🔚BharatPe & Ashneer Grover breakup

Good morning. Beyoncé stars in the remake of the iconic 1985 Levi’s jeans laundrette advert and cements the fact that she in fact an icon 🤠 🤩 

Go be an icon in your own way today - maybe wear your best Levi’s and channel your best Beyoncé alter-ego, if the motivation doesn’t come easy.

You got this 💪 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 💸 BharatPe & Ashneer Grover: the end of a legal saga

• 🗞️ Bite-sized summaries

  • 🤖 No AI guardrails?

  • 🙅 Incoming strike

  • 💰️ OpenAI gets $500M

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian stocks dipped as investors booked profits after recent gains, with the Nifty 50 falling below 26,000. IT and financial sectors saw significant selling, while metals rose 1.5%. Retail investors turned net sellers in September, offloading ₹7,500 crore amid an IPO boom. The market retreat follows a six-session rally fuelled by expectations of increased foreign inflows after a U.S. interest rate cut.
  

🌍️ International

• U.S. markets closed higher on Monday, capping a strong quarter. Fed Chair Powell suggested continued rate cuts but at a measured pace. This follows a 0.5% cut earlier in the month. Treasury yields climbed, and auto stocks declined after Stellantis cut guidance.

TECHNOLOGY

🔚 BharatPe & Ashneer Grover: The end of a legal saga

The long-standing legal battle between fintech company BharatPe and its former managing director Ashneer Grover has finally come to an end. This resolution marks a significant turning point for both parties, closing a chapter that has been fraught with controversy and legal complications.

Here’s a quick recap of the events:

• January 2022: An audio clip allegedly featuring Grover leaks; he takes voluntary leave.

• February 2022: BharatPe links Grover's wife, Madhuri Jain, to financial fraud; she is later dismissed.

• March 2022: Grover resigns from BharatPe.

• December 2022: BharatPe files a criminal suit against Grover and his family.

• May 2023: The Economic Offences Wing (EOW) lodges an FIR against Grover based on BharatPe's complaint.

• November 2023: A lookout circular is issued against Grover and Jain; they are stopped from flying out of India.

Now - September 2024: BharatPe and Grover settle all disputes, agreeing not to pursue further legal action. Key points of the settlement include:

• Grover will no longer be associated with BharatPe in any capacity.

• Grover's shareholding in BharatPe will be redistributed as follows:

  • Approximately 3% stake will be transferred to Bhavik Koladiya, another co-founder.

  • 2-2.5% will be transferred to the Resilient Growth Trust "for the benefit of the company."

  • The remaining stake (estimated at 3-3.5%) will be managed by Grover's family trust.

  • Both parties have agreed not to pursue any further legal action against each other.

Despite the over 2-year-long legal turmoil, BharatPe has shown remarkable growth:

• Revenue increased more than 5x since August 2021, reaching $260M as of March 31, 2024.

• The company may now target a public market listing within the next 24 months.

• BharatPe's last valuation stood at $2.7B in August 2021.

Overall: This resolution ends a tumultuous period for BharatPe and paves the way for its next phase of growth. As BharatPe looks towards a possible public listing, the end of this legal dispute removes a significant obstacle, potentially accelerating its path to the public markets.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🤖 No AI guardrails? - California Governor Gavin Newsom vetoed a groundbreaking artificial intelligence (A.I.) safety bill, S.B. 1047, which aimed to enforce strict regulations on large A.I. systems. The bill mandated safety testing and the inclusion of a kill switch to address potential risks like biowarfare. Newsom cited the bill's narrow focus on regulating major A.I. models, overlooking broader risks, and suggested a rewrite. While supported by some academics and technologists, others, including industry giants like OpenAI and Google, opposed it for stifling innovation. Newsom called for more expert input to develop a balanced approach to regulating A.I. risks.

🙅 Incoming strike - A dockworkers' strike is set to shut down major U.S. ports along the East and Gulf coasts, impacting trade and the economy ahead of the presidential election and holiday season. The strike involves 25,000 International Longshoremen's Association (ILA) members seeking significant pay increases and opposing automation. With ports handling key imports like food and agricultural products, the strike could cost the U.S. economy $4.5 billion per week. President Biden can intervene but hasn't acted, risking potential economic disruption. The strike adds uncertainty ahead of the election, posing challenges for both political parties.

💰️ OpenAI gets $500M - SoftBank’s Vision Fund will invest $500M in OpenAI’s latest funding round, which aims to raise $6.5B through convertible notes. This investment marks SoftBank’s first involvement with OpenAI, the company driving the artificial intelligence boom. The funding round, currently valuing OpenAI at $150B, may increase further depending on whether the company restructures its corporate governance and removes profit caps for investors. Apple reportedly opted out of the round. OpenAI, led by Sam Altman, is planning to transition from being controlled by its non-profit board to a for-profit corporate structure.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Taxation of 40% on carbonated beverages hampering innovation.

• Dr Lal PathLabs sets sights on big buys to expand in the south.

• Jammu & Kashmir elections phase 3: 40 seats head to polls today.

• By 2035, EVs will consume 6 to 8.7% of India's electricity.

• Epic Games accuses Samsung, Google of scheme to block app rivals.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Tommy Shelby returns in ‘Peaky Blinders’ movie for Netflix - first look revealed 🔥 

• Jr NTR and Janhvi Kapoor's Devara: Part 1 continues to make waves in the theatres.

• ‘Penguin’ takes flight: HBO touts strong ratings for first two episodes.

• India vs Bangladesh, 2 Tests update: Bangladesh trail by 26 runs and 8 wickets on Day 2.

• NBA Hall of Famer Dikembe Mutombo dies from brain cancer at the age of 58😭 

• Premier League update: AFC Bournemouth beat Southampton 3-1.