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7th October 2021
Good Morning! 

The whole Facebook going down thing left everyone confused for a good few hours. And while everyone was confused, Telegram ended up adding 70 million new users! We guess people really need to stay in touch 🤷‍♂️
  MARKETS
 

SENSEX

59,189.73

- 0.93%

NIFTY

17,646.00

- 0.99%

US$

74.98

+ 0.72%

GOLD

46,925

+ 0.36%

10-YR

6.28%

+ 1.6 bps

OIL

5,822

- 1.24%

*As of market close

  • Stocks: Headline stock indexes ended sharply lower yesterday amid selling pressure across sectors towards the end of the trading day. Weakness across global markets including US index futures seemed to dampen investor spirit. IT, pharma, automobile and metal shares were all lower.
  • Currency: The Indian rupee hit a 5-month low against the US Dollar yesterday, just 2 paise short of the 75-mark. Rising crude oil prices have sparked concerns of wider government deficits and higher inflation, leading to weakness in our ₹₹₹.

Corporate

Not Without A Fight
Penguin challenging to a fight

SREI Group v/s RBI @ Bombay HC

A couple of days ago we wrote about how the RBI had decided to supersede the board of some companies of the SREI Group. This included SREI Infra Finance and SREI Equipment Finance Limited.

Well, these companies have now filed a writ petition in the Bombay High Court, seeking a stay on this RBI order.
The petition says that the RBI has acted hastily in superseding the board and that this was done "entirely arbitrarily and without application of mind".

Problems at SREI had been going on for some time now.
Back in April, the RBI had asked the companies to put in Rs 2,000 crores to shore up their capital positions. They were also ordered to stop all new lending and focus on fixing what was broken. This was taking time, so in September, the companies requested the RBI for a timeline extension, but this was denied. 10 days later the central bank superseded the board of directors of these companies.


Zee goes to NCLAT

The fight between Zee Entertainment Limited (ZEL) and its institutional shareholders is continuing too - and the next round will be before the National Company Law Appellate Tribunal.

Two large institutional shareholders of ZEL, Invesco Developing Markets Fund and OFI Global China Fund want to remove MD& CEO Punit Goenka and some other directors from ZEL.

To vote on this, they asked the company to hold an extraordinary general meeting (EGM) of shareholders. But the directors of ZEL decided that this EGM was not needed, so they said no to the 2 shareholders. The matter then went to the NCLT, which gave ZEL a few days to respond with the reason as to why they said the EGM is not needed.

Instead of using the time they had to come up with a reply, ZEL's lawyers have appealed in the NCLAT, saying they haven't been given enough time to respond. 🙈

Tech

30 And Counting
Money gun

Another one joins the club
Another one joins the club
And another one gone and another one joins
Another one joins the club

We know you read that to the tune of Another one bites the dust 😋

Another one of our Indian startups joined the club. You know the one... the unicorn club.

We had our 30th startup of the year become a unicorn - this time it's the crypto startup Coinswitch Kuber.

They've raised $260 million and are now valued at $1.9 billion. Interestingly this is the famous venture capital firm Andreessen Horowitz's first investment in India.

The last time Coinswitch raised money was back in April when they were valued at $500 million. So quite a jump in valuation in 6 months!

Coinswitch is an exchange that allows users to buy and sell crypto. They cater to 10 million users here in India, most of whom are under 28. (It is funny how these age groups keep changing earlier it was under 25 now under 28 🤔.)
Their users apparently really like the app experience vs some of the other options out there.

Post this round of funding they plan on expanding to other asset classes and adding support for institutions to buy and sell crypto too. What these other asset classes are, they aren't saying.

We just hope our regulators don't spoil the party and try following China soon when they launch their own CBDC.

Tech

Online-First Boom
Money gun

The online first brands market has really come into the limelight with all the desi Thrasios popping up.

We had some interesting moves in the space yesterday.

Moms The Word

The online first beauty brand Good Glamm Group (previously known as MyGlamm) has acquired The Moms Co. which makes mom and baby products.
The rumoured price is around Rs 500 cr as per ET.

Currently, Moms Co is doing an annual revenue of close to Rs 150 crores and Good Glamm hopes to take this up to Rs 500 crores soon.

Good Glamm has been making quite a few acquisitions over the past few years. In fact, this is their 3rd acquisition after they acquired POPxo and BabyChakra.
But this probably isn't their last acquisition either. When they closed their last round of funding they spoke about acquiring 4-6 D2C companies across hygiene, bath and body etc.


Mensa's Acquisitions

One of the desi Thrasio's is keeping its promises of making quick acquisitions. 

Mensa is close to acquiring majority stakes in 10 new-age brands across a whole host of categories like fashion, beauty and personal care.

Once the brands are acquired, Mensa will be helping with marketing, branding and the use of tech to scale them up. They also plan on taking some of these brands global.
Mensa is pretty optimistic about the brands they are acquiring, with them expecting almost 10% of them to be >$50 million in revenue soon.

It feels like it's a great time to be an online-first brand right now. If you can scale up to a decent size there are plenty of options for a good exit.

On a Lighter Note
  • This 18-year old Brit has become the youngest person to fly solo around the world! Talk about #wanderlust.
  • Watch this video of a monkey that made its way to the VIP Lounge at Delhi's international airport. He looks like he knows his way around too!

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