Ola Electric slashes valuation before IPO

Top of the Morning

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, July 30, 2024. My name is Nelson John. Let's get started:

India’s benchmark equity indices rose on Monday, with the Nifty nearly reaching the 25,000 mark during the session before paring its gains and closing just one point above its previous close. Similarly, the Sensex experienced marginal gains, ending the day 0.3 percent higher than its Friday close.

Current and former employees of Byju's, once India's most-celebarted startup, are scrambling to file claims for unpaid salaries and other dues. The deadline to submit these claims is 31 July. This rush follows the edtech company's admission of insolvency, triggered by a bankruptcy petition filed by the BCCI. Employees are seeking to recover their compensation amid ongoing legal battles by Byju’s founder, Byju Raveendran, who is challenging the insolvency order. As the legal drama unfolds with upcoming hearings, Mint’s Mansi Verma reports that many employees are banding together to file their claims more efficiently and affordably. However, some are still out of the loop, struggling with the process or being deterred by potential legal fees.

Ever wondered why alcohol brands often advertise products like music CDs and glass tumblers? This is known as surrogate advertising. Since direct alcohol ads are legally prohibited, companies use these alternative products to promote their brand name. The consumer affairs ministry is now drafting new rules to ensure these surrogate products genuinely stand alone in the market, rather than serving as covert advertisements for alcohol. Mint’s Dhirendra Kumar reports that the ministry plans to require companies to prove that these products are actually sold in stores, with sales data made publicly available online. This initiative is part of the upcoming Consumer Protection Act 2029, which aims to clearly define acceptable advertising practices and prevent companies from using brand extensions to subtly market alcohol.

Google, the titan of internet search, is now facing a wave of new challengers as AI reshapes the landscape. While Google's search engine has long been the default choice, the emergence of AI technologies like OpenAI’s SearchGPT suggests a potential shift. SearchGPT, similar to Microsoft's Bing which also uses OpenAI’s tech, enhances search capabilities with AI, making them more interactive and capable of retaining queries for smarter follow-up interactions. Google isn’t resting on its laurels; it's experimenting with its own AI-enhanced search technologies through projects like the Search Generative Experience and the expanded Gemini AI model. However, the advent of these new AI-driven platforms indicates that Google’s long-standing dominance could be under threat. Mint’s Shouvik Das, in today’s Primer, explores whether Google should be concerned about its position in a category it essentially pioneered.

Ola Electric is gearing up for its public offering this Friday, with shares priced between 72 and 76 rupees. This values the company at $4 billion, down from the $5.4 billion valuation in its last private funding round. The company aims to raise 6,146 crore rupees, including 5,500 crore rupees through fresh equity and the remainder through an offer for sale by existing shareholders. In an interview with Mint’s Mansi Verma, Ranjani Raghavan, and Nehal Chaliawala, Bhavish Aggarwal, the company's founder, highlighted Ola Electric’s market leadership in India's electric two-wheeler segment, holding a 35 per cent share with nearly 330 thousand units sold in FY24. The company's revenue surged by 90 per cent to over 5,000 crore rupees in FY24, but losses also increased by 8 per cent, nearing 1,600 crore rupees.

Launched in 2015, Bira quickly became a popular beer brand, taking the market by storm despite competition from established players like United Breweries' Kingfisher. However, the landscape has changed significantly. Bira's parent company, B9 Beverages, which also operates the Bira Taproom, has faced criticism for cancelling artists without providing necessary remunerations. Additionally, the company has been struggling financially. Mint’s Varuni Khosla and Sumant Banerji spoke with several vendors for this deep dive into the beer brand's financial challenges, revealing multiple reports of delayed payments.

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Show notes:

Byju’s employees rush to file claims for their dues as deadline nears

Cards, glasses & music CDs: Liquor firms may be staring at the end of surrogate ads

The search for an engine: Should Google fret?

IPO-bound Ola Electric slashes valuation to $4 billion

In pubs and homes, Bira’s beers were the toast of one & all. Then this happened