Hello,
It’s the art of the deal that matters.
Fast-moving consumer goods giant Hindustan Unilever is in talks to buy skincare startup Minimalist, three sources aware of the matter told YourStory. The deal will value the Jaipur-based startup at Rs 3,000 crore, according to Moneycontrol.
Meanwhile, HUL’s competitor Marico too has showcased stronger-than-expected performance in Q2, with brokerages like Nuvama and Nomura maintaining ‘buy’ ratings on its stock. The sales outperformance comes largely on the back of the Saffola and Parachute brands.
However, while FMCG brands may be seeing a sweet resurgence in the stock markets, the industry is facing key challenges of inflation and urban slowdown. One way out is ‘shrinkflation’—i.e. reducing the size of the product while maintaining the price.
But shrinkflation may be a double-edged sword for brands. According to a LendingTree study released last year, 71% of consumers have noticed brands using shrinkflation and 66% of them have since boycotted the brands.
A golden opportunity for FMCG brands may be the rocketing growth of quick commerce, with a recent NIQ research revealing that it has become the primary grocery shopping method for 31% of urban Indians.
Another golden egg is premiumisation, where brands tap into consumers’ growing willingness to pay a premium for high-quality products with enhanced features.
After all, quality is more important than quality.
In today’s newsletter, we will talk about
- Parekh probe’s mystery ‘Big Client’
- Good Glamm’s cash flow troubles
- Bridging the gap in locker solutions
Here’s your trivia for today: The movie “The Shawshank Redemption” is based on a short story written by which horror writer?
Fintech
Parekh probe’s mystery ‘Big Client’
Exchange data reviewed by YourStory shows Tiger Global was the only major institutional investor to sell large blocks of PB Fintech shares on a day when India’s market regulator says traders illegally profited from prior knowledge of a big sale.
SEBI’s recent order describes a “Big Client”—a major foreign institutional investor—whose November 11, 2022 trades were allegedly front-run by former stockbroker Ketan Parekh’s network. While stock exchange records show Tiger Global’s funds sold about 12.7 million PB Fintech shares that day, there is no suggestion that Tiger Global was aware of or connected to any wrongdoing.
Timeline:
- SEBI alleges that Rohit Salgaocar, a Singapore-based consultant, tipped off Parekh—who was previously barred from Indian markets following his role in a 2001 market manipulation scheme—about the upcoming sale of 1.75 million shares at 382 rupees.
- Parekh allegedly used encrypted WhatsApp messages to direct his associates to acquire 500,000 shares through brokers, including Salasar Stock Broking and GRD Securities, before 10:02 am that day. The trading volume of PB Fintech (PolicyBazaar) shares surged to 7.93 million shares.
- Two Tiger Global funds executed large sales that day: Internet Fund III sold 5.16 million shares, while Tiger Global Eight Holdings offloaded 7.61 million shares. However, it is important to note that the SEBI order does not explicitly mention Tiger Global in any capacity.
Ecommerce
Good Glamm’s cash flow troubles
Content-to-commerce unicorn The Good Glamm Group has delayed salary payments for December, with some employees receiving only partial payments, according to two people familiar with the matter.
The company is also said to be exploring the sale of some of its brands to raise funds, they added.
Rocky journey:
- While one group of employees—those earning Rs 50,000 or less—received their full salaries on Thursday after a one-day delay, others earning above that threshold were paid only half, with the remainder expected by the end of the month, the second source said.
- Over the years, the company has acquired several D2C beauty and personal care brands but has faced difficulties meeting financial commitments for these acquisitions. For instance, Indian Angel Network, an investor in Sirona, sent a legal notice in April 2023 over delayed payments, which were ultimately settled in October.
- The company has also seen a series of high-profile exits in the past year, including co-founder Priyanka Gill and Good Brands CEO Sukhleen Aneja.
Startup
Bridging the gap in locker solutions
According to the World Gold Council, Indian households may have accumulated up to 25,000 tonnes of gold. Despite the expected rise in physical gold purchases, there is a massive gap in demand and supply for bank lockers.
Aurm aims to solve these burgeoning challenges in the banking locker sector by providing secure, accessible, and automated locker solutions. Incepted in April 2023 by former MyGate executives Vijay Kumar Arisetty, Suraj H S and Pratap Chandana, Aurm provides safe deposit lockers that are designed for gated communities.
Ensuring safety:
- Aurm’s locker layout comprises a strong room which houses the lockers and a separate access area, all secured and managed through automation. Arisetty likens it to a bank ATM, where a holder would need to verify credentials and enter a dedicated PIN to access the locker box.
- Aurm’s lockers are also backed by insurance. The startup recently partnered with Tata AIG, where the insurer will underwrite each locker with Rs 25 lakh in insurance, Arisetty said.
- The Bengaluru-based startup rents spaces in gated communities and sets up locker services that are available exclusively for the residents of the apartment complex. The subscription fee ranges between Rs 10,000 and Rs 15,000 yearly, depending on the rental fees the community charges Aurm.
News & updates
- Full and final: Apple has agreed to a $95 million settlement with users whose conversations were inadvertently captured by its Siri voice assistant and potentially overheard by human employees. The proposed settlement could pay many US-based Apple product owners up to $20 per device for up to five Siri-enabled devices.
- Shrinking market: Sales of foreign phone brands in China plunged in November, according to official data released Friday, underscoring further pressure on Apple, the biggest international handset vendor in the country. In November, foreign mobile phone shipments in China stood at 3.04 million units—a fall of 47.4%.
- Controversial: US President Joe Biden has formally blocked the takeover of US Steel by Japanese company Nippon Steel, saying foreign ownership could pose risks to national security. The controversial decision comes a year after Nippon Steel first announced the $14.9 billion deal.
The movie “The Shawshank Redemption” is based on a short story written by which horror writer?
Answer: Stephen King.
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