Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Funds are shifting from expensive Indian stocks to cheaper Chinese ones, driven by China’s stimulus policies. BoJ's potential interest rate hike and falling oil prices due to OPEC's production plans may impact markets. Domestically, investors are closely watching the RBI's upcoming policy meeting and Q2 results for further market direction

TOP STORIES

BharatPe and Ashneer Grover Call It Quits

What happened

After more than two years of back-and-forth, BharatPe and its co-founder Ashneer Grover have finally buried the hatchet. Both parties have reached a settlement, which includes Grover cutting all ties with the company. 

His shares, which once sparked fiery debates, are being transferred to a family trust, while BharatPe continues to focus on its growth. All legal cases between Grover and BharatPe have been dropped, putting an end to one of the most high-profile startup disputes in India.

Why it matters

This settlement concludes a corporate drama that had the Indian startup world buzzing. It was more than just a spat between a company and its co-founder—it raised red flags about governance in well-funded startups. 

• BharatPe, which has raised over $600 million, was valued at $2.7 billion in 2021. 
  

With Grover out of the picture, BharatPe is now free to shift gears and focus on securing new funding, which has been on pause due to the drama. The board, led by Rajnish Kumar, is eyeing fresh capital to fuel its growth, with a possible $50 million infusion on the horizon.

Zoom out

BharatPe can now breathe a sigh of relief. Whether this settlement marks a smooth road ahead for BharatPe remains to be seen, but at least it’s no longer stuck in the quagmire of internal battles. For Grover, it's a wrap on his chapter with BharatPe, though his legacy—and the headlines he made—won’t fade anytime soon.

PAISON KA KHEL

Andhra Pradesh's liquor policy hits the mark

Andhra Pradesh is shaking things up with a new liquor policy set to kick in on October 12, 2024. The state plans to launch 3,736 private retail shops selling spirits, hoping to reel in ₹ 5,500 crore in revenue. With drinks priced at just ₹ 99, the government aims to tackle illicit alcohol use while giving low-income groups affordable options. The policy also features an online lottery for license allocation, with fees ranging from ₹50 lakh to ₹85 lakh. 

RVNL clinches ₹283.69 crore order

Rail Vikas Nigam Ltd (RVNL) has secured an order worth ₹283.69 crore from East Coast Railway, as confirmed in a BSE filing on October 1. The project, which includes building the third and fourth lines between Jarapada and Talcher Road, is set to be completed in the next two years. 

RVNL, having emerged as the lowest bidder, will also tackle various tasks like minor and major bridges, earthworks, and supply of ballast. Despite a minor dip in share prices, RVNL’s stock has surged nearly 190% this year. 

TOP STORIES

India's rice exports bounce back

What happened

After a year of export restrictions, India is set to reclaim its dominant position in the global rice market.

•  In response to domestic price hikes, the Indian government banned white rice exports and imposed a 20% export duty on parboiled rice in 2023. 
  

However, in recent changes, the government lifted the ban on non-basmati white rice and reduced the duty on parboiled rice to 10%. A minimum export price (MEP) of $490 per tonne on white rice has been introduced, showing a renewed surge in exports, particularly to Africa and Southeast Asia.

Why it matters

For a country that accounts for 40% of the global rice trade, these changes matter. 

• Prior to the restrictions, India exported 17 million tonnes (MT) of non-basmati rice annually. 
  

The removal of the white rice ban will now boost high-value rice exports, leading to a global dip in rice prices. With rising demands for premium rice varieties like Sona Mussoorie and Jeera Kasal, India’s rice traders are excited about exploring new markets. 

• Stock prices of major rice companies have already reacted, with Kohinoor Foods and ChamanLal Setia Exports seeing gains of 27.9% and, 32.2% respectively.

Final words

As the world's largest rice exporter, India’s return to the market is a big deal. Not only will it stabilize global rice prices, but it will also allow the country to expand its portfolio of premium rice products globally. While broken rice remains off the export list, the easing of restrictions on other rice types will likely strengthen India’s trade position. 

Don’t miss this great read on how  basmati rice revenue is expected to reach a record ₹ 70,000 crore?

GLOBAL NAZARA

Dow dips as oil prices surge amid Middle East tensions

On Tuesday, U.S. stocks stumbled as escalating tensions in the Middle East sent investors scrambling. The Dow Jones fell 168 points (0.4%), the S&P 500 slipped 1.1%, and the Nasdaq took a hard hit, dropping nearly 2%. As reports surfaced that Iran might be preparing to launch missiles at Israel, crude oil prices spiked nearly 4%, with West Texas Intermediate hitting $71.09 per barrel.

Goldman dives into Thames Water debt 

Goldman Sachs has been busy trading around £3 billion ($4 billion) of Thames Water bonds this September, connecting investors bailing out of the troubled company with hedge funds eager to grab a bargain. With Thames Water drowning in debt and struggling to raise equity, opportunistic buyers are swooping in, especially after S&P and Moody's slashed the company's credit ratings.

TOP STORIES

CRED edges toward revenue milestone

What happened

CRED, the fintech unicorn known for its reward-based payments platform, has reported a remarkable 66% revenue growth for the fiscal year ending March 2024, bringing total revenue to ₹ 2,473 crore. 

• Operating losses also saw a significant reduction of 41%, now close to ₹ 609 crore, down from ₹ 1,024 crore in FY23. 
  

• The company’s scale has surged 5.8 times over the last two years, with total payment value (TPV) skyrocketing 55% to ₹ 6.87 lakh crore. 
  

Why it matters

CRED's impressive numbers are backed by strategic shifts and customer-centric innovations. With 34% more monthly transacting users and a 58% increase in monetized members, the platform has maintained a consistent contribution margin-positive status for nine consecutive quarters. 

• Strong adoption of peer-to-peer (P2P) UPI payments and CRED Pay across online merchants contributed to this success, with transaction volumes soaring by 254%.

The problem

However, challenges lie ahead. The recent RBI regulations on P2P lending could slow revenue growth in this key sector. Although customer acquisition costs have decreased by 40% and marketing expenses by 36%, the company faces a gap between product launches and revenue realization. 

Additionally, despite an expanding user base, the shopping and travel segments have yet to make a notable impact on the company’s overall revenue. 

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