In this week’s wrapup we talk about Zomato’s IPO, reforming the power sector, a new order for capitalism, a new airline, and finally Elon Musk's day at the court.
But if you want to check out the Markets edition this week before you go about reading the wrapup, don't forget to click the link here. It's about the IRCTC rally.
The Zomato IPO
In the last few years, Zomato has gone from being a promising young startup to a burgeoning behemoth. From processing a mere 30 million orders in 2018 to processing close to 400 million orders in 2020. From making just ~1,400 crores in 2019 to earning upwards of ~2,700 crores the very next year. From partnering with just a few thousand restaurants to close to 4 lakh partner restaurants, Zomato has in fact come a long way.
But when it all culminated so spectacularly this week as the company went public, we had to dedicated a newsletter to the IPO. So if you still haven't had a chance to read a thorough review of the Zomato IPO, we've got you covered here.
A 3 lakh crore plan for the Power Sector
How do you fix the power distribution infrastructure in the country?
The state owned distribution companies aren't making enough money. They don't have enough resources. They're under boatloads of debt and all past attempts to reform these ageing institutions have failed rather miserably.
So when the government said they were going to spend 3 lakh crores in fixing the problem, once and for all, everybody looked at it and went - "What's different this time around?" So we thought we'd answer this question for you by dedicating Tuesday’s newsletter to this new result linked scheme.
A new order for Capitalism
“Capitalism without competition isn’t capitalism; it’s exploitation.”
That’s what US President Joe Biden proclaimed as he signed an executive order last week to promote greater competition across the American corporate landscape. And since it was making news all across the country last week, we decided to devote Wednesday's Newsletter to examine the fascinating new initiatives that many believe will change the way US capitalism works, forever.
A new airline in town?
There was an interesting report on ET recently. It said that Rakesh Jhunjhunwala, the big bull of Dalal Street, was planning to invest up to 260 crores in a new low-cost airline, tentatively called “Akasa”.
And it also noted that the new airline venture could be headed by Mr. Vinay Dube (ex CEO of Jet Airways and GoAir) and that they are seeking a No Objection Certificate from the Ministry of Civil Aviation. If all goes well, they could potentially get their hands on an Air Operator’s certificate and commence business by next year.
But why now? Why are they trying to set up a new airline bang in the middle of a pandemic? Well if these questions puzzle you too, fret not, we have some answers right here. Read on.
Elon Musk's day in court
Friday's story wasn't really about Elon Musk. In fact it was about a company he owned - SolarCity.
SolarCity made and sold solar generation systems and while the entity held a lot of promise in the early days, it all went awry when they began shipping their products. In fact, things got so bad that Elon Musk had to convince Tesla's board of directors to merge with SolarCity in a bid to save the failing company. However, not everybody believes that this was in fact an innocent merger and they're ready to go to court to prove their case. Want to know how this relates to Elon Musk? Read our full story here.