SUNDAY WEEKLY ISSUE #23 Hello EveryFinions,
Reports came out this week that Flipkart is looking to list in the US through a SPAC (special purpose acquisition vehicle). For its owner Walmart, a merger with a SPAC would list the company a lot quicker than trying to list it through an IPO in India or elsewhere. Walmart spent about $16 Bn to buy 77% ownership in Flipkart in the year 2017. Word on the street is that this listing could fetch about $50 Bn in valuation for Flipkart - that would mean a 240% return on investment within 3 years for Walmart. Neat, eh? IN TODAY'S NEWSLETTER
MARKET UPDATE (WEEK ON WEEK CHANGE) SENSEX 50,405 2.7% NIFTY500 12,539 2.9% Brent Crude $69.36 7.7% Gold (per gram) ₹4,452 -4.4% NEWS IN BRIEF
GAME : PRICE IS RIGHT This is the Coasta Victoria, a cruise ship which could take you on a 7 day journey from Mumbai to Maldives. It has 5 restaurants and 10 bars onboard. The featival theatre on the cruise can accommodate 625 people and hosts a number of shows. There is a disco if you feel like dancing, a casino if you feel like gambling, a library if you feel like reading and a shopping centre if you feel like, well, shopping. All the cabins are Italian designed and some even have balconies. Your job now is to guess the price per person for a week long cruise from Mumbai to Mangalore, then to Cochin and finally to Maldives ! ![]() QUIZ In which country is the world's largest hotel located? COVER STORY Your refund from Makemytrip.com ![]() When the pandemic started causing ruckus worldwide around March/April of last year, one of the very first industries that felt the pain was travel and tourism. Most others struggled too, but none like tourism. A year later, while much of the rest of the world has learnt to live and cope with the virus, the tourism industry has not.
Few companies had it worse than Airbnb which was almost on the brink of a collapse. Brian Chesky, its CEO, orchestrated a phenomenal turnaround. This article on the Wall Street Journal has the full story.
Airbnb reimbursed almost all of the bookings that had to be cancelled, set up a fund to help struggling hosts and rolled out generous termination support to all employees who were fired. And where did they find the money to do it? Well, they went to the bond market and raised funds at rather high-interest rates. With that money, Airbnb looked after its customers, its suppliers and its employees – extremely tactfully. Chesky turned a nightmare into an extraordinary PR opportunity (Read this letter if you haven’t already) which eventually led to Airbnb’s stock listing at a 113% premium to its IPO price on day 1 of trading. A story almost straight from an unwritten Harvard Business School case study.
Closer to home though, Makemytrip decided that they’d go in exactly the opposite direction. Hit the link to find out more. IN CASE YOU MISSED IT... Why did the markets crash this week? ![]() The SENSEX and NIFTY dropped as much as 4.2% on Friday’s intra-day trade posting one of their worst single-day losses since March 2020. It wasn’t just an India problem – the decline was global. CSI 300, the Shenzen stock exchange in China, dropped 2.4%, KOSPI (Korean) index was down 2.8% and TAIEX (Taiwan) dropped 3%.
And why? This is why. ![]() 10-year government bond yields have been consistently increasing since the beginning of this year. The above chart shoes the trend for Indian government bonds 10Y and US government bonds 10Y.
What does that even mean? Hit the link to read more. IN CRYPTO NEWS
ANSWER TO PRICE IS RIGHT ₹39,800 is what it would cost per person to go on a week long cruise on the Coasta Victoria from Mumbai to Maldives. Someday, may be? THOUGHT FOR THE DAY We are trying, Steve. We are trying! ![]() ANSWER TO QUIZ Malaysia is the country which has the world's largest hotel. Called the First World Hotel, it has 7,351 rooms and is situated in Genting Highlands which also happens to be the place with the casinos and theme parks. I can assure you, they have rooms available if you want to go now 🙂 From the writer in me, to the reader in you ♥
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