Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The Sensex plunged 692.89 points to 78,956.03, while the Nifty slipped 208 points to 24,139 on Tuesday. All sectoral indices ended in the red, with notable losses in banking, power, and oil & gas sectors.

TOP STORIES

Udaan's 'Project Iota' Sparks Food Business Boom

What happened

Udaan, the B2B e-commerce giant, has successfully launched 'Project Iota', a strategic initiative designed to combat cash burn and boost profitability. This new initiative has catapulted Udaan’s food business with a dazzling 50-55% growth in the first half of 2024.

Not just that, their buyer base has expanded by 40% compared to the last half of 2023. How? By slicing cities into tiny 2-3 kilometre chunks and focusing on just 15 key clusters instead of 1,000 cities. Alongside, Udaan has scaled back on non-essential segments like fashion and electronics.

Why it matters

This new approach is like giving Udaan’s business a real ‘udaan’. By zooming in on these micro-markets, they’re offering better deals and quicker service.

•  In Bengaluru alone, they’ve reached 70,000 out of 100,000 stores, and customers are sticking around with a 95% retention rate. 
  
  

• The FMCG segment is on fire with a 70-75% growth.
  

Udaan’s plan is to take this winning strategy and roll it out across their other major markets in India. With an 8% market share, they’re now the third-biggest player after IndiaMart and TradeIndia.

Conclusion

Udaan’s Project Iota is turning out to be a game-changer. By focusing on smaller, more manageable markets and cutting down on less profitable segments, Udaan is not just growing; it’s thriving. If they can keep this momentum going and spread their successful model across the country, they’re on track to make a big splash in the B2B world.

PAISON KA KHEL

SBI plans to cash out of Yes Bank with $2.2 billion sale by March

State Bank of India (SBI) is ready to wave goodbye to its 24% stake in Yes Bank, aiming to bag a hefty ₹18,420 crore ($2.2 billion) by March. Japanese giant Sumitomo Mitsui and Dubai's Emirates NBD are in the race to grab a majority stake in the revived bank. The Reserve Bank of India (RBI) has given a thumbs-up—well, sort of—so the deal could wrap up soon. SBI’s play? They swooped in to rescue Yes Bank in 2020, and now, they’re making a stylish exit with pockets full. 

Bajaj Finance takes a $500 million leap into global funds

India’s top shadow bank, Bajaj Finance Ltd., is on the hunt for up to $500 million from global loans. With domestic borrowing options tighter than a pair of skinny jeans, Bajaj is negotiating with four foreign banks to snag the cash. 

The loan, tied to the Secured Overnight Financing Rate (SOFR)—the hot new benchmark on the block—will help Bajaj navigate the rough waters of new RBI rules. 

TOP STORIES

India and Russia Plan Direct Rupee-Rouble Market

What happened

India and Russia are hatching a clever plan to dodge the dollar and its trade barriers by setting up a direct rupee-rouble exchange rate. Since the Ukraine conflict began, trade between the two countries has led to a stockpile of rupees sitting idle in Russian accounts.

This is largely because India has been buying way more from Russia than it’s been selling. Now, the Reserve Bank of India (RBI) is gathering feedback from banks to figure out how to put those rupees to work.

Why it matters

Russian banks are itching to invest this money in Indian stocks and securities, but they need a system that doesn’t involve the U.S. dollar as the middleman.

The dollar has been playing the role of the middleman in converting currencies between India and Russia, but U.S. sanctions have made things tricky. Most Russian banks can’t use SWIFT, the global system for cross-border payments, which means business as usual is out the window. 

Here comes the rupee-rouble exchange rate—a direct way to swap currencies without getting the dollar involved. This setup could save time and headaches, making transactions smoother and faster. 

Final words

Think of it as setting up a private trading lane just for India and Russia. And with the RBI and Bank of Russia potentially stepping in as market referees, both countries could trade more confidently, knowing there’s a safety net.

If India and Russia pull it off, their trade relationship could get stronger, more efficient, and less dependent on the whims of global politics.

GLOBAL NAZARA

Tesla’s India dream turns into a $1,000 no-show

Back in 2016, Elon Musk invited eager Indians to reserve a Tesla Model 3 with a $1,000 deposit. Fast forward eight years, and the only thing driving is the customers... to other brands! With Tesla's India plans lost in a fog of high taxes and unclear strategies, many early adopters are now demanding their deposits back.

As India's EV market booms with luxury options, Tesla's absence feels more like a promise that never made it out of the garage.

JSW Steel to secure a majority stake in Australian coal mine for $170 million

JSW Steel is making a major move to secure its coking coal supply by acquiring a 66.67% stake in M Res NSW HCC Pty Ltd, an Australian miner, for $170 million. This deal includes an additional $50 million payment by 2030. The acquisition, approved by JSW’s board, is aimed at supporting its expansion plans and addressing the scarcity of premium coking coal in India.

The Australian mines, with reserves of 99 million metric tonnes and a production rate of 6.5 million tonnes per annum, will boost JSW’s supply chain as it aims to increase its steel capacity significantly.

TOP STORIES

Muthoot Finance Achieves 28% Loan AUM Growth

What happened

Muthoot Finance kicked off FY25 with a bang, posting an impressive 28% year-on-year growth in its consolidated loan assets under management (AUM), reaching a record-breaking ₹98,048 crore in Q1 FY25. 

• This growth spurt was fueled by a robust performance across its gold loan portfolio, which alone surged by ₹14,883 crore, marking a 23% year-on-year increase. 
  
  

• The company didn’t just stop at gold; its subsidiaries also shone brightly, contributing 15% to the consolidated loan AUM, reflecting Muthoot's successful diversification efforts.
  
  

• The company's profits also climbed, with the consolidated profit after tax (PAT) rising by 14% year-on-year to ₹1,196 crore.
  
  

Why it matters

Muthoot Finance's stellar performance is more than just numbers on a balance sheet—it signals the company’s strong positioning in India’s financial sector. Amid India's growth as an attractive global investment destination, Muthoot's focus on digital initiatives and a diversified loan portfolio is paying off handsomely.

•  The significant jump in gold loan disbursements, the highest ever in any quarter at ₹73,648 crore, speaks of Muthoot's dominance in the market. 
  

The future

With ₹650 million raised through global bond issuances and the opening of 218 new branches, Muthoot is clearly in expansion mode. Its strategic focus on diversifying its loan portfolio beyond gold loans—such as microfinance, home loans, and personal loans—indicates a forward-thinking approach. 

MIRCH MASALA

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