💰️ India’s VC landscape

Good morning. Christopher Nolan and Emma Thomas have been knighted by the King of England earning them titles of Sir and Dame ⚔️ So well deserved!

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 💰️ India’s VC landscape

• 🏦 SEBI considers key reforms for SME IPOs, Insider Trading, and Digital Platforms

• 🗞️ Bite-sized summaries

  • 🚀 Sunita Williams and Butch Wilmore’s return delayed again

  • 🫂 Hurun India's Top Self-Made Entrepreneurs 2024 highlights

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Stock market declined. Foreign fund outflows and cautious sentiment ahead of the US Fed decision contributed to the losses. Despite today's dip, the market remains up 10.99% year-to-date.

🌍️ International

• Stock market fell sharply. The decline followed the Federal Reserve's forecast of only two interest rate cuts in 2025, leading to rising Treasury yields.

LIQUIDITY

💰️ India’s VC landscape

India's venture capital (VC) ecosystem underwent significant shifts in 2024, as cautious investment strategies shaped the year. Despite raising $2.5 billion, up from $1.9 billion in 2023, deal activity remained muted with $10.9 billion invested, only a modest increase from $9.6 billion last year. This restrained approach signals a reset following the 2021-2022 boom.

Several factors contributed to this conservatism. Senior executive churn was notable, with over 22 senior VC executives transitioning to new firms or founding their own. For instance, Sameer Brij Verma of Nexus Venture Partners launched Northpoint Capital, while Subeer Monga joined Sorin Investments. Some firms, like Stellaris Venture Partners and Elevation Capital, responded by promoting partners to deepen expertise in niche sectors.

Early-stage investments saw a pivot as global giants like Tiger Global and SoftBank scaled back. Smaller funds and micro VCs stepped up, closing $1.7 billion in early-stage deals, slightly above $1.6 billion in 2023. Notable deals included Lyskraft's $26 million seed round and Sarvam's $41 million funding led by Lightspeed.

This cautious climate also impacted late-stage investments, with global firms focusing on select high-value deals. Companies like Zepto, PhysicsWallah, and Mintifi managed to secure $100 million-plus rounds, reflecting selective optimism for mature startups.

Overall: The Indian VC landscape is navigating a transitional phase, marked by strategic recalibration, a rise in micro VCs, and growing specialization to adapt to the evolving startup ecosystem. While the industry remains cash-rich, the emphasis is on due diligence and strategic bets, setting the stage for a measured recovery in the years ahead.

Read more: Economic Times

SEBI

🏦 SEBI considers key reforms for SME IPOs, Insider Trading, and Digital Platforms

The Securities and Exchange Board of India (SEBI) convened a board meeting on December 18, 2024, to discuss significant regulatory updates to bolster market transparency and investor protection. Key agenda items included reforms for SME IPO listings, expanded insider trading norms, and a framework for specified digital platforms (SPFs).

SME IPO Reforms:

• SEBI is reviewing suggestions to enhance the SME listing framework, including raising the minimum application size to ₹2-4 lakh and implementing a draw-of-lots system for High Net-Worth Individuals (HNIs).

• The Offer for Sale (OFS) cap may also be limited to 20-25% of the issue size to restrict promoter exits.

• Additionally, the minimum number of allottees could increase from 50 to 200, ensuring broader investor participation. These measures aim to improve transparency and make SME IPOs more investor-friendly.

Expanded Insider Trading Regulations:

• To address evolving market dynamics, SEBI is exploring broader insider trading norms. Proposed additions to Unpublished Price Sensitive Information (UPSI) include changes in company ratings, fundraising plans, agreements affecting management control, evidence of fraud, and updates on Key Managerial Personnel (KMP).

• This expansion aims to strengthen the regulatory framework and mitigate insider trading risks.

Specified Digital Platforms (SPFs):

• SEBI also discussed a proposed framework to regulate SPFs, focusing on transparency, fraud prevention, and accountability.

• Platforms seeking SPF recognition would need to collaborate with SEBI, adopt preventive and curative measures, and submit periodic fraud-related reports. The initiative could significantly impact brokerages, content creators, and financial influencers.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🚀 Sunita Williams and Butch Wilmore’s return delayed again - NASA astronauts Sunita Williams and Butch Wilmore, initially slated for a one-week mission to the International Space Station (ISS), now face an extended stay of nearly 10 months due to ongoing delays. Their return aboard Boeing’s Starliner capsule was deemed unsafe following technical issues, prompting NASA to plan their journey back on SpaceX’s Crew Dragon. However, SpaceX’s new capsule launch has been postponed to late March or early April, pushing back their homecoming further. NASA prioritized using the new capsule for safety, ensuring a smoother crew transition at the ISS. The duo’s unexpected mission extension continues.

🫂 Hurun India's Top Self-Made Entrepreneurs 2024 highlights - Zomato CEO Deepinder Goyal is India’s second-largest self-made entrepreneur after a 190% valuation surge to ₹2.52 lakh crore. Swiggy founders Sriharsha Majety and Nandan Reddy rank third with a 52% valuation increase. Radhakishan Damani of Avenue Supermarts retains the top spot with a ₹3.4 lakh crore valuation. Youngest on the list is 21-year-old Kaivalya Vohra of Zepto, valued at ₹41,800 crore. Top women entrepreneurs include Falguni Nayar (Nykaa) and Ghazal Alagh (Mamaearth). Hurun reports the total valuation of these businesses at $431 billion, reflecting the significant economic impact of self-made entrepreneurs.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• US Embassy introduces new visa appointment rules to cut wait times in India.

• Grammarly to acquire productivity startup Coda, Shishir Mehrotra to take over as CEO.

• US imposes more sanctions over Pakistan's missile program.

• I'm entitled to relief: Vijay Mallya on remarks about banks recovering assets worth Rs 14,131 crore from him.

• Kirana stores agree on a potential plan to survive the quick commerce takeover.

• Supreme Court will hear arguments over law that could ban TikTok in US if it's not sold.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Ravichandran Ashwin has announced his retirement from international cricket with immediate effect.

• Australia vs India Test Series: match drawn on Day 5.

• Girls Will Be Girls review: it's spellbindingly granular and resonantly universal.

• Kriti Sanon and Shahid Kapoor to reunite in Cocktail 2 after Teri Baaton Mein Aisa Uljha Jiya.