🛵 ANOTHER round of funding?

Good morning. Happy Friday y’all.

Hope you get a restful weekend when it arrives and for those celebrating - a very happy Karva Chauth 🌒 👫 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🛵 ANOTHER round of funding?

• 🚀 SpaceX sues

• 📱 Gen Z's economic power in India

• 🗞️ Bite-sized summaries

  • 🤑 More fundraising plans

  • 🔍️ Israel - Gaza updates

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian equity markets significantly declined. The auto sector led the losses, particularly Bajaj Auto, which plunged 13.11%. Conversely, the Nifty IT index rose by 1.19%, defying the overall downward trend across sectors.

🌍️ International

• The Dow Jones reached a record closing high, while the S&P 500 and Nasdaq ended nearly unchanged. Gold prices surged to an all-time high amid U.S. election uncertainties. Strong retail sales data and positive earnings from Taiwan Semiconductor Manufacturing helped lift technology stocks, easing fears of a semiconductor slowdown, while the European Central Bank cut rates by 25 basis points.

ZEPTO

🛵 ANOTHER round of funding?

Zepto, the fast-growing quick commerce startup, is in talks to raise an additional $100-150M from Indian family offices and high-net-worth individuals (HNIs) at a $4.6B valuation.

Why now?

• This follows a $340M funding round in August, which brought its valuation to $5B.

• Once completed, the new capital will bring Zepto’s total funding to over $1.5B in just four months, underscoring the strong investor interest in the booming quick commerce sector.

• The fundraising is part of Zepto's preparation for an IPO planned for 2025. Led by Motilal Oswal Group’s private wealth arm, the round has already secured $40M from Motilal Oswal Asset Management.

• This raise will also allow Zepto to strengthen its domestic investor base and bring on credible investors ahead of its IPO.

Looking ahead: Zepto’s annualised gross sales run rate has surged to $2B, up from $1.5B in May 2024, positioning the company as a serious contender in India's quick commerce market. Competing with Swiggy Instamart, Blinkit (owned by Zomato), and Flipkart’s Minutes, Zepto is rapidly closing the gap on market leader Blinkit, which holds a 40% share.

The quick commerce sector is transforming India’s e-grocery landscape, now accounting for nearly half of all online grocery spending. Industry reports project the market will grow from $3.8B in 2024 to $78B by 2034, driven by increasing demand for ultra-fast deliveries. With its aggressive expansion and strong investor backing, Zepto is well-positioned to thrive in this fast-growing market.

Read more: Economic Times

AEROSPACE

🚀 SpaceX sues

Elon Musk's SpaceX has filed a lawsuit against the California Coastal Commission, accusing the panel of political bias in its decision to block an increase in rocket launches from Vandenberg Space Force Base.

TL;DR:

• The lawsuit: Filed in federal court in Los Angeles, SpaceX is seeking to prevent the commission from regulating its Falcon 9 rocket launch program.

• Allegations: SpaceX claims the commission's decision was based on disapproval of Musk's political views rather than environmental considerations.

• Background: SpaceX has been launching Falcon 9 rockets from Vandenberg since 2013, with 28 launches in 2023.

• Proposed increase: The Air Force had suggested increasing annual SpaceX launches from 36 to 50, stating the proposal met coastal agency requirements.

• Commission's decision: The panel voted 6-4 to block the additional launches, with some members expressing concerns about Musk's leadership and the commercial nature of SpaceX activities.

• Constitutional arguments: SpaceX argues the commission's actions violate free speech rights and represent "unconstitutional overreach" into national security and federal interests.

• Environmental impact: The lawsuit contends that launches at Vandenberg have had "no significant effects on coastal resources."

Overall: This legal battle highlights the growing tensions between commercial space ventures and regulatory bodies, as well as the potential influence of political views on business operations. The outcome of this case could have significant implications for the future of private space exploration and the extent of state regulatory power over federal installations.

Read more: Reuters

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🤑 More fundraising plans - Zomato plans to seek board approval on October 22 to raise Rs 9,000 Cr. through a qualified institutional placement (QIP), its first fundraising since its 2021 IPO. The food delivery giant, which recently became profitable, aims to strengthen its capital base ahead of rival Swiggy’s upcoming IPO. The funds will support growth initiatives, including expanding Blinkit’s quick-commerce dark stores and acquiring Paytm’s event business. Zomato’s quick-commerce segment has seen rapid growth, contributing significantly to its revenue. Blinkit now holds a 39% market share, competing with Zepto, Instamart, and new entrants like Flipkart and JioMart.

🔍️ Israel - Gaza updates - Israeli forces have confirmed the death of Yahya Sinwar, Hamas’ top leader in Gaza, during military operations. Sinwar, who had been on Israel’s most wanted list for over a year, played a key role in orchestrating Hamas' 2023 attack on Israel, sparking the ongoing war. His death was confirmed through DNA tests after Israeli troops found his body among militants killed in a building collapse during a battle. Sinwar’s death is seen as a significant blow to Hamas, as Israel continues its military campaign in Gaza, aimed at dismantling the group. Hamas has not yet confirmed his death.

HEADLINES

🧑‍🍳 What else is cookin’?

What’s happening in India (and around the world 🌍️)

• India extends first-ever rupee-denominated line of credit; Mauritius gets Rs 487 Cr. .

• NDA committed to furthering national progress, empowering poor: PM Modi.

• US sanctions Chinese firms behind Russian drones, as Zelensky calls for 'pressure.'

• Bangladesh issues arrest warrant for ex-leader Hasina.

• Hoax bomb threats spark panic for Indian airlines.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• 1st Test: New Zealand on top after Team India bowled out for 46 on Day 2 in Bengaluru.

• Blumhouse tests AI with Meta partnership on short films.