Namaste, Sat Sri Akaal, and Salaam. 🫡

Happy (well deserved) weekend folks.

Today we’re diving into -
- The buzz behind OYO’s upcoming IPO,
- Delhivery’s improved metrics and back-burnered growth plans,
- Apple’s brightest spot (hint: India).

Our read time today is 4 minutes and 38 seconds - faster than a street vendor can shove fire paan down your mouth... 🤷

Let's dive in. 👇

Market Vibe

OYO rides India’s booming travel wave. 🌊

TLDR -
- 1,000+ new hotels and 3,500+ new homes in Q1.
- OYO remains cash-flow positive and has 2,600Cr of cash on their balance sheet.
- Founders have been VERY active on social media with this financial info of late… almost as if they’re tidying up social image for IPO?

Over the last few weeks, OYO founder Ritesh Aggarwal has been aggressively tweeting away some very healthy numbers from the business.

We can take these with a grain of salt (all unaudited and not verified) but here we go -
- 175 Crore of “adjusted” EBITDA in Q1
- 800+ Crore of adj. EBITDA by year-end
- Last year surplus cash flow of 90 Crore
- Over 2,600 Crores of cash on the balance sheet

These are BRILLIANT numbers.

The ultimate goal of any tech giant is to turn into a profit-generating machine - which is exactly what Ritesh saab has done here.

If we can take these numbers at face value (which tbh we probably can’t), this is a BIG win for India’s tech ecosystem.

All set for a blockbuster IPO.

Delhivery pushes hard and slashes loss to a tenth. 📈

TLDR -
- Revenues trundled past the 2,000 Cr mark ($250m)
- Net loss got slashed by 90% to just 90 Crores ($11m)
- Volumes grew despite Q1’s general weakness.

Delhivery built a unicorn by doing logistics.

Now, they’re on their way to turn it into a proficorn (the real hard part lol).

Their revenues moved past the 2,000 Crore/quarter mark - meaning that they make over $250mn in top-line every 3 months.

A little detail on the stuff that’s working -
- Truckload business grew 34%
- Express parcel volumes grew 19%
- Regular parcel volumes grew 9.5%

The improvement in truckload biz helped beef the margins up (and hence push up profits too) while express parcel shipments grew at 2X the rate of normal ones.

Convenience is the currency of 2023.

People are happy to pay a premium to get things NOW.

Instant gratification… 😉

India remains only bright spot for Apple investors. 🍎

TLDR -
- Overall iPhone sales tanked 2.5%.
- Total revenue fell by 1% - the 3rd straight quarter of decline.
- Wall Street has sent this darling down 10% in the last few weeks.

The party dies when that one guy isn’t around…

The same way, the $3 trillion club is also looking kinda empty.

Apple posted some underwhelming growth numbers and sluggish iPhone sales to bring sales sliding for the 3rd straight quarter.

Out of all of this gloom, only one major positive remained.

India was a market where they achieved strong double-digit growth.

The affluent class in India is on the rise - and they’re eager for places to park their disposable income.

Solid numbers.

In other news… ☕

Amazon remains on Cloud 9… with a MOUNTAIN of profits (FT)

Teenagers stole $25mn of cryptos, then snitched on each other 😂 (BBG)

Hedge funds lose $6bn after targeting cruise stocks (FT)

India delays the laptop import curbs after backlash (BBG)

A nice dive into why your rich friends are moving their $$$ to Dubai (BBG)

And that’s the tea the chai for today.

Thanks for reading, and we hope you enjoyed it.

Lots of ❤️,

Team CC