hi,
What a week of market plays!
Indian markets were hit hard on Friday, with the Sensex down 1,176 points to close at 78,042, and the Nifty down 364 points to end at 23,588 – their biggest drop in four months.
Behind this sharp correction: a combination of factors including the US Federal Reserve’s hawkish stance, increased selling by foreign institutional investors, and growing concerns over Indian stock market valuations.
The upheaval was not limited to traditional markets. The cryptocurrency world saw Bitcoin retreat below $93,000, triggering a massive crypto market decline that wiped $500 billion off the value.
Speaking of cryptocurrencies, a serious report by blockchain analytics firm Chainalysis revealed that hackers will have stolen $2.2 billion from crypto platforms in 2024, with actors linked to North Korea responsible for $1.34 billion of these thefts.
On the mobility front, Zoomcar is looking to diversify its operations. On Friday, the company launched a new pilot program called Zoomcar Cabs in Bengaluru to offer cars with professional drivers.
Meanwhile, ride aggregator platform Namma Yatri said it had no immediate international expansion plans after media reports claimed the company was eyeing the US market.
On a lighter note, research continues to confirm what many of us intuitively know: counting blessings can improve one’s mood.
Speaking of which, we’d like to share our own moment of appreciation: Ma your storyWe are so grateful for the unwavering support from readers like you over the past year.
Why not take a moment today to write down what you are thankful for?
We will talk about it in today’s newsletter
- Startup IPOs in 2024
- Learning EdTech in 2024
- Making space travel easier
Here’s your trivia for today: Burkina Faso is a former colony of which European country?
Review 2024
Startup IPOs in 2024
Indian startups didn’t get much love from private investors in 2024 but they got a warm welcome from the public market.
13 startups became publicly listed entities this year. Major names in the startup ecosystem, including Swiggy, Ola Electric and FirstCry, made successful debuts on stock exchanges and ended the year with the listing of digital banking platform MobiKwik.
Dalal Street:
- “Startups feel that this is the right time for them to go public, as the public markets today are valuing these companies much higher than private companies,” says Vikram Chachra, founding partner, 8i Ventures.
- Startups like Swiggy and FirstCry have not sought high valuations. FirstCry was valued at around $3 billion, at the time of its last venture capital funding round. It was the same case with Swiggy, which was valued at $11.3 billion at the time of its IPO.
- Realistic pricing paid rich dividends for startups that went public in 2024. The stock price of most companies did not fall below the IPO listing price. Although the price of Ola Electric fell below the IPO listing price, it has seen a recovery since then.
Top fund deal of the week
Startup: Zetwerk
Amount: $70M
Round: Equity
Startup: Veefin
Amount: Rs 136 crore
Goal: Capital Markets
Startup: Bizom
Amount: $12M
Round: Series B
Review 2024
Edtech education in 2024
In 2024, the hyper-growth mindset of the edtech sector began to change. The industry shifted away from its earlier obsessions and began to place more emphasis on efficiency, profitability, and delivering meaningful value—setting the stage for sustainable growth that is built upon over time.
“This year, the industry has moved beyond surface-level adjustments and embraced a holistic approach to increasing operational efficiency while staying true to its mission of creating long-term value,” says Krishna Kumar, founder and CEO of SimpleLearn.
Learning and Teaching:
- BYJU’S has seen its ratings plummet amid ongoing legal battles and bankruptcy proceedings. “BYJU’s story has made an impact in the edtech sector; The industry, investors and the ecosystem have moved on to a great extent,” said the edtech founder, who did not wish to be named.
- Although funding in India’s edtech sector showed a slight improvement in 2024 compared to 2023, driven by large rounds from companies like Physics Wallah and Eruditus, overall funding levels remained significantly lower than in previous years.
- AI has the potential to revolutionize how students learn and how edtech works. “The increasing use of AI and data analytics has enabled educators to better align content with the evolving needs of learners and employers, making skills more targeted and effective,” comments Mayank Kumar, co-founder of upGrad.
Credit: Nihar Apte
Startup
Making space travel easier
Once launched, rockets often end up in the oceans, where they are often abandoned. In an effort to change that, Spantric is developing reusable rocket launch vehicles.
Next SpaceX:
- The startup is making its vehicles using stainless steel. This, when combined with the heat generated by cryogenic propellants (the fuel used in rocket launches), will make the body 50% stronger.
- SpanTrik is currently incubated at T-Works in Hyderabad. The company has signed an MoU with IARE University in Hyderabad to set up its testing facility on the campus grounds.
- It has secured government funding and is attracting the attention of private equity investors. The company is currently in discussions to raise $1 million in its first round of funding, which it aims to close by March 2025.
News and updates
- Data privacy: Italy’s data protection agency fined ChatGPT maker OpenAI 15 million euros ($15.58 million) after it closed an investigation into the use of personal data by the generative artificial intelligence application.
- Weight-loss drug: Shares in Danish pharmaceutical giant Novo Nordisk fell nearly 20% on Friday after reporting late-stage trial results for its experimental CagriSema weight-loss drug that missed expectations.
- Efficiency: Tech giant Google CEO Sundar Pichai said the company has cut top management roles by 10% as it doubles down on its efficiency-driven approach to a leaner organization. While some roles in that figure were transitioned to individual contributor roles, some were eliminated.
Burkina Faso is a former colony of which European country?
Answer: France.
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