Softbank’s cautious AI approach; Preserving produce via solar power

Hello,

Progress over perfection.

Mamaearth parent Honasa Consumer sharply rebounded from a loss in the previous quarter to a net profit of Rs 26 crore in the third quarter. Its revenue also increased marginally to Rs 517.5 crore. 

This was music to the ears of its investors, as just a few months ago the company had admitted to a more-than-expected impact from its inventory correction project on its second-quarter earnings. Its shares had then plummeted to below its IPO issue price.

Mamaearth’s Q3 growth came entirely on the back of its beauty and personal care segment, as the sector is seeing a surge in sales given the product variety, convenience of online shopping, and influence of social media. Earlier this week, Nykaa too reported a 60% jump in profit on the back of rising sales.

Speaking of earnings, SaaS major Freshworks has pared down its loss by nearly a third to $95.36 million in FY24. It also increased its operating revenue by a fifth as it retained and expanded revenue from existing customers, with those contributing over $5,000 in ARR increasing by 11%.

Meanwhile, Amazon too wants to dip into the quick commerce craze. It has initiated pilots for Amazon Now in Bengaluru for 10-minute deliveries. 

But is it a little late to the party?

In today’s newsletter, we will talk about 

• Softbank’s cautious AI approach
• Preserving produce via solar power
• Cricketer Jemimah Rodrigues’ success mantra

Here’s your trivia for today: Which traditional British dish was most likely inspired by the classic Indian dish nargisi kofta?

News

Softbank’s cautious AI approach

SoftBank Group Corp swung to a loss of 369.16 billion yen ($2.4 billion) in the third quarter of FY24 as shares of some of its top portfolio companies declined sharply during the period.

While SoftBank-backed foodtech major Swiggy's listing made a strong public market debut in November, the performance of other portfolio companies was lacklustre during the quarter. 

Bullish bets:

• The investment conglomerate made a 352.75 billion yen ($2.29 billion) loss on investments at SoftBank Vision Funds during the quarter. Vision Funds (SVF1 and SVF2) sold investments totalling $2.98 billion during the period, including DoorDash and SenseTime, and partial exits from several others.
• Despite these setbacks, SoftBank remains bullish on AI investments. Its spending dropped to about $600 million in the quarter ended December 2024. However, in a post-earnings call, company executives signalled that its flagship AI infrastructure project, Stargate, could accelerate investments.
• SoftBank CFO Yoshimitsu Goto said the financing for the Stargate Project will be structured carefully, and its growth will slow if necessary in challenging debt markets, dismissing Elon Musk’s recent remarks over the firm’s ability to raise the colossal $500 billion for the project.

Funding Alert

Startup: Rapido

Amount: Rs 250 Cr

Round: Series E

Startup: Lucidity

Amount: $21M

Round: Series A

Startup: Nivaan Care

Amount: $4.25M

Round: Seed

Startup

Preserving produce via solar power

Hailing from a farming family in Rewa, Madhya Pradesh, Monika Tiwari grew up witnessing the many challenges faced by the agricultural sector. While attending agri exhibitions in Mumbai, she realised that post-harvest losses remained a major issue for farmers. 

Motivated to find a solution, she developed a scalable dehydration system, leading to the creation of Khetar, a company dedicated to providing innovative, sustainable agriculture solutions.

Sustainable technologies:

• A dehydrator removes moisture from the produce, which can be further processed, packaged, and sold to food processing companies or exporters. Khetar’s Rainger operates in a compact space, dehydrates various items such as fruits, vegetables, and flowers, and gives dried produce as the final output.
• The company operates on a pay-per-use model. It takes a small upfront payment of around Rs 3-4 lakh as a token of agreement between the client and Khetar. In two months, once the system is deployed, the company charges a monthly fee of around Rs 1 lakh.
• So far, the company has generated a revenue of Rs 8 lakh, and aims to reach Rs 30 lakh by the end of FY25. It also plans to deploy over 80 systems and clock a revenue of about Rs 4 crore by FY26.

Sports

Cricketer Jemimah Rodrigues’ success mantra

India’s star batter Jemimah Rodrigues is elated that women’s cricket is on the rise, and credits the Women’s Premier League (WPL) and the domestic cricket circuit for unearthing exciting new talent and pushing the boundaries.

But how does Rodrigues assess each match situation and decide when to show patience and when to shift gears? The answer, she believes, lies in experience, and the ability to adapt and react to situations as they come.

Match milestones:

• Rodrigues noted the success of the last two WPLs, including when the Bengal women’s cricket team scripted history by chasing 390 runs against Haryana in the quarterfinal of the Senior Women’s One-Day Trophy. She also credits the T20 Challenger’s trophy for increasing the “power game” in women’s cricket. 
• Having played for India for the last seven years, Rodrigues embraces the responsibility of being an experienced senior member of the team. She attributes her success to a combination of resilience, adaptability, and unwavering determination. 
• Rodrigues believes the key to success is dedication. With increased attention and stardom in women’s cricket, she acknowledges the importance of staying true to one’s roots and values. Her upbringing, she says, keeps her grounded. 

News & updates

• Mitigation: Coca-Cola may have to sell more drinks in plastic bottles in the US if President Donald Trump’s tariffs end up making aluminium cans more expensive, the company's chief executive, James Quincey, said in a call with investors.
• AI race: Adobe has introduced Firefly Video Model, a new product that will charge about 50 cents per video generated by artificial intelligence, seeking to convince sceptical investors that the company can compete with AI startups.
• Ditching DEI: Goldman Sachs’ vice chair has said the bank ditched an internal diversity rule that barred it from advising all-male, all-white boards on company flotations because it was no longer needed. The investment bank had pledged that it would only help a business sell its shares on a stock exchange if it had two board members who satisfied diversity requirements.

Which traditional British dish was most likely inspired by the classic Indian dish nargisi kofta?

Answer: Scotch egg.

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