Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The Indian market witnessed choppy trading, with both Sensex and Nifty 50 ending in the red, primarily impacted by weakness in banking and heavyweight stocks. Despite initial losses on February 26, analysts remain optimistic about the Indian stock market's bullish sentiment, emphasizing its resilience as long as Nifty holds above the crucial 21,000 level.

BUSINESS

Goldman Sachs and Mubadala Seal $1 Billion Private Credit Deal

What happened

Goldman Sachs Group Inc. has successfully secured a whopping $1 billion investment from Mubadala Investment Co., the sovereign wealth fund based in Abu Dhabi. The collaboration is set to focus on joint investments in the Asia-Pacific region, with a specific emphasis on opportunities within India. This strategic partnership follows a similar mandate that Goldman Sachs received earlier from the Ontario Municipal Employees Retirement System.

The management of this substantial partnership will fall under the capable hands of Private Credit at Goldman Sachs Alternatives, boasting a dedicated on-the-ground team strategically positioned across multiple Asia Pacific markets. 

Why it matters

While private debt in the Middle East was previously overlooked due to low yields, a shift in sentiment is occurring, driven by higher interest rates and overall market growth. Institutions like Mubadala and the Abu Dhabi Investment Authority are actively seeking partnerships to strengthen their presence in this evolving market.

• The private credit market, valued at an impressive $1.7 trillion , has witnessed remarkable growth over the last five years as investors flock to the asset class in pursuit of higher returns.
   

• The global Private Credit team at Goldman Sachs, consisting of 165 credit investment professionals overseeing a colossal $110 billion in assets under management (AUM), is geared up for this ambitious venture.

Goldman's foray into the less-developed Asia-Pacific private credit market positions it as a pioneer among the few private credit giants venturing into the region. As the market matures, partnerships like these are becoming instrumental in fostering a growing private equity industry.

Zoom out

Goldman Sachs, eyeing private credit expansion, finds significant potential in partnering with influential institutions like Mubadala. This collaboration aims to offer tailored credit solutions in a region marked by diverse, rapidly growing economies. It symbolizes a harmonious move towards strategic growth, reflecting shared visions to capitalize on Asia-Pacific's vast potential. 

BIG MONEY MOVES

Verdane secures €1.1 billion for green-tech ventures in Europe

Verdane, an Oslo-based investment firm has successfully raised €1.1 billion ($1.2 billion) for the Edda III fund, dedicated to investing in companies propelling the digitalization and decarbonization of Europe. With commitments from private and public pension funds, university endowments, and insurance companies, Verdane, known for its growth investments, focuses on firms passing their " 2040 test " for sustainability.

Investors were enticed by a robust 22% weighted revenue growth across Verdane's portfolio last year. This marks Verdane's latest triumph, accumulating €2.2 billion in the past six months.

VinFast appeals for import duty reduction to boost the electric car market

VinFast, the Vietnamese electric vehicle manufacturer, has urged India to lower import duties on its cars. As the company progresses with its Tamil Nadu manufacturing plant, a $2 billion joint investment with an initial commitment of $500 million over five years, VinFast eyes a production start by mid-next year. 

The EV maker, echoing Tesla, urges India to cut 100% import duty on electric cars, aiming to support India's 30% EV sales target by 2030. With a projected annual capacity of 150,000 vehicles, VinFast, a nimble startup, aims to swiftly impact the Indian market.

BUSINESS

Paytm Teams Up with Banking Giants

What happened

India's digital payment giant, Paytm, is gearing up for a strategic partnership with Axis Bank, HDFC Bank, State Bank of India (SBI), and Yes Bank to facilitate UPI transactions. Facing disruption due to the Reserve Bank of India's (RBI) directive to wind down its banking unit, Paytm Payments Bank, by March 15, Paytm aims to continue its services through collaborations with these major banks.

