Meesho 💰

No unicorn 2025, Auto deals, and another Chapter 11.

☀️ It is a bright morning for dip buyers.

Markets rallied for a sixth consecutive session on Monday, marking the longest winning streak in 6 months

Nifty Bank was the real MVP, jumping over 2%, thanks to Kotak Mahindra Bank leading the charge.

Let’s hit it

1 Big Thing: Startup funding heats up in Q1 📈

India’s startup scene just had its best funding quarter in a year, pulling in $2.5 billion in Q1 FY25.

The deets: funding jumped 13.6% from last quarter and 8.7% year-on-year, placing India third globally after the US and UK. The biggest rounds came from Erisha E Mobility, Darwinbox, and Infra Market, each securing $100 million+.

Late-stage startups led the charge, pulling in $1.8 billion, while early-stage startups raised $528 million, and seed-stage funding hit $157 million.

• Delhi-based startups dominated with 40% of the total funding, followed by Bengaluru at 22%.

Sector trends: auto tech took off, raking in $1.1 billion, a major leap from $215 million last quarter. Enterprise software and retail also saw gains, pulling in $651 million and $482 million, respectively.

What’s shifting: while no unicorns were minted, IPO and M&A activity is rising. Six companies, including Nukleus, Maxvolt Energy, and Volercars, went public, and M&A deals hit 38, up 15% from last quarter and 41% YoY.

Zoom out: but for the first time in a while, no new unicorns emerged during Q1. The money’s still flowing, but investors are now backing solid growth over flashy valuations.

2. Meesho’s billion-dollar IPO 💰

SoftBank-backed Meesho is gearing up for an IPO, looking to raise $1 billion at a $10 billion valuation. The potential listing would mark a historic win for India’s heartland commerce story.

The company’s revenue has surged from ₹3,240 crore in FY22 to ₹7,615 crore in FY24, while net losses have shrunk drastically.

And while India’s e-commerce game remains cut throat competitive, Meesho has carved out a piece for itself at the intersection of social commerce and value conscious purchases.

Zoom out: India’s e-commerce market was valued at $116 billion in 2023. The runway for growth is quite long.

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3. M&M makes a bid for SML Isuzu 🚛

Mahindra & Mahindra (M&M) is looking to acquire the entire promoter stake in commercial vehicle maker SML Isuzu.

The deets: M&M is eyeing a valuation of ₹1,400–1,500/share. Sumitomo Corporation currently holds 43.9%, while Isuzu Motors owns 15%.

By the numbers: SML Isuzu’s Q3 net profit plunged 80.2% to ₹0.5 crore, with sales down 14.1% to ₹331.8 crore.

Why it matters: the deal would push M&M beyond tractors and SUVs into light and medium-duty trucks and buses. It also gives M&M access to SML’s manufacturing, dealer network, and customer base, strengthening its position against Tata Motors and Ashok Leyland.

Big picture: the rise of e-commerce is fueling demand for light commercial vehicles, while India’s vehicle scrappage policy is prompting fleet upgrades.

In FY24, commercial vehicle sales hit 9.6 lakh units, with projections pointing to 1.4 million in 2025

M&M ended 1% lower, while SML Isuzu rose more than 3% on the news.

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4. DNA innovator spirals into bankruptcy 🧬

Once a darling of the personal genomics boom, 23andMe is now filing for Chapter 11 bankruptcy.

The deets: the company, famous for its at-home DNA test kits that let people trace their ancestry and genetic traits with a simple saliva sample, is officially out of cash.

Worth noting: alongside the bankruptcy filing, CEO Anne Wojcicki is stepping down—but in a plot twist, she plans to bid for the company as an independent buyer.

What went wrong: 23andMe’s problems have been stacking up. Since going public in 2021, its valuation has crashed 99% from $6 billion to just $48 million.

The business model never quite worked—customers bought one test and never returned. And in 2023, a major data breach leaked the genetic and ancestry data of nearly 7 million users.

Zoom out: consumer DNA testing was once all the rage, but privacy concerns, lack of repeat customers, and regulatory roadblocks have made it a tough business to sustain.

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What else are we snackin’ 🍿

📉 PMI dip: India’s private sector activity fell to 58.6 in March from 58.8 in February due to price pressures and waning confidence.

❄️ Market freeze: Turkey stopped short-selling and made it easier for companies to buy back shares after political tensions shook the stock market.

🔥 Gas push: city Gas Distribution's share in India’s natural gas use is set to rise from 20% in FY24 to 25% by 2030.

👓 Glass move: Samsung is set to launch its first Android smart glasses, aiming to take on Apple’s Vision Pro with a lighter, more comfortable alternative.

🧱 Brick blues: India’s housing market saw a 23% drop in sales and a 34% fall in new housing launches in Q1 2025.

That’s a wrap! Don’t let the weekday blues get to you.

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