Top of the Morning

Ola’s Regulatory Woes, Spotify’s Growth, Inflation Eases


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It's Tuesday, March 11th, 2025. This is Nelson John, let's get started. 

🚨 Ola Electric Faces Regulatory Scrutiny

Ola Electric’s rapid expansion—4,000 stores in two years—has run into legal trouble. A Bloomberg report claims 95% of its showrooms lack trade certificates needed to display or sell unregistered vehicles, triggering raids, shutdowns, and vehicle seizures across states. Ola dismissed the allegations as “misplaced and prejudiced,” but internal documents suggest it only sought certification after facing scrutiny. Meanwhile, its stock fell 4% on March 10, adding to a 60% decline since its IPO. Alongside regulatory woes, Ola is battling layoffs, launch delays, and shrinking market share as Bajaj and TVS gain ground. A major red flag? Ola reported 25,000 vehicle sales in February, but only 8,600 were officially registered. CEO Bhavish Aggarwal remains optimistic about a turnaround, but challenges continue to mount.

🎵 Spotify’s India Strategy Pays Off, But Can It Make Money?

When Spotify entered India in 2019, competition was fierce. Yet, six years later, it has emerged as a dominant player, with 91 million unique visitors and 46% YoY growth in listening hours. Its success lies in hyper-local strategies—curated regional playlists, flexible pricing, and an artist-centric approach. “India was our 79th market, and we were here for the long game,” says Amarjit Batra, MD of Spotify India. Over 70% of streams now come from local artists. However, monetization remains a challenge—subscription prices in India are much lower than in Western markets, and artist payouts remain a pain point. Spotify has changed India’s music habits, but whether it can turn free listeners into paying subscribers remains the billion-dollar question.

📉 Inflation Cools, Strengthening Case for Rate Cuts

India’s retail inflation likely eased to 3.9% in February from 4.3% in January, marking four straight months of cooling prices, according to a Mint poll of 25 economists. The key driver? Falling food prices, especially vegetables, which saw inflation drop from 40% last year to 11.4% now. With inflation undershooting RBI forecasts, economists believe this could pave the way for a rate cut in April. “A moderation in CPI inflation below 4% should provide space for the MPC to lower rates by another 25 basis points,” says Annubhuti Sahay of Standard Chartered Bank. However, with GDP growth at 6.2%, the RBI will need to balance inflation control with economic stimulus. The official inflation report, due March 12, will be a key indicator of the central bank’s next move.

🏸 Gopichand Warns Parents: ‘Don’t Push Kids Into Sports Without Money’

Former Olympian and badminton coach Pullela Gopichand has sparked debate by cautioning parents against pushing kids into professional sports unless they are financially secure. His concern? The exorbitant cost of training and the lack of stable career opportunities. Tennis player Tishya Khandelwal’s family, for example, spends ₹45 lakh annually on her training in Australia. Chess prodigy Vedant Panesar shells out ₹3-3.5 lakh per European tournament, with little financial support until players reach the elite level. While cricket and football offer lucrative leagues, most other sports struggle to provide financial security. Even for top players, post-retirement options are limited. As one parent bluntly puts it, “Only the top 100 in pro tennis break even. Everyone else loses money.” Passion alone isn’t enough—deep pockets are almost a prerequisite.

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