Hello,

Looks like Swiggy has bitten off more than it can chew.

US-based investment management firm Invesco has slashed the foodtech firm’s valuation to $5.5 billion. This is the second time Swiggy’s valuation was slashed by Invesco this year.

The drop in valuation reflects the volatility and slow growth in the food delivery business amid tough macroeconomic conditions. Zomato has also recently increased commission on food delivery orders and is nudging restaurants to advertise on the platform as it doubles down on profitability.

Speaking of Zomato, the foodtech giant will launch a B2B logistics service to deliver food, pharma products, and consumer goods for other ecommerce players. A few thousand pilot deliveries have already been fulfilled so far.

In other news, early-stage VC firm 3one4 Capital has raised $200 million as part of its newly launched fourth fund. While it will primarily invest in focus areas of consumer internet, SaaS, fintech, and enterprise and SMB digitisation, the VC firm will also test the waters in newer areas like digital health, climate tech, and more.

Meanwhile, PhysicsWallah plans to invest Rs 100 crore to strengthen its Union Public Service Commission (UPSC) offerings. The edtech company plans to invest in technology innovation, session-wise constructive pedagogy, content, and hiring teachers as it goes after civil service aspirants—both online and offline. 

ICYMI: There’s an ancient boundary in South-East Asia that doesn’t separate countries or continents…but animal species.

Called the Wallace Line, it’s an invisible divider that runs through Indonesia and separates Asian fauna such as rhinos, elephants, tigers and woodpeckers from Australian species like Komodo dragons, cockatoos, and honeyeaters.

Why? Hint: plate tectonics.

In today’s newsletter, we will talk about 

• Swiggy, Zomato have a new competitor
• Why cinema halls are here to stay
• Cuemath downsizes its workforce

Here’s your trivia for today: Which country is home to the oldest surviving film company in the world?

Foodtech

Swiggy, Zomato have a new competitor

Restaurants across cities have been complaining of high commission and delayed deliveries by Zomato and Swiggy. Now, the Indian Hotel and Restaurant Association has taken matters into its own hands and launched a new food delivery app ‘Waayu’ aimed at offering restaurants a zero-commission platform.

Disrupting food delivery:

• More than a thousand brands have already joined the platform, with actor and investor Suniel Shetty onboarded as the brand ambassador.
• Waayu will enable restaurants to receive their dues instantly, and deliver orders via Grab, Dunzo, or use their own delivery staff.
• It will also offer a SaaS platform that will enable restaurants to manage orders by automating the workflow.

Interview

Why cinema halls are here to stay

From 800 screens and 100 million visitors, PVR Cinemas shuttered down during the pandemic with no business or visibility. But despite the loss of earnings and the growing fame of OTT platforms, the show is still going strong.

“The last three years have been life-altering. We are fortunate to have survived this baptism by fire,” PVR Chairman Ajay Bijli tells Shradha Sharma, Founder and CEO, YourStory.

Future of cinema:

• To survive the pandemic, PVR raised Rs 800 crore through QIP and completed its Rs 300 crore rights issue.
• Bijli says that while there’s a cap on earnings on OTT platforms, big-screen releases also have big earnings.
• South Indian films are now going for a pan-India treatment while Bollywood is also collaborating with stars everywhere to broaden its appeal.

Edtech

Cuemath downsizes workforce

Sequoia Capital-backed math learning startup CueMath has reduced its workforce, impacting 100 employees across functions. Manan Khurma, Founder and Chairman of Cuemath, said that he would resume the role of CEO.

Mounting losses:

• Khurma will replace Vivek Sunder, the former COO of Swiggy, who will transition to an advisory role.
• He said the company reduced its workforce to reflect Cuemath’s increased focus on learning and consumer experience, and retention.
• Cuemath’s losses widened 66% to Rs 216.6 crore in FY22 from Rs 130.7 crore in FY20-21. It spent Rs 125 crore on employee benefits—its largest expense.

News & updates

• The long game: Bain Capital is seeking to raise $4 billion for a new global “special situations fund” as it sees an opportunity to snap up distressed and equity investments. Bain kicked off the fundraising at the start of the year and has already raised about $2 billion for the new fund.
• Rekt, yet again: Bitcoin fell, extending losses from a sharp drop over the weekend following reports by one of the biggest crypto exchanges in the world about “congestion” on the Bitcoin network. The price of bitcoin was lower by about 4% at $27,787.05, according to Coin Metrics. 
• AI’s gold rush: While most of Silicon Valley’s venture-capital ecosystem remains in the doldrums, investors this year have been pouring funds into companies specialising in generative AI systems that can create humanlike conversation, imagery, and computer code. 

Which country is home to the oldest surviving film company in the world?

Answer: France. Launched in 1895, The Gaumont Film Company originally manufactured photographic apparatus. Two years later, it started producing short films to promote its camera projector.

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