One quick thing: Groww picks bankers for IPO at up to $8 billion valuation 

In today’s newsletter:

• Davos 2025: Andrew Ng says code or fall behind
• Zomato disappoints; Blinkit faces the heat
• Four out of five PharmEasy co-founders to leave 
  

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The rise of artificial intelligence (AI) has sparked fears that the technology will soon be stealing our paychecks.

• While some experts believe these fears are overblown, others like Andrew Ng, a pioneer in the field of AI, say it’s time to adapt or get left behind

At the World Economic Forum in Davos, Switzerland, Ng offered a solution to the AI job displacement concern: learn to code.

"I don't think AI will replace people, but people that know how to use AI will replace people that don't," said Ng, the founder of DeepLearning.AI and co-founder of Coursera. 

His advice isn't just for tech workers, but for everyone from journalists to marketers.

"To anyone worried about your job, I say learn to code, take control of it..." he said.

Watch the full interview

Just last week, Meta CEO Mark Zuckerberg said that AI could potentially replace mid-level coding jobs.

• OpenAI is also expected to announce a breakthrough "PhD level super-agents" capable of solving complex tasks

While AI is undoubtedly changing the workplace, it's not all bad news. Canadian computer scientist Yoshua Bengio believes that countries that invest in AI will have a geopolitical advantage in the future.  

• Bengio also urged governments to incentivise for-profit companies to work on AI safety

However, he added that existing global safety nets will not be sufficient to tackle major labour market disruptions caused by AI systems.

The outgoing Biden administration's decision to place India in the second tier for access to US AI technologies, such as models and chips, has Ng concerned.

• Ng said that the export controls could harm both India and the United States. 

• He emphasised closer collaboration between the two nations, calling them "natural allies"

Also read: US’ proposed AI Diffusion Framework poses risk to India’s tech ambitions

Additionally, in the never-ending debate on whether India should build AI foundational models or develop applications on top of it, Ng said that India should focus on the latter.

More highlights from our WEF Davos coverage:

• Donald Trump, who is set to take oath as the 47th US President later in the day, is dominating the agenda at the World Economic Forum (WEF), according to Martin Sorrell, executive chairman of S4 Capital, a digital advertising and marketing services company. Sorrell also praised Indian Prime Minister Narendra Modi, calling him a great ad man who understands branding. He reiterated his admiration from last year, when he described Modi as the ultimate master of branding and commended his exceptional efforts in positioning India on the global stage. 

• Metals and mining conglomerate Vedanta is on a path to transformation, focusing on transitioning critical minerals, energy, and technology. The company’s new phase, dubbed "Vedanta 2.0," was outlined by Priya Agarwal Hebbar, Chairperson of Hindustan Zinc (HZL) and Non-Executive Director of Vedanta, at the World Economic Forum in Davos. “It’s time for Vedanta 2.0. Our entire focus as a company is transformation. We're calling it transforming for good. Our portfolio is focused on transition-critical minerals, energy, and technology, and that’s really where we stand,” Agarwal said. Find out more

• Bajaj Allianz CEO Tapan Singhel dismissed concerns about Allianz's potential exit from their partnership, stating that the company's size, strong balance sheet, extensive customer base, and robust distribution network make it resilient to any market disruptions. He said that no formal proposal regarding Allianz's exit has been presented to the company's board, and such matters would be addressed to the promoters. More on that here
  
  
• India is poised to establish itself as a key global player in AI-driven healthcare, with innovations such as the Ayushman Bharat Digital Mission offering scalable solutions that can be exported to other countries as well, particularly within the Global South, said Dr Shyam Bishen, head of the Centre for Health & Healthcare and member of the executive committee at the World Economic Forum (WEF). Find out more
  

Prefer video? Check out our daily Davos bulletin that brings you the top highlights from Day 1 of the World Economic Forum.

Zomato has posted tepid December quarter results as demand for food delivery slowed down, while its investments in its quick commerce arm Blinkit picked up.

Zomato reported a 57% year-on-year decline in consolidated profit after tax (PAT) to Rs 59 crore in Q3FY25.

• Investments in quick commerce, coupled with a slowdown in food delivery demand, took a toll on the company’s margins
  
  
• Its consolidated Adjusted EBITDA declined by 14% (~Rs 45 crore) compared to the previous quarter

Zomato’s food delivery business faced growth pangs as customers ordered less.

• Its gross order value grew just 2% quarter-on-quarter in Q3FY25

Even so, the company made improvements on the profitability front.

• Its adjusted EBITDA margin improved sequentially from 3.5% to 4.3%, driven by increase in platform fees and other cost efficiencies

Zomato’s quick commerce arm, Blinkit, saw its margins take a hit after accelerating expansion to fend off rivals.

• Blinkit’s EBITDA loss increased 16% YoY to Rs 103 crore in Q3FY25, and was significantly higher sequentially
  
  
• As a result of increasing competitive intensity, Blinkit will see its margins flatline around the 18-20% range, CEO Albinder Dhindsa said

Also read: December quarter most competitive in last 2-3 years, says Blinkit's Albinder Dhindsa

However, the company is now set to cross 2,000 cumulative dark stores by December 2025, a year earlier than its previous target.

Dig deeper

From a team of five co-founders, PharmEasy will now have just one person running the show. 

Four co-founders, Dharmil Sheth, Dhaval Shah, Harsh Parekh and Hardik Dedhia, are exiting the company, sources told us. 

• Siddharth Shah will be the last among the founder group who will stay on as the CEO of the company
  
  
• To be sure, they’re all the co-founders of API Holdings which runs PharmEasy, Thyrocare, Aknamed and other popular brands 

Their next move was not immediately known.

“The transition of Dharmil, Dhaval, Harsh and Hardik has been in the works since around the time PharmEasy raised its last round in April 2024. Siddharth will remain and lead the company as CEO,” one of the persons told us.

The four are leaving the company at a time when things have not gone PharmEasy’s way. 

• The company had to postpone its IPO plans in 2022, despite filing draft papers
  
  
• PharmEasy acquired Thyrocare for $600 million, financing the deal with a loan. However, it defaulted on the loan covenants

The company struggled financially, but eventually managed to raise $216 million in April 2024 at a significantly reduced valuation of $700 million, down from $5.6 billion in 2021.

• Investor Janus Henderson subsequently valued PharmEasy at $458 million

Dive deeper

• India plans to take up with the Trump administration the regulations, put in place by outgoing President Joe Biden, that further restrict US exports of AI chips and technology.
  
  
• Spain's government will grant additional subsidies totalling 150 million euros for companies to boost the use and integration of AI.

History was made at the Indira Gandhi Indoor Stadium in New Delhi as both the Indian women’s and men’s teams clinched the inaugural Kho Kho World Cup titles.

• The Indian men’s team defeated Nepal 54-36, while the women’s team triumphed 78-40

• Both teams went undefeated in the tournament

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