MapmyIndia’s reputation problem; The start of a market makeover

Hello,

It’s been a slippery slope to the bottom for the rupee. 

The Indian rupee logged its weakest closing level on record on Wednesday at 84.74 against the U.S. dollar, egged on by broad-based dollar bids, among other factors. Even gains in Asian peers like the offshore Chinese yuan weren’t enough to offset the slide. 

According to a Reuters poll, this may not even be the worst of the rupee’s gradual decline. 

Recently proposed tariffs by US President-elect Donald Trump and the potential of a rate cut by the US Federal Reserve this month have contributed to pushing up the dollar by nearly 6% since October. 

More eyes are on the world’s largest economy and its actions than ever before. The Organisation for Economic Cooperation and Development warned against a return to protectionist stances in global trade, the outlook for which has become cloudier following said US tariff hikes. 

Those who don’t learn from history, are bound to repeat it, after all. 

The global cost of living crisis has left no avenues untouched, not even where your daily cuppa is concerned. The prices of coffee have soared to their highest in nearly 50 years due to poor weather in Brazil and Vietnam, forcing roasters such as Nestle to raise prices and consumers to hunt for cheaper brews.

Between hedging by traders driving up prices and growers hoarding harvests in wait for better local prices, your favourite robusta grind could be more than a pinch to your wallet soon. 

While the price of your daily latte may be rising, Swiggy's new 10-minute food delivery service Bolt is certainly cutting down on the time it takes to deliver it. Already accounting for 5% of Swiggy’s total food delivery orders within just two months of its launch, it may have the potential to reshape food delivery, believes Rohit Kapoor, CEO of Food Marketplace at Swiggy.

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In today’s newsletter, we will talk about 

• MapmyIndia’s reputation problem
• The start of a market makeover
• Black Friday sales gain popularity

Here’s your trivia for today: The myth that carrots improve your vision is rooted in a propaganda campaign from which war?

Technology

The many problems at MapmyIndia

It’s tough for MapmyIndia to fix its reputation or governance problems even if it gives up its plans to invest Rs 35 crore in the business-to-consumer (B2C) venture of its former CEO, market analysts say.

The controversy involves parent company CE Info Systems' recent announcement regarding CEO Rohan Verma's departure to launch a new venture. 

Lost journey:

• The investment structure in the B2C venture has become an issue. Initially, CE Info Systems planned to invest through two channels—first taking a minority 10% stake for Rs 10 lakh, and then providing a much larger investment of Rs 35 crore through compulsory convertible debentures (CCDs).
• This meant Verma would retain 90% ownership of the venture while accessing significant funding from the listed company.
• While Verma has now said he'll fund the B2C venture himself instead of taking the Rs 35 crore from the parent company, experts say the company's approach to its consumer business needs rethinking.

<Funding Alert>

Startup: Enterpret 

Amount: $20.8M

Round: Series A

Startup: Dentalkart 

Amount: Rs 85 Cr

Round: Undisclosed

Interview

The start of a market makeover

Zomato—the food delivery platform that has become a fixture of urban Indian life—is poised to replace JSW Steel in the Sensex, with whispers of a Nifty 50 inclusion following close behind. 

Its inclusion heralds a fundamental shift in what constitutes corporate power in modern India, and highlights how digital platforms are displacing the industrial stalwarts that once embodied Indian enterprise. "I think more tech-enabled [companies] are going to be in the top 50," observed Deepak Shenoy, Founder and CEO of Capitalmind, in conversation with YourStory's Founder and CEO Shradha Sharma.

Change:

• Reliance, the embodiment of old-economy might, now channels its ambitions through the digital arteries of Jio Platforms. The revolution, it seems, isn't about creating new technology but about reimagining how India does business.
• The public markets are witnessing this shift in real-time. Swiggy leads 2024's global tech IPO calendar, joining other digital enterprises like Ola Electric and FirstCry in their public market debuts.
• Yet beneath this digital transformation lurk questions of sustainability. "I think competition is going to increase dramatically whether it is Reliance, Dmart or Aditya Birla," Shenoy cautioned.

Ecommerce

Black Friday sales gain popularity

Traditionally considered a US staple, Black Friday sale is fuelling shopping frenzy in India. Along with the Cyber Monday sale, it has become an important part of India’s cycle of ecommerce events and gives brands a fillip between the festive season and end-of-the-year sales.

Discounts:

• The sale enables brands and retailers to clear their unsold inventory to make space for new stock for next year. It is also the last shopping festival before Christmas and New Year.
• During the sales held from November 27-30, the gross merchandise value (GMV) across brands grew by 24% compared to the Black Friday event held last year, according to data shared by ecommerce enablement platform Unicommerce. 
• According to Unicommerce data, beauty, wellness and personal care products grew 34% YoY, mainly driven by demand for perfumes, deodorants, and makeup items. 

News & updates

• Forecast: Bank of England Governor Andrew Bailey signaled that policymakers still believe four quarter-point interest rate cuts next year is the most likely scenario as he said inflation has come down “faster than we thought it would.”
• Falling out: Divergences between Carlos Tavares and Stellantis board members, which led to the CEO's abrupt resignation, were mainly over priorities for the next 15 months and on how the automaker relates to its stakeholders, finance chief Doug Ostermann said on Wednesday.
• Expansion: TotalEnergies struck a deal to buy renewable-energy company VSB Group from Partners Group for 1.57 billion euros ($1.65 billion), expanding its presence in Germany.

The myth that carrots improve your vision is rooted in a propaganda campaign from which war?

Answer: World War II. To keep the use of radar a secret. British officials launched a campaign stating eating carrots improved night vision.

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