A balancing act for SaaS firms; EV sector’s Budget wishlist

Hello,

The TikTok sweepstakes just got way more interesting! Mr Beast (yep, that Mr Beast) is throwing his hat in the ring alongside tech heavyweights Elon Musk and Larry Ellison for the US unit of the short video app. 

The YouTube sensation’s teaming up with Employer.com’s Jesse Tinsley for an all-cash bid, while President Trump’s given the thumbs-up  to either Musk or Ellison leading a government JV. Talk about options!

Speaking of JVs, there is another one that has the new president’s backing—'Stargate'—a JV between OpenAI and SoftBank to build data centres and create over 100,000 jobs in the US. 

With a private sector investment of up to $500 billion, Stargate will be initially funded by SoftBank, OpenAI, Oracle, and MGX, and Masayoshi Son will assume the role of chairman.

Meanwhile back home, FMCG giants are setting their sights on beauty D2C brands in the face of the growing popularity of quick commerce.

Hindustan Unilever is all set to acquire a 90.5% stake in skincare brand Minimalist for Rs 2,955 crore, and the remaining 9.5% from Minimalist's founders in two years. Another skincare brand, Deconstruct, also found backing from L’Oréal’s VC fund BOLD. 

ICYMI: A ‘corpse flower’ is about to bloom in Australia, and thousands await to get a whiff of Putricia, mostly described as “wet socks, hot cat food, or rotting possum flesh”. Ew!

In today’s newsletter, we will talk about 

• A balancing act for SaaS firms
• EV sector’s Budget wishlist
• Fostering development at grassroots level

Here’s your trivia for today: What branch of mathematics is named for the Latin for "small pebble"?

SaaS

A balancing act for SaaS firms

The weakening rupee is a mixed bag for Indian SaaS firms, offering an edge to those that bill clients in dollars, and bringing challenges to others.  

SaaS companies that build solutions in India and sell them overseas, especially to customers in the United States, stand to gain from the depreciation of the Indian rupee against the US dollar. However, firms that have a sizable business in the price-sensitive Indian market or rely on imported technologies have to deal with significant hurdles. 

Currency volatility:

• Dollar-denominated revenue translates into higher rupee earnings for Indian SaaS firms with a significant customer base in the US. The current exchange rate situation also helps companies like San Francisco- and Ahmedabad-based Middleware.io manage its spending efficiently and invest more in its Indian operations.
• On the flip side, as most SaaS companies operate globally, their services are usually priced in dollars. This means depreciation of the rupee against the dollar can run up the cost of services for the Indian customers of SaaS companies, potentially impacting domestic demand in the long run. 
• Currency hedging, though not universally adopted, remains a valuable tool for many SaaS companies in managing the financial risks linked to exchange rate volatility. The approach and extent of hedging will depend on each company’s circumstances and risk tolerance.

Funding Alert

Startup: Namdev Finvest

Amount: $38M

Round: Debt

Startup: Deconstruct Skincare

Amount: Rs 65 Cr

Round: Undisclosed

Startup: Zeelab Pharmacy

Amount: $2.4M 

Round: Seed

Union Budget

EV sector’s Budget wishlist

In 2024, the Indian government shifted its focus to electrify commercial vehicles. Amid the ecommerce boom, the EV ecosystem saw widespread demand for vehicles, especially two-wheeler and three-wheeler vehicles to cater to last-mile deliveries.

Amidst the burgeoning demand for EVs, the industry is calling for schemes and subsidies aimed at charging infrastructure to support the growth in the sector.

Expectations:

• Some of the key asks from the industry include interoperability and standardisation of charging connectors and protocols for two- and three-wheelers, funding for grid-integrated technologies, and smart metering to help address rising energy demand from EVs, according to Kazam CEO Akshay Shekhar. 
• Yulu Co-founder and CEO Amit Gupta also called for subsidies and financial incentives to be extended to low speed EVs, especially considering the surge in demand for LSEVs, particularly for last-mile delivery, driven by the growth of quick commerce and ecommerce sectors.
• As the government shifts its focus to heavy vehicles, the sector is expecting government subsidies to reduce the cost of EV heavy vehicles. This can be addressed by reducing taxes on import of EV components such as battery cells, according to Rohan Dewan, Co-founder and CEO, LeafyBus, an electric bus operator.

Social Impact

Fostering development at grassroots level

In 2018, Marta Vanduzer-Snow founded Safalgram—Better Village Better World, a non-profit to address critical challenges in education, healthcare, sanitation, and renewable energy. Over the years, she has combined sustainable infrastructure with innovative solutions, fostering holistic development in rural communities.

Her approach to development is rooted in the principles of permaculture, wherein each input in a system has at least two functions. Over the past seven years, Safalgram has implemented several key projects aimed at improving sanitation, infrastructure, and access to clean drinking water.

Sustainable development:

• Among Safalgram’s projects is the EvapoTranspiration Toilet, an on-site sanitation system designed for the chemical and biological treatment and reuse of household blackwater. Over the past seven years, Safalgram has constructed over 500 EVT-T units, significantly enhancing sanitation facilities in the region.
• Safalgram has also introduced permeable road designs that allow rainwater to pass through the surface and percolate into the ground. This approach reduces stormwater runoff, minimises erosion, mitigates the heat island effect, and filters pollutants through the road's layers.
• Safalgram’s success is deeply rooted in strategic collaborations with diverse partners, blending expertise and resources to amplify its impact. The organisation has collaborated with IIT Delhi and IIT Kanpur to refine and implement solutions like the EVT-Ts. 

News & updates

• Tariffs: US President Donald Trump vowed to hit the EU with tariffs and said his administration was discussing a 10% punitive duty on Chinese imports because fentanyl is sent from China to the US via Mexico and Canada. 
• OTT: Shares of Netflix soared 13% to an all-time high after it’s big bet on sports helped add a record 18.9 million subscribers in the holiday quarter, ballooning its already sizeable advantage over other players. It also unveiled price hikes to boost revenue just as it shifts focus from subscriber growth to other performance metrics such as sales.
• Fines: Indonesia’s antitrust agency KPPU fined Google 202.5 billion Rupiahs (~$12.6 million) for antitrust violation related to its payment system services for the Google Play Store. It ordered the search giant to cease the mandatory use of Google Play Billing in the Google Play Store. 

What branch of mathematics is named for the Latin for "small pebble"?

Answer: Calculus.

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