Thursday, 30th July ’20
Good morning, TMT Thursday is here to keep you on top of your game. Unlock 3.0 is underway in India as cinema halls, schools and colleges will continue to remain shut. 5 Rafale jets have landed in India making our country proud. Forbes released a list of countries with the most number of billionaires with USA, China, Germany, India, and Russia making the top 5 in that order.
To hit off your morning on the right note, here are a few words of wisdom from Anthony Robbins.
No matter how many mistakes you make or how slow you progress, you are still way ahead of anyone who isn’t trying.
MARKETS
Markets: Sensex lost 422 points in a volatile market. Reliance, a heavyweight in the stock market, was the biggest loser being 4% down. Bharti Airtel reported a loss of Rs 15,933 crore loss in Q1. Indigo also had losses of Rs 2,844 crore in its first quarter. This quarter has seen the peak of volatility as there are no immediate signs of economic recovery. European markets edged up slightly but a resurgence of COVID-19 cases kept the investors cautious. Investors are waiting on US Federal Reserve and the $1 trillion economic stimulus package in the US.
TECHNOLOGY & INNOVATION
Oyo group head, Ritesh Agarwal has set up a new entity, Aroa Ventures, which will look to place early- to growth-stage bets, making him the latest Indian entrepreneur to create a vehicle to make personal investments. They plan to invest between $500,000 and $5 million in consumer, technology and leisure infrastructure sectors.
As remittances to low and middle-income countries fall 20% this year to $445 billion, tech companies are seeing surges in business.This growth was spurred by offering customers virtual remittances without going to the physical shops like in the case of Western union. Remitly announced that it has raised $85 million in an equity round led by PayU raising its valuation to $1.5 Billion.
A group of Japanese lawmakers is seeking to restrict the use of TikTok and other apps developed by Chinese firms, following in the footstep of India, which has already blocked dozens of Chinese apps, and the U.S., which is floating the idea of a ban. TikTok, on the defence, rebutted saying that U.S. user data is stored in the U.S. and Singapore, with strict controls on employee access.
WHAT ELSE IS COOKING
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India gets a new education policy after 34 years: The New Education Policy comes third in line after 1968 and 1986. It aims to change the name of the HRD ministry to the Ministry of Education, promote multidisciplinary education, and is likely to bring foreign education players to India to operate independently and lay down rules for higher education spending by the government. The new policy will promote diversity and a comprehensive education structure to top universities and institutions and set up a research fund to promote R&D.
- Favipiravir joins Remdesivir as second drug for COVID-19 treatment: Hyderabad Drugmaker Hetero has launched a generic version of the anti-viral drug Favipiravir, used in the treatment of COVID-19 patients. The oral antiviral medication is priced at Rs. 59 per tablet and has demonstrated positive clinical outcomes. It is the second drug developed by Hetero after Covifor (Remdesivir), also used in the treatment of COVID-19.
IN-DEPTH ANALYSIS
How Did We Get Here: Investment Funds
The VOC, or the Dutch East India company, which obtained trade permits from Mughal India in the year 1602, imported 50% of textiles and 80% of silks, chiefly from its most developed region known as Bengal Subah. The VOC took away so much from the subcontinent and South East Asia that it’s riches ($7.8 Trillion) haven’t yet been surpassed by any modern corporation.
By the late eighteenth century the Dutch had become collectively rich and wanted an alternative to living the large life. Stock trading had become a thing and even the British East India company was eying to trade in the Amsterdam stock exchange when their price started shooting up after the Dutch became less active in our waters.
Stocks were a type of insurance. They allowed people to pool money and buy into several ships rather than putting all their proverbial eggs in one basket. If 1 of 3 ships made it, everyone would make a profit. And the waters of the Indian Ocean aren’t exactly as calm as most gurus from our country.
Despite the mitigation of risks afforded by stocks no one was immune to financial crises, like the one that took place in1772–1773. In response to that, Amsterdam-based businessman Adriaan van Ketwich formed a trust named Eendragt Maakt Magt (“unity creates strength”). His aim was to provide small investors with an opportunity to diversify. Hence giving birth to mutual funds.
MANAGERS’ CORNER – Tech Drive
The time is right for India to transform from an IT-services economy to an IT-products economy.
A lot of reverse brain drain is going to happen and a startup wave is imminent.
- The US cancels visas for students with online classes.
- Trump signs a proclamation to restrict H1B and other non-immigration visas until the end of 2020.
India needs to capitalize on this opportunity with better Ease of Doing Business. Regulations need to be eased and government processes need to be streamlined and transparent.
13 years ago, Kunal Bahl’s H-1B visa to the US was rejected and he founded Snapdeal, India’s third-largest e-commerce company.
Today, when the global economies are closing, a lot of hope single-handedly rests on Jio Apps. They have the right:
- Investors to sustain them and propel them
- Technology to compete with international products
- Customer base and infrastructure to scale
Adapting to Jio will only make them sturdier over time. Plus, a large ancillary market of startups always grows around behemoths. We might have our own Silicon Valley making great products in the next 5 years without any restrictions on the international players.
THE MILLIONAIRE MINDSET- Product of the Day
Max, the founder of Figma, had just moved from PowerPoint to Keynote for building his pitch decks because he preferred its design features. But the lack of an option to actively collaborate with his co workers on the design of decks lit a bulb in his head.
Designing pitch decks is difficult for a first time founder with doubts about
- how much company overview to include
- how much time to spend on designing the aesthetics
- what to include and exclude
- how many slides
- how much money to ask for
- the form of financing to ask for
- how to actually think like an investor to make an impactful deck.
Figma has a blog which takes you through those questions as well even though that’s not their primary offering. If you’ve got even more questions there’s other resources to refer to as well.
It’s easy to call Figma the Canva of pitch decks because there are 300+ components that you can choose from on editable slides. On top of all that you can collaborate with your co workers.
Bonus: Feel good website of the day
Rainbow Hunt: A yet another nature sounds website because how can you ever get enough of them right? This one has volume and time of the day toggles to play with.
Written by Kumar Sourav Mohanty, Akansh Bhatt, and Shashank Dobhal
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