🙌 Swiggy swings towards an IPO

Good morning. Sabrina Carpenter becomes the first woman in history to chart three songs in the top 10 on the Hot 100 simultaneously for five consecutive weeks.

Espresso always wins ☕️ 👩‍🎤 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🙌 Swiggy's swings towards an IPO

• ⛽️ End of the coal era

• 🗞️ Bite-sized summaries

  • 👑 WFH reigns supreme

  • 📉 More rate cuts incoming?

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian stock markets closed slightly lower on Tuesday. Profit-taking in oil & gas and FMCG sectors contributed to the decline amid subdued global trends and foreign fund outflows. Tech Mahindra led gainers, while IndusInd Bank and Asian Paints were among the major losers.
  

🌍️ International

• US stocks declined, after Iran launched over 100 ballistic missiles at Israel, causing a significant spike in oil prices. The tech-heavy Nasdaq led the declines. Job openings unexpectedly rose, indicating a cooling labour market, as dockworker strikes threaten major economic disruption along the East and Gulf coasts.

INVESTMENTS

🙌 Swiggy's swings towards an IPO

Invesco, a prominent U.S. asset manager, has raised its valuation of Indian food-delivery startup Swiggy to $13.3B, signalling growing investor confidence as the company prepares for its imminent IPO.

Some context (aka market potential)

The Indian food delivery sector is poised for significant growth:

• Projected to reach $25.5B by 2030

• Expected to grow at an 18% CAGR over the next 6-7 years

• Online food delivery penetration is anticipated to increase from 12% to 20% by 2030

Key drivers fuelling this growth include a rising middle class, increasing disposable incomes, and higher smartphone penetration.

Swiggy's Position

Swiggy, along with rival Zomato, has established a duopoly in the Indian food delivery market, potentially enhancing profitability. This strong market position has likely contributed to Swiggy's sustained high valuation, even as many startups face valuation cuts in a challenging environment.

IPO Outlook

As Swiggy approaches its public debut:

• The company aims to raise up to $1.4B.

• It's targeting a valuation range of $13-15B.

• Invesco has increased the value of its Swiggy stake to $237.24M, up from its $190.47M investment in 2022.

Investors will be closely watching to see if the market shares Invesco's optimistic view of Swiggy's potential when the company goes public. The success of this IPO could have significant implications for India's startup ecosystem and the broader food delivery sector.

Read more: Techcrunch

RENEWABLES

⛽️ End of the coal era

It’s done.

After 142 years, the UK has officially ended its reliance on coal for electricity production, marking the closure of its last coal-fired power station, Ratcliffe-on-Soar.

Here’s the TL;DR:

• Coal has long been the backbone of the UK’s energy system, powering the Industrial Revolution and providing electricity throughout much of the 20th century.

• However, as the climate crisis escalated, coal—being the most polluting fossil fuel—became a target for elimination. The UK passed its first legally binding climate targets in 2008 and in 2015, committed to phasing out coal power within a decade.

Renewable energy sources have rapidly grown in the UK’s energy mix, with renewables accounting for more than 50% of power generation by 2024. This surge has allowed the country to reduce its dependence on coal, with coal-free days first occurring in 2017.

While the closure of coal plants is a significant step forward, challenges remain.

• Renewable energy sources like wind and solar are not always reliable due to weather conditions, making advancements in battery technology crucial for grid stability.

• Furthermore, efforts are being made to ensure that the shift to green jobs benefits communities that have historically relied on fossil fuels.

Overall: As the UK sets an example for other countries to follow, the focus now turns to innovation in energy storage and sustainability, ensuring a smooth transition to a cleaner energy future.

Read more: BBC

GENERAL OVERVIEW

🗞️ Bite-sized summaries

👑 WFH reigns supreme - A survey conducted by Blind reveals that 73% of Amazon employees are considering quitting due to the company's new return-to-office (RTO) policy, requiring five days of in-office work starting January 2, 2025. Of the 2,585 employees surveyed, 91% expressed dissatisfaction, with 80% knowing at least one colleague considering leaving, and 32% already aware of someone who had quit. Concerns include the impact on parents and caregivers who value remote work and fears about job security. Some employees expressed frustration, with one stating their morale was lost after the policy announcement.

📉 More rate cuts incoming? Federal Reserve Chair Jerome Powell indicated that future interest rate cuts would likely be smaller, following a recent half-percentage point reduction. At the National Association for Business Economics, Powell emphasized that the Fed is "not on any preset course," allowing economic data to guide decisions. He suggested two more quarter-point cuts may happen this year if conditions remain stable. Powell expressed confidence in the economy’s strength and expects inflation to cool further, gradually decreasing housing-related costs. Despite market expectations for more aggressive easing, Powell stressed a cautious, data-driven approach to monetary policy.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• India to fabricate its first chip in two years as Nvidia, AMD and Micron pledge to expand to the country.

• China's benchmark stock index posts the biggest daily gain since 2008.

• Songs by Adele, Kendrick Lamar, Bob Dylan, Nirvana, and more to return to YouTube after a legal dispute.

• Crude oil spikes more than 3% after Iran fires missiles at Israel.

• Saudi Arabia slashes growth forecasts, sees wider budget deficits.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Dominant India sweep Bangladesh 2-0 in test series.

• Ranbir Kapoor to play lead villain in Dhoom 4.

• Kriti Sanon and Kajol's Do Patti to release on October 25.

• LeBron James makes debut with Son Bronny James as Lakers teammates.

• Sean “Diddy” Combs to face lawsuits from 120 additional accusers.