One quick thing: Karnataka to hold skill summit, revamp industry cell 

In today’s newsletter:

• Motilal goes all in on Zomato, Zepto, Swiggy
• SC blocks Byju's-owned Aakash's AoA move
• Re-releases fuel box office growth

Was this newsletter forwarded to you? You can sign up for Tech3 here

Everyone is discussing how hot quick commerce is, but only a few are putting their money where their mouth is.

Motilal Oswal, through its different business verticals, is betting heavily on India’s rapid delivery space, recent moves show. 

• Motilal Oswal was the largest investor in Zomato’s $1 billion (Rs 8,500 crore) Qualified Institutional Placement (QIP) fundraise
  
  
• It invested Rs 1,768 crore ($208 million) and took 20.81% of the $1 billion QIP
  
  
• Mutual fund divisions from ICICI (12.78%), HDFC (8.68%) and Kotak (5.95%) were the other domestic investors who picked up shares via Zomato’s QIP
  
  
• Zomato’s shares ended the day’s session at Rs 279.50 apiece on the BSE on November 29, down 2.31%

This is Zomato’s first fundraise since it went public in 2021. The Rs 8,500 crore ($1 billion) will be used as follows: 

• Rs 2,137 crore (or around $250 million) will be used to scale Blinkit and its operations 

• Rs 2,492 crore (around $293 million) will be spent on advertising, marketing, and branding initiatives across business offerings
  
  
• The remaining will be for general corporate expenses 

While Zomato chief Deepinder Goyal had earlier said the funds will be used to strengthen the company’s balance sheet, the plans have changed amid rising competition.

Zomato’s Blinkit is not the only quick commerce company Motilal is betting on. 

• Motilal Oswal’s private wealth division led Zepto’s recent $350 million round
  
  
• The company’s co-founder and chairman, Raamdeo Agrawal, also put in his personal money and picked up shares in Zepto
  
  
• Similarly, Agrawal is also a personal shareholder in Swiggy 

With the latest move, Motilal Oswal – through its different arms – has bet on all the top three quick commerce players and hopes for exponential returns. 

Dig deeper

Picture credit: Microsoft Copilot

It wasn’t enough that Byju’s was battling legal troubles; now, its prized subsidiary Aakash Institute is caught in a messy fight. 

In a blow to Byju’s, the Supreme Court today barred Aakash Institute from implementing a controversial resolution to amend its Articles of Association (AoA), citing alleged violations of minority shareholder rights under a Merger Framework Agreement (MFA).

• At the center of the issue is Aakash’s Extraordinary General Meeting (EGM), where, as alleged by investors, Aakash sought to change the AoA
  
  
• The move is reportedly aimed at diluting certain investors’ shareholding rights
   
• Aakash, however, argues the MFA is void since the merger between Byju’s and Aakask did not go through as planned, rendering these claims invalid

For Byju’s, Aakash is a rare cash cow amidst its troubles. Diluting minority rights could give it operational flexibility but risks alienating key investors.

• Minority shareholders, on the other hand, want to protect their stake in a subsidiary they see as a valuable asset

The fight over Aakash’s AoA has spiraled into a prolonged legal standoff.

• The case started at the National Company Law Tribunal (NCLT), where Blackstone-backed Singapore VII Topco, holding a 6.97% stake in Aakash, filed a petition
  
  
• After the NCLT sided with the investors, Aakash appealed to the Karnataka High Court
  
  
• While the high court stayed the NCLT’s order, the SC has now reinstated it, forcing Aakash back to the drawing board.

The ball is now in the National Company Law Appellate Tribunal (NCLAT)’s court.

Dig deeper

Indian classics making their way back to the big screens is spelling good news for cinema footfalls.

India's top multiplex chains are cheering the success of reruns as they contributed a lot more to footfalls in 2024 than they did previously. 

• Reruns have driven footfalls between 3-5% for PVR Inox, Cinepolis India, Miraj Cinemas 

Some old content like Shah Rukh Khan's Kal Ho Na Ho outperformed Hollywood's new release Gladiator 2 in terms of theatre occupancy.

SRK’s Kal Ho Na Ho is one of the successful re-releases this year.

• Tumbbad emerged as the highest grossing re-release in 2024 while Rockstar, Laila Majnu also kept the cash registers ringing. 

Re-releases this year enjoyed higher occupancy of around 30%, compared to the overall average occupancy of 27%.

While reruns struck box office gold this year, there is uncertainty around the supply of old classics. 

• Film trade experts say while reruns have been a relief in 2024 when many new movies failed at the box office, they are mostly gap fillers. 

But PVR Inox and Cinepolis continue to bet big on re-releases. The 1999 release Biwi No.1 will soon be in cinemas near you.

Find out more

• Italy's data protection watchdog has warned publisher GEDI not to share its personal data archives with OpenAI, citing concern over potential breaches of EU rules.
  
  
• Japan is allocating another $9.9 billion to boost its chip and AI sectors including moonshot foundry project Rapidus Corp. 

Craving a thrilling ride? Sikandar Ka Muqaddar on Netflix is your perfect pick. 

• Follow Jimmy Shergill as he unravels a diamond heist that takes a sinister turn. 

With a cast including Tamannaah Bhatia, Avinash Tiwary, and Rajeev Mehta, this film promises to keep you on the edge.

Need a dose of laughter? Divorce Ke Liye Kuch Bhi Karega on Zee5 is your go-to.

Note: By subscribing to Tech3 you have already made the right choice. Top it up with a premium offering, the Moneycontrol Pro Panorama, a newsletter that gives you a sharp take on macros, markets, business and finance. Sign up for Pro from this link to get this newsletter in your inbox and also a host of content enjoyed by over a million subscribers.