Messi joins Byju, Adani buys Air Works & more!

A lot happened this week, and here is a quick rundown.

November 04, 2022

Top of the morning folks! Catch up quickly on top business news this week in under 4-min, If you haven’t subscribed already join the mail list now!

1. Adani buys Air Work for Rs.400 crores 💸

What's happening: Adani Defence Systems & Technologies (ADSTL Ltd.) has signed definitive agreements to acquire Air Works, India's largest and most diverse independent MRO (Maintenance, Repair, and Operations) with a presence in 27 cities nationwide.

  • This is a huge boost to Adani as it would allow them to expand and utilize the base maintenance for the ATR 42/72, A320, and B737 fleets which happens to be provided by Air Works' EASA and DGCA-certified facilities in Mumbai, Delhi, Hosur, and Kochi.

What's happening: Adani Defence & Aerospace is the $250 billion Adani Group's defense manufacturing arm, with the goal of assisting in the transformation of India into a destination for world-class high-tech defense manufacturing.

  • Buying Air Works for Rs 400 cr will allow them to expand even further

What they're saying: There has not been much communication from involved companies about the intricacies of the deal besides its supposed acquisition and other minor details.

  • According to Ashish Rajvanshi, CEO of Adani Defence & Aerospace, the maintenance, repair, and overhaul sector is critical in both the defense and civilian aerospace sectors.

  • The company further highlighted that the Indian MRO market is expected to grow three times from $1.7 billion to $5.0 billion by the year 2030 providing immense incentive for the deal to work through.

2. Sprite reaches $1 Billion in yearly sales🧋

Why it matters: Surpassing $1 Billion in sales just recently, the soft drink company has now joined the leagues of Thums Up which reached this milestone.

  • Sprite drink has the highest household penetration in the company's India portfolio.

  • Coca-Cola continued to strengthen as it gained a share in sparkling offerings in the first half of 2022.

What was said: In the earnings statement for the third quarter ended September, the world’s largest beverage company said that unit case volumes grew 9% in the Asia-Pacific region, driven by solid growth in India and China.

By the number: The company's net revenue grew 10% to $11.1 billion in the July-September period owing to price hikes.

  • India is the fifth-largest market for Coca-Cola globally.

  • The company drove 2.5 billion transactions in India at affordable price points through the expansion of returnable glass bottles and single-serve PET packages.

This achievement can be credited to the "Success driven locally adapted, occasion-based global marketing campaigns," said James Quincey, chairman and chief executive officer of the Coca-Cola Co., in a post-earnings conference call.

3. MobiKwik’s Loss Widens 15% To ₹128.2 Cr 📉

What is happening: MobiKwik, a well-known player in the fin-tech space was planning to go public in FY22 and had submitted draft papers to the SEBI in July 2021.

  • However, the company decided not to go ahead with its IPO plans after the market turned negative, with newly listed tech stocks suffering losses.

  • MobiKwik's IPO, which was scheduled for Diwali last year, was aiming for a valuation of $1.5 to $1.7 billion.

By the numbers: According to the company's regulatory filings, MobiKwik's operating revenue increased 82.5 percent to INR 526.5 crore in FY22, up from INR 288.6 crore in FY21, while income increased by 80% to Rs. 543 crores.

  • Despite a 1.8x increase in operating revenue, FY22 losses increased.

  • MobiKwik's total expenses rose by 61% to Rs. 652.5 crores.

  • Employee benefit costs nearly doubled to Rs. 107 crores, while other expenses more than doubled to Rs. 545 crores.

What's in spotlight: MobiKwik, founded in 2009, is a Gurugram-based fin-tech startup that joined the illustrious unicorn club in October 2021 after some of its employees exercised their employee stock option plans (ESOPs).

  • MobiKwik also raised $20 million from the United Arab Emirates (UAE) sovereign wealth fund- Abu Dhabi Investment Authority in June 2021.

What's next: MobiKwik's authorized share capital increased from Rs 19.42 crore to Rs 34.52 crore during the year, according to regulatory filings.

In an interview Upasana Taku, co-founder, stated that the company expects to be profitable by FY24.

🔥Top headlines this week:

Byju's announced Lionel Messi as the global ambassador of its social impact arm Education For All, This comes amid the layoffs of 2,500 employees, and control costs.

WhatsApp Groups: Meta launched Communities, its new feature that supports groups of up to 1,024 people, <2GB file sharing, and message deletion by admins.

Out of the blue: Meta India chief Ajit Mohan is leaving the company with immediate effect to head rival Snap’s Asia Pacific business.

Lawsuit: Nasdaq-listed Freshworks is facing a class action suit by US shareholder rights firms that allege the SaaS major’s IPO documents were false and misleading.

Private Equity: VC investments in China fell 44% to $62.1 billion in October compared to last year; the semiconductor sector was the only exception, with a 24% increase in VC deals.

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