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In today’s newsletter:

• Down rounds are back for some 
• Restaurant body loses appetite for ONDC 
• India becomes Apple’s new export hub

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Down rounds, a term startups dislike, are showing signs of a comeback after more than a year.

Stanza Living, a co-living startup, is negotiating a new funding round that will significantly reduce its valuation, sources told us. 

• Stanza Living is in talks to raise $25-30 million from existing investors like Accel and others
  
  
• The company is now being valued at around $300 million, down more than 50% from its earlier $650 million valuation, we were told

A down round is when a company, especially a startup, raises money at a lower valuation than in its previous funding round.

While Stanza Living is raising funds at a significantly lower valuation, more such deals are brewing.

• CityMall is raising around $20-25 million at a valuation of $300 million, down from $315 million earlier, sources said
  
  
• Accel is participating in this round as well, along with other internal investors
  

Down rounds typically happen when companies need capital but haven't grown to their full potential between funding rounds.

• Larger startups like Cred are also exploring a similar route. The company is reportedly looking to raise $100–200 million at a valuation of $4 billion, down from $6.4 billion earlier

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Picture credit: DALL-E

The National Restaurant Association of India's (NRAI) taste for open networks just turned bland.

The restaurant body has put its integration plans with the Open Network for Digital Commerce (ONDC) on the backburner, citing kitchen chaos.

• Operational instability and a lack of strategic commitment from the network were key concerns, we were told 

NRAI had earlier championed ONDC as a counter to Swiggy and Zomato, accusing them of private labelling through their 10-minute delivery apps, Snacc and Bistro.

Leadership churn has further complicated matters.

• CEO Thampy Koshy stepped down this month, following the exits of CBO and chairperson
  
  
• An interim committee has taken charge to ensure continuity

NRAI is treading cautiously amid the ongoing top-level churn.

Even as talks with ONDC have come to a standstill, NRAI is evaluating alternative aggregator platforms as potential channels for member restaurants. 

• One such contender is Rapido, which has recently expanded into food delivery

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India is no longer just a backup plan…it’s the new frontline of Apple’s global supply chain.

Apple supplier Foxconn has begun producing AirPods in Hyderabad for export, sources told us, while a massive new iPhone plant in Bengaluru is gearing up to start operations soon.

This comes at a time when Apple is doubling down on India as a strategic manufacturing hub, positioning it as an alternative to China amid rising US-China trade tensions and President Donald Trump’s sweeping tariffs.

A new $2.8 billion (Rs 25,000 crore) Foxconn facility in Devanahalli, near Bengaluru, will soon kick off iPhone production with an eye on exports. 

• Once operational, it’s expected to produce up to 20 million iPhones annually, making it Foxconn’s second-largest plant outside China

• Foxconn has also begun trial production of the iPhone 17 series in India

Tata Electronics’ new iPhone factory in Hosur has begun operation and is currently assembling older-generation iPhones, with shipments set to begin soon.

• Tata Electronics is emerging as Apple’s second major supplier in India, following its acquisition of Pegatron and Wistron’s local factories

The company is also trialling iPhone component production, such as casings, for Apple’s upcoming models.

Apple has set a target to shift production of over 60 million iPhones annually to India by 2026.

• In March alone, Apple exported $2 billion worth of iPhones from India to the US, a monthly record for both Foxconn and Tata

India already manufactures 40–45 million iPhones annually, accounting for about 18-20% of Apple’s global output in 2024. That share is projected to hit 25–30% by 2025.

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Picture credit: DALL-E

• OpenAI has hit the brakes on its recent update to ChatGPT after many users felt the chatbot had become too agreeable, to the point of being fake.
  
  
• Huawei started shipping its most advanced AI chip cluster, CloudMatrix 384, to Chinese domestic clients, a key breakthrough in Beijing's drive towards AI hardware self-reliance amid US export controls.

Coldplay didn’t just bring ‘A Sky Full of Stars’, they brought a sky full of moolah. 

The British band's five-stop India tour this January pumped Rs 641 crore into the economy, according to EY. 

• Ahmedabad alone saw Rs 392 crore in spending, 222,000 fans, and record-breaking airport arrivals 

• Cab bookings soared 400%, 15,000 jobs were created, and even GST got a Rs 72 crore windfall

Guess the economy is humming ‘Viva La Vida’.

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