Expansion 👊

☀️ Morning, Monday was busy.

📈 The government slashed a tax on oil exports, giving refiners and producers some breathing room. That helped the Sensex gain 0.83%.

💸 The S&P gained 0.24%, driven by continued optimism over Trump’s pro-business cabinet picks.

Let’s hit it!

1 Big Thing: Ola’s grand expansion 🔋

Ola Electric’s stock popped over 6% yesterday after the company announced an ambitious plan to 5x its store count to 4,000 by the end of next year.

Why care: the company’s stock has mostly struggled since the IPO in August 2024. Bold product promises have mostly been overshadowed by poor customer feedback and the founders’ twitter stunts.

The bright side: industry momentum however remains strong as two-wheeler buyers continue to be drawn to electric mobility for its lower total ownership costs. In the September quarter, Ola reported revenue of ₹1,214 crore, up 39% YoY, while marginally narrowing its losses.

• However, Ola’s market share has dipped from over 50% of the market in April of this year, to under 30% as of November 2024

The play: Ola plans to deepen its presence in tier-2 and smaller cities through this expansion. The new stores will also include in-house service centers, aiming to strengthen customer trust and accessibility.

Big picture: the EV market is fiercely competitive and only set to intensify. Offense is the best strategy, and if nothing else, Ola scores high on that front. Will Mr.Market buy into the story?

2. Info Edge preps for an ugly round 👊

Info Edge, one of India’s largest digital giants, formally filed an FIR against Rahul Yadav, the controversial founder of Housing.com, and other executives of 4B Network, alleging fraudulent activities.

The details: the FIR claims that 4B Network, an app for brokers, failed to provide critical financial information related to its operations, raising red flags about the company’s management practices.

Backstory:

• Info Edge invested nearly ₹280 crores in Yadav’s latest PropTech venture, acquiring a 65% stake over time
• Despite being well-funded, 4B Networks reportedly failed to meet obligations like paying salaries and clearing vendor dues
• In 2023, after repeated requests for financial disclosures went unanswered, Info Edge initiated a forensic audit

Between the lines: what apparently triggered Info Edge was 4B Networks’ attempt to raise ₹50 crore from Middle Eastern investors at a 99% down-valuation from the previous round.

3. Prosus is doubling down on India 📈

Dutch investor Prosus made two major moves in India yesterday, investing $80 million for a 10%+ stake in Mintifi, and $100 million for an 8.4% stake in Vastu Finance.

• Mintifi: a supply chain financier that partners with enterprises to provide distributors with short-term loans, typically with a 90-day term.
• Vastu Finance: specializes in home loans and manages a debt portfolio of nearly $1.2 billion.

The play: Prosus is capitalizing on the momentum of successful listings among its portfolio companies in India, including a $2 billion windfall from the Swiggy IPO.

Zoom out: the company expects nearly 5 portfolio holdings, including Meesho, Bluestone, and PayU India, to go public over the next 18 months, providing more capital for India deployment.

4. No Dolla, No Deal 🔫

Trump threatened to impose 100% tariffs on BRICS nations unless they pledge support for the US dollar and abandon plans for a new currency to rival it.

In his eloquent vocabulary, the Don told the BRICS nations to basically go find another "sucker!"

• The nine-member bloc, including India, Russia, China, and Brazil, has been exploring alternative currency systems for a while, led primarily by Russia and China, two of the West’s biggest foes.

What exactly is BRICS: an informal coalition of emerging economies—Brazil, Russia, India, China, and South Africa—formed in 2009 to boost economic influence, BRICS now also includes Egypt, Ethiopia, Iran, and the UAE.

Big picture: despite talks of alternatives, the US dollar still makes up 58% of global reserves. Trump aims to preserve its dominance in global trade.

What are they saying: While Russia and China push for de-dollarization, India’s sitting this one out. EAM Jaishankar says they’re more focused on “how to trade” than “how to ditch the dollar.”

What else are we snackin’ 🍿

📅Word of the year: Brain rot has made its way into the Oxford English Dictionary as 2024’s Word of the Year. It defines mental decline from endless TikTok scrolling.

⚡Bolt Mode: Swiggy has expanded its 10-minute Bolt delivery service to 400+ cities, partnering with 40,000+ restaurants across India.

🎯Biden’s last shot: Joe Biden pardoned his son Hunter for felony gun and tax convictions, reversing past promises just ahead of Hunter’s sentencing.

That’s a wrap! Don’t let the Weekday blues get to you.

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