📈 Frequent funding

Good morning. Fun fact: Disney's beloved character Goofy is not, contrary to popular belief, a dog nor is he a cow.

We found out today that he is meant to be a wolf or something close to a wolf anyways 🐺 🤪 

On that note, subscribe to this newsletter if you want to learn something new everyday!

- Ruchirr Sharma & Shatakshi Sharmaa

TABLE OF CONTENTS

• 📈 Zepto is (back) raising

• 🪙 India allocates $10B to strengthen its semiconductor industry

• 🗞️ Bite-sized summaries

  • 🇮🇳 Is the Indian jobs market in trouble?

  • 🪖 India’s defence exports skyrocket

  • 🫧 No U.S. tech bubbles

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian markets ended flat on Monday after initial losses due to the Hindenburg-Sebi controversy. Most Nifty50 and Sensex stocks declined, with Adani Ports among top laggards. India VIX rose 3.47%. Broader indices showed marginal gains. The market opened lower following Hindenburg's allegations linking Sebi Chairperson to an Adani-tied offshore fund. Adani Group shares initially fell sharply but recovered partially by close, with most ending lower by up to 4.14%.

🌍️ International

• Wall Street closed mixed on Monday as investors awaited key economic data, particularly the consumer price index (CPI) and retail earnings, to assess the Federal Reserve's policy outlook. CPI data is expected to show a 0.2% increase in July. Starbucks gained 2.58% due to activist investor interest, and KeyCorp surged 9.1% after Scotiabank acquired a minority stake. Market expectations are split on a potential 25- or 50-basis-point rate cut in September.

FUNDRAISING

📈 Zepto is raising again

Damn

Zepto is at it again, set to raise yet another huge funding round 💰

This time, they're pulling in $310M at a boosted valuation of $5B. And get this - it's happening barely a month after their $665M Series F… 

So what’s driving this funding? 

• Expansion and Competition: Zepto's gearing up to take on the big players like Blinkit, Swiggy Instamart, and newcomer Flipkart Minutes. This cash injection is their "ammunition" in the quick-commerce battleground.

• Aggressive Growth: Zepto's aiming to set up 700 dark stores by March 2025, up from the roughly 250 they have today.

• Market Share Push: While they have an impressive Gross Order Value (GOV) of $1.5B, they are still chasing market leaders like Blinkit, which has a GOV of roughly $2.3B. 

• Product Explosion: Zepto's product range is expanding quickly, jumping from 3,000 to 10,000 SKUs, so logically, they need money to support this expansion

• Supersized Stores: Bigger is better, right? Zepto's new dark stores are set to grow from 3,500 to 4,000 square feet. More space = more products = more $$$.

That's all well and good, but what's really interesting to me is their funding frequency: they are raising capital every six months on average. 

The most obvious reason for this raise? IPO prep. 

CEO Aadit Palicha's playing the long game, viewing this as a "balance sheet building exercise" for their upcoming IPO.

This funding round will also increase Zepto's valuation to $5B, a 40% jump from its last round just over a month ago, potentially positioning it better for a better IPO (or maybe another fundraise, depending on the markets).

Read more: Economic Times

SEMICONDUCTORS

🪙 India allocates $10B to strengthen its semiconductor industry

The Indian government made a bold move to strengthen its position in the global technology market by allocating $10B to the Semicon India Program. 

This investment, announced by Invest India, aims to bolster semiconductor and display manufacturing ecosystems, reinforce India's vision of self-reliance, and enhance global supply chain resilience.

Projections indicate that India's semiconductor market could reach $110B by 2030, driven by advancements in 5G, AI, IoT, and electric vehicles, making the timing of this initiative crucial. The display market is also set to flourish, potentially hitting $15B by 2025.

The programme offers substantial incentives to attract investments:

• 50% incentive on project costs for semiconductor and display fabrication facilities

• 50% support on capital expenditure for compound semiconductor and OSAT facilities

• Up to 50% reimbursement for domestic semiconductor design companies, startups, and MSMEs, with additional deployment-linked incentives

To ensure long-term success, the initiative includes plans for:

• Establishing a specialised institution for research, development, and talent cultivation

• Training 85,000 semiconductor engineers

• Providing fiscal support for setting up wafer fabrication facilities

• Offering demand aggregation, R&D support, and workforce skill development

Overall: This comprehensive approach demonstrates India's commitment to becoming a key player in the global semiconductor industry. By fostering a sustainable industry environment and promoting technological leadership, India aims to significantly influence global electronics supply chains.

As semiconductors form the backbone of modern electronic devices, from smartphones to industrial automation systems, this investment could have far-reaching implications for India's role in the tech world. With considerable growth expected in mobile and wearable technology, IT infrastructure, and consumer electronics, India is positioning itself at the forefront of the next technological revolution.

Read more: Business World

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🇮🇳 Is the Indian jobs market in trouble? - Reliance Industries Ltd. (RIL) has reduced its workforce by 42,000 jobs (11%) in the 2023-24 fiscal year. Shaadi.com founder Anupam Mittal found this "alarming,” questioning the lack of attention to this news. RIL's total employee count dropped to 3.47 lakh, with new hiring down by 1.7 lakh. An unnamed analyst suggests this is due to business maturation and digital initiatives. Mittal expresses concern about the broader economic implications, stating that if large companies are cutting jobs, it indicates a worsening job situation in India, which already needs 8-10 million new jobs annually.

🪖 India’s defence exports skyrocket - India's defence exports surged by 78% in Q1 FY 2024-25, reaching ₹6,915 Cr.. This growth reflects India's push for self-reliance in defence manufacturing. The Economic Survey 2023-24 reported record exports of ₹20,915 Cr. in FY 2023-24, a 25% increase from the previous year. Domestic defence production also grew by 16.7% to ₹1.27Tr.. About 100 domestic companies are exporting various military products, contributing to India's position among the top 25 arms-exporting nations. The government aims to achieve ₹50,000 Cr. in defence exports within five years, emphasizing indigenous development and international collaboration to sustain this growth trajectory.

🫧 No U.S. tech bubbles - Apparently, the recent spurts of market sell-off is nothing more than short-term volatility. Manish Singh, CIO at Crossbridge Capital, argues there's no tech bubble, noting that while some stocks have performed well due to strong earnings, many others haven't. He points out that the Nasdaq is flat over three years on an equally-weighted basis. Singh expects continued volatility in August, following typical election year patterns. Goldman Sachs' Matheus Dibo notes that recent market movements differ from past crises, attributing them to technical factors and macro concerns. Both experts suggest that while volatility may persist, especially with upcoming economic data releases and events, the fundamental underpinnings of the U.S. economy remain solid.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Logistics company Shadowfax eyes ₹3,000 Cr. IPO.

• Wealth management startup Neo Group secures ₹400 Cr. from MUFG Bank, Euclidean Capital.

• Brands rush in as Olympians Neeraj Chopra, Manu Bhaker, Vinesh Phogat strike gold on social media.

• Wipro CTO Subha Tatavarti resigns, fourth big departure from 'Delaporte camp.'

• Adani Green Energy to see 30% CAGR capacity growth.

• India is the fastest-growing REIT market in Asia Pacific.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Miley Cyrus honoured as youngest-ever Disney legend at D23.

• Kanguva trailer: Suriya and Bobby Deol's epic showdown in a tribal world.

• Five-time Olympic medallist Tom Daley has confirmed his retirement from diving.