🪙 India's semiconductor push

Good morning.

If you didn’t already know (shocking) Spotify Wrapped is out now.

Proceed with caution - you might not feel as cool as you think you are and it’s okay.

Music is meant to make you feel good, not cool. That’s what we are telling ourselves anyways 🎸 😅 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🧑‍🏫 Allen Institute eyes Unacademy in $800M deal

• 🪙 India's semiconductor push

• 🗞️ Bite-sized summaries

  • 🚀 Do you have a rescue plan?

  • 💼 Increased hiring

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Green - Stock market closed positively. Realty and PSU Bank sectors gained over 2%, while Auto and FMCG declined. RattanIndia Enterprises jumped 5%, Honasa Consumer surged 6%. Market capitalisation to GDP ratio remained high at 147.5%.

🌍️ International

• Green across board. U.S. stock markets reached new highs, driven by tech companies' AI-related performance. Salesforce and Marvell Technology boosted the market with their AI offerings. Treasury yields decreased, while Bitcoin saw an uptick.

M&A

🧑‍🏫 Allen Institute eyes Unacademy in $800M deal

Unacademy, once a darling of the edtech boom with a $3.4B valuation in 2021, is now in advanced talks for acquisition by Allen Career Institute at a significantly reduced $800M valuation. The deal awaits approval from Allen's promoter family, the Maheshwaris, as investment banks iron out details like share swaps and cash payouts.

Unacademy’s trajectory mirrors the post-pandemic challenges plaguing the edtech sector. Initially thriving as an online-only platform, the Bengaluru-based company pivoted to offline coaching to combat flatlining revenues and waning online demand. Despite a $160M cash reserve, FY24 brought ₹988.4 Cr. in revenue but a staggering ₹631 Cr. loss, prompting layoffs, management churn, and strategic shifts.

Meanwhile, Allen Career Institute—a Kota-based giant with 285 campuses, 400 test centres across 64 cities, and ₹427 Cr. in FY23 profit—sees an opportunity to bolster its digital footprint through this acquisition. Backed by Bodhi Tree Systems, Allen aims to integrate Unacademy’s assets to complement its core focus on engineering and medical entrance coaching, with an eye on a future public listing.

If finalized, Unacademy’s co-founders, including CEO Gaurav Munjal, are expected to exit. The move follows failed merger talks with K12 Techno and rival interest from Physics Wallah, underscoring Unacademy’s quest for stability amid sector-wide struggles.

This potential deal is emblematic of a broader edtech reckoning. Giants like Byju’s are grappling with post-pandemic slowdowns, funding scarcity, and operational hurdles, signalling a critical reset in an industry recalibrating for a sustainable future.

Read more: Economic Times

SEMICONDUCTOR

🪙 India's semiconductor push

India's semiconductor reliance is undeniable, with imports of chips, integrated circuits, and amplifiers totaling ₹1.71 lakh Cr. in FY24, as revealed by Minister of State for Electronics and IT Jitin Prasada. Yet, this dependency is fueling a transformative push: building a robust domestic semiconductor ecosystem to reduce costs and foster self-reliance.

The government has greenlit five major semiconductor manufacturing and assembly projects worth ₹1.52 lakh Cr. and is incentivizing nearly 15 semiconductor design companies under the Design Linked Incentive (DLI) scheme. These moves position India to compete on the global semiconductor stage.

But the vision extends beyond infrastructure. Talent development is at the core of this strategy. Initiatives like Chips-to-Startups have trained over 25,000 engineering students, with a target of 85,000 skilled professionals in chip design and embedded systems. The National EDA Tool Grid, housed at C-DAC Bengaluru, grants access to critical design tools, empowering 41 companies to innovate in a competitive landscape.

This ambition is backed by significant financial commitments: ₹28.95 Cr. was spent on capacity building last year, with ₹69.84 crore allocated this year. Minister Prasada highlights the indispensable role of world-class talent in sustaining a thriving semiconductor industry, underscoring the government’s comprehensive strategy to bridge the gap between dependency and autonomy.

India’s semiconductor journey is a fusion of strategic investments, robust incentives, and a skilled workforce. With momentum building, the nation has the potential to transition from a heavy importer to a formidable global player in chip manufacturing.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🚀 Do you have a rescue plan? - NASA is inviting global innovators to design a Lunar Rescue System for incapacitated astronauts during Artemis missions, offering a $45,000 prize pool, including $20,000 for the top design. The challenge focuses on safely transporting astronauts over two kilometres in the Moon's rugged south pole terrain without a rover. Submissions, evaluated on weight, ease of use, and safety impact, are open until January 23, 2025, on the HeroX platform. This initiative addresses critical safety concerns in harsh lunar conditions and supports NASA's goal of establishing a sustainable human presence on the Moon by exploring its water-ice resources for future missions.

💼 Increased hiring - India’s Global Capability Centres (GCCs) are significantly increasing fresher hiring, with a 30% rise this year, targeting 114,000–133,000 new recruits. Traditionally functioning as back-office units for multinationals, GCCs are now evolving into value-driven hubs, balancing experienced hires with fresh graduates from engineering, business, and general degree programs. This shift not only optimizes costs but also fosters sustainable domain expertise. Off-campus hiring is playing a growing role, projected to reach 40% by 2025. By aligning fresh talent with parent organizations’ cultural and domain requirements, GCCs are creating a robust foundation for long-term competitiveness and strategic growth.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Apple's India output shines, sales catching up.

• India's housing property market set for record-breaking performance in 2024.

• RBI increases UPI Lite per transaction limit to Rs 1000, up from Rs 500.

• Microsoft India buys Rs 181.25 crore land parcel near Hyderabad from Natco Pharma.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Nagarjuna shares first pics from Son Naga Chaitanya's wedding 💘 

• Raj Kapoor's birth centenary - details of nationwide film screenings.

• The Roshans first look: A glorious lookback at Rakesh, Rajesh And Hrithik Roshan's legacy.

• The Hollywood Reporter’s 2024 Women in Entertainment Power 100 list out now.