🛵 Smear campaign or strategy?

Good morning. Let’s get after it relentlessly today.

Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🛵 Smear campaign or strategy?

• 🛰️ Space-Tech startups step up as military eyes the sky

• 🗞️ Bite-sized summaries

  • 💰️ Trump takes away $3B

  • 🦠 Covid is… back?

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian equities closed higher, with the Sensex rising 455.3 points (0.56%) to 82,176.45 and the Nifty 50 gaining 148 points (0.60%) to 25,001.15, reclaiming the 25,000 mark for the first time in over two weeks. Gains were broad-based, led by Auto, IT, and Metal sectors, as global sentiment improved following the US decision to extend the EU tariff deadline. Broader markets also advanced, and sectoral indices ended in the green, reflecting sustained institutional and retail interest.

🌍️ International

• US stock markets were closed on the occasion of Memorial Day.

ZEPTO

🛵 Smear campaign or strategy?

In a fiery public statement, Zepto cofounder Aadit Palicha has accused the CFO of a “rival quick commerce firm” of orchestrating a smear campaign designed to undermine the startup’s credibility.

The allegations come as competition in India’s $6–7 billion quick commerce market intensifies—with Blinkit, Swiggy Instamart, and Flipkart Minutes all battling for dominance.

Palicha claims the unnamed executive circulated false financial data and misleading spreadsheets to journalists and investors, allegedly using proxies and bots to spread disinformation across media and social platforms.

He described the episode as “below the stature” of a CFO and suggested the attack stems from growing anxiety over Zepto’s accelerating financial performance.

In a LinkedIn post, Palicha presented a detailed defense of Zepto’s business health:

• Gross order value (GOV) surged from ₹750 crore in May 2024 to ₹2,400 crore in May 2025, driven by robust ad revenue and sales of fresh produce.

• EBITDA margins improved by 2,000 basis points over five months, while cash burn dropped by 65%.

• The company is nearing break-even at both store and company levels, with most dark stores expected to turn EBITDA-positive next quarter.

• Zepto claims a net cash reserve of ₹7,445 crore, backed by reconciled bank statements.

Palicha also dismissed rumors of large-scale store closures, asserting that Zepto is in fact expanding its dark store footprint. He emphasized the company’s “best-in-class” compliance, citing clean Big Four audit records and rigorous financial due diligence.

Overall: The timing of these allegations is telling.

As quick commerce scales rapidly—accounting for over two-thirds of India’s e-retail orders in 2024—profitability remains elusive.

Collectively, top players are burning an estimated ₹1,300–1,500 crore monthly, with Zepto reportedly leading the pack. Flipkart, in response, is limiting its quick commerce ambitions to just 6–8 cities to curb costs.

Read more: Times of India

INDIAN ECONOMY

🛰️ Space-Tech startups step up as military eyes the sky

After Operation Sindoor, India is ramping up its satellite-based Intelligence, Surveillance, and Reconnaissance (ISR) capabilities—opening a massive window of opportunity for private space-tech firms.

With just 10–11 defense satellites currently in orbit—mostly from ISRO’s Cartosat and RISAT series—India’s revisit times are too long to ensure the real-time surveillance demanded by today’s geopolitical climate. To address this, the Space-Based Surveillance (SBS-III) program is being accelerated, aiming to launch 52 indigenous satellites over the next few years. Thirty-one of these will be developed by private firms, signaling a strong shift toward public-private collaboration in national security.

“The urgency is real,” says Lt Gen AK Bhatt (Retd), Director General of the Indian Space Association. “The SBS-III will significantly reduce our dependence on foreign commercial imagery and allow for persistent, all-weather monitoring.”

Startups like Suhora Technologies and GalaxEye are at the forefront of this push. Suhora, which gets 70% of its revenue from the armed forces, processes terabytes of satellite data using AI to support real-time cross-border and maritime surveillance. Its partnerships with global satellite firms like ICEYE and Satellite Vu bring thermal and SAR imaging into the fold—providing critical time-based insights on enemy activity.

GalaxEye, meanwhile, is developing cutting-edge edge-computing sensors for satellites. Their Drishti system combines electro-optical and SAR data, enabling day-night, all-weather imagery with real-time processing on orbit. The startup’s payloads are versatile, compatible with satellites, UAVs, and high-altitude platforms.

Overall: The Geographic Information System (GIS) sector is also seeing explosive demand. Esri India, which counts DRDO among its clients, has rolled out AI-powered tools like ArcGIS Reality that generate realistic 3D models of installations, ships, and aircraft in real time. GIS tools are now critical to field operations—guiding where to strike, deploy, or defend.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

💰️ Trump takes away $3B - U.S. President Donald Trump has proposed redirecting $3 billion in federal grants from Harvard University to trade schools nationwide. Calling Harvard "antisemitic," Trump announced the move on Truth Social, escalating tensions following his administration’s failed attempt to block the university from enrolling foreign students—a decision temporarily halted by a federal judge. Harvard has sued to restore the funding, arguing it's political retaliation. The grants, largely for biomedical research, are not typically associated with trade schools. Trump also accused Harvard of withholding foreign student data and hinted at further actions, including revoking the university’s tax-exempt status and probing civil rights violations.

🦠 Covid is… back? - Kerala is currently leading India's COVID-19 surge, with 430 active cases out of a national total of 1,010, according to the Union Health Ministry. Since May 19, the state has reported 335 new infections, 105 recoveries, and two deaths. Despite the spike, the Kerala government has not issued an official update. Health authorities urge the public to take precautions such as wearing masks, practicing hand hygiene, maintaining physical distance, and avoiding crowded spaces. These measures are vital as the country sees a renewed rise in cases, reminding citizens that COVID-19 safety protocols remain essential.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Investors breathe a sigh of relief as Trump delays 50% EU tariffs — but risk of trade war remains.

• Ukraine says Russia launched its biggest drone attack yet, part of an escalating campaign.

• India’s Kerala state on high alert as vessel with hazardous cargo sinks off its coast.

• Southeast Asian nations want to discuss tariffs with Trump as a unified bloc, Malaysia PM says.