Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, October 14, 2024. My name is Nelson John. Let's get started.

 

The upcoming festive period is usually a fruitful time for India's retail industry. As the sales increase, so does the advertising. However, companies are scaling back on traditional media spending. Instead, the industry is spending much more on digital ads, as well as those on e-commerce platforms. Varuni Khosla and Gaurav Laghate writes that FMCG and the auto sectors are likely to see good spending through such channels, but not on your TV or billboards.

In 2021, amid a booming market for startup IPOs in India, Zomato was an exception in the landscape, focusing heavily on fresh share issuances rather than facilitating investor exits. Unlike Zomato, which issued new shares worth Rs 9,000 crore, the trend among other startups was to use IPOs as a primary exit strategy for existing investors. In that fiscal year, 48% of total startup IPO shares were sold through offers-for-sale, slightly less than the broader market's 63.3%. This increased to 64% by FY25, indicating a growing preference among startup investors to liquidate their stakes, reports Priyamvada C.  While this trend means startups raise less capital for growth during their IPOs, it opens opportunities for new investors to engage with the startup sector as it rides a wave of market highs.

In another case of poor trade practices, the Competition Commission of India has found WhatsApp and its parent company Meta Inc. guilty of breaching competition laws. The 3-year investigation concluded that WhatsApp violated competition rules by abusing its market dominance with a policy update. Gireesh Chandra Prasad writes that this update was deemed "exploitative and exclusionary" by CCI's investigation. The penalties could go up to 10 percent of Meta's global revenue.

The latest data on India's industrial production, which showed a slight contraction in August for the first time in 21 months, raises concerns about a potential slowdown in the economy. The Index of Industrial Production dipped by 0.1% compared to a significant 10.9% growth in the same month last year. N Madhavan explains how this drop can be attributed to extraordinary rainfall impacting mining and electricity generation, alongside a high base effect from last year's strong performance. Despite this hiccup, experts suggest this is a one-off event, expecting a rebound in industrial activities starting September, buoyed by government infrastructure spending and other high-frequency indicators.

Zomato evolved from food delivery to include quick commerce and most recently an events business by purchasing Paytm’s subsidiaries Insider and TicketNew. This expansion into live events and dining with the newly dubbed District app aims to integrate Zomato's dining expertise with large-scale events. But the journey isn't straightforward. The events business, like those of old and new competitors, is notoriously tough to monetize, especially with the slim profit margins seen in pure ticket sales, as shown by the industry leader, BookMyShow. Zomato's real bet is on producing and hosting live events, which promise greater returns but also carry higher risks and investments. Sowmya Gupta dives deeper into Zomato’s latest acquisition strategy and how it can do wonders for the company. 

Advertising sentiment remains subdued during festive quarter

Startup IPOs: Investors rush for exits as new capital takes a backseat

CCI finds WhatsApp, Meta Inc. in breach of competition law; penalty order soon

Is the economy slowing down?

Not just a cold play: How Zomato can make District a blockbuster

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