Stage set for micro-dramas; WhatsApp's monetisation bid
Investors are flocking to micro-drama startups as the next big thing in India's content and entertainment industry. This and more in today's ETtech Morning Dispatch.
Also in the letter:
■ K'taka bike taxi ban ■ ID verification crackdown■ Meta's new India head
India's big bet on micro drama: Startups, investors eye a new content race
Investors are getting hooked on short, binge-worthy micro dramas as the next big wave in India's entertainment space. Unlike user-generated content on Instagram Reels and YouTube Shorts, micro-dramas are professionally produced, with higher production quality and serialised storytelling designed for mobile-first audiences.
Notable actors: Alongside startups such as Flick TV, Eloelo, Kuku FM, Chai Shots, and ReelSaga, larger digital platforms like Amazon, ShareChat, and Zee Entertainment Enterprises (ZEE) are also stepping into the micro-drama market to meet growing demand.
Investor interest: Venture capital firms are actively backing local content platforms, hoping to replicate the playbook of their Chinese counterparts.
Monetisation hurdles: The big challenge now is figuring out how to monetise the format. In a price-sensitive market like India, where the average revenue per user (ARPU) remains low, this is no small task.Some platforms are testing a pay-per-episode model with micropayments, while others plan to introduce monthly and quarterly subscription tiers. A few are also exploring hybrid strategies that combine subscriptions with ad-supported revenue.
Zooming out: Micro-dramas have had a breakout moment in China over the past few years. Earlier this year, The Economist noted that the value of China's micro-drama market had jumped 10x between 2021 and 2023.
noted that the value of China's micro-drama market had jumped 10x between 2021 and 2023. Its current estimated worth of $5.3 billion is projected to reach $14 billion by 2027.
Cumulatively, Chinese micro-drama apps have garnered nearly 55 million downloads and $170 million in revenue overseas, according to iiMedia Research, as reported by The Economist .
WhatsApp ads will not impact privacy: Will Cathcart
WhatsApp's monetisation efforts will not contravene user privacy, Will Cathcart, head of WhatsApp at Meta, told us in an exclusive interview. Monetisation efforts by the platform have created value for both users and businesses, without compromising the app's core promise of privacy, security, and an ad-free chat experience, he said.
Driving the news: On Monday, WhatsApp introduced ads in Status updates and launched subscriptions on Channels. The company clarified that these ads will not appear in private chats or calls.
No risks to privacy: 'Nothing has changed about the privacy of people's messages, their calls, their statuses,' Cathcart emphasised, adding that these features remain end-to-end encrypted.
But how? According to Cathcart, one of the key challenges is that encryption limits the amount of data available for ad targeting. This, he added, was a deliberate trade-off to preserve user privacy. However, the platform will do its 'best to make the ads relevant', he said. The ads in the Updates tab will reflect how users interact with the space, based on factors such as their country, city, language, and Channel activity, among other things, Cathcart said.
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How the ban on Karnataka's bike taxis affects gig workers, commuters: ETtech explains
On Monday morning, many Bengaluru commuters found themselves in a fix. With the Karnataka government's bike taxi ban taking effect, they were left scrambling for alternative transport. But beyond the inconvenience to riders, the move threatens the livelihoods of thousands of gig workers who relied on the service.
What happened to the apps? Initially, Uber renamed its bike taxi option to 'moto courier' while Rapido called it 'bike parcel'. Ola, meanwhile, removed the feature entirely. As users speculated that the aggregators were trying to sidestep the regulations, both Uber and Rapido pulled the options from their apps altogether.
Who's hit? Several commuters expressed frustration over the ban, especially those who depended on bike taxis for their speed and affordability.Between 50,000 and 60,000 gig workers are likely to be impacted across Karnataka, according to Shaik Salauddin, founder president of the Telangana Gig and Platform Workers Union.
Companies continue to lobby: In separate statements, ride-hailing firms Rapido and Uber stated they are engaging with the state's transport department in search of a resolution. Both expressed hope that the discussions would lead to a positive outcome. Ola has not commented on the matter.
Also Read: Karnataka's ban on bike taxis: A timeline
ET Explainer: Behind crackdown on unauthorised use of government databases for user onboarding
The Ministry of Electronics and Information Technology (MeitY) has directed several technology-led startups to cease their offline Aadhaar-based know-your-customer (KYC) services. According to two individuals familiar with the situation, these companies have been accessing Aadhar data through unauthorised channels.
Scrambling to comply: As the government tightens scrutiny of data platforms, industry players are now pushing for clearly regulated avenues to carry out Aadhaar verification.
What's on offer: With customer onboarding increasingly shifting online, financial services companies and consumer technology firms need to verify users efficiently. This has opened up space for ID verification startups, which help validate documents and cross-check them against official government databases.
Also Read: ID please? MeitY verifies identity verification startups
The need: Startups rely on these services mainly to prevent fraud in sectors such as digital lending, insurance, payments, and merchant onboarding. Verifying identities on the go makes it easier to onboard users and reduce risk.
Problem? The government is now assessing whether these verification services are being offered through legitimate channels and legal means. Industry sources told us that while most large startups follow the rules, several smaller players have allegedly gained unauthorised access to some sensitive government databases.
Also Read: NPCI curbs unauthorised use of UPI IDs by fintech companies
Other Top Stories By Our Reporters
Vidit Aatrey, CEO, Meesho
Meesho secures NCLT approval for reverse flip to India: The Bengaluru bench of the National Company Law Tribunal (NCLT) has approved Meesho's proposal to demerge its Indian entities from its US-based parent, marking a significant milestone in the company's plan to relocate its domicile to India.
Meta appoints Arun Srinivas as its India head: Meta Platforms has named Arun Srinivas as its new managing director and head for India, the company announced on Monday.
ShareChat CBO Gaurav Jain steps down amid leadership shakeups: Jain, who heads ShareChat's monetisation efforts across functions, shared plans to leave amid a string of high-profile exits at the vernacular social media platform.
Global Picks We Are Reading
■ AI alone cannot solve the productivity puzzle (FT)
■ OpenAI and Microsoft tensions are reaching a boiling point (WSJ)
■ Would you switch browsers for a chatbot? (The Verge)
Updated On Jun 17, 2025, 07:35 AM IST
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