Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: After a sharp decline last week, the market stayed volatile and is predicted to remain rangebound with a negative bias in upcoming sessions. Bank Nifty bears continued their dominance for the sixth straight session on March 15, dropping 196 points.

BUSINESS

Flipkart's Valuation Declines by Over ₹41,000 Crore in Two Years

What happened

Flipkart, one of India's leading e-commerce giants, has witnessed a significant drop in its valuation, plummeting by over ₹41,000 crore within just two years. The company's valuation, which stood at a robust $40 billion in January 2022, has now dwindled to $35 billion by January 2024, marking a notable decrease of $5 billion.

This downward trend in valuation has raised eyebrows and sparked discussions within the business and investment communities. The shift in Flipkart's valuation trajectory can be attributed to several key factors, primarily stemming from equity transactions orchestrated by its parent company, Walmart.

Why it matters

The decline in Flipkart's valuation holds significant implications for the e-commerce landscape and investor sentiment. It reflects the dynamic nature of the market and the impact of strategic decisions on company valuations. 

• The demerger of PhonePe, Flipkart's fintech arm, into a separate entity further contributed to the dip in valuation. 
  
  

• Delving deeper into Flipkart's financial landscape, the company reported a net loss of ₹4,846 crore and a consolidated net total income of ₹56,012 crore in the fiscal year 2023. 
  
  

• Total expenses during this period amounted to ₹60,858 crore, shedding light on the intricate financial dynamics at play.

Zoom out

Despite the apparent decrease in valuation, Flipkart remains a formidable player in the e-commerce sector. Its strategic partnerships, innovative offerings, and continued growth in Gross Merchandise Value (GMV) position it favourably for future valuation assessments. 

• The GMV witnessed a notable surge, growing in the range of 25-28% year-over-year, reaching an impressive $30 billion in 2023.

This surge in GMV, coupled with near profitability, underscores Flipkart's resilience and potential for value restoration soon.

BIG MONEY MOVES

Apple to pay $490 million in lawsuit settlement over iPhone demand disclosure

Apple has agreed to a $490 million settlement in a class-action lawsuit accusing CEO Tim Cook of concealing declining iPhone demand in China from shareholders. The preliminary settlement was filed with the U.S. District Court in Oakland, California.

The lawsuit stemmed from Apple's 2019 announcement of slashing quarterly revenue forecasts by up to $9 billion due to U.S.-China trade tensions, leading to a 10% drop in Apple's share price. Despite denying liability, Apple settled to avoid litigation costs and distractions.

Vodafone seals 8 billion euros deal with Swisscom

Telecom giant Vodafone has finalised an 8 billion euros ($8.7 billion) deal with Swisscom, selling its Italian unit and effectively concluding its European operations restructuring. This agreement marks the culmination of Vodafone's efforts to streamline its operations and enhance shareholder value.

Vodafone's decision to sell its Italian business comes after rejecting Xavier Niel's Iliad group offers, indicating a carefully planned cost-cutting strategy. The UK-based company aims to return 4 billion euros to shareholders following the successful divestment of its Italian and Spanish businesses, totalling 12 billion euros.

BUSINESS

chargeMOD to Deploy 1,200 Chargers Across India

What happened

Kerala-based energy tech startup 'chargeMOD' is making waves in the electric vehicle (EV) charging industry by announcing plans to deploy 1,200 additional EV chargers across India, with 600 of them slated for Kerala. The company aims to set up 1,000 slow chargers and 200 fast chargers nationwide, along with 500 slow chargers and 100 fast chargers in Kerala. These efforts are in addition to the existing 1,500 charging stations in Kerala and 2,000 stations across India.

Why it matters

'chargeMOD's expansion signifies a significant step forward in promoting EV adoption in India. 

• The introduction of Ultra Fast Chargers with capacities ranging from 120 kW to 340 kW promises enhanced charging speeds and convenience for EV users.
  
  

•  By strategically placing AC slow chargers within a 5 km radius and DC fast chargers within a 50 km radius, 'chargeMOD' prioritizes accessibility and convenience for EV users nationwide.

The company's commitment to quality, affordability, and sustainability is evident through its efforts to prevent greenhouse gas emissions and save gasoline. 

Zoom out 

With over 2,000 charging stations across 10 states and customer support in six languages, 'chargeMOD' has established itself as a key player in the EV charging sector. The startup's innovative approach, including the development of an indigenous mobile app for charging stations, has set new standards in the industry.

BIG PICTURE

✈️ Adani is building a $2 billion vision for Mumbai's new airport

Adani Group is embarking on a massive $2.1 billion airport project in Navi Mumbai, about 22 miles southeast of the city's existing congested airport. This project, symbolizing India's infrastructure overhaul, is crucial in PM Modi's vision to rival China's development pace.

Scheduled to open in March next year, the airport initially aims for 20 million passengers annually, scaling up to 90 million by 2032 if demand persists. The airport's strategic location makes it a potential international transit hub, aligning with India's aviation growth ambitions.

❓️ Google under investigation by CCI for alleged fair pricing violations

India's Competition Commission (CCI) has launched a probe into Google's pricing methods, citing concerns of discriminatory practices. This probe comes amid concerns that Google's policies discriminate between physical and digital services offered on the Google Play app marketplace.

While apps providing services like food delivery or ride-hailing are not charged, digital services like dating or music streaming platforms face fees ranging from 11% to 30%.

BUSINESS

REC Arm and Bhel Join Forces for Renewable Energy Projects in India

What happened

State-owned REC Ltd's arm REC Power Development and Consultancy Ltd and Bharat Heavy Electricals Ltd (Bhel) have joined forces to develop renewable energy projects across India. This collaboration involves setting up a special purpose vehicle (SPV) dedicated to creating renewable energy projects for distribution to distribution companies.

The SPV will benefit from Bhel's engineering expertise and REC Limited's infrastructure investment know-how. Initially targeting the commercial and industrial (C&I) segment, the SPV aims to start with a capacity of 1 GW, which will be expanded over time.

Why it matters

This partnership holds significant importance in India's pursuit of achieving its ambitious renewable energy targets, particularly the goal of reaching 500 GW of installed renewable energy capacity by 2030. 

• With India's current renewable energy capacity exceeding 170 GW and the government's plan to add 50 GW annually until FY28, collaborations like the REC arm and Bhel's tie-up become crucial for meeting these targets.
  
  

• Despite concerns about the feasibility of annual installation targets, industry experts, including rating agency Icra, project substantial growth in renewable capacity installation in the coming years, with an estimated 20 GW in FY24 and 25 GW in FY25.

Zoom out

REC CMD Vivek Kumar Dewangan emphasized the SPV's pivotal role in contributing to a cleaner and greener future, aligning with India's sustainable energy goals. This collaboration not only signifies a strategic partnership but also underscores the collective effort towards sustainable energy development in India.

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