Newswala aaya, taaza khabre laya! Good morning!
 

MARKETS

Markets: Despite ups and downs in world markets, Indian stocks stayed strong thanks to confident investors. The stock market in India showed small gains, with both the Nifty and Sensex going up.

BUSINESS

Zomato Eyes E-commerce Throne with Blinkit Expansion

What happened

Zomato is set to turbocharge its 10-minute delivery platform, Blinkit which might give Amazon and Flipkart a run for their money.

The platform witnessed an impressive surge in its gross order value (GOV), doubling to a staggering ₹3,542 crore in Q3FY24, marking a jaw-dropping 103 % YoY growth from ₹1,749 crore in Q3FY23.

Zomato's CEO, Deepinder Goyal, had already hinted at Blinkit's promising future back on August 3, 2023, boldly stating that Blinkit would outshine the core business in delivering shareholder value over the next decade. 

Why it matters

Zomato's ambitious plan to expand Blinkit beyond the realm of food delivery could shake up the e-commerce landscape.

By venturing into the direct-to-consumer (D2C) space, Zomato is preparing to go head-to-head with industry giants.

The company is reportedly working on building its supply chain to source products directly, challenging the traditional e-commerce model.

• Additionally, Zomato's financial report for the October-December period boasts a net profit of ₹138 crore, marking the third consecutive profitable quarter. 
  

• The revenue soared by 69% YoY to ₹3,288 crore, despite challenges faced by the broader e-commerce sector.

Already in talks with individual brand owners across various categories, Zomato aims to manage the flow of products without directly owning inventory, adopting a marketplace-like approach.

The move signals a long-term growth strategy, with potential acquisitions in the pipeline. Notably, attempts to merge Shiprocket have been on the table, although Shiprocket has, so far, declined the offer.

Zoom out

As Zomato places its bet on Blinkit's expansion, the company is not only aiming for a slice of the e-commerce pie but also signalling a shift in the dynamics of the quick-commerce and food delivery sector.

With Blinkit on the rise, backed by impressive numbers, Zomato looks ready for an exciting chapter ahead.

BIG MONEY MOVES

SoftBank stocks soar on CEO Son's $100 billion project for AI Chips

Tokyo's SoftBank Group Corporation witnessed a 3.2% surge in its stock value as founder and CEO Masayoshi Son sought funding options for a groundbreaking $100 billion AI chip venture.

The project, codenamed Izanagi, is anticipated to challenge industry giant Nvidia Corp.

The strategic move aims to bolster SoftBank's position in the semiconductor market, complementing its majority stake in chip design company Arm Holdings Plc.

Byjus scores big with a $300 million commitment to the ongoing rights issue

Byju's, the ed-tech giant, has secured a significant commitment of $300 million from investors in its current rights issue, set to conclude by the end of February.

The company initiated the rights issue in January, aiming to raise $200 million at an enterprise valuation between $220-250 million – a noteworthy 99% reduction from its peak valuation of $22 billion.

Negotiations with dissatisfied investors are ongoing, with Byju's offering to appoint two independent directors post the rights issue to bolster transparency.

BUSINESS

Adani Group Sets Sights on $2.6 Billion Funding for Airport and Green Hydrogen Ventures

What happened

Gautam Adani's conglomerate, the Adani Group, is actively engaged in talks to raise a whopping ₹21,577 crore (approximately $2.6 billion) for the expansion of its airport business and advancements in the green energy sector. 

The group's flagship entity, Adani Enterprises, is exploring options to reduce its stake in either the airport-holding firm, the green hydrogen business, or both, to secure investment funds.

The company has also conducted roadshows in London, Dubai, and Singapore, showcasing its growth plans and enticing potential investors.

Why it matters

The Adani Group's pursuit of $2.6 billion funding holds significance as it aligns with its goal of achieving an EBITDA of ₹80,000 crore by March 2024.
 

• This funding will facilitate the expansion of the airport business and advancements in green energy projects, enabling the conglomerate to secure its position as a major player in these rapidly evolving industries.
  
  

• Secondly, it will also fuel the implementation of strategic plans outlined during global roadshows, reinforcing the group's commitment to achieving substantial earnings growth.

And, this great news will surely reflect on the stock prices, which have already nearly doubled in the last year.

Zoom out

The Adani Group's pursuit of funding for airport and green hydrogen ventures underscores its resilience and determination post the Hindenburg saga.

Gautam Adani's net worth, which plummeted by over $80 billion during the rough time, has rebounded swiftly, briefly surpassing that of Reliance boss Mukesh Ambani to make him the richest person in Asia.

BIG PICTURE

PhysicsWallah's profit plummets amidst expansion spree

PhysicsWallah, led by Alakh Pandey, experienced a hefty 91% decline in net profit for FY23, dropping to ₹ 8.9 Cr from ₹ 98.2 Cr in FY22.

Despite a robust 234% surge in operating revenue to ₹ 779.3 Cr, the ed-tech unicorn's total expenditure skyrocketed by 671%, hitting ₹ 794.5 Cr. Pandey's remuneration also saw a significant dip, halving to ₹ 4.6 Cr.

As PhysicsWallah navigates expansion and acquisitions, it grapples with the challenges of balancing growth and financial stability.

Whirlpool plans $451M stake sale to cut debt and boost growth

Whirlpool Mauritius Ltd, a promoter of Whirlpool of India, plans a $451 million block deal, selling up to 24% of the local unit.

The promoter group, holding 75%, aims to reduce debt. Whirlpool Corp announced on Nov 30, 2023, to sell 24% of its ownership.

The deal's base size is $282 million, with an upsize option of $169 million, representing 15% and 9% of the outstanding share capital, respectively.

The proposed floor price is Rs 1,230 per share, a 7.6% discount to the last trading price of Rs 1,331.20.

BUSINESS

India's Onion Crisis Leaves Consumers 'Cutting Onions’

What Happened

India, renowned for its onion abundance, is set to grapple with a significant twist – a looming onion shortage until the next Kharif crop.

This stark shift comes on the heels of a surplus, with the nation experiencing a glut in onion supplies and steady prices due to an export ban.

The cause? Erratic monsoons in 2023, particularly deficient rainfall in key onion-producing states like Maharashtra and Karnataka.

Why It Matters

The shortage is no onion-munching joke. A potential 30% drop in the rabi harvest could lead to a spike in onion prices around Ramadan in early March, adding a spicy kick to culinary preparations during the festive season.

The deficient rainfall not only impacted onion production but also staple foods like pulses and sugar.

Industry estimates suggest a 13% decrease in tur dal output, keeping prices high throughout the year.

The matter also took a nuanced turn as onion exports persisted, cleverly disguised as tomatoes or grapes to circumvent the ban.

The concern over avoiding excessive exports is acknowledged by exporters who emphasize the potential crisis in onion prices until the next Kharif crop.

They propose a controlled approach, suggesting measures like appointing a canalising agency, imposing an export duty, mandatory advance payments, and issuing no object certificates (NOC) for small quantities.

Zoom Out

The onion, once a humble kitchen staple, is now at the heart of a complex financial and agricultural tale with potential repercussions for the global market.

With global shortages and India as a key onion source, the contrast in international ($1000-1400 per tonne) and Indian ($350 per tonne) prices makes this onion export journey worth keeping an eye on.

Balancing act, anyone?

MIRCH MASALA

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