Microdrama’s Big Problem, The Data Centre Security Bill & More

Can Microdramas Turn Minutes Into Money?

India’s microdrama space is turning into a serious battlefield. Short vertical stories are winning audiences across languages and smaller cities, while emerging and established players are battling rising acquisition costs. So, what exactly is cooking in India’s microdrama arena?

A Desi Format Emerges: Microdramas may have originated in China, but India is developing its own version of the format. Platforms are adapting stories, pacing and characters to local languages, formats and cultural contexts. Not just this, a majority of viewers are from tier II+ cities, with many preferring native-language content and stories rooted in everyday life.

The Cost Conundrum: Microdrama production is relatively inexpensive, with a series costing around ₹10-15 Lakh. But the real expense begins afterwards. Rising customer acquisition costs are making it difficult for platforms to acquire viewers, keep them engaged and convert them into paying users. Then, there are the distribution challenges for specialist players such as Kuku TV and Story TV, which have to figure out a way to find users.

While monetisation remains the big challenge, advertising could become a stronger revenue stream. But brands are still treating microdramas as an experimental channel.

Big Guns On The Prowl: JioHotstar, Zee Entertainment, Tata Play and Amazon MX Player have all launched short-format offerings. Their entry could threaten standalone startups by intensifying competition for talent, users and content, but it may also help establish microdramas as a mainstream category.

From Content To IP: The next phase will require platforms to build memorable intellectual property rather than simply produce large volumes of low-cost content. Industry executives believe that the winners will combine differentiated stories, large-scale distribution and strong technology. Localisation will also be important, while AI could also reduce production timelines and operating costs without replacing creative teams.

So, can microdrama platforms convert high watch time and cultural relevance into repeatable revenue? Let’s find out…

From The Editor’s Desk

The Security Blind Spot Around Data Centres

• India’s rapidly expanding data centre infrastructure is facing a growing mix of cybersecurity, physical and geopolitical threats. This has raised concerns over the resilience of critical digital infrastructure.
• The threat landscape extends beyond ransomware: human threats such as insider attacks and external manipulation rank among the biggest concerns. Alongside, concerns remain over AI-led identity attacks, DDoS attacks, physical disruption and social engineering.
• The industry is responding by widening resilience beyond uptime. Data-centre contracts are increasingly spelling out controls, incident-response timelines, recovery obligations and compliance requirements, liability caps and indemnities.

Upstox Gears Up For IPO

• The online stockbroking platform has begun preliminary discussions with investment banks for a potential IPO. It is said to be looking to raise about ₹3,800 Cr via a combination of fresh issue of shares and an offer for sale.
• Founded in 2009, Upstox is a discount broking platform that offers online trading and investment services across stocks, derivatives and mutual funds. The unicorn was India’s fifth-largest stock brokerage by active clients in July, with 18.61 Lakh users.
• At the heart of all this is India’s expanding retail investor base, which is being driven by increasing smartphone internet penetration, rising disposable incomes and growing financial awareness.

Minimalist’s FY26 Show

• The Hindustan Unilever-owned beauty and personal care brand swung back to the black in FY26, posting a net profit of ₹25.9 Cr against a loss of ₹270.5 Cr in the previous fiscal.
• The profitability came on the back of operating revenue zooming 36% YoY to ₹690.2 Cr in the fiscal under review. However, expenses continued to bite, rising nearly 34% YoY to ₹664.9 Cr in FY26.
• Founded in 2020, Minimalist sells skincare, haircare and bodycare products. In 2025, HUL acquired 90.5% stake in the BPC brand in an all-cash deal for ₹2,706.44 Cr. Going forward, Minimalist plans to expand its offline footprint to 40,000 stores.

Peeko Bags $7 Mn

• The babycare-focused quick commerce platform has raised around ₹67 Cr in its Series A round led by Chiratae Ventures to expand its presence in Bengaluru, improve its product assortment, build its tech stack, ramp up hiring and expand operations.
• Founded in 2025, Peeko delivers babycare products in an hour. It currently claims to have around 30,000 SKUs, operates three dark stores in Bengaluru and houses more than 100 Indian and international brands.
• Competing with Ozi, Peeko operates at the intersection of babycare and instant gratification. It is eyeing a piece of the broader homegrown quick commerce market, which is expected to clock $68 Bn in GMV by 2031.

The HUL-Beco Legal Tussle

• The FMCG giant has moved the Delhi HC against the D2C home care brand. This comes after a Beco ad, last week, claimed that HUL’s home cleaning brands, including Vim and Surf Excel, contained chemicals that could cause skin irritation and allergic reactions.
• HUL moved the HC seeking an interim injunction against the campaign, alleging commercial disparagement and trademark infringement. The HC has sought Beco’s reaction to the plea and the matter will be heard later today.
• While HUL’s counsel has argued that Beco did not have conclusive proof that the product caused skin irritation, the D2C brand claims that its outdoor vendors and partners were pressured to take the ads down.

Inc42 Markets

Inc42 Startup Spotlight

How Longstraw Carbon Is Turning Crop Residue Into Biochar

India generates more than 200 Mn tonnes of agricultural residue each year. Much of this is burned, worsening air pollution and releasing carbon. LongStraw Carbon is trying to flip this equation by turning waste into biochar and bio-oil.

From Residue To Carbon: Founded in 2024, LongStraw Carbon uses pyrolysis to convert agricultural waste into biochar, bio-oil and syngas. By heating biomass in the absence of oxygen, the startup transforms crop residue into products that can replace wasteful burning while retaining carbon in a stable form.

The Circular Model: LongStraw’s work begins with local biomass procurement. In Odisha, its projects source rice husk and other residues from nearby mills, then process the material into biochar and related outputs. The startup also claims that this approach can improve soil health, reduce dependence on fertilisers and create local employment.

Commercialising Carbon: The startup sells biochar to farmers and industrial customers, while generating additional revenue from bio-oil. Its model also connects to voluntary carbon markets, where companies are seeking independently assessed removal credits to support net-zero commitments. 

Scaling The Platform: LongStraw is targeting 1 Lakh tonnes of biochar production annually by 2028. The company is building around rice-mill partnerships and a circular “Riceloop” model that connects feedstock, energy, soil applications and carbon finance. So, can LongStraw turn biochar into a credible carbon removal business?

Infographic Of The Day

Zerodha has turned 16. But behind the cake, cameras and celebrations is a company that’s still family-owned, founder-led and bootstrapped. So, who actually owns Zerodha?

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