Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Indian benchmark indices closed almost unchanged in a volatile session on June 11. The Sensex dipped 33.49 points (0.04%) to 76,456.59, while the Nifty edged up 5.60 points (0.02%) to 23,264.80.

BUSINESS

Zomato Pumps ₹300 Crore into Blinkit as Quick Commerce War Heats Up

What happened

Zomato, the food delivery giant, is injecting ₹ 300 crore into Blinkit, its quick commerce unit. This brings Zomato’s total investment in Blinkit to nearly ₹ 2,300 crore since acquiring the company in August 2022 for ₹4,477 crore in an all-stock deal. Additionally, Zomato is putting ₹ 100 crore into its subsidiary, Zomato Entertainment Pvt Ltd, which handles live events and ticketing.

The competition in the quick commerce space is fierce, with Blinkit battling rivals like Swiggy Instamart and Zepto, and even e-commerce player Flipkart eyeing an entry into this sector.

Why it matters

This substantial infusion of cash shows the intensifying competition in the quick commerce market. Blinkit’s major competitors, Swiggy and Zepto, are also making significant moves. 

• Swiggy has filed for a ₹10,414 crore IPO, and Zepto is negotiating a $300 million (about ₹2,500 crore) funding round.
  
   

• Blinkit’s revenues have surged, reaching ₹2,302 crore in fiscal 2024, more than double the ₹1,064 crore from the previous year. 
  
  

• The company's losses are also shrinking, with an adjusted EBITDA loss of ₹37 crore in Q1 2024, a significant improvement from ₹203 crore the previous year. 
  

With such a financial landscape, Zomato's strategic investments aim to bolster Blinkit's position in the market.

Zoom out

As the battle with Swiggy and Zepto intensifies, Zomato is doubling down on its commitment to Blinkit, aiming to leverage its resources and improve its market position. Blinkit plans to expand its dark store count to 1,000 from 562 by March 31, reflecting its aggressive growth strategy. According to Goldman Sachs , the company's value has skyrocketed, contributing $13 billion to Zomato’s value, up from $2 billion in March 2023.

BIG MONEY MOVES

Mistral AI secures €600 million in funding, valued at €5.8 billion

Mistral AI, based in France, has raised €600 million ($643.7 million) in its latest funding round led by General Catalyst, boosting its valuation to €5.8 billion . This substantial increase from its previous valuation of €2 billion reflects the growing interest in AI technologies.

Following a recent partnership with Microsoft, the company plans to use the funds to enhance its AI capabilities, expand internationally, and strengthen its presence in the U.S. 

Kotak Alt invests ₹1,445 crore in Matrix Pharma

Kotak Alternative Asset Managers, part of Kotak Mahindra Group, has injected ₹1,445 crores to aid Matrix Pharma's acquisition of Viatris' active pharmaceutical ingredients (API) business. This move positions Matrix Pharma as India's second-largest player in antiretroviral API, accessing Viatris’ expertise and a repository of over 600 drug master files.

The infusion from Kotak Alt will bolster Matrix Pharma's API leadership, focusing on third-party sales and exploring opportunities in the pharma contract development and manufacturing sector.

BUSINESS

India's Semiconductor Industry Faces Talent Crunch

What happened

India's semiconductor industry is anticipated to confront a significant shortfall of 250,000 to 300,000 professionals across key segments such as research, development, manufacturing, design, and advanced packaging by the year 2027.

To strengthen its position in the global semiconductor market, India has introduced a ₹76,000 crore incentive scheme. This initiative aims to secure a substantial share of the semiconductor manufacturing market.

Why it matters

The looming shortage demands prompt action to bolster India's semiconductor ecosystem. Initiatives like the government's semiconductor incentive scheme, which has already greenlit four projects, are pivotal in addressing this talent crunch.

Sumit Kumar, Chief Business Officer at TeamLease Degree Apprenticeship, highlighted the surge in apprenticeships within the electronics industry, signalling a robust 12.2-fold increase from 2019-20 to 2023-24. This growth signifies a collective effort from industry players, academia, and training organisations to nurture a skilled semiconductor workforce.

Zoom out

India is gearing up for a booming $100 billion semiconductor sector by 2030. This growth hinges on strong teamwork between companies, the government, and schools. Over 300 top Indian colleges now offer specialized courses in semiconductors, showing how we're preparing a skilled workforce for the future. This proactive strategy and focus on skill-building are crucial for India to shine brightly in the global semiconductor market.

BIG PICTURE

Apple teams up with OpenAI to launch new AI system

Apple has partnered with OpenAI to integrate ChatGPT into its devices, unveiling a new " Apple Intelligence " system at the Worldwide Developers Conference. CEO Tim Cook described it as "AI as only Apple can deliver it." The system aims to enhance Siri's capabilities, making it smarter and more personalised.

This move comes as Apple looks to catch up with Big Tech rivals like Alphabet, Microsoft, Amazon, and Meta, who are heavily investing in AI.

Adani's Sri Lanka wind project offers the cheapest tariff

Adani Group is setting up two wind power projects in Sri Lanka, totalling 484 MW, and has offered a tariff of LKR 24.75 per unit (about 8.25 cents). This is significantly lower than existing tariffs for renewable and traditional energy in the country, which range from 8.75 to 26.99 cents.

The Sri Lankan government has signed a 20-year power purchase agreement with Adani Green Energy (AGEL) for power from these wind farms in Mannar and Pooneryn. The projects are expected to start operations within two years and will help Sri Lanka meet its growing power demand and sustainability goals.

BUSINESS

India's Fast-Food Boom: Domino's Leads Rapid Expansion

What happened

India’s quick-service restaurant (QSR) market is sizzling hot, growing at an impressive 23% compound annual growth rate (CAGR) between FY21 and FY25. On Monday, Domino’s Pizza celebrated a major milestone by opening its 2,000th outlet in India. This achievement marks India as the first country outside the US to reach such a high store count for Domino’s.

Why it matters

Domino’s isn't the only fast-food chain with ambitious expansion plans in India. McDonald's, through Westlife Foodworld, opened 41 stores in FY24 and aims for 45-50 more in FY25. Devyani International, operating KFC, Costa Coffee, and Pizza Hut, plans to add 275-300 new stores in FY25, with substantial investments earmarked for expanding its footprint. Sapphire Foods, another player in the QSR sector, aims to double its outlet count based on its December 2021 base.

• India’s fast-food market, valued at ₹4,236 billion in FY20, is expected to grow significantly, driven by the QSR segment. 
  
  

• Organized QSRs, which held a market size of ₹348 billion in FY20, are projected to increase their share from 54% to 64% by FY25.

 This rapid growth is fueled by urbanization , changing consumer preferences, and increased disposable income.

Zoom out

The fast-food frenzy in India is far from over. Domino’s, McDonald's, KFC, and others are racing to capture a larger slice of the growing market. Jubilant FoodWorks, the master franchisee for Domino’s in India, plans to open up to 4,000 stores mid-term, reflecting the immense growth potential. Despite potential near-term demand challenges, the long-term outlook for the QSR industry remains bullish.

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