🛒 Big billion day for Flipkart
SC delivers a major solar ruling, Apple v. Epic trial continues, and Flipkart to raise $1 billion ahead of its IPO
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There’s so much to cover today so let’s get started.
First up,
Market Snapshot 📈
Sensex: 49,161.81 (-0.69%) ↓
Nifty 50: 14,850.75 (-0.61%) ↓
Dow Jones: 34,742.82 (-0.10%) ↓
Nasdaq 100: 13,359.08 (-2.63%) ↓
Bitcoin: $55,632.59
Top Stories 📰
1. Supreme Court delivers a $3 billion shock to Solar firms 💰
The most expensive shock has been delivered to the companies producing it.
The Indian Supreme Court has ordered solar companies operating in Rajasthan and Gujarat to take their overhead power lines — new and existing — underground, citing concerns over the habitats of a critically endangered bird, Great Indian Bustard (GIB). The rule overrides the National Green Tribunal’s January directives for all companies to place only new transmission lines underground.
The two regions house several solar power plants, including the biggest at Bhadla in Rajasthan’s Jodhpur district, and accounts for 25% of total solar energy production in India. Among the companies developing the projects include ReNew Power, Adani Green, SB Energy, Hero Future Energies, Greenko and state-run NTPC.
The decision brought criticisms from the industry, with an executive from one of the affected companies claiming that the new rule would "bleed the industry.” The solar industry association is now planning to seek partial relief on the order as laying high-voltage cable underground is unfeasible.
A quick overview on GIBs — they're tall, heavy birds with a wingspan of over two metres. Currently, only 150 of these birds exist and around 15% die every year due to electrocution, which makes this issue very important for Rajasthan's forest department that's trying to maintain a ‘GIB arc’ amid the gold rush for solar power.
Why it matters? The two regions currently have 2,500 kilometres of overhead cables, including both high- and low-voltage, which would cost developers Rs. 22,000 crore ($3 billion) to take them underground and require a 10-15% tariff hike if they've to fund the entire operation.
2. Apple v. Epic saga continues....📱
It's the second week into the Apple v. Epic Games trial, where the popular game creator is suing the tech giant for violating US antitrust law after Apple pulled out Epic's hit videogame ‘Fortnite’ from its App Store.
But before we dive in, here's what went down in Week 1:
Epic disclosed its financial performance, including Fortnite's dwindling performance since 2018 and its subsequent 2020 recovery.
Apple defended its stringent app review process, saying it rejected 40% of app submissions last year due to its "improved systems."
Apple also countered Epic's claim of overcharging commissions by highlighting its "inviting" integrated ecosystem.
This week, they battle over....a banana costume.
It all began when Apple's attorney used an exhaustive tutorial of Fortnite while cross-examining Epic's VP of marketing, Matthew Weissinger, beginning with its title screen and one of its skin, Agent Peely — a humanoid fruit avatar in Epic’s game Fortnite.
The exchange may seem inconsequential, but it's important given that Apple has accused Epic of distributing porn through its digital stores, using the Itch.io marketplace which offers video games with explicit content. Epic defended this claim and reverted to Peely comment, saying that there's nothing inappropriate with the character.
Why it matters? While Epic is suing Apple to make its iOS open to alternative app stores, Apple denied that request claiming that doing so will expose users to malicious, low-quality apps — and it did so by painting Epic as being careless around its user's safety. And so it goes....
3. Big billion day for Flipkart! 🛍️
Things couldn't be better for Flipkart.
The Bangalore-based startup is in preliminary talks with a bunch of investors to raise $1 billion at a $28-30 billion valuation, few insider sources reveal. The fundraising could also double to up to $2 billion depending on investors’ appetite, they added.
The capital is mainly for expanding operations and catalysing its valuation ahead of its much-awaited IPO in the US this year.
A new and existing pool of investors have been sounded out, including Qatar Investment Authority, GIC of Singapore, CPPIB, CDPQ, and Carlyle. Goldman Sachs and JP Morgan are acting as advisers in the fundraise.
Surprisingly, Walmart, which bought a 77% stake worth $16 billion in Flipkart in 2018, is not injecting any additional capital into the company and is seeking external funding instead, which might help Flipkart set up a valuation benchmark.
Why it matters? *For Indian startups, the only way is up* By 2025, India's e-commerce market is estimated to reach over 300 million shoppers. Given such a massive addressable market, top players such as Amazon, Flipkart, and Reliance's JioMart are battling to establish their market dominance. Moreover, 11 startups in India turned unicorn this year after receiving high-profile investments from Falcon Edge and Tiger Global.
Top Reads 📑
The US to start vaccinating 12- to 15-year olds by Thursday after FDA grants emergency use authorization to Pfizer's COVID-19 jabs.
China's population growth rate reaches 0.04% in 2020, the slowest growth rate in decades.
OSIRIS-REx, a NASA spacecraft that spent 2.5 years on an asteroid, is heading back to Earth...along with a sample!
US state attorney generals said NO to Instagram's plan of making the app available for kids 13.
Deadly ‘black fungus’ infection that can disfigure facial features and even kill people found in COVID-19 patients in India.
Tweet Of The Day 🌟
A 23-year-old girl who claims to have coined the term 'Cheugy' — a GenZ word to describe something as 'outdated' and 'untrendy' — is selling the word as an NFT.
Place your bids to own the word.
Well, that's all from us. Until next time 👋
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