Vipul Bathwal

🍏 🥕 🥪 🍫🥤📱The ongoing Kirana 🤼‍♂️ Q-commerce tussle 💊 📚 ✏ 💄🧥 🏸 ✅ The number of grocery retailers amounted to ~13 million (2023), spread in every nook and corner across India. Whereas, there are only ~1200 (Sep'24) dark stores mostly concentrated in the metro cities. 📊 These Kirana stores generate over USD $800 billion in annual business (FY 23-24) whereas, Quick commerce currently clocking revenue under USD $4 billion is a small fraction of the Kirana business even today. 🛍 An ever expanding Kirana business is expected to become operational during 2023-25 with a total of 23.25 Million sq.ft retail space. On the other hand, there has been a 22% rise in monthly active users (MAU) on India’s top five quick commerce platforms from January to July, 2024. 🤔 This leads to the question of the hour- why the Kirana stores are not happy with the rise of Q-commerce? 1️⃣ According to the complaint filed by the All India Consumer Products Distributors Federation (AICPDF) to the Ministry of Commerce and Industry, Government of India, quick commerce platforms are increasingly becoming direct distributors for major FMCG companies, sidelining traditional distributors and threatening the livelihood of small retailers. 2️⃣ Consumers are starting to shift their grocery shopping from Kirana stores to Q-commerce platforms such as Blinkit, Instamart (Swiggy), Zepto and BB Now (bigbasket.com), which are often able to offer products 10%-15% cheaper than Kirana stores. 3️⃣ For the urban Indian, time is perhaps more valuable than ever before. Spending an hour navigating traffic, standing in queues, and lugging grocery bags back home feels archaic when you can get it delivered in under 10 minutes . 🤘 The advantage of Kirana stores in India- 🍚 The value focused and price sensitive items available in this format, especially in categories like staples (rice, wheat, pulses, millets) which are sold as an open SKU, are hard to replicate in Q-commerce. 📓 Most neighbourhood Kirana stores offer personalised commerce such as the #Khata system which allows buy-now-pay-later based on the relationship with their customers which Q-commerce will take time to navigate into. 🎎 The share of cash transactions at POS (Point-of-Sale) stood at 63% in Q2-2024. The Indian middle and underprivileged class constituting 49% of the populations are still heavily dependent on cash transactions. #QuickCommerce #10minutesdelivery #kiranastores #retail #Ecommerce #OnDemandDelivery #RetailTech #InstantDelivery #ConsumerTrends https://lnkd.in/gbSMMuU3

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🥕 🍞 How Kirana should evolve in the era of Q-commerce [Part 1 of 3] 👗 ⌚ Part-1 : Current catalysts and hurdles of Kirana in Semi-Urban & Rural India With 78% Indian population using smartphones and 52.4% stable internet user base (2024) it's time for the 13 mn Kirana stores to evolve phygitally in short-term and completely digital in long-term to compete with the burgeoning Q-comm players. At the end, Kirana stores carry the identity of the moffusil. 👉 The key drivers 📱The growth of active internet users in Tier 3-6 and rural area is 4% as compared to 2 % in Tier-1 and surrounding urban area Y-O-Y (est. 2025) 💰~55% Tier 3-6 and ~40% rural populations are doing various digital payments whereas ~47% Tier 3-6 and 32% rural populations are shopping online (Jan, 24) 🛍At least 16.67% of new user base from semi-urban and rural area is getting added per year projecting the Ecommerce market to reach $100 billion by FY'26 💸 80% of the Tier 3-6 and rural population has access to financial products (Apr, 24) as compared to 54% 10 years ago 👨‍🎓👩‍🎓The retail financial institutions made significant increase in semi urban and rural employment with Y-O-Y growth rate of 26% (FY24) which in turn improved the financial and digital payment literacy rate in those regions ✨ Few interesting facts: ▶ The Big Billion Day Sale (2023) highlighted a 40% increase in online shopping in Patna, with electronics and fashion items being the top choices. ▶ The Great India Sale (2023) in Vijaywada reported a 35% increase in online sales, with groceries and personal care products leading the way 👉 The challenges 💰A staggering 94% of Tier 3-6 and rural end customers are aware of digital payments and still don't use it due to lack of internet connectivity, fear of money loss and mistrust in online marketplace due to lack of service-related support. 🏪Around 46% Kiranas lack trust in digital payments due to unawareness of the modus operandi or inadequate infrastructure, bad customer service experience from payment service providers, technology constraints of the cooperative/ rural banks 📚A recent SEBI study shows that only 27 % of the population is financially literate. Reasons for Kiran stores not adopting to digital platforms in Tier 2-6 cities is the lack of knowledge on the lending products, limited access to formal banking institutions forcing many to rely on riskier informal lending channels. 👉 Few interesting facts: ▶ Banks in rural and semi-urban area had the highest technical default (TD) rate in UPI txns at ~4.9% from the initiator and 2.4% at the beneficiary as compared to 0.04%-0.7% in metros ▶ Out of INR 106 tn credit demand in Tier 3-6 and rural MSMEs only 20% and 35% demand are being fulfilled by FIs and NBFCs respectively. In Part-2 we'll discover ways to make Kiranas financially and digitally robust Redseer Strategy Consultants PwC India ICRIER Chase India #qcommerce #ondemanddelivery #startup #grocerydelivery #instantdelivery #retail

