Oil Play 🛢️
Venture town on fire, IPOs don't stop, and Snack wars.
☀️ Morning, this week was short.
👑 Gukesh D is the new and the youngest ever world chess champion.
🔔 Trump rang the bell at the NYSE yesterday, joined by top figures of American business, meant to be a show of force.
📈 Market-wise, not the best of weeks for India, with the Sensex and Nifty both finishing down half a percent.
Let’s hit it.
1 Big Thing: Reliance's Russian Roulette🛢️
Reliance signed a massive oil supply deal with Russia's state backed oil company Rosneft. The agreement is noted as the largest ever between India and Russia.
What matters: the mega-deal, valued at approximately $13 billion annually, secures nearly 500,000 barrels of crude oil per day—which would account for 0.5% of the world’s total oil supply.
Context: Rosneft is central to Moscow’s energy strategy. Ever since the Americans imposed sanctions and cut Russia from the global oil market, India has been a critical buyer helping keep things going.
For India, it was pure business. Cheap oil for its citizens and some refining money for its local businesses.
The hype: Sanctions made Russian oil $3 to $4 cheaper per barrel than rival grades. With India’s massive and growing energy needs, any discount is a win.
Zoom out: What once seemed like a risky move—siding with Russia—has proven strategically smart for India, enhancing its geopolitical leverage and promoting energy independence.
For Russia, it meant a lifeline for its oil industry, thanks to the insatiable appetite for energy of the Indian consumer.
2. Stocks that kept us interested 🚀
Delta Corp’s stock jumped 8% this week after the Chief Economic Advisor's comments supporting innovation in cryptocurrencies and online gaming.
Context: Delta owns and operates casinos in Goa and Sikkim, and is a key player in India's regulated gaming market. Their portfolio includes physical casino properties like Deltin Royale and digital gaming platforms like Adda52.
By the numbers: despite the jump this week, Delta's stock is still down over 15% in 2024. Revenues are declining fast. But the company trades at just 22 times earnings and has a nice dividend. Has it floored?
Avenue Supermarts shares fell as much as 3% this week as the market continues to worry about the rapid growth of quick commerce and what that could do to the urban grocery market.
Context: in the last several weeks alone, multiple new companies including Amazon and Flipkart have announced full-blown quick commerce offerings, across categories.
While quick commerce growth is likely to take time, consumer expectations are forming very fast.
By the numbers: D-mart’s stock has slipped over 8% in the past 12 months. And yet, for the most recent quarter, the company grew sales by nearly 14% YoY. Too much fear in the market?
3. What went down in the markets 📈
The IPO market continues to draw positive attention.
Bluestone, which sells jewelry online, filed draft papers for its IPO. The IPO will include new equity issuance of roughly ₹1,000 crore, along with liquidation by existing investors. The company is backed by some big league players including Accel and Peak XV Partners. A dominant force in India’s nascent online jewelry market, the company sells a range of contemporary diamond, gold, platinum and studded jewelry for young buyers.
Aye Finance Limited, an SME-focused non-banking finance company, is looking to raise up to ₹1,450 crore through its IPO. The company is backed by Elevation capital and offers loans to small businesses that banks would never dare lend to.
4. Who got the bag? 💸
This week’s funding scene feels like a throwback to 2021, with startups raising capital like there's no tomorrow.
Quick look at a few major raises from venture town:
Solarsquare, a solar power startup, bagged $40 million led by Lightspeed in the Series B funding round. The company plans to use the funds to upscale operations, double workforce, and amp up branding. Solarsquare specializes in end-to-end rooftop solar installation and maintenance services, handling everything from government permits to financing.
FirstClub, a rapid delivery startup, raised $8 million, with Accel and RTP Global leading the charge. The startup plans to sell premium products in the packaged foods, fresh foods, bakery, dairy, and nutrition categories to the top 10% of the Indian population residing in metro cities. FirstClub will focus on Bengaluru for the first 12 months.
Rebel Foods, which operates cloud kitchens, has raised $210 million in a Series G round that includes the sale of new and existing stock, valuing the company at $1.4 billion. The company plans to use the funds to expand overseas, leverage AI technologies, and scale operations across its 450 dark kitchens while preparing for a potential IPO by 2026.
What else are we snackin’ 🍿
🇹🇭Thai visa upgrade: Thailand is launching an e-Visa system for Indian passport holders starting January 1, 2025.
✈️AI takes flight: GMR Hyderabad Airport launches an AI-powered digital twin platform to streamline operations across all its airports.
🍽️Snack wars begin: Blinkit debuts Bistro, a 10-minute snack delivery app, in a head-to-head race with Zepto Cafe.
And that’s a wrap. Pour yourself an extra one this weekend.
We’ll be back like clockwork on Monday!
Hit that 💚 if you liked this issue.
Why spreading wrong information "For India, it was pure business. Cheap oil for its citizens and some refining money for its local businesses" -- How much part of this oil does Reliance sells to India and overseas market... So who makes the much of profit ... We the citizen gets nothing ... Edit that to "Profit to private refineries in this case 'Reliance'"