One quick thing: Indian audio firms diversify as China curbs rare earth exports 

In today’s newsletter:

• The mystery sellers of Amazon and Flipkart
• Bluestone valuation cut ahead of IPO
• UPI hits record 700 mn daily transactions

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The top Amazon or Flipkart sellers are raking in tens of thousands of crores in revenues, but they have hardly any profits. 

We analysed a total of 10 sellers, among the top ones, on Amazon and Flipkart, and found a mysterious trend. 

• These 10 sellers have revenues of around Rs 72,000 crore and together have a profit of just Rs 230 crore, according to our analysis
  
  
• A profit margin of 0.3% is unheard of, especially at the scale they operate on and after being in business for years

Sure, one may argue that this is the case with several legit new-age companies in India, but here’s why these 10 sellers stand out.

• The high top lines but negligible profit margins have attracted attention from regulatory authorities 
  
  
• The Competition Commission of India (CCI), in 2022, initiated inquiries on these sellers to check if they may have received preferential treatment on online platforms, potentially affecting competition
  

Not just the CCI, they are facing heat from the Directorate of Enforcement (ED), too. 

• ED’s investigations, launched in 2024, are looking into the structure and ownership of these entities
  
  
• It is also examining if these sellers follow India’s FDI rules and relevant provisions under the Prevention of Money Laundering Act (PMLA)
  
  
• The ED is also investigating links between individuals associated with certain seller entities and former executives from one of the platforms

Under the current Indian policy, e-commerce platforms that receive foreign direct investment are not permitted to operate inventory-based models or maintain direct or indirect control over sellers.

Dig deeper

The jewellery maker has softened the bling so its IPO debut glimmers without the glare.

After chasing a billion-dollar crown, Bluestone has settled for a valuation that fits just right.

• The company is targeting a Rs 7,800 crore ($888 million) valuation — 3–8% lower than its last private round in August 2024, and below Prosus’ $950 million estimate, we were told.

It’s also a sharp climbdown from earlier ambitions of a $1.2–1.4 billion IPO valuation.

• The IPO will open for subscription on August 11, with the anchor book set to launch on August 8

Bluestone’s early backers seize their golden exit, while fresh funds fuel future sparkle.

• The IPO features a Rs 820 crore fresh issue alongside an offer for sale of 1.39 crore shares

Accel, Kalaari, Sunil Kant Munjal, and others are polishing off portions of their long-held stakes.

• Proceeds will go toward working capital and keeping the corporate engines glittering

Bluestone is betting on its phygital glow to stand out in a market crowded with karats.

• With 225 stores across 117 cities, the brand has scaled fast beyond its digital-first roots

Founder Gaurav Singh Kushwaha, an ex-Amazon and IIT Delhi alum, continues to lead the charge with a 17.7% stake.

• As legacy giants and new-age players jostle for shine, Bluestone is hoping its hybrid model turns investor heads

Dig deeper

Another day, another milestone. The country’s most loved digital payment method, the Unified Payments Interface (UPI), set another record on August 2 by breaching 700 million daily transactions.

The government has set a target of one billion transactions per day for the subsidised payments platform, aiming to promote digital payments in the country. And it has delivered…big time!

On August 2, UPI recorded 707 million transactions, doubling in two years.

• Just two years ago, UPI was recording around 350 million transactions in a day

• Last year, UPI recorded 500 million transactions in a day

However, bankers believe that even the current growth represents underutilisation of UPI’s full potential. They argue that a small merchant commission could help fintechs and payment companies invest more in the ecosystem.

• The government, however, clarified that it is not considering MDR (Merchant Discount Rate) on UPI

• The industry suggests MDR for high-value merchant transactions

Meanwhile, the government has reduced subsidies for UPI from about Rs 4,500 crore in FY24 to Rs 1,500 crore in FY25.

“The ecosystem needs Rs 15,000 crore investment to reach 1 billion transactions,” says a senior banker who works on UPI.

Dig deeper

• Cloudflare has accused Perplexity of bypassing site rules with hidden crawlers, a claim the AI startup dismissed as a “publicity stunt."
  
  
• Global dealmaking has surged to $2.6 trillion in the first seven months of the year, the highest since the 2021 pandemic-era peak, driven by corporate growth strategies and a surge in AI activity.

...Just two at first. Then millions.

When Sholay hit theatres on August 15, 1975, it was not a blockbuster. It fizzled. Critics braced for a spectacular flop. 

• But what followed was a plot twist worthy of Salim-Javed themselves

What saved Sholay wasn’t a massive marketing campaign, but something far more organic: word of mouth.

• The bond between Jai and Veeru, Radha's tragic tale, and the terror of Gabbar Singh became ingrained in Indian cinema.

Half a century later, the legend only grows. Find out more

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