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In today’s newsletter: 

• Prosus eyes $200 million ride with Rapido
• Amazon, Flipkart await GST clarity ahead of flagship sales
• $375 million Harman deal puts Wipro to test

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Dutch investor Prosus is looking to hitch a longer ride with Rapido.

Prosus is in talks to invest around $200 million in Rapido, sources told us. 

• Prosus is an existing shareholder with a 3-4% stake
  
  
• It has turned bullish on Rapido as the ride-hailing platform's growth outpaces that of Uber and Ola, while also expanding into newer segments like food delivery

The $200 million investment could either be in the form of primary capital or through the purchase of Rapido shares from Swiggy.

• Prosus may also consider a combination of both, which would increase the total round size, we were told
  
  
• Rapido is being valued at $2.5–2.7 billion in the ongoing negotiations, a sharp jump from $1.1 billion just eight months ago

Rapido’s GMV has doubled from $1 billion in August 2024 to over $2 billion now, helping propel its valuation higher.

• Swiggy’s plan to sell its entire stake in Rapido, now worth about $300 million, may have triggered Prosus’s interest

Prosus has, however, found Rapido to be a successful challenger brand. 

“India should be proud about…Meesho and Rapido…their cost structure enables them to serve a billion customers that other competitors could not serve. If we just help them with money, we are not doing enough…they can move faster if they have the backing of a global player. That's what we are doing,” Prosus chief Fabricio Bloisi had told us earlier.

Dig deeper

Platforms are stuck between a GST rock and a festive hard place, waiting for the Council’s nod before unleashing mid-September madness.

Platforms are leaning on policymakers to provide clarity before the festive frenzy begins.

• High-value categories like ACs and refrigerators could see a 25–30% revenue dent without guidance
  

• That risk makes large appliances—roughly 10% of festive volumes—critical to plan for

Clear signals would allow companies to lock in logistics, inventory, and campaigns, ensuring the festive rush doesn’t turn into a logistical mess.

Consumers are holding back, hoping for a GST cut that sweetens big-ticket deals.

• Consumer spending has picked up since Q1, but delayed purchases from August are piling up, creating a surge in demand

Big-ticket categories like appliances and furniture are where most of this pent-up demand is concentrated.

• Any delay in clarity could push buyers offline, where discounts are expected to match e-commerce offers, forcing platforms to play catch-up, say analysts

Also read: Amazon, Flipkart expand fulfilment centres, create 4 lakh seasonal jobs ahead of flagship festival season sales

The season’s scale could soar—or stall—depending on how fast GST guidance arrives.

• Datum Intelligence forecasts festive sales could spike 27% to Rs 1.2 lakh crore with timely clarity, up from Rs 1 lakh crore in 2024

• But analysts caution that missed deadlines could shrink growth to just 5–7%, underscoring how fragile the timing is

With shoppers holding off and platforms lobbying hard, this year’s festive season could be less about discounts and more about who gets GST clarity first.

Dig deeper

The ER&D space may be booming, but buying into it is only half the story and making it deliver is the other.

Wipro’s $375 million acquisition of Harman Connected Services’ (DTS) revenues has been flat for three years, and the payoff here will depend on whether Wipro can stitch the culture into its own slower structures.

• Unlike Capco and Rizing, which gave an immediate growth bump, Harman is a tougher test: flat revenues for three years, a specialist engineering culture, and a 14-country footprint.

Moreover, Harman brings 5,600 employees, $310–315 million in revenues, and nearly half its clients are new to Wipro.

The multi-year pact with Harman and Samsung opens South Korea, boosting Wipro’s embedded software, device engineering, and IoT portfolio.

• Almost 80% of its revenues come from ER&D, making it a high-value but integration-heavy bet.

Analysts highlight that execution is the key.

Capco and Rizing were smooth, but smaller buys, such as Ampion and Rational Interaction, struggled with culture and delivery alignment.

• The ER&D space is booming: ISG data shows spending surged 72% YoY in Q2CY25

If the integration works, it could finally move the revenue growth needle for India’s fourth-largest IT company. If not, Harman risks being yet another acquisition that added capability.

Dig deeper

• Nvidia CEO Jensen Huang dismissed concerns about an end to a spending boom on AI chips and said opportunities will expand into a multi-trillion-dollar market over the next five years.
  
  
• Anthropic said it had detected and blocked hackers attempting to misuse its Claude AI system to write phishing emails, create malicious code and circumvent safety filters.

Ice has one major flaw...it melts.

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• Use it for cooling, rinse it off, and place it back in the freezer to prepare it for its next use

From seafood displays to medical shipping, jelly ice promises a cooler future without the watery mess. Find out more

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