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30th September 2021
Good Morning! 

Haven't we just had too many holidays getting wasted this year??
Now Gandhi Jayanti is on Saturday 🤷‍♂️.
We have decided to be the change we want to see(making up for holidays that fall on weekends either on Monday or Friday). So we will be taking the day off to celebrate tomorrow.. JK we actually have some work for tomorrow which is why we won't be able to write and will now see you on Monday.
  MARKETS
 

SENSEX

59,235.26

- 0.72%

NIFTY

17,647.10

- 0.57%

US$

74.15

+ 0.14%

GOLD

45,850

- 0.04%

10-YR

6.21%

- 2.3 bps

OIL

5,553

- 0.61%

*As of market close

  • Markets: Second losing day in a row for the stock market yesterday, and that's something we're not really used to anymore 🙈. Selling pressure in financial stocks along with heavyweights such as Reliance and HUL pulled the market lower after the US had a pretty bad trading day overnight as well.

Corporate

Boardroom>>Courtroom
Judge

Do you guys remember the trouble Zee Entertainment is having with some of its large shareholders?
The issue has been in the news over the last 2 weeks or so, and we wrote about it as well.

The latest is that Invesco Developing Markets Fund has filed a petition against Zee Entertainment and 3 of its directors including CEO Punit Goenka.

Earlier, Invesco had sent a letter to Zee's board, asking them to hold an EGM to remove non-independent directors and appoint 6 more independent ones. CEO Punit Goenka did not think this was necessary and said they'll sort the issues out by talking to Invesco.

Soon after that, there was an announcement that Sony TV Networks will be buying Zee Entertainment.

However, Invesco has now claimed that this deal has been struck in an "erratic manner". They believe a revamped board of directors will do a better job of independently studying the details of the deal and coming up with a solution that is fair for all shareholders.

And the matter has been taken to court by them - the petition has been filed jointly with OFI Global China Fund LLC which, together with Invesco, holds about 18% stake in Zee. 

The battle has clearly moved up a notch, from the boardroom and into the courtroom. As always, you can count on us to keep you updated with the latest developments.

Markets

Don't Trust Gordon Gekko
Gordon Gekko

Another case of insider trading at Infosys has emerged - SEBI has banned 2 individuals from the securities markets for breaking rules.

Apparently, a former Infosys employee Ramit Chaudhri sent unpublished price sensitive information to somebody he knew, who then traded Infosys shares based on this to make illegal profits in the stock market.

This happened back in June 2020, when Chaudhri was working on Infosys's deal with Vanguard. He knew that the project was a significant one and that it would move the stock price once announced to the public.

SEBI claims he shared this info with a contact who worked at Wipro (Wipro was the other contender for the Vanguard deal), who then traded derivatives on Infosys' stock and made Rs 2.62 crores profit with the help of this info.

Both of them have now been ordered to pay back Rs 2.62 crores within 15 days.

This is the second such case emerging from Infosys - back in June SEBI had passed a similar order against 2 other Infy employees, barring them from the stock market for insider trading.

Tech

Another Unicorn
Gordon Gekko

We were getting a bit worried you know, it has been a whole 12 days since an Indian startup joined the club. You know the one -- the unicorn club.

Our most written-about sector -- ed-tech is here to change that though.
Vedantu just raised $100 million and is now valued at $1 billion.

Here is a quick recap of what they do...

Vedantu primarily focuses on providing coaching for school going kids. Remember those coaching classes we all had while growing up?
Imagine that, but better and online. This is exactly what their USP is.

They provide live and interactive classes online and have actually implemented the entire social structure involving a student and teacher onto their platform.

In terms of the interactive part, students are required to answer questions every few minutes. They also can raise questions at the end of the session if they have any doubts. Some of these sessions are free for students, but a few of them require a subscription. However, even the ones that are paid are much cheaper than regular coaching centres.
Another interesting thing about Vedantu is that they have partnerships with both Tata Sky and Airtel TV. They offer some of their courses for free there, which in turn helps them attract even more customers.

Some Numbers

They claim to have over 35 million monthly active users and 200,000 of these are paid users. In terms of revenue, they are on track to do $65 million this year.

The Takeaway

You don't see Vedantu on TV or in the news as much as others like Byjus's, and that's because they have been quietly executing their plans. There were talks at 1 point about how Byju's was going to acquire Vedantu but it now looks unlikely that will happen.
We are glad to see a big 3 in ed-tech catering to school kids. Byju's, Unacademy and Vedantu.

Tech

Matchmaking - Corporate Debt Version
Facilitate

We also had our biggest ever Series A round of funding announced yesterday.
The fintech startup CredAvenue raised $90 million and are now valued at $410 million.

CredAvenue basically runs a marketplace for debt. So any time a company needs a loan they can go on to CredAvenue and find a willing lender. The lender may be a financial institution or even a High Net Worth Individual (HNI).

The size of the debt they facilitate varies from Rs 50 cr to Rs 4,000 cr.

Okay, we get it. You might be thinking why do enterprises need to even use this?? Can't they just go to a bank?

Think about what you as an individual have to do if you want a loan. You have to go to different banks, talk to them individually and submit documents to all of them. The worst part is that so many times the document requirements are also different across banks.

So now with all these hassles, you'd just end up going to just a few banks and choosing 1 from them. This isn't ideal because there are a ton of other loan offers going around in the market and you could miss out on them.

Now imagine all the hassles that we've explained but for a company. They have to provide even more info etc to get a loan. And if they end up wasting most of their time on all this, when will they work on their core business?

It would be cool if enterprises could just go to one place and enter their details and decide the best loan for them. And this is what CredAvenue does.

We can see why they've raised such a huge series A round. Corporate debt markets in India are still not as advanced as developed countries and there is huge scope to grow.

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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