Helium 🤝
Microsoft's problems, Venture raise, and Nuclear missiles.
☀️ Morning, Friday is here.
📉 Sensex dropped 1.5% yesterday, after U.S. inflation data came in hotter than expected, suggesting the Fed may keep interest-rates higher for longer.
🦃 US markets were closed for Thanksgiving, but will open for half a session on Friday.
Let’s hit it!
1 Big Thing: Reliance’s Helium Bet 🌍
Reliance acquired a 21% stake in US-based Wavetech Helium (WHI), a helium gas exploration and development company, for roughly $12 million.
What matters: the company controls helium reserves across key helium-production regions of the U.S., including Montana, Kansas, and Colorado.
Helium is used as a cryogenic coolant, helpful to maintain extreme low-temperatures. This makes it useful in semiconductor production processes, as well as to cool down nuclear reactors.
The hype: both of those areas are witnessing a bit of a boom in the U.S., and that may have piqued Reliance’s interest.
The U.S. pulled in $270 billion+ in new investments to build a domestic semiconductor industry since Aug 2022.
Nuclear powered data centers are becoming the answer as the U.S. struggles to power nationwide AI processing facilities.
“the acquisition is part of RIL's strategy to expand its exploration and production business in low-carbon solutions” is all the context that Reliance offered.
2. Microsoft’s new problems 🛑
The Federal Trade Commission, launched an antitrust investigation into Microsoft, focused on how Microsoft tightly bundled productivity and security tools with its Azure cloud, giving customers little choice to opt out.
Context: the FTC is a unit of government responsible to regulate competition and ensure a healthy marketplace.
But under the Biden-admin, the body has been notably aggressive in regulating large companies, often facing criticism for blocking M&A deals, which some argue has reduced exit-liquidity in the markets.
Big picture: Microsoft’s problems could vanish in a month though, when the new President installs a new FTC chair. At least the market believes so, with MSFT stock barely moving after the news came out.
Meanwhile, back home in India:
CCI, India’s local anti-trust cops, have ordered a detailed investigation into Google over allegations of unfair business practices.
The probe follows a complaint by Winzo Games, alleging Google blocks downloads of its real-money gaming app and flags it as "malware" when accessed via a browser.
3. Who got the bag? 💰
Entrackr reports that ShopDeck, a D2C e-commerce solutions provider, raised $8 million in a funding round led by Bessemer Venture Partners, Elevation and a few others.
Originally launched as a social commerce play in 2022, ShopDeck now runs a managed-Shopify like offering, helping independent sellers set up online stores, tackle logistics, payments, ads, and more—all for a 3% gross cut.
4. Stellaris Raised a Big Round 📈
Notable Indian VC firm, Stellaris Venture Partners, closed $300 million for its third fund.
The deets: this round will take the firm’s AUM to over $600 million. They’ve backed over 40 ventures, including Mamaearth and Whatfix. New fund will continue to focus on AI, SaaS, and fintech, particularly at the earliest stages.
Zoom out: venture capital deployed in India dropped considerably in 2023, generally matching the vibe of the global economy. But a revival is expected, as IPOs run hot, and public markets are back to all time highs.
What else are we snackin’ 🍿
🚀 Missle milestone: Indian Navy test-fired the 3,500-km-range nuclear-capable K-4 missile, advancing nuclear deterrence capabilities.
📊 23-hour trading: a new stock exchange, backed by hedge fund legend Steve Cohen, was green-lit by the SEC to offer a 23-hour trading market for stocks, five days a week.
🚫 Social ban: Australia passed a landmark law banning social media for kids under 16, with fines up to $32M for non-compliance.
And that’s a wrap. Pour yourself an extra one this weekend.
We’ll be back like clockwork on Monday!
