Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Nifty surged above 25,900, with Sensex gaining 384 points as PSU Bank and Realty sectors shone brightly. Top gainers included M&M, ONGC, and Bajaj Auto, while Eicher Motors and ICICI Bank were among the losers.

TOP STORIES

BharatPe Connects 15 Million Users to 140,000 Restaurants

What happened?

BharatPe has partnered with the Open Network for Digital Commerce (ONDC), expanding its offerings to food delivery for over 15 million users. With this integration, BharatPe's users can now access more than 140,000 restaurants across 400 cities in India, directly through the app.

This marks a major update following the rebranding of BharatPe’s Postpe app in August 2024. Along with food orders, users can browse restaurants, receive personalised recommendations, and track deliveries in real time—all within the app.

Why it matters

ONDC, a government-backed initiative, aims to democratise digital commerce, and this partnership accelerates its reach into the food delivery sector. 

BharatPe’s CEO, Nalin Negi, highlighted how the partnership supports BharatPe’s mission to drive digital adoption and boost local food outlets. Thousands of small eateries will now reach a much broader audience, enabling growth. Additionally, the integration with ONDC reduces the need for users to juggle between multiple apps, simplifying the food ordering process.

The shocker

As BharatPe expands its services to include food delivery from 140,000 restaurants, consumers must be mindful of the hidden costs associated with food aggregators. A recent report highlights that the convenience of delivery comes with a hefty price tag, costing households in major cities between ₹9,000- 11,000 crore annually.

With an average hidden cost of ₹46 per dish on aggregator platforms compared to direct restaurant orders, consumers may find their expenses ballooning without immediate awareness.

PAISON KA KHEL

Hallmarked gold sales shine bright  

Sales of hallmarked gold coins and bars are sparkling online, jumping 35-80% on platforms like Amazon and Flipkart! Major brands, including Malabar Gold & Diamonds, are cashing in on this trend, especially with festive seasons around the corner.

Gold prices are also shining at Rs 76,768 per 10 grams, driving investment interest. With a 46% rise in gold bar and coin sales in the last quarter, it seems everyone is in the market for some shiny bling.

REC's successful bond issue inspires other Indian firms

REC Ltd has successfully raised $500 million by selling a five-year bond at 4.78%. This deal, priced 127 basis points above the five-year US treasury (which was at 3.51%), attracted a lot of global investors—over $1.5 billion in bids!

Shriram Finance is also set to raise a similar amount soon. With recent cuts in US rates, more Indian companies are expected to join in and tap the bond market. 

TOP STORIES

Shiprocket Aims to Integrate Valmo to Enhance Logistics 

What happened

Shiprocket, a key player in e-commerce logistics, is in discussions to incorporate Meesho’s logistics arm, Valmo, into its platform. 

• This move comes as Shiprocket navigates growing losses, which skyrocketed from ₹63.6 crore in FY22 to ₹333.8 crore in FY23, even as revenue surged from ₹634.5 crore to ₹1,126.7 crore. 

The core shipping business accounts for 70-80% of its revenues but faces stiff competition and margin pressures. Currently, Shiprocket serves over 150,000 sellers, processing an impressive ₹30,000 crore ($3 billion) annually, but it’s clear that efficiency is the name of the game.

Why it matters

The integration of Valmo could significantly bolster Shiprocket’s logistics capabilities. Valmo has already cut Meesho's logistics costs by around 5% and handles 20-22% of its orders, with plans to double that in the next year. 

By leveraging Valmo’s existing infrastructure, Shiprocket aims to reduce international shipping costs from $9 to a more competitive $7-8 per parcel, which could level the playing field against Chinese logistics providers.

The bigger picture

Shiprocket is strategically enhancing its logistics efficiency while diversifying into cross-border e-commerce and warehousing solutions. The company aims to reduce delivery times from nine days to one week, prioritizing an improved customer experience.

• As part of its ambitious plans, Shiprocket is exploring a $120 million funding round, which could mark Koch Industries’ first investment in India. 
  
  

• With a valuation of $1.2 billion and a significant 34% market share in e-commerce logistics, Shiprocket is outpacing competitors like ClickPost and ShipBob.

GLOBAL NAZARA

Amazon sweetens the deal for influencers ahead of festival sale

Amazon is upping its game for the Great Indian Festival sale by doubling commission rates for its 50,000 influencers. Along with the extra cash, top performers can snag target-linked incentives worth up to 15% of the revenue they generate.

The biggest commission bumps are in hot categories like fashion, beauty, home appliances, and sports gear. The sale kicks off on 27 September, with Prime members getting a head start on the shopping madness.

Oister and Tribe Capital team up for $500 million India secondary fund

Oister Global and Tribe Capital are launching a $500 million fund to invest in India’s private equity market. Tribe Capital will use its data-driven approach, while Oister brings nearly 20 years of local expertise to the table—quite the dream team!

With 62% of startup deals in early 2024 being secondary transactions, the Indian secondary market is heating up fast. Over the last few years, $7.7 billion has already been transacted.

TOP STORIES

Over 93% of Retail Traders Lose Money in F&O

What Happened

A recent report from the Securities and Exchange Board of India (SEBI) has delivered a sobering reality check for retail traders engaging in futures and options (F&O) trading. The analysis reveals that over 93% of these traders faced losses averaging ₹2 lakh each over the last three financial years, culminating in a staggering total loss of ₹1.8 trillion between FY22 and FY24.

Despite these figures, a remarkable 75% of the loss-making traders continued their activities in the derivatives market.

Why It Matters

The findings have sparked significant concern among regulators, prompting SEBI to propose seven measures aimed at protecting retail investors and curbing speculation in the F&O segment. 

• With 99.8% of F&O traders being individuals, yet contributing only 30% to the total turnover, the imbalance is evident. 
  
  

• The report highlights a worrisome trend: while the number of retail traders has surged from 5.1 million in FY22 to 9.6 million in FY24, only 7.2% of them turned a profit over the three-year span.
  

Additionally, the average loss among the top 3.5% of these traders hit a staggering ₹28 lakh, highlighting the significant risks at play in the derivatives market. Compounding this concern is the fact that a striking 43% of participants are under 30 years old.

Zoom out

In FY24 alone, individual investors incurred about ₹75,000 crore in net losses, raising eyebrows about the sustainability of this trading model. With the daily turnover in F&O often surpassing ₹500 trillion, this market is a double-edged sword for many.

MIRCH MASALA

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