⚡️Amazon cuts 18,000+ jobs, Vodafone Idea in trouble?

🤩 The Good

Microsoft partners with ISRO to support space-tech startups in India. The tech giant signed an MOU with ISRO to help space-tech startups with technology, go-to-market support, and mentorship. Startups will also be onboarded to the Microsoft for Startups Founders Hub platform that provides free access to tools, analytics, and support. The sector is growing in India with startups having raised $108.52M in 2022.

Walmart paid most of the ~$1B tax owed to the government for PhonePe’s domicile change. As covered yesterday, PhonePe’s shareholders, including Walmart, had to pay nearly $1B in capital gains tax after the fintech company shifted its headquarters from Singapore to India. A source has said that Walmart has already paid most of the amount as it was the “right long-term strategy.”

The average time for startups founded in 2017 to reach $100M in revenue was 4-5 years. A Redseer report has found a gradual fall in the average time required for startups to reach $100M in revenue. Startups incorporated in 2000 took an average of 18 years, those started in 2010 took 10 years, and the ones founded in 2017 took just 4-5 years. Over 40 startups crossed the $100M revenue mark as of FY22.

👿 The Bad

Amazon plans to cut over 18,000 jobs, with Indian employees likely being affected. The company said that the layoffs will largely impact its corporate workforce. Amazon employs ~10,000 workers in India, some of whom may also be affected by these cuts. Last year, Amazon announced plans to shut its wholesale distribution business, online learning platform, and food delivery business in the country.

Hiring may slow down in the January to March quarter as Indian corporates worry about a looming recession. According to the ManpowerGroup Employment Outlook Survey, hiring sentiment among employers has fallen by 22% compared to the previous quarter. ~33% of CEOs in the country have also implemented a hiring freeze.

🤔 The Wait-and-Watch

The government is discussing the possibility of infusing capital in Vodafone Idea Ltd. With over ₹2 lakh crore in debt, the telecom firm might find it hard to recover financially without fresh cash infusion. But the firm’s promoters were unwilling to infuse adequate capital, as per a recent report. VIL has offered the government a stake at ₹10 per share, but the government is waiting for the share price to stabilize (it closed at ₹7.90 today).

Mukesh Ambani’s next $75B bet is on clean energy projects. Last year, the billionaire announced plans to invest $75B in renewables infrastructure, including solar panels, storage batteries, and hydrogen electrolyzers, over 15 years. Ambani will oversee strategy, assess acquisition targets, and is in talks with potential investors, as per sources. He has handed over responsibility of other businesses to his children, with Akash named as chairman of Reliance Jio, Isha overseeing retail operations, and Anant managing the energy unit.

This is the perfect time for India to gain a foothold in global semiconductor manufacturing. Tech supply chains still haven’t recovered from the after-effects of the Covid-19 pandemic. This is an opportunity for India to prove that it can be a serious contender in wafer manufacturing. However, the government needs to provide additional financial incentives, attract big players, and implement other measures.

Hope you're having a wonderful first week of January.

Catch you tomorrow! 👋🏼