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In today’s newsletter:

• Flipkart board asks CEO Kalyan Krishnamurthy to slash cash burn 
• A91 Partners closes $665 mn India fund
• Groww, Zerodha, Upstox feel the market blues

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Flipkart’s top boss has a task cut out for him. And it’s not an easy one. 

Flipkart’s board, during a meeting last week, asked CEO Kalyan Krishnamurthy to cut the company’s cash burn by 50%, sources told us. 

• Flipkart burns $40 million a month currently, and the board wants the amount to be lowered to $20 million in the coming quarters
  
  
• At the current rate, Flipkart will likely burn over $450 million in 2025 against a targeted $250 million during the year, sources said

The task is not an easy one. Especially because the firm has to also scale its latest venture: Flipkart Minutes, its quick commerce arm.

“A few months ago, it shut its pharmacy business (Flipkart Health+)...Kalyan has to (now) decide which units continue to receive money and which ones will face the axe,” a source told us. 

For context, Zepto, a new-age rival, was burning around $30 million each month despite operating at roughly one-sixth the scale of Flipkart.

• Flipkart had a gross merchandise value (GMV) of over $29 billion, while Zepto's GMV stood at around $5 billion

Flipkart has also been prudent in its operations. 

• Flipkart Internet, the company’s marketplace arm, witnessed a 21% year-on-year revenue growth in FY24, reaching Rs 17,907.3 crore and cut its losses by 41%

While the board did ask tough questions, it also signalled its willingness to flip its base from Singapore to India over the coming months. 

• The move comes ahead of a potential IPO for Flipkart in the near future

• Razorpay, Pine Labs, Zepto, and Meesho are others which have either flipped back or are in the process of doing so 

Dig deeper

India’s VC engine keeps humming as A91 closes its third and largest fund yet at $665 million.

• This marks the firm’s third fund since its founding in 2018

The homegrown VC firm aims to back founders building large, enduring businesses across sectors in India.

• Its third fund—among the largest of its kind this year—is 20% bigger than A91’s $550 million second fund and nearly double the size of its $350 million debut fund

It counts marquee investors like IFC, which invested $35 million in this round and has backed A91’s previous funds as well, and others as its LPs. 

• A91 will now write slightly larger cheques, ranging from $20 million to as much as $50 million per round

This comes as India-focused VC firms are returning to the market after a fundraising lull.

• A91 joins Accel, which raised $650 million for its eighth India fund, and Bessemer, which launched a $350 million second India-focused fund earlier this year.

Smaller domestic firms like Cornerstone and Prime Venture Partners have also bagged new funds of $200 million and $100 million, respectively.

• Even micro VCs like Eximius and SamVed have gotten back in the game, closing $30–50 million funds since January

The growing dry powder, with a surge in unallocated capital, signals that investors are poised to fuel the next wave of high-potential startups in India.

Dig deeper

As the market correction that began in early 2025 deepened, Indian discount brokerage firms felt the heat—not just in stock prices but in user attrition too.

• NSE data shows that over 9.62 lakh investors exited trading platforms in the March 2025 quarter

The total number of active clients across all brokerages fell to 4.92 crore, down from 5.02 crore in the December 2024 quarter.

More than 80% of this exodus came from four major discount brokers: Groww, Zerodha, Angel One, and Upstox. 

• Groww: Lost 2.37 lakh users, now at 1.29 crore

• Zerodha: Down by 2.31 lakh, now at 78.89 lakh

• Angel One: Declined 1.76 lakh, now at 75.78 lakh

• Upstox: Dropped 1.39 lakh, now at 27.47 lakh

Other platforms like 5Paisa, Paytm Money, Sharekhan, and Mirae Asset also saw a drop in active client bases.

While most brokerages struggled, a few firms stood out with positive growth.

• HDFC Securities added 1.05 lakh active accounts, now at 15.25 lakh

• INDmoney grew by 44,337 clients, reaching 8.36 lakh

• Dhan added 39,099, totalling 9.72 lakh

• PhonePe’s Share.Market gained 33,435 clients, reaching 3.55 lakh

 Dig deeper

First, the government slashed subsidies for UPI transactions. Then came the UPI outages. 

• Social media was quick to link the two, suggesting subsidies were key to keeping the system running smoothly. But does UPI still need a helping hand? 

We unpack the origins of free UPI, the push for higher subsidies, and the growing demand to bring back the merchant discount rate.

Dig deeper

• A US Department of Justice attorney said during an antitrust case that Alphabet's Google requires strict measures to prevent it from using AI to strengthen its online search monopoly.

• DeepMind CEO Demis Hassabis says AI could disrupt healthcare by curing all diseases and accelerating drug development from decades to days.

Union road transport and highways minister Nitin Gadkari is striking a chord—literally. 

• He said he is considering new legislation to replace car horns with the sounds of Indian musical instruments like the tabla, flute, violin, and harmonium.

• Even sirens on ambulances and police cars may get a makeover with AIR-style music

Imagine traffic jams turning into jam sessions! 

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