M&E pushes for growth enablement; Ajio’s need for speed

Hello,

The global economy is expected to show resilience in 2026 in the face of trade and tariff disruptions. The AI boom, in particular, has helped offset some of the global trade headwinds, according to the International Monetary Fund.

Echoes of the dot-com bubble lingered in the IMF’s outlook for 2026. The body said that per its analysis, the potential overvaluation for the broad equity index in the United States is only about half that of the dot-com episode.

The report also highlighted AI’s threat to jobs and wages for certain segments of the workforce. It called for policies that focus on lowering barriers to adoption, helping workers to invest in the right skills.

ICYMI: The explosive growth of Gen AI apps, charted. 

Elsewhere, gold and silver continue their ascent, breaking previous records, as investors flock to the shiny metals amid geopolitical uncertainty. US gold futures for February delivery rose 1.71% to $4,674.20 per ounce on Monday, after earlier hitting a record high last week.

Meanwhile, global investment in space ‌technology is poised to increase this year, propelled by government spending on defence-linked satellite systems and private sector bets on launch capacity, Reuters reported, citing an investment firm Seraphim Space.

Moving on to the world of health, does adding black pepper or turmeric to food help in the absorption of vitamins and minerals? Yes, according to this article in BBC Future.

Go on, season your food!

In today’s newsletter, we will talk about 

• M&E pushes for growth enablement
• Ajio’s need for speed
• Advancing India’s spacetech sovereignty

Here’s your trivia for today: Where were the Pillars of Hercules located?

Union Budget

M&E pushes for growth enablement

As Union Finance Minister Nirmala Sitharaman prepares to present Budget 2026-27 next week, India’s media and entertainment sector is sharpening its expectations pitch. For FY27, the sector’s broad asks from the government include placing gaming and esports at the centre of India’s creative economy, along with enabling policy changes around taxation, content creation, and digital distribution.

After two Union Budgets that offered limited sector-specific relief, industry leaders say the upcoming Budget represents a moment to move from regulatory consolidation to growth enablement, especially for fast-scaling digital and creative businesses.

Creative economy:

• At the top of the wishlist for India’s gaming and esports ecosystem is the formal recognition of esports as a sport, a move industry leaders believe would unlock sponsorships, institutional funding, and fairer tax treatment of prize winnings.
• Beyond industry recognition, gaming startups are also seeking tax clarity and parity across formats, spanning game development, esports tournaments, in-game monetisation, and platform revenues.
• Beyond gaming, the broader media industry, which includes OTT platforms, broadcasters, and digital publishers, is rallying around one critical demand: reduction of GST on television and OTT subscriptions from the current 18% to the proposed 5%.

Funding Alert

Startup: AssetPlus

Amount: Rs 175 Cr

Round: Undisclosed

Startup: Salty

Amount: Rs 30.1 Cr

Round: Undisclosed

Startup: insideFPV

Amount: Rs 6 Cr

Round: Pre-Series A

Insight

Ajio’s need for speed

Reliance's fashion ecommerce platform Ajio is focusing on average bill value and speed in a market that has become a three-way battle between Nykaa, Myntra and Ajio.

Higher average bill values largely translate to companies making more money on every order. Ajio said its average bill value, which it claims is the largest in the ecosystem, is one of its key focus areas. In its FY26 Q1 earnings, the company flagged 50-60% higher bill values in Ajio Rush orders.

Faster deliveries:

• Reliance expanded Ajio Rush, which largely does two-to-four-hour deliveries, to over 420 pincodes across 10 cities. The company has also ramped up next-day delivery to top 26 cities, largely leveraged using its store network, a key edge from other online-only players.
• While Ajio's key performance details weren't disclosed, management highlighted that the ecommerce platform has expanded its catalogue to over 2.8 million styles, a 27% growth from last year. 
• The platform's premium play, Ajio Luxe, saw its brand portfolio grow 41% YoY with option count growing by 21% from last year, helped by new season collection as well as festive demand.

Startup 

Advancing India’s spacetech sovereignty

When private participation in India’s space and defence sectors accelerated in the late 2020s, Sanjay Kumar, Punit Badeka, and Manoj Kumar Gaddam identified a glaring capability gap: India largely imported high-end Electro-Optical (EO) and Infrared (IR) imaging payloads.

They founded EON Space Labs in December 2022 to build and qualify indigenous world-class imaging payloads for dual-use needs, spanning CubeSats, satellites, drones, UAVs, and ground-mounted optics.

News & updates

• Moonshot: An Alibaba-backed AI startup is currently being valued at $4.8 billion in a fresh funding round, just weeks after it was valued at $4.3 billion, CNBC reported citing people familiar with the matter. Moonshot AI is the company behind the Kimi chatbot, which surged in popularity in China months before DeepSeek’s release last year.
• Growth goal: China said its economy expanded by 5% last year, meeting Beijing's official target as a record trade surplus boosted growth. The world's second-largest economy reached its goal despite growth slowing to 4.5% in the final three months of 2025.
• Overcrowding: JP Morgan's strategists cut the bank's view on emerging market currencies to 'market weight' from 'overweight' on Monday, saying short-term positioning was now "overbought" following a strong year-long rally.

Where were the Pillars of Hercules located?

Answer: The Strait of Gibraltar

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