"EDITION 71"

Published: 6/5/2020

Good Monday morning y'all. Welcome to day 101/week 15/edition 71 to the newsletter and get ready for the next 100 days. I had a rather sports-filled weekend, which was a great change tbh, as I got to see some real live football from Germany on Saturday (being able to hear all the players scream without the fans was a little eerie) and I just finished watching the last two episodes of the Jordan documentary (a must watch and not just for the VC memes).

We have some policy decisions in the news today- eCommerce is finally back & Indian cos can now directly list on non-Indian stock exchanges.

  • https://bit.ly/2WE1fJR: eCommerce cos can resume operations
  • ➡️ In the fourth iteration of lockdown rules, eCommerce companies are finally allowed to deliver non-essential items in all areas of the country. I quite frankly am surprised it took so long to do so, given the fact that physical stores are being allowed to open up prior to this. ➡️ eCommerce is inherently safer than in-store shopping given the current pandemic conditions, so I would've assumed authorities would push for it's greater use (as they have done so with other measures- working from home, telemedicine). ➡️ In the US, we've seen the pandemic greatly make an impact on eCommerce's % of all retail commerce (a gain of 10% from 16% to 27% in the last 8 weeks or so), whereas it took 10 years to go from 6% to 16%. And while this will likely somewhat go down or not continue to grow as fast with America opening back up, it has certainly made a huge cultural shift into more people being more comfortable with transacting online. ➡️ I really think we could have seen a similar shift in India if eCommerce companies were allowed to deliver non-essentials in all areas of the country throughout the lockdown and the new regulations might be a little too less and a little too late. We may have wasted a crisis. ➡️ Ultimately states still have the final say if eCommerce delivery is actually allowed in their areas so it will be interesting to see if any states continue to block eCommerce. It will be interesting to see how India is planning to open up the economy digitally & physically as we get used to the new normal.

    2. https://bit.ly/2LBkrS9: Indian companies can directly list on foreign stock exchanges ➡️ In some measures announced by the FM over the weekend, Indian companies are now allowed to list on stock exchanges from permissible foreign jurisdictions.

    ➡️ Historically Indian companies have registered in other countries (Singapore, US) to be able to go public since the Indian public market isn't the most favorable to them (we have seen very few to almost none Indian startups going public in India). ➡️ And while I, among a lot others, probably welcome this move, I'm a little surprised by the timing of this. While this measure was a part of the government's initiative "to help companies raise funds", going public takes a while and probably won't immediately provide liquidity to companies. ➡️ This could, however, potentially help companies like BYJUs, Paytm, Ola and OYO go public in foreign markets when going public in India might not be a possibility. I believe we still need some regulatory clarifications on the current proposal but it shall be interesting to see how this plays out.

    Feedback & ❤️ always appreciated

    More tomorrow :) BONUS (Tweet of the day): https://twitter.com/kunalb11/status/1261686702202130432