Insyte Weekly: SA's Food Prices Rise Despite Improving Economic Conditions, The Future of Mobile Gaming and More

Media & Entertainment

As reported by Matthew Mohan-Hickson, as mobile gaming grows, experts predict major trends that will shape its future. Mariusz Gąsiewski, Google’s CEE Mobile Gaming and Apps Lead, highlights three key areas. First, socialization is becoming central to gaming, as games now foster community engagement, helping players feel connected rather than isolated. Second, the integration of the digital and real world is expected to expand, possibly through augmented reality, bridging entertainment and real-life activities. Lastly, there’s an increasing push for localization, with developers adapting games to more languages to cater to diverse audiences, ensuring broader reach and a more personalized gaming experience. These trends aim to enhance user retention and create a more immersive gaming environment.

According to Ashley King, Apple’s upcoming iOS 18.1 update will introduce the ability for Apple Music users to share songs directly on TikTok, making it easier to link music to posts on the platform. This new sharing feature, currently available in the iOS 18.1 beta, allows users to post songs as photos, videos, or private messages. Unlike Instagram Stories, where you can share lyrics but not link songs, TikTok will automatically link the shared song to your post. iOS 18.1 will also include the first set of "Apple Intelligence" tools, such as Writing Tools and notification summarization, while more advanced AI features like Genmoji and an enhanced Siri are expected in later updates. Although some features will be exclusive to the iPhone 15 Pro or newer, the update will be available to all iOS 18-compatible devices.

Edtech

Citing data from INC24’s latest report, startup.fyi reveals that edtech funding in India rose slightly, reaching $278 million in the first nine months, though PhysicsWallah (PW) accounted for $210 million of this total. Without PW, edtech funding in India fell by 75% year-on-year. The K-12 segment remains the most funded within the sector, receiving $5.8 billion between 2014 and 2024. However, there is a shift towards skill-based and real-world learning, with the National Education Policy (NEP) offering new opportunities. Industry experts see the potential for a funding revival, particularly for seed and pre-seed rounds, with technologies like generative AI driving the next wave of innovation. Generative AI is helping create more interactive content, automate administrative tasks, and provide personalized learning, positioning the sector for a potential resurgence. However, investors remain cautious, focusing on early-stage startups rather than large-scale investments.

As reported by Lucy Adams, Revyze, a social learning app designed for Gen Z and Gen Alpha, has raised $6M in a seed round led by Speedinvest and Moonfire, following a $2.2M pre-seed round in 2022. Combining Duolingo's gamified learning with TikTok's short-form video format, the app allows students to learn through verified, peer-created videos and quizzes. Since its August 2022 launch, Revyze has gained over 1 million users, with one-third of all 9th graders in France using it for exam preparation. The platform has amassed over 20,000 videos and 150 million views. Co-founder Guillaume Perrot emphasizes Revyze's shift from passive learning to active, peer-based education supported by AI, making it more engaging and accessible. Revyze has had a significant impact on students like Max, a visually impaired 8th grader, helping him catch up on missed lessons and regain confidence. Looking ahead, Revyze plans to expand into the U.S. by 2025 and introduce more gamified and social features, while building a global team to support its growth.

Fintech

Gloria Methri reported that the MENA startup ecosystem experienced robust growth in September 2024, raising $328.3 million across 60 startups. Leading the region, Saudi Arabia attracted $165.34 million, followed by the UAE with $114.32 million. FinTech was the top sector, securing $134.84 million, driven by the region's rapid adoption of digital financial services, while logistics technology (LogTech) also garnered substantial investment. Late-stage startups saw the most significant gains, raising $129.08 million, reflecting investor confidence in established ventures. However, a significant gender funding gap persists, with male founders receiving 96.79% of the total funds. Despite this disparity and challenges in underdeveloped markets like Iraq and Kuwait, MENA’s startup scene continues to grow, with major success stories like SHIFT, which raised $83 million. The region is poised for continued expansion, particularly in Saudi Arabia and the UAE.

