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29th September 2021
Good Morning! 

India just recorded its lowest number of daily COVID cases in 6 months! We also gave more than 1 crore doses in a day for the 5th time. Let's hope this continues so things can keep getting better. We'd love to have at least a normal-ish Diwali this year!
  MARKETS
 

SENSEX

59,667.60

- 0.68%

NIFTY

17,748.60

- 0.60%

US$

73.94

+ 0.15%

GOLD

45,859

- 0.46%

10-YR

6.20%

+ 1.1 bps

OIL

5,593

+ 0.25%

*As of market close

  • Markets: Sensex and Nifty50 snapped a 3-day winning run with sharp losses yesterday, though recovered more than half of intraday losses going into the close. Financials and IT stocks were the worst performers but oil & gas and power company shares did well.

Markets

Man Proposes, SEBI D̶i̶s̶p̶o̶s̶e̶s̶ Approves
Seal of Approval

Stock market regulator SEBI just announced that their board has cleared a proposal for setting up a gold exchange for electronic trading.

The shiny yellow metal that we are so enamoured with will be traded in electronic form, and the instruments will be called Electronic Gold Receipts (EGRs). They will have trading and settlement just like any other stock.

As per SEBI, the exchange would be a national platform for buying and selling EGRs with underlying standardized gold in India and will also create a national pricing structure for gold.

These EGRs will have perpetual validity, so people will be able to buy and hold them forever, just like real gold. The EGRs will also be backed by physical gold and will be ‘fungible’. So whenever the investor wants, they can swap the EGRs for physical gold from their nearest authorized vault. Pretty neat, eh?

There were actually a bunch of other things announced by SEBI as well - The regulator has made it easier for acquirers to de-ist a company after an acquisition, and have strengthened rules for related-party transactions.

A proposal for the creation of an exchange for fundraising by social enterprises has been cleared too.

Tech

BNPL Is Back In The News!
Later

We did warn you about the explosion of Buy Now Pay Later (BNPL) funding stories we anticipated when we wrote about ZestMoney last week.
And now we'd like to pat ourselves on the back for an accurate prediction :)

Okay, enough gloating - the BNPL startup CapitalFloat just raised $50 million.

You guys may recognise the name because of their partnerships with several popular e-commerce companies - like Amazon, boAt and MMT.
This is actually the primary way that Capital Float (and other BNPL guys) reach customers - they partner with merchants.

Capital Float's BNPL business has grown tremendously over the past year.
They've quadrupled their customer base and now have 2.5 million customers who make close to 2 million purchases a month!

But BNPL isn't the only thing they do.
CapitalFloat actually has a substantial business lending to SMEs to help them scale up.
Another key offering of theirs that has a decent scale is the personal finance app Walnut. Walnut offers stuff like expense tracking, budgeting, bill reminders etc.

They claim to have 12 million-plus downloads for Walnut.

One difference to note between ZestMoney (and other future BNPL startups) and CapitalFloat is that CapitalFloat already has an NBFC license. So while players like ZestMoney have to partner with other lenders, CapitalFloat can do all the work on its own. 

We're not too sure about their valuation, since financials havent been revealed yet, but it wouldn't be surprising if they raise some more money soon and enter the club.

Tech

Bijnis Is Booming!
Man reading newspaper

The B2B Marketplace Bijnis' bijnis seems to be booming. They've gone on to raise $30 million.

Like most marketplace startups you hear about, Bijnis too is trying to remove a layer of intermediaries between the producer and ultimate buyer.

How do they do that?

You've probably heard of the umpteen daily issues factory owners face in running their factories in India. Add to this the hassle of selling their products to retailers, and it almost seems like an impossible task. As a result, most old school factories rely on wholesalers and other agents for buying and selling.

Bijnis is trying to digitize this process - they help factory operators by connecting them to buyers and other retailers. Once the connection is made, Bijinis helps both parties with things like logistics and payments.

By removing intermediaries, Bijnis is trying to help manufacturers improve their profit margins. They also help create an online profile for them where factories can get discovered - so lower customer acquisition costs here also help in terms of profit margins.

More than 5,000 factories operating in fashion, footwear and lifestyle categories use Bijnis. They are now looking to add working capital loans and also want to help businesses with exporting the stuff they make.

On a Lighter Note

Campus Ambassador Program


If you are a college student do take a look at our Campus Ambassador Program! Check this link out for the deets.

If you have more time ...

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