Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The markets were closed on account of Christmas Day.

TOP STORIES

Cashify’s Big Bet on Budget-Friendly Tech

What Happened?

Get ready, because Cashify is about to drop 200 new stores across the country in the next two years. Yes, you read that right—200! The company’s all-in on building trust with shoppers who want to touch, feel, and (hopefully) love refurbished gadgets.

In case you missed it, Cashify’s CEO Mandeep Manocha has boldly declared that the key to the company’s success is selling directly to consumers (D2C), which now makes up 55% of its revenue. This shift helped slash their losses by a third in 2024—so yeah, that’s a win. 

Why It Matters

Cashify is about to bring the joy of affordable tech to Tier 2 and Tier 3 cities. These areas already account for half of their demand, and now they’re going all-in with more stores to meet the growing need for budget-friendly gadgets . 

And don’t think they’re stopping at phones—Cashify’s going big with laptops, tablets, and smartwatches, trying to wean themselves off the smartphone obsession (currently making up 92% of their business). 

Conclusion

With the refurbished market on the rise (thanks to soaring gadget prices), Cashify’s got the right idea—bring premium tech to the people, without making them cry over their credit card bills. 

So, if you’re an SME or startup looking to save big on quality tech, Cashify has your back. Fun fact: their Noida facility refurbishes 70,000-80,000 devices per month (although they’re currently only selling 30,000). 

PAISON KA KHEL

India rethinks $30 Billion plan to cut sulphur emissions

India is reconsidering its $30 billion plan to tackle sulphur emissions from coal plants—because, let’s face it, the current technology is about as useful as a leaky umbrella in a downpour. The program, which aims to have nearly 540 plants install sulphur-cutting systems by 2026, has seen only 8% compliance so far. 

Now, the government is eyeing cheaper, local solutions like electrostatic precipitators (which sound fancy but cost a fraction of the price). While the move could impact plans to boost coal capacity by 37% by 2032, experts argue India should focus on tackling finer particulate pollution instead.

Indian Oil to pump ₹610 billion into Odisha 

Indian Oil Corporation (IOC) is gearing up to invest a whopping ₹610 billion ($7 billion) in a new naphtha cracker project in Paradip, Odisha. This move will boost the state's petrochemical capabilities, with IOC planning to sign an initial agreement with the Odisha government in January. IOC already operates a refinery in Paradip, processing 300,000 barrels per day. 

With this massive investment, IOC aims to expand its presence in the region, proving it's all about going big or going home!

TOP STORIES

Insurers Spend Big After Commission Caps Vanish

What happened

In FY24, the insurance industry had a bit of a splurge when IRDAI lifted caps on commission payouts. Life insurers went all out, raising commission expenses by 22% to ₹51,524 crore (up from ₹42,322 crore in FY23). General insurers joined the fun, doubling their expenses to ₹39,601 crore from ₹20,145 crore. 

This spending spree followed IRDAI’s decision to give insurers more flexibility, ditching the old, strict rules for looser ones. More flexibility, more expenses—sounds like a classic case of "the more you get, the more you spend!"

Why It Matters?

While it’s nice to have the freedom to spend, insurers have to play it smart. The new rules allow them to adjust their commission payouts, but there’s a catch: total Expenses of Management (EoM) can’t exceed 30%. If they do, they need to come up with a three-year recovery plan. 

For life insurers, total management expenses hit a hefty ₹1.40 lakh crore , making up almost 17% of premiums. It’s like giving someone a bigger shopping cart but hoping they don’t go overboard at the checkout. Some insurers have already exceeded the limits and are begging for leniency, while others are playing it safe.

The future outlook

So, what’s the verdict on this commission bonanza? While the extra freedom is great for insurers to expand, it’s also turning into a high-stakes balancing act. They need to carefully juggle commissions and expenses. Spend too much, and they risk getting scolded by regulators. Although, if they manage it well, they could see big returns.

GLOBAL NAZARA

Musk’s xAI bags $6 billion

Elon Musk’s AI brainchild, xAI, has secured a whopping $6 billion in Series C funding. Big-league investors like BlackRock, Nvidia, AMD, and Fidelity poured in, proving Musk’s knack for making AI the hottest ticket in town. The funds aim to boost xAI’s infrastructure and fuel research to “understand the true nature of the universe”—because, apparently, solving traffic wasn’t enough.

Since May’s $6 billion Series B, xAI launched Grok 2 , an AI model, and Colossus , the world’s largest AI supercomputer. 

Toyota's production slumps for 10th month

Toyota 's production took a hit for the 10th month in a row, dropping 6.2% in November, with only 869,230 cars made. This dip is steeper than October's modest 0.8% fall. Despite this, the car giant still saw a 1.7% increase in global sales, reaching a record 920,569 vehicles. 

The U.S. faced an 11.8% production decline, though production of the Grand Highlander and Lexus TX SUV resumed after a four-month break. In China, production dropped 1.6%, but local demand for models like the Granvia and Sienna minivan kept things somewhat upbeat.

TOP STORIES

Mumbai Metro One’s Debt Deal

What Happened?

Mumbai Metro One’s lenders are gearing up to hand over a hefty ₹1,226 crore debt to the National Asset Reconstruction Company (NARCL).

NARCL is shelling out ₹1,063 crore for the deal, with 15% as cash (because cash is king) and the rest as security receipts. Surprisingly, no one stepped up to counterbid in the Swiss challenge auction—it seems like no one wanted to outdo NARCL’s “generous” offer .

But hold on, this sweet deal doesn’t include the $63.4 million external loan Mumbai Metro One owes to India Infrastructure Finance Company (UK).  

Why It Matters?

This deal is a textbook case of cleaning up financial baggage. Mumbai Metro One, a public-private partnership (PPP) between Reliance Infrastructure (74%) and MMRDA (26%), has faced financial challenges despite ferrying hundreds of thousands of passengers across 400 trips daily. 

Lenders like SBI and IDBI Bank had earlier filed insolvency petitions to recover ₹416 crore and ₹133 crore, respectively. However, the insolvency court is yet to admit the case.

The big picture

NARCL’s offer, backed by government guarantees on recovery shortfalls, provides lenders with a much-needed safety net. This move also opens the door to financial restructuring for the metro, offering a shot at long-term sustainability. While lenders can breathe a sigh of relief(even if partial), NARCL solidifies its reputation as a crucial force in cleaning up India’s bad debt mess.

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