Blinkit scales but drags parent’s profits; Zepto’s massive haul

Hello,

It’s earnings season, and some companies are performing better than others.

Infosys, India’s second-largest technology services exporter, continued to register strong numbers, with net profit rising by 13.2% backed by a recovery in its key geographies and business verticals. The IT giant is maintaining a strong large deals pipeline, and its AI investments have started to pay dividends.

On the other hand, Wipro’s profits only rose marginally in Q2 amid the volatile business environment. However, the company projected growth on the back of large deal bookings, which nearly doubled to $2.8 billion.

Also, Jio Financial Services reported a consolidated net profit of Rs 695 crore during the quarter, with its revenue rising 41% YoY to Rs 981 crore.

Meanwhile, fintech company Razorpay reported a 65% jump in consolidated revenue for FY25. However, despite growing strength across payments, banking, and international operations, it reported a post-ESOP loss of Rs 1,209 crore tied to its redomiciling to India.

However, the world’s largest food company seems to be in trouble. Nestlé said it will cut 16,000 jobs, or 6% of its global workforce, over the next two years as the owner of KitKat and Nescafé attempts to reduce costs and increase sales.

In today’s newsletter, we will talk about 

• Blinkit weighs heavy on Eternal’s bottomline
• Zepto’s massive haul
• India’s answer to Shein

Here’s your trivia for today: Which Indian diplomat holds the record for the longest-ever speech at the United Nations?

Foodtech

Blinkit weighs heavy on Eternal’s bottomline

Deepinder Goyal-led Eternal saw its second-quarter adjusted revenue grow 65% from last year, even as its profit narrowed.

The Blinkit and Zomato parent posted a net profit of Rs 65 crore, lower than the Rs 176 crore it made in the corresponding previous quarter, weighed down by the company’s heavy investments in its dark store network and quick commerce unit. 

Balancing act:

• Blinkit’s revenue also surged as the company shifted to an inventory model from its previous marketplace model, allowing it to realise the full monetary price of goods sold instead of the marketplace commission.
• Eternal has been steadily expanding its going-out vertical, investing in marketing and category creation. During the quarter, it launched the District app in the UAE, integrating its existing dining-out and live events offerings onto a single platform.
• ​Zomato is taking a cautious approach to India’s emerging budget food delivery market, choosing to serve cost-sensitive consumers through its existing app rather than launching a separate low-cost platform, Goyal said in the company’s latest shareholder letter.

Funding Alert

Startup: Kuku

Amount: $85M

Round: Series C

Startup: Graph AI

Amount: $3M

Round: Seed

Startup: FireAI

Amount: Rs 4 Cr

Round: Seed

Quick Commerce

Zepto raises nearly half a billion dollars

Quick commerce unicorn Zepto has raised $450 million in a round led by US-based pension fund California Public Employees’ Retirement System (CalPERS). This latest funding round comprises a mix of primary and secondary transactions, with a majority in primary.

Zepto’s valuation now stands at $7 billion.

Key takeaways:

• “We now have approximately $900 million of net cash in the bank and are more well-capitalised for the future,” noted Aadit Palicha, CEO and Co-founder of Zepto.
• The fundraise comes at a time when Zepto Cafe CXO Shashank Sharma exited the company to join FoodStories, as reported by YourStory.
• The company’s revenue surged 2.5x year-on-year to Rs 11,110 crore in FY25, up from Rs 4,455 crore in FY24, and Rs 2,024 crore in FY23, marking a consistent doubling in topline growth each year.

Startup

Fast-fashion startup for Gen Zs

Data-driven fast-fashion startup NEWME aims to predict “emerging trends before global leaders like Zara” while keeping overproduction at bay. The startup prides itself on its “zero-inventory” approach, which helps it avoid overproducing products, instead clearing out its inventory through sales.

Initially, the startup manufactured products from its office in China. Today, 40% of the production is in India, with plans to raise it to 50% by the end of FY26.

News & updates

• Allaying concerns: Salesforce shares jumped more than 6% in premarket trading on Thursday, after the company forecast faster revenue growth in the coming years, easing concerns that AI tools were eroding demand for its software.
• AI earnings: Taiwan Semiconductor Manufacturing Co reported a 39.1% increase in third-quarter profit from last year, beating estimates and hitting a fresh record as demand for artificial intelligence chips stayed strong.
• Legacy: Giorgio Armani's deputy managing director, Giuseppe Marsocci, is set to be appointed chief executive of the Italian fashion house. The appointment will likely be approved by a board meeting to be held later on Thursday.

Which Indian diplomat holds the record for the longest-ever speech at the United Nations?

Answer: V.K. Krishna Menon. In 1957, he delivered an over 8-hour-long speech at the UN Security Council defending India’s position on Kashmir.

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