Weekly Business News: From Union budget highlights to Magicpin’s 100 Cr investment – TechStory

Leading hyperlocal online retailer Magicpin announced that it will invest a substantial Rs 100 crore over the next three months. With this deliberate effort, over 1 lakh new eateries and cloud kitchens are set to be added to the government-backed e-commerce network ONDC (Open Network for Digital Commerce). Magicpin is providing alluring incentives, such free home delivery, $0 commission, and zero onboarding fees, to promote new collaborations. Magicpin’s CXO for Enterprise Brands, Naman Mawandia, stressed that the goal of the project is to lower barriers to entry and encourage involvement in the digital economy.

Credits: MoneyControl

Strengthening the ONDC Ecosystem

Magicpin’s role as one of the leading seller apps on ONDC positions it strategically to contribute significantly to the platform’s growth. By investing in the onboarding of new restaurants and cloud kitchens, Magicpin is directly supporting the expansion of the ONDC ecosystem. This growth is not only beneficial for Magicpin but also for the overall food delivery market.

Cost Benefits for End Consumers

Magicpin’s investment and the resulting expansion of the ONDC platform are expected to translate into cost benefits for end consumers. With more restaurants and cloud kitchens joining the platform and increased competition, consumers may enjoy lower prices, better deals, and a wider selection of food options. The free home delivery incentive, in particular, could make online food ordering more affordable and appealing to a broader audience.

Impact on UltraTech Cement and India Cements

Market experts predict a modest impact on the stock prices of UltraTech Cement and India Cements following UltraTech’s acquisition of a 32.72 percent stake in the southern cement major. Despite the Rs 390 offer price being a modest 4 percent premium over the current market price, significant movement in India Cements’ stock is unlikely due to its recent gains. For UltraTech Cement, the consolidation in the industry is expected to result in a positive trading outcome, affirming its market leader status post-acquisition.

Zen Technologies’ Impressive Growth

For the June quarter, defense supplier Zen Technologies reported a stunning 92 percent year-over-year increase in topline, hitting Rs 254 crore. In addition, the company’s net profit increased by 92% to Rs 74.18 crore. The two main products of Zen Technologies, with an order value of Rs 1158.54 crore, are anti-drone systems and training simulators. Ashok Atluri, Chairman and Managing Director, emphasized the company’s efforts to boost profitability and decrease lumpiness while expressing confidence in reaching the objective of Rs 900 crore in turnover for the current fiscal year.

Zen Technologies is benefiting from rising orders for its anti-drone warfare and simulator products, which is indicative of the rising need for cutting-edge defense technology.

Shriram Capital’s In-Principle Approval for Asset Reconstruction Company

The Reserve Bank of India (RBI) has given Chennai-based Shriram Capital its in-principle clearance to launch an asset reconstruction company (ARC). For the next two quarters, Shriram Finance will prioritize internal operations, according to Executive Vice Chairman Umesh Revankar. The ARC will be Shriram Capital’s sole subsidiary. In November 2023, the RBI received the application for the ARC.

Senores Pharmaceuticals’ IPO Filing

Ahmedabad-based Senores Pharmaceuticals has filed preliminary papers with the capital markets regulator SEBI to raise funds through an initial public offering (IPO). The IPO will consist of a fresh issuance of equity shares worth Rs 500 crore and an offer-for-sale (OFS) of 27 lakh equity shares by existing shareholders. Promoters Swapnil Jatinbhai Shah, Ashokkumar Vijaysinh Barot, and Sangeeta Mukur Barot will sell 17 lakh shares in the OFS, while Prakash M Sanghvi will offload 10 lakh shares.

Conclusion

Magicpin’s strategic decision to invest Rs 100 crore in enrolling over 1 lakh additional restaurants and cloud kitchens onto ONDC has significant ramifications. Magicpin is positioned to have a big influence on the digital economy by removing obstacles to entry for food merchants, boosting the ONDC ecosystem, expediting the adoption of online food delivery, and providing cost savings to customers. This endeavor demonstrates the dynamic and changing nature of India’s business environment, as do noteworthy events in other areas including the acquisition of UltraTech Cement, the expansion of Zen Technologies, the clearance of Shriram Capital’s ARC, and the IPO of Senores Pharmaceuticals. As these projects come to pass, they will influence the course of their respective industries and support the nation’s overall economic expansion.

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