Sponsorship department works with outside entities to bring in sponsorship for FIC, Hansraj College and organizes all kinds of events for the society. The work consists of converting clients into a mutual agreement over sharing deliverables. Know About O&S Our Social Responsibility Social Wing The Social Wing of the Finance and Investment Cell, Hansraj college is an initiative to spread financial awareness especially among the less privileged strata of the society. This initiative has been undertaken to fulfill the social responsibility towards the society and help bring the needed change in the community. Know About Social Wing Our Departments Technical Department The Technical Team of Finance and Investment Cell, Hansraj College works on how to present the society to the outer world. Professionalism runs through their veins and creativity shows on their screens. Words don't define the Technical Department, their graphics do. Know About Graphics Team Editorial and Marketing Department (EDM) The Editorial and Marketing Department (EDM) handles the social media pages which constitute the face of the Cell. It disseminates knowledge about recent market trends in news to lesser-known trivia facts through intriguing financial articles. Know About EDM Research and Development Department The Research and Development Cell aims to spread awareness about everything finance and beyond. The department attempts at breaking conventionally complex financial concepts and news into a simplified manner by hosting interactive discussions, sessions with industry experts etc. Know About R&D Our Events Empresa'24 Read More > Young Investors' Fellowship Programme'21 Read More > Finance PLatter'20 Read More > Meet the team Aditi Jain President Soumil De Vice President The Core Mananpreet Kaur Uppal General Secretary Tushasp Rajput Joint Secretary Meet the Department heads

Anchor 1 "Giving is the biggest act of kindness." Believing in this motto, the social wing of the Finance and Investment Cell, Hansraj college aims at promulgating financial awareness. It is an initiative to impart financial literacy to the socially deprived section of society so that they can become financially independent and earn a decent living for themselves. Social Wing about us The Social Wing of the Finance and Investment cell, Hansraj college is an initiative to spread financial awareness especially among the less privileged strata of the society. This initiative has been undertaken to fulfil the social responsibility towards the society and help bring the needed change in the community. Through this initiative, we hope to impart financial knowledge by collaborating with various organisations and other initiatives so that the society can achieve its full optimization. The Social Wing of FIC, Hansraj is a student- run department that aims at promulgating financial awareness. Our team comprises self-driven undergraduate students that work together to help impart financial knowledge so that the society can achieve full optimization. Project Parivartan is an initiative taken up by the social wing of the Finance and Investment Cell, Hanraj College. The project aims at promulgating financial literacy towards the underprivileged sections of the society. The first 2 editions of Project Parivartan have impact 13000+ people in 35+ cities. We aim to create greater impact by spreading financial knowledge and working towards bringing about a change in the mindset of society when it comes to finance. Parivartan 1.0 Parivartan 2.0 Parivartan 3.0 PARIVARTAN Anchor 2 OUR PUBLICATIONS past ngo sessions The members of the Finance and Investment Cell worked towards spreading financial literacy to the young minds of the country. Financial literacy sessions were conducted in collaboration with Shodh NGO and Nanhe kadam NGO over a span of 15 days. Topics such as basic of personal finance, budgeting, basic concepts of banking and other important topics were taught to them. We believe that providing the right financial knowledge to children is a great start towards making concept of finance easy and understandable which will later help them in life to have better financial health. reportS PARIVARTAN 1.0 PARIVARTAN 2.0 PARIVARTAN 3.0 CONTACT US fichansraj.social@gmail.com Text us on WhatsApp Our Team Tushasp Rajput Samay Jain Purav Tayal Harsh Agarwal Mahi Rana