Market summary: đ
Itâs a bloodbath. India turned lower sharply on Monday, led by PayTMâs dumpster fire. US had a big sell off too, with growth-tech flogged in the open.
US:
S&P 500 -Â down 0.32%
Nasdaq - down 1.26%
India:
Nifty 50 - down 1.96%Â
Sensex - down 1.96%
Whatâs brewing hot â
1ď¸âŁ Swiggy got juice â Prosus, an investor in Swiggy, gave some hints into the companyâs financials during its own regulatory filings. Swiggyâs food-delivery biz grew 56% YoY for the period of April to September, with order volumes growing 69% YoY â all pointing at continued momentum after COVID. Grocery delivery is showing solid momentum too, growing at 75%+ rates, which explains why Zomato is soo in love with Grofers lately. Warming up the stage for a listing!
2ď¸âŁ Lizâs last act â the Theranos trial took a weird turn when founder Elizabeth Holmes decided to testify. Quite unusual for defendants to do so, given a tiny misstep or comment and you could end up incriminating yourself. Holmesâ testimony will go on for a couple more days where sheâd be grilled on fake claims she made to investors to keep pulling checks for her blood-detection system, very well knowing it wasnât going anywhere.
PayTM keeps falling â°ď¸
Bunch of fickle-fingered kids tch! PayTM continued to drop like a rock on Monday â ending the day down another 13%.
Coupled with last weekâs drop, stock has lost almost 40% of its value from the IPO â leaving investors $900 million into the water so far.Â
Meanwhile, the founder is drawing comparisons with Tesla, whoâs stock faced years of pressure to come out at the top in a grand slam run. Bit too far?
Management also tried doing some massaging, disclosing October âprogressâ in a regulatory filing hoping to put some water on the fire. Thanks to a solid festive season, total volumes processed by the platform grew 131% YoY to $11.2 billion for the month. Monthly transacting users jumped 35% to 63 million, while the lending biz grew a solid 472% YoY by volumes. Hereâs the filing.
Now if thatâs sustained momentum, or just a 1-month shot in the arm because of diwali, weâll see. Marketâs clearly arenât buying.
Big picture â world is watching the dumpster fire. Spreadsheets from Dalal Street to Bengaluru will be revised, and valuations across the board should feel some pressure.
While weâre on IPOs, âď¸
Go Fashion is kicking ass â oversubscribed almost 136x by its 3rd day. FYI, Go sells womenâs active and other bottom-wear clothing via an omnichannel model, with a pretty widely recognizable brand, and decent fundamentals. Doing its part to save the party!
Whatâs poppinâ on venture street đ¸
Online coffee seller, Sleepy Owl, raised a $6.5 million Series A from Rukam Capital and DSG Consumer Partners.Â
Well known within tech-circles, Sleepy Owl sells everything from beans to ready-made bottled brews â available online as well as through a thick offline-network nationwide. COVID did some damage to growth-momentum, but revenues are projected to top $8 million for the next 12 months! We â¤ď¸ their stuff BTW!Â
Moving onto Healthcare, đĽ
OneCare, a startup helping treat diabetes, closed a $1M pre-seed round from Multiply Ventures, Better Capital and a host of angel investors. OneCare sells a full-stack software platform (back office + consumer app) to clinics to help them connect with patients, and create custom, patient-specific health programs.
Quick look an old-school IPO đ
Jesons Industries, a Mumbai based manufacturer of specialty chemicals and tapes, filed its IPO docs for a ââš900 crores raise from the public markets.Â
Jesons, a classic old-school chems play, is a leading supplier of specialty coating emulsions which it sells to paints markers â owning a 30% market share there, as well as a specific-type of adhesive most commonly found in tapes, labels, and other similar products.Â
Business made âš1,086 crores in revenues this year, with ~âš93 crores in profits. Rising chemical costs and supply problems are major headwinds right now though! Quick link to the DRHP.
Why care â with the growth-balloons busting open, perhaps a good time to take shelter under the shade of sturdy old trees.
Closing out â we ainât done with Roll ups yet đ°
OpenStore, founded by ex-Square execs like Keith Rabois, raised a $75 million round at a $750 million valuation â barely 6 months after founding.Â
OpenStore, unlike Thrasio or Mensa, focuses exclusively on Shopify businesses, buying popular brands on the platform. Theyâre also building a software-heavy approach to carry out acquisitions â hoping to create a metric based, automated, repeatable process that scales to buying out 1 brand a day, at least.
Multiple acquisitions have already been made, with $10M+ in net revenues.
Worth mentioning â OpenStore is backed by an ex-Square, ex-OpenDoor team, both with $120B in market cap between them. Serious effort for sho!
What else are we Snackinâ đż
đ Outta here - ByteDance, the TikTok owner, is shutting down its edtech business in India. Didnât even know that was a thing.
đ¤ˇââď¸ Enough is enough - Airtel is increasing its tariff plans by 20-25% from November 26, looking to get Indiaâs telco industry out of the death pit Jio dragged everyone into.
đď¸ Adele talks, SPOT listens - Spotify will stop playing albums on shuffle by default, deciding its better to play them in the order the artist intended, after Adeleâs request.
Hit that đ if you liked todayâs issue.
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PayTM- May be some brake to crazy valuation and crazy investors.