The joy of frugal living; Inside The Wealth Company

Hello,

From groceries to luxuries, nothing’s escaping the threat of price hikes.

Besides stock market pundits and economists, there may be yet another set of people ringing the alarm on the first signs of an economic downturn: hairdressers and aestheticians.

From clients opting for cheaper, low-maintenance looks to skipping regular appointments, service industry workers in beauty, hair and personal care may have the front row seat to how the economy is adversely affecting consumer sentiment. And the big picture’s not a pretty one.

It’s the same tune when it comes to entertainment. Japanese entertainment giants Nintendo and Sony Group are likely to raise prices on their game consoles in response to US tariffs, which could mean US consumers would have to pay up to 30% more for the highly anticipated Switch 2 or PlayStation 5, respectively.

Meanwhile, amid the tariff war, Tesla is pulling back from China’s automotive market. The EV maker has suspended taking new orders for Model S and Model X vehicles on its Chinese website, both of which are made in the U.S. and imported to China.

ICYMI: Scientists may have uncovered more on a little-known group of early human ancestors. 

An ancient jawbone discovered in Taiwan could potentially have belonged to an extinct group of human cousins called Denisovans, that interacted with Neanderthals and Homo sapiens.

In today’s newsletter, we will talk about 

• The joy of frugal living
• Inside The Wealth Company
• Sangeetha Yanamandra on challenging herself

Here’s your trivia for today: What common food dressing was once sold as medicine?

Lifestyle

The joy of frugal living

Frustrated with rampant consumerism, relentless advertising, and rising inflation, young Indians are consciously cutting down their expenses and embracing frugal living. 

Frugal living does not translate to owning nothing or depriving oneself. It is about choosing when, where, and how to spend one’s money. It means prioritising needs over wants and spending on things that matter, instead of mindlessly accumulating things. This, they believe, improves the quality of life and helps them save for their future. 

Shifting priorities:

• A core premise of social media is to build influence and drive fads. While practices like minimalism, capsule wardrobe, and natural skincare are gaining traction, social media is still a potent tool for marketers and influencers to drive consumerism. 
• A subreddit page ‘Frugal India’, created as early as 2008, is buzzing today, with the community regularly discussing frugality as a mental approach and finding new ways to save and live more sustainably. 
• Some people are also channelling their expenses towards ‘experiences’ that bring lasting happiness and memories, as opposed to fleeting moments of joy that retail therapy gives. Experiences could range from travel, sports, and spending time with family to learning a skill or picking up a hobby.

Top Funding Deals of the Week

Startup: Juspay

Amount: $60M

Round: Series D

Startup: Tessell

Amount: $60M

Round: Series B

Startup: Easebuzz

Amount: $30M

Round: Series A

SMB

Inside The Wealth Company

SMBs are the backbone of the Indian economy, driving innovation, creating jobs, and contributing significantly to the country’s GDP. However, due to the lack of resources and capital, they are unable to grow and compete on a larger scale.

Over the last decade, Madhu Lunawat has been focused on addressing these very challenges with The Wealth Company, an asset management firm. After stints at ASREC, Edelweiss, she co-founded the Pantomath Group, a diversified financial services entity, in 2013 with Mahavir Lunawat. The Wealth Company is a part of this group.

Key takeaways:

• The Wealth Company generally looks at those businesses that have an average revenue of around Rs 300 crore plus, and are profitable.
• Today, the company has assets under management of around Rs 10,000 crore, with 25 companies under its portfolio. Lunawat said, in 2024, its portfolio companies saw a CAGR in revenue exceeding 50%.
• The company has launched three funds. The first one, launched in 2022, is the India Inflection Opportunity Fund, with a size of Rs 500 crore. The second one was Bharat Value Fund – II, launched in 2024 with a size of Rs 2,000 crore, and the ongoing one is Bharat Value Fund - III of Rs 2,500 crore.

Women in Tech

Sangeetha Yanamandra on challenging herself

One constant that has remained through Sangeetha Yanamandra’s life and career is to challenge herself, whatever situation she finds herself in. 

The Vice President of Engineering and Site Leader for Hyderabad at OpenText India has over two-and-half decades of experience in building enterprise platforms, products, and services. At OpenText, she leads products in the analytics and legal tech.

Inspiring stories:

• Yanamandra’s entry into the IT sector wasn’t smooth sailing, despite being a college topper. She completed her MCA in the mid-1990s, entering the job market during an industry slowdown. She decided she had to take on this challenge too, and be resourceful.
• Her career has evolved from mobile technologies to enterprise solutions, cloud computing, and analytics and AI. She has worked across diverse domains, including airlines, security, legal, and clinical trials in companies like Infosys, Virtusa, Kony Solutions, and Barclays Technology Centre India. 
• Drawing from her diverse experiences, Yanamandra actively mentors women on her team, particularly those facing critical junctures like marriage or maternity leave. She is also in constant contact, especially with returning mothers, and advises them on managing their family situations without guilt.

News & updates

• Tariffs: JPMorgan Chase CEO Jamie Dimon warned that the US economy faces "considerable turbulence," and said, "We continue to believe it is prudent to maintain excess capital and ample liquidity in this environment." He also expects estimates for corporate earnings to fall amid the trade war uncertainty.
• Climate: Microsoft is buying 3.7 million metric tons of carbon removal credits from CO280, a project developer that works with pulp and paper mills. The purchase covers 12 years of emissions from CO280’s first carbon capture project at a mill on the Gulf Coast. CO280 expects the facility to start capturing CO2 in 2028.
• Safe haven: Gold blazed past the $3,200 mark on Friday, as a faltering dollar and an escalating US-China trade war stirred recession fears, sending investors flocking to the safety of the yellow metal. Spot gold hit a record high of $3,237.56 earlier in the session. Bullion is up over 6% this week.

What common food dressing was once sold as medicine?

Answer: In the 1830s, tomato ketchup was marketed as a medicinal remedy for ailments like diarrhea, indigestion, and jaundice.

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