🚗 Smart cars

Good morning. Ben Affleck went on CNBC’s Delivering Alpha 2024 to discuss all things media industry. His take on AI in Hollywood? AI doesn’t stand a chance against actors, or Shakespeare.

You’d still need a Ben Affleck and Matt Damon to write another Good Will Hunting 👬 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 💸 Zepto’s burn rate soars to ₹250 Crore

• 🚗 Smart cars

• 🗞️ Bite-sized summaries

  • 🥗 Zomato District

  • 💾 AI chips are overheating

  • ⚡️ Get yourselves an EV

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Markets were closed on the 15/11/2024

🌍️ International

• Wall Street indexes fell sharply after Federal Reserve Chair Powell signaled caution on interest rate cuts. Traders reduced expectations for rate reductions in December and 2025, influenced by better-than-expected economic data and retail sales.

Q-COMMERCE

💸 Zepto’s burn rate soars to ₹250 Cr.

Zepto, a leading player in the quick commerce sector, has seen its monthly cash burn soar beyond ₹250 Cr., peaking at ₹300 Cr. in October.

This sharp increase follows an investment of ₹2,500 Cr., raised primarily from Indian high-net-worth individuals and family offices. The funding is part of Zepto's strategy to aggressively expand its operations and outpace competitors like Blinkit, Swiggy Instamart, and BigBasket.

Here’s the breakdown:

• Zepto’s spending spike is attributed to its scaling operations, marketing, and talent acquisition efforts.

• The company reportedly allocates around ₹120 Cr. monthly to digital and performance marketing, including aggressive bidding on Google and Meta keywords.

• To attract and retain users, it has also increased product discounts, including notable offers on high-demand items like iPhones.

CEO Aadit Palicha stated that over 70% of Zepto’s existing stores are fully EBITDA-positive, and the company is focused on opening hundreds of new stores each quarter. These new stores reportedly show better profitability trajectories, driving Zepto’s 200% year-on-year growth on a large revenue base.

The heightened cash burn coincides with the festive season, a critical period for e-commerce players. While some competitors have scaled back spending, Zepto views this as a pivotal time to invest and gain market share.

Overall: Backed by prominent investors such as Raamdeo Agrawal and Ranjan Pai, Zepto now boasts a cash reserve of $1.4B.

The company aims to leverage this capital to cement its position in the fiercely competitive quick commerce market while moving toward becoming a fully Indian-owned enterprise.

Read more: Money Control

GEN AI

🚗 Smart cars

According to Techarc's India Connected Consumer Report 2025, India is poised to revolutionize its automotive industry by 2025 with the rollout of 5G-enabled "smart cars" featuring advanced AI and cloud connectivity. This transition bypasses 4G technologies, integrating cutting-edge features across various price segments, making high-end tech more accessible to Indian consumers.

Here’s what this means:

• Passenger vehicles equipped with 5G Machine-to-Machine (M2M) connectivity and generative AI (GenAI) capabilities will offer real-time data processing for enhanced driver assistance, safety, and entertainment.

• Applications like video conferencing, music streaming, OTT platforms, and even vehicle diagnostics will become standard in many cars priced above ₹20 lakh.

Automotive chipset companies such as Qualcomm and MediaTek are already reaping benefits, with cumulative revenues exceeding $1.5B. The adoption of smart cars aligns with a growing trend of Indian consumers prioritizing features and user experience over additional smart devices.

A survey of 4,500 connected consumers revealed increasing awareness and interest in connected vehicles, with MG Motors, Kia, and Tata Motors emerging as leaders in the segment. Hyundai and Maruti Suzuki also rank among the top brands delivering smart automotive solutions.

Overall: India’s auto industry, producing nearly 5 million passenger vehicles annually, is on track to become a global leader in the 5G M2M market. With a blend of affordability and innovation, the country is well-positioned to redefine the driving experience for millions.

By transforming what was once considered a luxury into a mainstream feature, the integration of 5G technologies signals a new era for the Indian automobile market, enhancing comfort, safety, and connectivity for drivers and passengers alike.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🥗 Zomato District - Zomato has launched "District," a dedicated app for its going-out vertical, encompassing dining, live events, and movie ticketing. Available on iOS and Android, District integrates Zomato's dining services and Paytm’s events and ticketing business, which it acquired for ₹2,048 Cr.. The app positions Zomato as a competitor to BookMyShow, leveraging its food delivery profits to support this venture. Over time, all going-out services will transition from Zomato’s main app to District. For Q3 2024, Zomato’s going-out business revenue surged threefold to ₹154 Cr., signalling strong growth potential in this space.

💾 AI chips are overheating - Nvidia's new Blackwell AI chips are facing overheating issues in customized server racks, delaying deployments for clients like Meta, Google, and Microsoft. Despite their advanced design, overheating occurs when multiple chips are interconnected. Nvidia has repeatedly adjusted rack designs to address this but has yet to resolve the problem. Initially unveiled in March, the chips were slated for Q2 release but encountered delays. This challenge raises concerns for customers aiming to set up new data centres. Blackwell chips boast significant performance improvements, being 30 times faster at tasks like chatbot responses compared to their predecessors. Nvidia has not commented yet.

⚡️ Get yourselves an EV - The Telangana government has announced a 100% exemption on road tax and registration fees for electric vehicles (EVs) purchased and registered in the state. Effective November 18, 2023, the policy applies to all types of EVs, including two-wheelers, cars, commercial vehicles, and buses, aiming to reduce pollution in Hyderabad. For Telangana State Road Transport Corporation’s electric buses, the exemption extends for their entire lifespan. This initiative, valid for two years until December 31, 2026, supports the state’s efforts to promote sustainable transportation and make Hyderabad pollution-free. The government order (GO 41) highlights its commitment to green mobility.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• India well-positioned to preserve heritage in LLMs: Amazon CTO.

• India to be in focus for high-street fashion manufacturers: McKinsey & Company.

• Nepal, India agree to better coordinate border security.

• Elon Musk teams up with India for a groundbreaking satellite launch.

• Hyundai Motor India bets big on CNG models, sees growing demand across rural & urban markets.

• Bangladesh will seek extradition of ex-premier Sheikh Hasina from India.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Denmark’s Victoria Kjær Theilvig crowned Miss Universe 2024 winner.

• Box office: ‘Red One’ unwraps $34M U.S. win, ‘Gladiator II’ scores record $87M overseas debut.

• YouTuber Jake Paul easily outboxed a 58-year-old Mike Tyson for eight drab rounds.