Prosus bets on India AI startups; Inside the journey of Parnika India

Hello,

Tariffs are affecting the economy in unexpected ways.

The US subsidiary of India’s Vadilal Industries will start manufacturing ice cream at its local facility by the year-end to reduce dependence on imports and boost sales. Currently, Vadilal Industries USA imports a majority of its products from India.

Are extensive levies going to be the death knell for the growing global sweet tooth? Not likely. Especially considering that India is also poised to have sufficient surplus stocks of sugar to allow exports in the season beginning October 1. 

This may weigh on global prices, but could help the government support local prices and ensure farmers receive their guaranteed dues. 

There’s a market update as well: SEBI has made it easier for sovereign-backed and overseas retail funds to access the local markets. Additionally, it has also made good on an earlier proposal to reduce the proportion of shares large companies must sell at IPOs. 

This will make it easier for the market to absorb such listings, according to the regulator. 

Lastly, NASA just found signs of ancient microbial life on Mars. A sample obtained by NASA’s Perseverance rover from Mars’ Jezero Crater showed a potential “biosignature” from as long as 3.2 to 3.8 billion years ago.

Not quite ‘little green men’, but it’s hope: we’re not alone out there. 

In today’s newsletter, we will talk about 

• Prosus bets on India AI startups
• Inside the journey of Parnika India
• Vivek Oberoi on cultivating social change

Here’s your trivia for today: What was the tiny pocket in jeans originally meant to store?

Investor

Prosus bets on India AI startups

When foreign investors are looking away from India to back ambitious AI bets elsewhere, Dutch investment company Prosus is taking baby steps to invest in homegrown AI startups—so far, three AI startups this year. 

The company, which built its initial Indian portfolio by writing large cheques to companies like Flipkart and Swiggy, has in recent years also begun writing smaller cheques, giving the company a taste of AI development in India without having too much skin in the game.

Key deals:

• In July, it co-led a $4.17 million pre-Series A funding round in Indore-based edtech startup Arivihan, marking the firm’s first e-tech investment after it wrote off its ~$500 million bet in BYJU’S.
• A month later, Prosus co-led a $2.5 million pre-seed round in Bengaluru-based CodeKarma. The company creates AI tools to help improve developer productivity. 
• In May, the firm had also invested an undisclosed amount in Deccan AI—a startup that specialises in creating high-quality datasets for AI model training and evaluation.

Top Funding Deals of the Week

Startup: ILJIN Electronics

Amount: Rs 1,200 Cr

Round: Institutional funding

Startup: Flipspaces

Amount: $50M

Round: Series C

Startup: TERN Group

Amount: $24M

Round: Series A

SMB

Inside the journey of Parnika India

Parnika India not only sells garments to retailers, but also manufactures them. The B2B company has two manufacturing units in Surat and a workforce of about 700 people. It produces nearly 4,000 pieces per day, including printed sarees, silk sarees, embroidered sarees, kurtis, suit pieces, lehengas, and fabrics. 

Scaling:

• The company focuses on backward integration, ensuring that every stage from sourcing raw materials to finished production remains under the company’s control.
• It supplies women’s ethnic wear at wholesale rates to about 10,000 retailers and resellers across India.
• Parnika’s annual turnover now is around Rs 170 crore, with an annual growth rate of 20%. It exports to over 68 countries, including the US, UK, Canada, Malaysia, Singapore, Thailand, and Pakistan. Exports contribute about 20% to the overall business.

Social Impact

Vivek Oberoi on cultivating social change

“I’m very silent about what I do, unless the cause needs attention. I don’t believe in chest thumping,” says actor-businessman-philanthropist Vivek Oberoi. This quiet approach has characterised Oberoi’s long journey in social impact, spanning initiatives in cancer care for children, girls’ empowerment, education, and more.

His philanthropic journey began at home, inspired by the everyday actions of his parents, Yashodara and Suresh Oberoi. In this feature, the actor reflects on his journey in social impact, empowering people to become agents of change, and why he believes compassion must be reignited in today’s world.

News & updates

• Delay: Apple will release its upcoming iPhone 17 series on September 19 in most countries. However, the eSIM-only iPhone Air’s release is being delayed in China, likely due to regulatory issues around the approval of the embedded SIM. Pre-orders for the other new phones in the line-up start on Friday.
• AI invest: Nvidia and OpenAI are in discussions about backing a major investment in Britain focused on boosting AI infrastructure in the country. The two tech firms are discussing a sizable deal to support data centre development in the country, which could ultimately be worth billions of dollars, CNBC reported.
• Inflation: India’s retail inflation rose to 2.07% in August as food prices inched higher over the previous month, but stayed well within the RBI’s tolerance band. With price rise in check, growth risks worsening, and major central banks like the US Federal Reserve set to cut interest rates, economists see room for further policy easing from the RBI this year.

What was the tiny pocket in jeans originally meant to store?

Answer: The small pocket was designed by Levi Strauss & Co. in the 19th century to provide a secure place to store pocket watches. 

We would love to hear from you! To let us know what you liked and disliked about our newsletter, please mail [email protected]. 

If you don’t already get this newsletter in your inbox, sign up here. For past editions of the YourStory Buzz, you can check our Daily Capsule page here.