Weekly News Roundup at 10:00 am on 6th July, 2024

Let’s begin. The full Budget for 2024-25 may be presented on July 24 in the Monsoon Session of the Parliament, while the Economic Survey may be tabled on July 23, sources said. While the final decision on the dates will be announced soon, sources said the normal practice is that two sessions of Parliament have at least a 15-day gap between them. The Inaugural session of the 18th Lok Sabha concluded on Tuesday. While the next session could begin on July 18 going by the 15-day norm, sources said the session may begin only on July 22 this time around. President Mumru had earlier said that along with major economic and social decisions, the budget will also see many historic steps.

Over to industry. Quick commerce unicorn Zepto which recently raised $665 million at a valuation of $3.6 billion, is likely to go for another round of fund raise of $250 million on the back of investor interest. Sources said that the fresh round is likely to be at a higher valuation of $4.6 billion and the fund raise may even touch $400 million. The round is likely to see General Catalyst coming on board as an investor, sources said. Sovereign funds such as KKR, Singapore’s GIC and Abu Dhabi Investment Authority (ADIA), are also understood to have shown interest, sources added. While Zepto said it doesn’t comment on market speculation, General Catalyst, ADIA, KKR and GIC could not be contacted for comments.

Furthermore, Investing in a foreign country may seem daunting, but if you are a native of India who has relocated for work or obtained citizenship elsewhere, there are still investment opportunities available to you. India offers a wide range of options within its financial sector that can yield profitable returns. Non-Resident Indians (NRIs) have the chance to capitalize on unique opportunities and face specific challenges when investing in India. With the growing Indian economy, NRIs can explore various avenues to achieve higher investment returns in their native land. Investing in long-term instruments can significantly enhance returns through the power of compounding. Equity linked savings schemes (ELSS), public provident funds (PPF), and SIPs are excellent options for you to grow your money slowly but steadily.

Additionally, India’s food service industry, currently valued at Rs 5.5 trillion, is on track for a decade of remarkable expansion, according to a new report by Swiggy and Bain & Company. The report predicts a growth trajectory of 10-12% annually over the next seven years, which would nearly double the market size to a staggering Rs 9-10 trillion by 2030. This surge encompasses both dining out and delivery, highlighting the growing consumer demand for convenient and flavourful options. Higher incomes, digitisation, improved customer experience, and an inclination to try new experiences have all contributed to this growth. We are very upbeat about the growth in the coming years”, said Rohit Kapoor, CEO, Food Marketplace, Swiggy

Futhermore, The contribution of quick commerce sales to the overall e-commerce sales of fast-moving consumer goods companies has doubled in a year, executives from top firms, including Dabur, Parle Products, ITC and Nestle, have said. The share of q-commerce sales within the e-commerce sales for the FMCG companies now stands at 33-36% against 17-18% a year ago. For Parle Products, the share of q-commerce in their e-commerce sales has breached the 50% mark, said Mayank Shah, vice-president of the company. But the growth has happened over 2-3 years, with consistent sales on the channel. ITC, in its FY24 annual report released last week, said e-commerce and modern trade together accounted for 31% of total sales in FY24 against 17% in FY20.

Next up, Inox Wind Limited on Thursday announced the completion of infusion of approximately Rs 900 crore into the company by its promoter Inox Wind Energy Limited (IWEL). The funds, it added, were raised by IWEL on May 28 through sale of equity shares of Inox Wind through block deals on the stock exchanges, witnessing participation of several marquee investors. In a regulatory filing, Inox Wind said that the funds will be utilised by the company to completely pare down its external term debt to achieve a net debt free status. Kailash Tarachandani, CEO of Inox Wind, said, “It has been a remarkable journey so far. This fund infusion will help us become a net debt free company, strengthening our balance sheet and help accelerate our growth.

Lastly, Persistent Systems Inc, USA (wholly-owned subsidiary of Persistent Systems) has entered a stock purchase agreement to acquire Starfish Associates, LLC, USA. New Jersey-based Starfish is focused on unified communication and contact centre technology domain, providing enterprise communication solutions to large enterprises, including Fortune 500 companies. Persistent Systems Inc will acquire a 100% stake in Starfish for $20.7 million. This includes an upfront payment of $15.4 million and an earnout of $5.1 million over the next two years, contingent on achieving certain performance thresholds. There will be a retention payment for key employees of $0.2 million over the next two years. The acquisition would be completed within four to six weeks.