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Rainbows and Unicorns!

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Life may not be all rainbows, but in the Indian start-up scene, it is definitely about unicorns!

Firstly, apologies for not popping up in your mail last Sunday. We tried to send it across, but the kids in our homes hogged our devices because it was Children’s Day – the only day they can happily get away with taking our devices to play games.

Speaking of children, let’s speak about the newest babies of the Start-Up Town!

The Bengaluru Tech Summit was concluded recently on 19th November, 2021 which saw an attendance of 5000+ startups from 30+ countries. Experts are viewing this as crucial with India’s latest startup boom. At present, India ranks third in the list of countries having the most unicorns, trailing the U.S. (396) and China (277).

In its August 2021 bulletin, the RBI said that India houses an estimated 68 unicorns and has added three unicorns per month in 2021. The Great Unicorn Rush of India has covered diverse sectors, with Paytm being the latest addition to the family.

The Indian startup ecosystem has managed to raise a whopping $1.7 billion in the second week of November! This number is 940% higher than fundings during the first week of this month ($171 million across 15 deals). Click To Tweet

In fact, MyGlamm and Curefit just entered the Unicorn’s club in India with their funding series last week. Looks like the start-up scene is thriving. AI-driven video-processing startup Toch.ai has launched an INR 100 Cr startup fund to invest in audio and video technology startups across the world.

But what started this phenomenon? Industry experts and investors state three common factors — the rise of the digital payments ecosystem, more smartphone users (even in rural areas), and digital-first businesses. Data suggests there’s no stopping the unicorn wildfire fanned by what is now a probable endemic.

You can read more about what drives the start-up culture in India here.

Markets This Week

Nifty50

17,764.80

1.87% ▼

Sensex

59,636.01

1.73% ▼

Nifty500

15,302.55

1.77% ▼

Nifty Bank

37,976.25

1.95% ▼

The Indian stock markets faced a tough week as benchmark indices – Nifty50 and Sensex shedded over 1.7% throughout the shortened trading week. Listing of various tech IPOs that are far from being profitable have given out a sense to the markets that valuations are stretched and unsustainable. That led to some negative sentiments in the markets. That apart, weak global cues, rising inflation concerns, and rising of interest rates (and thus returns) in the US have resulted in selling pressure in the Indian bourses.

This week’s on smallcase Specials, we’re looking at Speciality Chemicals!

Between 2006-2019, the global chemicals industry maintained a CAGR of 8% while the overall equity market was at 6%. During this period, however, the speciality chemicals sector maintained a steady 15% CAGR!

The speciality chemicals constitute 22% of the total chemicals and petrochemicals market in India. As of FY19, the total market size of the industry was pegged at around $32 bn. They account for more than 50% of total chemical exports from India and the demand is expected to rise at a 12% CAGR in 2019-22, creating an additional opportunity of $20-25 billion.

Given chemicals have become especially important to the growth of the overall economy, the entire sector has witnessed tremendous growth in recent years. Speciality chemicals present an interesting and fairly overlooked investment opportunity. This smallcase comprises companies manufacturing speciality chemicals that are used in a wide range of industries like automobiles, pharma, textiles, food processing, agrochemicals, etc.

Speciality Chemicals smallcase by Windmill Capital

Here’s what we’ve been doing on our long weekend…

Reading The $100 Startup – In this book, successful American entrepreneur, blogger, and author, Chris Guillebeau, talks to us about breaking free from the shackles of a 9-5 job. He says that you can combine your passion and skills into your own micro business which you can start for $100 or less, and yet still turn into a full-time income, thanks to the power of the internet.

Watching Inside Bill’s Brain – Decoding Bill Gates on Netflix – What’s talking about business and money without mentioning Bill Gates? Coincidentally, this is also the show we’re currently watching. Directed by Davis Guggenheim, this docu-series aims to explore the mind and motivations of Bill Gates.

Blog-bingeing on ReadWrite.com – This Web technology blog launched way back in 2003 by Richard MacManus and covers not just Web 2.0 and the future of the internet, but also news about various sectors and industries, start-ups, products reviews, lifestyle, and more!

Tweet of the week

Tell us what you think they do! Tweet us your thoughts at @smallcaseHQ.

Deblina

Senior Marketing Associate by day; obsessive organiser by night. Stories and cats shall take over the world. 🏳️‍🌈

Into the Metaverse!

The Band Baaja Baaraat of the Indian Economy

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