Rare earth magnets crunch, explained; Artha India Ventures’ growth fund

Hello,

Inflation’s finally releasing its chokehold on the Indian economy. 

India’s inflation eased further in May, marking a seventh consecutive monthly decline and further validating the RBI’s surprise interest cut last week. 

The consumer price index rose 2.82% from a year earlier, its slowest pace in six years. Falling food prices have kept inflation below the RBI’s 4% target since February, leaving wiggle room for the central bank to focus on boosting India’s economic growth.

Meanwhile, the markets have run into some geopolitical snags, with shares declining on lingering uncertainty around the US-China trade deal and mounting tensions in the Middle East. 

Consequently, gold is having a field day as a safe haven bet. Spot gold prices scaled a one-week peak, driven by the same apprehension over Middle East tensions and cooler US economic data that signalled fresh possibilities of Federal Reserve rate cuts.

With a spotlight on India as a fast-growing economy, international heavyweights have a vested interest in harnessing the talent potential of the country, now more than ever. 

Join us today at the YourStory GCC Summit 2025, as thought leaders across industries highlight the central role global capability centres play in delivering essential offshore services and driving global impact.

Grab your spot here and check out all the GCC coverage here!

In today’s newsletter, we will talk about 

• Rare earth magnets crunch, explained
• Artha India Ventures’ growth fund
• Healthcare for Indian Muslim women

Here’s your trivia for today: What are French socialites who could be hired to bring the number of guests at dinner parties to 14 and prevent bad luck tainting an event called?

News

Rare earth magnets crunch, explained

In the months following China’s export restrictions on rare earth magnets—a type of powerful permanent magnet made from rare earth elements—several sectors worldwide, including automotive, aerospace, and defence, experienced significant disruptions. 

India’s auto sector is especially feeling the heat.

Key takeaways:

• India has a $240 billion automobile industry. The problem? China controls over 90% of the global production of rare earth magnets that are crucial for the industry.
• Car maker Maruti Suzuki has cut its near-term production targets for its electric vehicle e-Vitara by two-thirds because of rare earth shortages plaguing the supply chain.
• EV scooter maker Bajaj Auto had also flagged during its Q4 earnings call that its production of electric scooters will be disrupted starting July 2025 due to depleting inventory of rare-earth magnets.

Funding Alert

Startup: Machaxi

Amount: $1.5M

Round: Undisclosed

Startup: Repello

Amount: $1.2M

Round: Seed

Startup: Kisah

Amount: Rs 13 Cr

Round: Pre-Series A

Venture capital

Artha India Ventures’ growth fund

Artha India Ventures, which has backed companies including OYO and Purplle, is set to announce the final close of Artha Select Fund. The fund has received commitments for Rs 400 crore, Artha’s director Anirudh A Damani told YourStory. 

According to Damani, the firm is currently in discussions with a few family offices to close a Rs 50 crore commitment and is expected to raise between Rs 400-450 crore for the fund’s final close.

Investments:

• The Artha Select Fund (ASF) will make follow-on investments in the portfolio from its flagship fund, Artha Ventures Fund I, and will participate in Series B and Series C rounds, writing cheques of $2 million in each round.
• The Mumbai-based firm has already written its first cheque from ASF of $2.4 million as part of space tech startup Agnikul Cormos’ Series B fundraise, according to data from Tracxn. 
• Earlier this month, Artha Ventures Fund I (AVF1)—the VC’s flagship fund that makes seed-stage investments—reported an internal rate of return (IRR) of 61%. This key metric measures the profitability of an investment over its lifespan. 

Social impact

Healthcare for Indian Muslim women

Non-profit organisation The Khushtaar Initiative was founded by Mariam Hafeez. What makes the project unique is that it recognises that healthcare challenges for Muslim women operate at multiple intersecting levels. 

Beyond the obvious barriers of poverty and access, there are layers of cultural misinterpretation, systemic discrimination, and structural obstacles that mainstream organisations haven’t addressed. When it comes to menstrual health, the barriers include patriarchal norms as well.

Bharat ke Innovators

Indian drone startup navigating without GPS

Co-founded by engineering minds from IIT Delhi and NIT Nagpur, VECROS is developing drones that fly intelligently without GPS, using spatial AI to navigate complex real-world scenarios.

Tackling pollution threats with data

Founded in 2022 in Bhubaneswar, Aurassure was born from a deeply personal motivation: India lacked localised, real-time data on pollution and climate risks. Aurassure deploys smart environmental sensors to generate hyperlocal, AI-powered climate insights.

News & updates

• Legal tussle: Amazon has asked Europe’s second-highest court to scrap its designation as a platform subject to stricter requirements under landmark EU online content rules, arguing that it poses no systematic risks to its users.
• Tech in toys: Mattel has teamed up with OpenAI to develop toys and games with AI, and expects to launch its first AI-powered product later this year, the Barbie-maker said on Thursday.
• Growth: BlackRock said on Thursday it was aiming to grow its revenue to $35 billion and more by 2030 from $20 billion last year, as the asset management giant expands its foothold in private markets.

What are French socialites who could be hired to bring the number of guests at dinner parties to 14 and prevent bad luck tainting an event called?

Answer: Quatorziens (fourteeners). 

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