As reported in FFN, Fintech company Storfund has partnered with TikTok Shop to launch "Daily Advance," a fully embedded cash flow solution for U.S. sellers on the platform. This product allows sellers to receive payouts immediately after shipping their goods, addressing the typical 60-day delay faced by e-commerce sellers. Daily Advance aims to help sellers scale by improving cash flow, enabling them to restock faster and grow their businesses. Storfund’s CEO, George Brintalos, highlighted that faster cash flow benefits both sellers and marketplaces. A Minnesota-based seller, Jordan Ellingson, shared how the solution halved his cash cycle, helping his company, Valley Chase, double sales within a year. Daily Advance, designed for the fast pace of e-commerce, allows sellers to maintain momentum and adapt more efficiently. TikTok Shop, known for its successful livestream shopping, continues to grow its e-commerce presence, and this partnership is expected to further support that growth.

AI

According to Cleveland Clinic’s findings, approximately 20% of Americans live with chronic pain, and current treatments often involve opioids, which pose risks of addiction and side effects. In a groundbreaking effort to find non-addictive pain treatments, Feixiong Cheng, Ph.D., and his team at Cleveland Clinic's Genome Center, in collaboration with IBM, are using artificial intelligence (AI) to identify alternative drugs. Their deep-learning framework, LISA-CPI, explores gut microbiome-derived metabolites and FDA-approved drugs, identifying compounds that can interact with specific pain receptors in the body. By repurposing existing drugs, the team aims to target G protein-coupled receptors (GPCRs), providing pain relief without opioids. The AI system quickly analyzes vast data sets to predict how these compounds bind to receptors, offering a promising new method for drug discovery. This collaboration with IBM is part of a broader initiative to advance healthcare research, and the AI approach could be expanded to treat other diseases, including Alzheimer's. Studies are ongoing to validate these findings in the lab, marking an important step forward in pain management and AI-driven drug discovery.

Tourism

The UN Tourism and TUI Care Foundation have launched the "Colourful Cultures" initiative to support artists and artisans in rural African tourism destinations as reported by ATTA. Announced on 4 October, the program will provide grants of up to €20,000 to organizations in ten African countries, including Morocco, Rwanda, South Africa, and Tanzania. The initiative focuses on empowering women and youth in the creative sector, helping them integrate into the tourism economy. UN Tourism Secretary-General Zurab Pololikashvili emphasized tourism's role in preserving cultural heritage and creating rural jobs, marking this as the first-ever "Tourism for Rural Development Small Grants Programme" by the UN. Thomas Ellerbeck of the TUI Care Foundation highlighted its dual aim of promoting economic growth while safeguarding vulnerable communities' cultural heritage.

Retail

Russel Redman shared some insights from The 2024 CPG + Grocery Consumer Report by R.R. Donnelley & Sons (RRD), which highlights growing consumer frustration in the U.S. over rising prices in grocery, gas, restaurants, and other sectors. Of the 1,819 consumers surveyed, 88% expressed frustration with the increased costs, particularly in grocery shopping, with food and beverage prices causing the most dissatisfaction. Consumers are increasingly adopting value-driven shopping strategies, such as stocking up during sales, switching to private labels, and using more coupons. This shift in behaviour presents a challenge and opportunity for brands to focus on offering value through personalized offers and discounts to retain customer loyalty as 45% of shoppers are willing to switch stores for better savings.

The September Essential Food Price Monitoring Report from the Competition Commission highlights the ongoing risk to food security in South Africa due to persistently high food prices relative to consumer incomes, even as overall inflation and food inflation have eased. Positive economic indicators, such as the relaxation of load shedding, a stronger rand against the US dollar, and decreasing fuel prices, could lead to lower food prices if these trends continue. However, many food prices remain high, particularly for low-income households, with stable or increasing costs for maize, brown bread, and tinned fish. The report raises concerns about certain product spreads exceeding historic levels, which may require further investigation, especially for cooking oil and brown bread.

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