Uber CEO talks India business; The rise of stock broker Angel One

Hello,

‘Nikkei parties like it's 1989’, reads a Reuters headline.

The Japanese stocks rose to a record high on Thursday, surpassing a level last seen 34 years ago when the country was at the peak of its economic ascendancy before it sank into decades of low growth.

The Nikkei 225, a benchmark stock index in Japan, moved 2.1% higher to 39,098, breaking through its previous high of 38,915.87 reached on December 29, 1989. 

Globally, S&P 500 futures climbed 1.3%, and Nasdaq 100 futures gained roughly 2%. Futures tied to the Dow Jones Industrial Average added 185 points, or 0.5%, boosted by a jump in Nvidia shares as the chip giant posted record revenue and issued upbeat guidance.

Closer home, Indian shares ended higher in a volatile session led by a rebound in IT stocks. The Nifty 50 index rose 0.74% to a record closing high of 22,217.45, while the BSE Sensex ended 0.74% higher at 73,158.24.

It comes as an affirmation of India’s growing economy, which, according to investment banker Jeffries, will become the third largest by 2027 and touch $10 trillion by 2030.

ICYMI: 50 of the world’s best breads!

In today’s newsletter, we will talk about 

• Uber CEO on surviving in India
• The rise of stock broker Angel One
• One-stop shop for ergonomic products

Here’s your trivia for today: Which European city built an underwater shed capable of storing 7,000 bicycles? 

Mobility

Uber CEO on surviving in India

Uber CEO Dara Khosrowshahi described the Indian market, with its demanding customers, as the company's toughest but felt if it could succeed in the country, it could set the standards for the cab-hailing giant to operate anywhere else in the world.

“India is a gateway to the world,” he remarked in a conversation with Infosys Chairman Nandan Nilekani.

India focus:

• Uber is also very interested in the digital public infrastructure (DPI) in India as it can leverage it towards expanding the ride-hailing giant's business in India.
• Khosrowshahi said the strategic intent of Uber has always been to expand on a low-cost base, and the company is looking at an opportunity to expand into the two- and three-wheeler vehicle segments.
• Uber has also signed a memorandum of understanding with the government-promoted Open Network of Digital Commerce (ONDC) to expand the range of mobility offerings on the Uber app.

Funding Alert

Startup: Orkes

Amount: $20M

Round: Equity

Startup: Varaha

Amount: $8.7M

Round: Series A

Startup: Ghost Kitchens

Amount: $5M

Round: Series A

Corporate

The rise of stock broker Angel One

Started in 1996 as a stock broking company, Angel One holds the number three position—after Groww and Zerodha—in terms of active clients on NSE. Its client base has increased from 1.8 million in FY19-20 to 13.8 million in FY22-23 after going online.

“The focus was how do we bring technology and product at the forefront of execution to drive business,” says Prateek Mehta, Chief Business Officer, Angel One.

Key points:

• Mehta says the company makes eight times more than what it spends on acquiring the customer and has strong revenue retention. For FY23, it registered a revenue of Rs 3,021 crore.
• The average age of customers on Angel One’s platform is around 29, and it has strong traction from the Tier II and beyond markets. Most importantly, more than 40% of its customers are below the age of 25.
• The gross client acquisition for Angel One stood at 1.03 million in January 2024 compared to 0.39 million in a similar period a year ago, a rise of 162.7%.

Startup

One-stop shop for ergonomic products

After battling intense back pain and discomfort due to poor posture, Ganesh Sonawane, Founder of Arcatron Mobility, decided to come out with suitable solutions and hit upon the winning design for cushions and backrests.

He launched Frido, which sells a range of products, including backrests, coccyx-support seat cushions that give support to the sensitive lower back area, and neck and sleep pillows.

Made in India:

• Frido’s products are designed and built in India; some parts are imported. The company assembles its products at its outsourcing facilities in Gujarat, Maharashtra, and the National Capital Region. 
• The brand has emerged as strong competition to unbranded products and international brands like Dr Scholl’s, helping it earn a monthly revenue run rate of Rs 7 crore, according to Sonawane. 
• The company is open to launching company-owned and operated stores once it achieves scale. It expects to be profitable and touch an annual revenue rate of Rs 120 crore by the end of FY24.  

News & updates

• New product: Instagram is expanding its marketplace tool to connect brands with creators for paid partnerships or ads in eight new countries. The new markets that will get access to this marketplace include Canada, Australia, New Zealand, the United Kingdom, Japan, India, and Brazil.
• AI game: Social media platform Reddit has struck a deal with Google to make its content available for training the search engine giant's AI models. The contract with Alphabet-owned Google is worth about $60 million per year, according to a source.
• Incorrect: Google is pausing its Gemini AI image generation feature after saying it offers “inaccuracies” in historical pictures. Users on social media have been complaining that the AI tool generates images of historical figures—like the US Founding Fathers—as people of colour, calling this inaccurate.

Which European city built an underwater shed capable of storing 7,000 bicycles? 

Answer: Amsterdam. The city spent the equivalent of $65 million over four years to build the structure that opened in January 2023.

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