Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The markets stayed flat during the trading session without a clear breakout, yet the overall trend remained positive. The bullish sentiment on Dalal Street continues due to declining oil prices signalling limited escalation in Iran-Israel tensions.

BUSINESS

PayU Secures RBI's In-Principle Approval as Payment Aggregator

What happened 

PayU, a leading fintech firm backed by Prosus, has received in-principle approval from the Reserve Bank of India (RBI) to operate as a Payment Aggregator (PA). This approval allows PayU to resume onboarding new merchants on its platform after a wait of nearly 15 months. The company had to reapply for the PA license after the RBI returned its initial application due to complexities in its corporate structure.

Why it matters

The approval from the RBI is a testament to PayU's dedication to compliance and corporate governance. This development underscores PayU's commitment to establishing a globally renowned digital payment infrastructure rooted in India, aligning with the government's Digital India initiative and the RBI's forward-thinking regulations. 

• PayU currently boasts a network of more than 500,000 merchants in India. It operates in three key sectors: payments, credit, and PayTech, with an impressive annual volume exceeding $60 billion.
  
  

• The company has set its sights on the consumer credit sector, specifically targeting a young and increasingly affluent demographic.

Under its lending arm, PayU Finance, the company offers consumers various short-term loan options, including small-ticket credit and express loans. Its primary focus is on extending credit to small and medium-sized businesses (SMBs), with a specific emphasis on serving merchants.

Zoom out

PayU's path to becoming a Payment Aggregator showcases its strategic growth in fintech. With FY23 revenue hitting $400 million and ongoing innovation, PayU is set for more success in digital payments. As it moves closer to securing the final RBI license, PayU remains pivotal in shaping India's digital payments scene and promoting financial inclusion for businesses nationwide.

BIG MONEY MOVES

Mahindra Finance reports ₹150 crore fraud in vehicle loan division

Mahindra Finance has uncovered a fraud amounting to approximately ₹150 crore within its retail vehicle loan portfolio, specifically at one of its branches located in the northeast region. The fraud scheme encompassed the falsification of KYC documents and misappropriation of company funds. Consequently, the company has postponed its board meeting slated to endorse the financial outcomes for the March quarter and fiscal year 2023-24.

Enam's Bhansalis and other investors to acquire a 40% stake in WeWork India for ₹1,200 crore

Enam Holdings, led by Akash Bhansali and his family members along with their investor partners, is set to purchase a substantial 40% stake in WeWork India, a leading co-working firm. The deal, valued at ₹1,200 crore in a secondary share sale, reflects the growing confidence and investment interest in the workspace business model in India.

This acquisition comes as Bengaluru-based real estate developer Embassy Group also finalizes the buyout of American WeWork Inc's 27% stake in WeWork India for approximately ₹700 crore, marking WeWork Inc's exit from the Indian market. Following these transactions, the Embassy Group will hold a significant 55-60% stake in WeWork India.

BUSINESS

FSSAI Begins Spice Quality Inspection Amid MDH, Everest Scrutiny

What happened

The Food Safety and Standards Authority of India (FSSAI) has initiated a comprehensive quality check on various spices brands following reports of pesticide contamination in products sold by MDH and Everest. This action comes after Singapore and Hong Kong recalled MDH and Everest spices due to the presence of ethylene oxide, a carcinogenic substance.

Additionally, Everest Food Products, manufacturer of popular spice mixes, reassured consumers on April 23 that its products remain safe for consumption.

Why it matters

The Commerce Ministry has requested technical details, analytical reports, and exporter information regarding rejected consignments from the Singapore Food Agency and Hong Kong's Centre for Food Safety and Food and Environmental Hygiene Department. An industry consultation is planned to address mandatory ethylene oxide testing in spice shipments bound for Singapore and Hong Kong.

India, renowned as the world's largest producer, consumer, and exporter of spices, faces scrutiny as the Spices Board of India delves into the ban imposed by Hong Kong's Food Safety regulator. Consumers are cautioned against purchasing these products, and traders are advised against selling them, as directed by the Hong Kong authorities and the Singapore Food Agency, which has issued a recall notice.

In the fiscal year 2022-23, India's spice exports totalled nearly ₹32,000 crore, with major exports including chilli, cumin, spice oil, oleoresins, turmeric, curry powder, and cardamom.

Zoom out

The International Agency for Research on Cancer warns that ethylene oxide poses serious health risks, notably an increased risk of breast cancer. As authorities investigate and implement corrective actions, the primary goal remains to guarantee the safety of spice products for consumption, whether sold domestically or in international markets.

BIG PICTURE

Air India and All Nippon Airways join hands with codeshare agreement

Air India and Japanese airline All Nippon Airways (ANA) have inked a strategic codeshare agreement to expand their networks and offer passengers enhanced travel options. The agreement, set to effect on May 23, 2024, marks a pivotal step in connecting India and Japan through seamless air travel experiences.

This commercial partnership will let travellers access a wider range of flight options between the two countries with the convenience of booking a single ticket. Additional benefits will include premium services like lounge access and priority boarding when flying on codeshare flights.

Apple iPhone sales declined 19% in China as Huawei makes a comeback

Apple experienced a notable setback in China as its iPhone sales dropped by 19.1% in the first quarter of this year. This decline coincides with a remarkable surge in smartphone sales for Chinese tech giant Huawei, which saw a staggering 69.7% increase during the same period.

The resurgence of Huawei's smartphone business can be attributed largely to the launch of its Mate 60 smartphone, equipped with a cutting-edge chip supporting advanced 5G mobile connectivity. This strategic move has significantly boosted Huawei's market presence and posed stiff competition for Apple in the Chinese smartphone market.

BUSINESS

Myntra's Explosive Growth and Bengaluru's Gen Z Influence

What happened

Myntra, one of India's leading e-commerce fashion platforms, is making waves with its remarkable growth and insightful trends, revealing a dynamic shift in the country's fashion landscape.

In the last year, Myntra welcomed an astounding 75 million new users, with a significant portion—65%—hailing from non-metro cities. This influx of users underscores the growing popularity of online shopping, especially in smaller cities, reflecting changing consumer habits and the increasing digitalization of retail.

Why it matters

Myntra's monthly active user base has surged to an impressive 60 million, showcasing the platform's immense reach and influence in the fashion and beauty domains. Additionally, an intriguing statistic reveals that 6 million customers make an average of 30 visits to Myntra each month This exponential growth in user numbers signifies Myntra's evolving role as a trendsetter and a go-to destination for fashion enthusiasts across India.

Moreover, Bengaluru's emergence as the Gen Z fashion capital adds an exciting dimension to Myntra's influence. The city's youth are driving fashion trends with a penchant for varsity jackets, bling dresses, and oversized blazers, reflecting a bold and experimental approach to style.

Zoom out

Myntra's trend report delves deeper into the evolving fashion preferences of Indian consumers. Premiumization is on the rise, as seen in the doubling demand for Indian wear on Runway Icons, Myntra's premium Indian wear destination. The premium luggage category also witnessed a robust 55% year-on-year growth, indicating a growing affinity for luxury and quality among shoppers.

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