The move comes as Paytm seeks to become a third-party application provider, with four to five banks acting as service providers to ensure a seamless transition for its users.

Why it matters

The impending partnership holds significant weight as it will allow Paytm to navigate the disruption caused by the RBI's directive and maintain its status as the third-largest app for UPI payments in India. 

• Paytm boasts a massive user base of 84 million transacting users at the end of FY23. 
  
  

• Handling an impressive 1.6 billion transactions monthly, Paytm confronts the challenge of maintaining seamless services for its extensive user base.

By teaming up with prominent banks like Axis, HDFC, SBI, and Yes Bank, Paytm aims to leverage its technological prowess to handle large transaction volumes seamlessly. The move aligns with Paytm's strategy to secure reliable banking partners capable of maintaining the efficiency and scale of its operations.

Zoom out

Well, there is some good news too. The RBI's recent suggestion to NPCI signals potential relief for Paytm. The apex bank advised exploring Paytm's proposal to evolve into a peer-to-peer payment platform, allowing seamless transactions. The RBI's softened stance offers a glimmer of hope amid recent regulatory challenges.

BIG PICTURE

✅HDFC Bank secures approval to offload 90% stake in HDFC Credila

HDFC Bank has gained approval from the Reserve Bank of India to sell 90% of HDFC Credila’s share capital. HDFC Credila is a subsidiary of Housing Development Finance Corporation Limited (HDFC) and specializes in providing education loans to students for higher studies, both in India and abroad. 

The move follows HDFC Ltd's execution of agreements last year for a ₹9,060 crore sale of a 90% stake to a private equity consortium. The Competition Commission of India had already approved the acquisition in August 2023, paving the way for the disinvestment.

😢  Paytm undergoes leadership change as Vijay Shekhar Sharma resigns

Founder Vijay Shekhar Sharma has resigned as chairman of Paytm Payments Bank. One97 Communications, Paytm's parent company, revealed the move, initiating the appointment of new directors , such as former Central Bank of India chairman Srinivasan Sridhar. The restructuring aims to bolster governance and compliance, ensuring a strategic shift in Paytm Payments Bank's leadership for improved operational standards.

BUSINESS

Wipro and Nokia's Game-Changing Move in the 5G Arena

What happened

Wipro Ltd and Nokia Corporation have joined forces to roll out a cutting-edge private 5G wireless solution tailored for enterprises. Unveiled initially for businesses in manufacturing, energy, utilities, transportation, and sports entertainment, this powerhouse collaboration aims to integrate 5G private networks with operational infrastructure seamlessly.

The synergy promises to catapult connectivity speeds, provide real-time access to critical business data, and facilitate the high-speed processing of colossal data volumes.

The Finnish tech giant, Nokia brings its share to the table with the Nokia Digital Automation Cloud (DAC) and Modular Private Wireless (MPW). The former offers a robust private wireless solution encompassing 4G LTE and 5G coverage.

Why it matters

This teamwork will tackle the urgent issues faced by businesses dealing with overloaded traditional systems and slowdowns in performance. Jo Debecker, global head of Wipro FullStride Cloud, emphasized the urgency of this partnership in addressing business value impacts and, in some instances, human lives, especially in emerging sectors like remote-controlled robotic surgery.

Meanwhile, Nokia also joined hands with IISc and dived into the future with a joint exploration of 6G technologies at Nokia's 6G Lab in Bengaluru. Focusing on 6G radio technologies, architecture, and machine learning integration, the collaboration aims to craft reference architectures and algorithms.

With a special emphasis on India's societal needs, the research spans sustainable communications, resilient networks, and the application of AI for transportation safety, healthcare, and education.

Zoom out

Wipro and Nokia's collaboration serves as a beacon for enterprises looking to harness the potential of wireless private networks. As these industry giants pave the way, businesses can anticipate groundbreaking innovations and seamless digital integrations, ushering them into the forefront of the 5G revolution.

MIRCH MASALA

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