General's breakup💔

Nykaa's victory, Coinbase does fine, and Rivian's moment.

Nov 11, 2021

Market summary: 📊

Okay back-to-back down sessions in India, starting to hurt a bit now. US saw a weak session too, with rising inflation weighing on investor mood. Tech was flogged.

US:

S&P 500 - down 0.82%
Nasdaq - down 1.44%

India:

Nifty 50 - down 0.15%
Sensex - down 0.13%

What’s brewing hot? ☕

1️⃣ WOW Nykaa — Nykaa’s rise from doors-open in 2012 to a kick-ass IPO in 2021 has been nothing but remarkable. Stock popped nearly 90% on Day 1, giving the company a $13 billion market cap, and majority shareholder and founder Falguni Nayar a $6 billion+ net worth — making her India’s richest self-made woman. With barely ~$300 million in revenues however, skeptics worry about valuation, but hopes are that growth accelerates after the IPO capital is put to work. 🤞

2️⃣ Warm print — $ZOMATO’s first earnings report since IPO got a meh response. Revenues for the last 3 months of ₹1,024 crores grew a solid 145% vs. same time last year, but costs expanded too, about 85% YoY. Among other key stats — monthly app users grew to 59 million, thanks Diwali. All fine and as expected, and already priced into the mountain high stock-price. 🥱

General Electric is breaking up 💔

What happened — after a long struggle with mismanagement and poor growth, the 125-year-old General Electric, founded by Thomas Edison, will be broken into into 3 smaller entities, ending a generational run.

Back in the baap-dada days, GE had quite the reputation for pushing the envelope on innovation — leading with energy solutions, but extending far out into aviation, locomotives, weaponry, and even financial services. Times change fast!

The deets — GE’s core empire will be structured around its ~$22 billion airplane-engine business, called GE Aviation. Then there’s GE Healthcare, which makes medical machines (like those mega MRI machines in hospitals) — another ~$15-$17B in business, will be spun off next year as a separate entity. Lastly, GE’s ~$20 billion power and energy businesses will be spun out into a new entity the year after.

What’s ahead — GE stock has lost almost 75% value over the last 20 years. So expectations are pretty low at this point. Any upside is welcome.

Big Picture — GE, with its efficient processes, and ruthless expansion, had defined the word conglomerate. Until, software began eating the world.

What’s poppin’ on Venture Street? 💸

Mosaic Wellness, a digital health platform, closed a $24 million Series A from Sequoia, Matrix Partners and Elevation Capital at a $135M valuation.

Mosaic wants to deliver vertically integrated, affordable, end-to-end healthcare services. For example, currently the company runs two digital clinics — ManMatters for men’s healthcare, and Bebodywise, for women's care, tackling problems around hair loss, personal care, nutritional deficiency, and sexual health.

Pretty similar to Hims & Hers model in the west.

Anyway, 100K+ people buy consultations or products on the platform monthly, with annual revenues topping $14 million!

Meanwhile, Zomato is putting that IPO money to work 🤙

Zomato will spend $1 billion in buying stakes into a host of other startups providing adjacent digital services and logistics services over the next 1-2 years. $75 million has already been invested into Shiprocket (logistics), another $60 million has gone into MagicPin (Groupon for India) for a 60% stake, while a CureFit (fitness) deal is being discussed. Super-app on steroids?

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Coinbase freaking kills it, but gets no love 🤷‍♀️

Depends on how you looked at it, but Coinbase reported some mind blowing stats for its 3rd quarter earnings report.

Quick look at the numbers:

$1.23 billion revenues for the quarter — up 330% YoY
Profits of $406 million, up a whopping 400% YoY
7.4 million monthly-transacting users, processing $327 billion during the quarter.

Market’s weren’t too pleased — now investors didn’t like that engagement dropped considerably compared to the previous quarter, and $COIN stock dropped 13% after the report. Also, there’s some concerns about pressure on Coinbase’s fees, and how much the company’s fortunes are tied in with crypto-price volatility.

But then, its a business that’s growing 300% and has a PE ratio of 40x 🤷‍♀️

Here’s a link to the shareholder letter, which had plenty of cool charts 👇

Robert Cantwell @UPHOLDINGS

This is a cool chart, no matter your crypto stance. $COIN

Closing Out — Tesla no more the only game in town 💰

What happened — Rivian, an electric-vehicle company that competes against Tesla, went public on the Nasdaq today — in the world’s biggest IPO in 2021, raising $10 billion.

There’s more… Rivian hasn’t sold a car to date (or maybe did like 200 units) but still boasts a $100 billion valuation at market close today. That’s the game these days!

The promise? Rivian has Amazon as a backer (Bezos and Co. owns 20% in the company), and Amazon has also pre-ordered thousands of Rivians cars for its delivery fleet. Too much for a $100B promise tho.

What else are we snackin’ 🍿

🐦 Spreading Wings - Twitter finally rolled out its paid products — Twitter Blue. There’s a better thread-reader, more news articles, less ads, and a whole bunch of productivity features. People gonna pay tho?

🗣️ Take more time - GOI gives a 6 month extension to Indian Telcos for conducting 5G trials, pushing spectrum auctions to the second half of 2022.

💪 Maruti agrees - Maruti has been losing share and stock dead in the water for far too long, so the company finally gives into pressure and will be starting work on a whole new model of SUVs. Too late?

Hit that 💚 if you liked today’s issue.

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