Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Markets bounced back sharply this Friday, turning positive for the week, with Sensex and Nifty rising 0.4% each and the Nifty Bank up 0.1%. IT stocks led the charge, with the Nifty IT index gaining nearly 7% over two weeks, while PSU banks and FMCG stocks weighed on the week's performance.

TOP STORIES

Zepto FY24 Haul Delivers Big Bucks

What happened?

Zepto, the quick-commerce prodigy, doubled its operating revenue to ₹4,454 crore in FY24—its first year as a unicorn. Losses, however, remained steady at ₹1,248 crore (down a tiny notch from ₹1,272 crore), thanks to expenses ballooning 65% to ₹5,747 crore. 

Founded in 2021 by Stanford dropouts Aadit Palicha and Kaivalya Vohra, Zepto joined the billion-dollar unicorn club in August 2023 with a $1.4 billion valuation after raising $200 million. 

Why it matters

India’s quick-commerce market is on fire, growing 77% in 2023 to hit $2.8 billion in gross merchandise value (GMV). Zepto now commands a 28% market share, eating into Swiggy Instamart’s pie, though Blinkit still leads with 40%. Zepto’s 300 dark stores—those mysterious warehouses behind your lightning-fast deliveries—are already profitable and will double to 700 by March 2025. 

But what actually is Zepto’s edge? It stands apart from rivals like Blinkit and Instamart by directly owning its inventory instead of operating a marketplace.

Final words

Zepto isn’t just delivering groceries; it’s delivering a revolution. Backed by deep investor pockets, its rise has pushed giants like Flipkart and BigBasket to step up their game. With a unique model, massive market share growth, and an IPO on the horizon, Zepto’s founders are proving that dropping out of Stanford might just be the secret to success. 

Plus, they are adding new categories with higher order values,  gunning for $3 billion in annualised sales soon.  

PAISON KA KHEL

IndiQube sets stage for ₹800 crore IPO

Bengaluru-based IndiQube, a workplace solutions firm, is prepping for its ₹800 crore IPO filing next week. The offering includes a ₹700 crore fresh issue and ₹100 crore from promoter stakes. Proceeds will fuel new centres and tackle debts, with ICICI Securities and JM Financial as bankers.

Competing with WeWork and Awfis, IndiQube shines with a 33.8% CAGR and clients like Tata Digital and Air India. 

ED returns ₹4,025 crore assets in Bhushan Steel fraud case

The Enforcement Directorate (ED) handed over ₹4,025 crore worth of assets to JSW, the winning bidder for Bhushan Power and Steel under the Insolvency and Bankruptcy Code. These assets were previously seized during a probe into alleged bank fraud and fund diversion by Bhushan Steel’s former promoters. The Supreme Court greenlit the restitution, marking a significant move under the Prevention of Money Laundering Act (PMLA).

TOP STORIES

India’s ROE Rockets to Global Spotlight

What happened

India has made impressive strides in the world of business, with 34% of its listed companies posting a Return on Equity (ROE) of 14% over the past decade. Not bad for a country traditionally more known for its cricketing triumphs than corporate feats!

India now ranks second globally, just behind the US, where 39% of firms posted an even higher 15%. In comparison, countries like China, Mexico, and Brazil are trailing behind, with only 20% of firms achieving double-digit returns. 

Why it matters

ROE is the golden metric that reveals how efficiently companies turn shareholders’ money into profits. The higher the ROE, the better the company is at generating returns, and India’s numbers certainly don't disappoint. A strong ROE is a key factor behind India’s stellar stock market performance, outpacing other emerging markets like China, where the ROE is a negative 2.5%. 

• With a 6% ROE, India has emerged as a top performer, attracting foreign portfolio investments that have more than doubled over the past decade. 
  

Zoom out

Sure, there’s been a minor setback this year with ₹3,148 crore pulled out due to geopolitical concerns, but don’t worry—financial experts are optimistic that foreign funds will be back in full force soon.

As consumer demand rises, infrastructure development accelerates, and corporate earnings are set for a rebound, India’s stock market is gearing up for even greater gains.

GLOBAL NAZARA

Central banks around the world to make big calls

A pivotal 24 hours is ahead for global markets as central banks, including the US Federal Reserve, prepare to make key interest rate decisions. The Fed is anticipated to cut rates by 0.25%, signalling a shift, while institutions like the Bank of England and Bank of Japan are expected to hold rates steady. 

By week’s end, 22 central banks, representing 40% of the world’s economy, will have announced their policies. With inflation cooling in some regions and concerns about trade policies rising, investors are in for a crucial week that could shape the economic landscape for 2025 and beyond. 

Blackstone makes a €470 million bet on Czech warehouses

Blackstone has snapped up 10 logistics parks in the Czech Republic for €470 million ( $495 million ). These warehouses cover a massive 500,000 square meters, catering to the ever-growing demand for storage as online shopping booms.

With warehouses now making up 60% of its European portfolio, Blackstone is doubling down on logistics, even as others shy away due to high interest rates. Betting on rising rents, the firm has invested €2.5 billion in warehouses across Europe this year alone.

TOP STORIES

Indian Businesses Hit by Swiss Tax Hike

What happened?

Switzerland has decided to hit the pause button on the Most Favoured Nation (MFN) status it had granted India. Starting January 1, 2025, Indian businesses in Switzerland will face a higher 10% withholding tax on dividends. 

This follows a Supreme Court ruling in October 2023, which stopped India from automatically enjoying reduced tax rates through Switzerland’s treaties with other countries. The trigger? A tax dispute involving Nestlé, proving even chocolate giants can cause bitter aftertastes.

Why it matters

For Indian companies, this is like finding out your favourite discount card doesn’t work anymore. Industries like tech, finance, and manufacturing will need to budget for higher taxes, cutting into their profits.

The MFN clause had been a sweet deal, letting Indian entities benefit from Switzerland’s treaties with nations like Colombia. Now, with that benefit gone, businesses will need to rethink how they manage costs and investments in the region.

That’s not all

While this tax twist stings, there’s still some good news. Trade agreements like TEPA with European Free Trade Association nations and a potential EU free trade pact could soften the blow. But for now, Indian businesses will have to adapt to this tax hike. As for Switzerland, it’s playing by the rules of global tax law—even if it’s leaving Indian firms to foot a heftier bill. In international business, as in life, nothing stays “most favoured” forever.

MIRCH MASALA

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