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NEWSLETTER - July, 2019

Why we invested in Fitso

Indians are becoming more health conscious, and recreational sports is a key component of fitness regime of several people. However, there is no organized player operating in this segment because of inherent challenges in the sector, including poor condition of facilities, lack of good quality coaches, poor customer experience etc. Fitso is aiming to solve this billion dollar problem.


IndianMoney’s founder shares his views on 2019 Annual Budget

Sudheer, the Founder and CEO of IndianMoney, shared his opinions on 2019 Annual Budget around steps that should be taken to benefit the common Indian man.


HealthifyMe profiled in ET Prime

HealthifyMe, an 8-year old startup, has transitioned from a services company, connecting its user with nutritionists and coaches, to a product company with the launch of Ria, its AI powered personal coach. At the end of 2018, 54% of its customers opted to use Ria, up from only 5% at the beginning of 2018.


US antitrust is broadening its horizon from just low consumer prices

A key tenet of US antitrust regime is consumer harm, i.e. will the consumers be impacted by an acquisition / merger because of higher prices. Internet companies, like Google, Facebook, Amazon etc., often argue that they are exempt from antitrust scrutiny because they provide their services for free (or at low prices in case of Amazon). However, a recent speech by Makan Delrahim, DOJ’s assistant attorney general, seeks to broaden the scope of antitrust regulation.


Millions of Indians may still remain offline

Despite rock-bottom data costs due to Reliance Jio, more than half of India’s 1.16 billion internet users remain offline. And many of them may not come online soon. Affordability of devices remains an issue and companies like Airtel and Vodafone are actively courting high ARPU customers, with even Jio expected to increase prices within a year.


OTT landscape in India - HotStar leads the market

With a sharp focus on Cricket and content partnerships, Disney owned HotStar leads the Indian OTT market, followed by Amazon’s Prime Video, SonyLIV, Netflix, Voot, Zee5, AltBalaji and ErosNow. The user base is still young, with 89% users below the age of 35, and is 79% male.


Economic geographies matter for companies

Elad Gil finds that in almost every market internationally, unicorn market capital tends to cluster in one city. 57% of the US private market cap for unicorns is in San Francisco, whilst an amazing 71% of China’s unicorn market cap is clustered in Beijing. India is unique in having two cities of roughly equal market cap of unicorns, with Delhi and Bangalore together totalling to 78%.


False start for Chinese unmanned convenience stores

China had ~200 unmanned stores by the end of 2017, which were showcased as automated stores of the future by companies like Alibaba and BuyFreshGo. However, several of them have shut down now as they contend with the complexities of running a retail store, especially in regards to fresh produce.


Slow down in ride hailing in India is impacting car manufacturers

In 2016, Uber and Ola inked several agreements with car manufacturers to lease cars in tens of thousands. However, as these companies look to reduce their burn rate, these orders have disappeared. Additionally, banks are also wary of financing these leases due to poor repayment records by the drivers on these platforms.

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