PhysicsWallah makes market debut; Polka Tots brings ethnic wear for kids

Hello,

The internet’s immune system took a nasty hit. 

Global cloud services and cybersecurity firm Cloudflare suffered a major outage on Tuesday, making several websites inaccessible for a few hours, including X and ChatGPT.

Several users flocked to online platforms (or at least, the ones who could access them still) to complain about the outage, which the company later chalked up to an “internal service degradation”. Turns out, even internet service providers can get the sickness bug!

This does beg the question: is the World Wide Web, as we know it, too dependent on a handful of providers to keep itself running?

Meanwhile, OpenAI’s digital traffic is set to grow even further, with Intuit’s $100 million multiyear contract to integrate the ChatGPT maker’s AI models into financial apps like TurboTax.

Additionally, Intuit will offer applications inside ChatGPT to allow users to access and interact with financial data stored on Intuit’s platform.

Alphabet, too, is making strides in AI development, as it launched the latest version of its AI model, Gemini 3, emphasising that the new capabilities will be immediately available in its search engine and other products.

At the same time, Alphabet CEO Sundar Pichai struck a warning tone on AI investment, stating that no company would emerge unscathed if the current boom collapses.

Mixed signals, or justified caution?

In today’s newsletter, we will talk about 

• PhysicsWallah makes market debut
• Polka Tots brings ethnic wear for kids
• Shahnaz Husain serving young consumers

Here’s your trivia for today: In 2010, how did news organisation ProPublica make Pulitzer history?

Edtech

PhysicsWallah makes market debut

PhysicsWallah’s (PW) public market debut—one of the most anticipated of this year—started on a strong note as the edtech unicorn’s stock surged to trade well above 40% premium.

The momentum, evident even before the opening bell, continued through the session with the stock closing at Rs 155.20 on the BSE and Rs 156.49 apiece on the NSE, marking gains of 42.4% and 43.6% respectively.

Strong start:

• PW offered nearly 18.62 crore shares in a public issue aimed at raising about Rs 3,480 crore. This includes a fresh issue of Rs 3,100 crore and an offer for sale of Rs 380 crore by co-founders Alakh Pandey and Prateek Maheshwari. 
• The IPO drew a firm response, particularly on the final day of bidding on November 13. Overall subscription reached about 1.8 times. 
• Prior to the IPO proceedings, PW had raised a cumulative $312 million across several funding rounds. The most recent was a Series B round in September 2024, when it secured $210 million.

Funding Alert

Startup: Yubi

Amount: Rs 411 Cr

Round: Debt and Equity

Startup: Axirium Aerospace

Amount: $3.5M

Round: Seed

Startup: Pype AI

Amount: $1.2M

Round: Pre-Seed

Startup

Polka Tots brings ethnic wear for kids

Ethnic clothes for children in India are usually made using adult patterns and fabric unsuitable for sensitive skin. The disconnect between cultural preference and functional usability has created a structural gap in the market. Ahmedabad-based Polka Tots addresses this problem.

Founded in 2017, the startup specialises in babywear and kids’ essentials for newborns to eight-year-olds. With over 1,000 SKUs, the brand combines traditional Indian designs with practical, comfort-first products, reaching over 24,000 pincodes across India.

Key takeaways:

• Polka Tots’ portfolio encompasses cotton-based ethnic and casual apparel. It also sells diaper bags, stroller accessories, carriers, swaddles, bibs, bedding, dinner sets, car seats, and high chairs.
• By 2025, the brand had clocked a Rs 30 crore GMV, with Rs 22 crore in net sales, and maintained a monthly GMV of Rs 2.5 crore.
• Polka Tots follows a 100% online model, selling through its website, mobile app, and platforms such as Amazon, FirstCry, and Myntra. The app has crossed 22,000 downloads.

Women Entrepreneur

Shahnaz Husain serving young consumers

Shahnaz Husain’s 50-year legacy is more than a business story; it is a symbol of women’s entrepreneurship, Indian innovation, and the global shift towards sustainability, organic ingredients, and holistic health.

But Husain, being the person she is, will not rest on laurels and is keen to conquer more frontiers. Besides including AI and technology in the beauty sector, her idea is to offer “something new” to the young generation. “They have clean beauty goals and hence are interested in my products,” she says.

News & updates

• AI plans: Microsoft on Tuesday announced new strategic partnerships with Nvidia and AI startup Anthropic, the latest sign that the company is working to reduce its dependence on OpenAI.
• Crypto: Bitcoin’s slide below $90,000 worsened a slump across global financial markets, fueling concern that leveraged investors would set off a spiral of selling pressure. The cryptocurrency fell as much as 2.8% on Tuesday before paring some of the retreat. 
• Turning profits: Xiaomi Corp. reported quarterly profit from its electric vehicle business for the first time, a major milestone for the smartphone maker. The company’s EV division, which sold its first car last year, posted a profit of 700 million yuan ($98 million) in the September quarter.

In 2010, how did news organisation ProPublica make Pulitzer history?

Answer: It became the first online-only publisher to win.

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