Nykaa sees 66% jump in Q2 profits; SoftBank eyes more AI bets

Hello,

Bitcoin bulls have a new horse to back—or an old one, rather.

Investors betting that the Trump 2.0 administration will be a boon to the cryptocurrency industry drove Bitcoin to a record-breaking high close to $90,000 for the first time. 

Fiat currency wasn’t too far behind either, with the dollar climbing to a four-month high on expectations that Trump will cut down on red tape and take a softer touch to regulation. Not to mention the equity market rally for several Wall Street bigwigs, including Tesla. 

Tesla billionaire Elon Musk has a lot more riding on the incoming administration than just company stock. The billionaire’s role in bringing Donald Trump back has given him a unique opportunity to reshape the federal government with his picks. 

Musk has made some headway with the Indian government too, with Indian Telecom Minister Jyotiraditya Scindia saying that Starlink was in the process of obtaining security clearance for a licence to offer satellite broadband services in India, and will get a permit if it satisfies all conditions. 

Money does run the world, after all. And India’s roster of crorepatis is about to get a few new additions–about 500 of them, as Swiggy’s IPO and its subsequent ESOP payout is set to place Rs 9,000 crore in the hands of 5,000 employees who helped build the foodtech giant. 

The fintech startup scene is also showcasing a certain joie de vivre in its results. Infibeam Avenues reported its highest-ever quarterly revenue in the second quarter of FY25, while Amica Financial Technologies, the parent company of fintech app Jupiter, posted a five-fold surge in revenue from operations for the fiscal year. 

Disposable income does allow for some indulgences, like your very own Batmobile from the Dark Knight franchise. All for the low, low sum of $3 million. 

A luxury only Bruce Wayne can afford!

In today’s newsletter, we will talk about 

• Nykaa sees 66% jump in Q2 profits
• SoftBank eyes more AI bets
• Namdev Finvest and impact lending

Here’s your trivia for today: What technology company submitted a patent for a vibrating tattoo?

Ecommerce

Nykaa sees 66% jump in Q2 profits

Beauty and personal care marketplace Nykaa's overall net profit grew 66% YoY to Rs 12.97 crore in Q2 FY25, aided by festive demand. 

According to exchange filings, FSN E-Commerce Venture, the parent company of Nykaa, clocked a 24% growth in operating revenue at Rs 1,874.7 crore compared to Rs 1,507 crore in Q2 FY24.  

Key takeaways:

• The Falguni Nayar-led company posted a 24% growth in gross merchandise value (GMV) at Rs 3,652 crore during the three months ended September 30, 2024.
• Nykaa sees a diversified channel mix for its beauty-owned brands as it drives down on omnichannel presence and alternative platforms for select categories to enhance customer experience. 
• The beauty retailer doesn’t expect to invest in setting up dark stores to enable quick deliveries as it doesn't see the overall operation becoming margin dilutive. However, it is looking to tap into third parties deeply.

Funding Alert

Startup: Wheelocity

Amount: $15M

Round: Extended Series A

Startup: Ugaoo

Amount: Rs 47 Cr

Round: Series A

Startup: StampMyVisa

Amount: Rs 6.6 Cr

Round: Pre-Series A

Investor

SoftBank eyes more AI bets

SoftBank Group is doubling down on AI investments, driven by an impressive cash position and renewed financial stability. The Tokyo-based investor's Vision Fund 2 recently committed $500 million to OpenAI, marking one of its most strategic placements in the AI sphere this year. 

“The size was not huge from our perspective—$500 million—but as a deal, it was significant,” a SoftBank representative said during the company’s Q2 earnings call.

Cash-rich:

• With a stabilised cash position of over 4 trillion yen (about $26 billion), SoftBank is primed for further strategic bets on Gen AI, banking on what it sees as sustainable growth opportunities.
• Meanwhile, Rajeev Misra, the co-CEO of SoftBank’s Vision Fund, will be exiting the firm. Alex Clavel will be the sole CEO of SoftBank’s Investment Advisers and SoftBank Global Advisers.
• Vision Funds (SVF1 and SVF2) sold investments totalling $1.85 billion for the six months ending September 30, including full exits from 10 portfolio companies such as SenseTime and Paytm, and partial exits from several other portfolio companies.

Startup

Namdev Finvest and impact lending

Thirty-seven-year-old Jitendra Tanwar runs Namdev Finvest, an NBFC that takes global impact funding to small businesses in small towns in India. The Jaipur-based company lends to small businesses and people looking to buy a bike or scooter, or those who want to start driving an e-rickshaw for livelihood or install solar panels. 

“We meet them, understand their requirements, and after that, they are sanctioned disbursements.” The company's physical presence is crucial to its operations, with 112 branches across eight states that it operates in.

Lending:

• The average loan ticket size at Namdev Finvest ranges between Rs 5 lakh and Rs 7 lakh, with flexible loan terms extending up to 10 years. 
• It has received over $41.5 million (about Rs 350 crore) in funding from impact investors such as Belgian development fund Incofin, Lighthouse Canton Nueva Fund, UK government-backed British International Investment, and micro-finance investor Maj Invest. 
• Today, Namdev Finvest has over Rs 1,300 crore in assets under management, most of which is distributed to small businesses from eight states—Rajasthan, Gujarat, Madhya Pradesh, Haryana, Delhi, and Uttarakhand.

News & updates

• Soars: India's retail inflation surged to a 14-month high in October, driven by a jump in vegetable prices and dashing hopes of an interest rate cut by the RBI next month. The annual retail inflation of 6.21% in October breached the RBI’s tolerance band for the first time in more than a year.
• Slashed: The Organization of the Petroleum Exporting Countries cut its forecast for oil demand growth for the fourth consecutive month after further delaying its planned output hike amid market concerns over weaker global consumption and lower prices.
• Appeasement: Meta Platforms plans to offer Instagram and Facebook users in Europe the option to receive “less personalised ads,” the tech giant announced on Tuesday, in an effort to allay regulators’ mounting concerns.

What technology company submitted a patent for a vibrating tattoo?

Answer: Nokia. The company has filed a patent for a tattoo that would send “a perceivable impulse” to your skin whenever someone tried to contact you on the phone.

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