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Ayyappan R, former chief executive of Flipkart-owned Cleartrip, is set to launch a new quick-commerce retail venture and is in talks with venture capital firms Accel and RTP Global for a sizable seed funding, multiple people aware of the discussions told ET. The venture is likely to focus on delivering a select range of premium products within 20-30 minutes and will also have an offline retail presence, hence the need for larger-than-usual seed funding, they said. #Cleartrip #quickcommerce #fastdelivery #offlineretail #ETretail #latestnews

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#AppointmentNews: MarketsMojo appoints Amit Golia as Group Chief Executive Officer Link in the comments Dr. Mohit Batra Amit G. Marketsmojo #mediabrief #MarketMojo #AmitGolia #GroupChiefExecutiveOfficer #appointment #leadership #media

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Sources: Reliance writes off its $200M investment in Bengaluru-based hyperlocal delivery startup Dunzo, as CEO Kabeer Biswas looks to sell Dunzo for $25M-$30M (Bismah Malik/Inc42)​ 

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Panel Discussion - Strategic Evolution: How Retailers are Shaping the Future of Growth and Expansion Moderated by Bijou Kurien, Chairman of the Retailers Association of India, this panel brings together leading experts to discuss the evolving landscape of retail, focusing on strategies driving growth and expansion in the industry. GUNJAN SHAH, MD & CEO, Bata India Limited., discussed how Bata, as a long-established retailer, has adapted to changing consumer expectations. He emphasized the growing aspiration across India and the importance of staying ahead of the curve with faster turnaround times and a vast store network. Bata’s quick-commerce strategy also caters to customers expecting deliveries within minutes, with 600 new franchise stores in the past three years. Lalit Agarwal, Founder & MD, V-Mart Retail Ltd. & Chairman - RAI Delhi Chapter, highlighted the untapped retail opportunities in cities like Varanasi, Agra, and Gorakhpur, where retail options are limited. He stressed the need for transparency in pricing, excellent service, and effective customer engagement. He pointed out that retail offers great potential, especially in India’s large population, and retailers should aim for customer retention through exceptional service. Rajesh Jain, MD & CEO, Lacoste India, emphasized that consumers expect a seamless experience across both online and offline platforms. Lacoste ensures consistent pricing and promotions, targeting markets with government data. He also mentioned the importance of understanding demand by engaging with diverse customers across regions, focusing on value and new collections. Shriti Malhotra, Group CEO, Quest Retail Pvt. Ltd. (House of Beauty), shared how Quest Retail expanded from a single brand to 10 brands, benefiting from the beauty sector’s growth post-COVID. She noted that consumers now rely heavily on online reviews and research before buying. In-store experiences are evolving with technology, such as machines that analyze skin conditions and suggest suitable products. T Koshy, MD & CEO, Open Network For Digital Commerce (ONDC), discussed the critical elements for retail success, including working capital, warehousing, supply chain, and logistics, highlighting their importance for smooth operations and competitiveness in a dynamic retail landscape. #RetailLeadership #Retailinnovation #AdventureAndAchievement #VisionaryLeadership #RISE2024 #RetailSummit #Inspiration #BusinessAndAdventure

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Fresh out of bumper USD 350 million funding this time from marquee domestic investors, quick commerce company Zepto says it is on a clear path to becoming a full Indian-owned entity and hitting PAT positive milestone, as co-founder and CEO Aadit Palicha exudes optimism about a possible IPO in 2025 Read more at: https://lnkd.in/g6MKBET9 #zepto #aaditpalicha #ecommerce #business #IPO #etretail #latestnews

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When did E-commerce give way to Quick commerce folks? Food delivery companies leverage the concept of logistics cost arbitrage by capitalizing on inefficiencies in the traditional shopping experience. Consumers place a high premium on convenience, which includes the time and effort saved by not having to navigate traffic, wait in queues, and transport goods themselves. By outsourcing this “last mile” journey to delivery personnel, who operate within structured logistics networks, these companies streamline a typically fragmented shopping process and offer it at a lower effective cost to the consumer. In a country like India, where traffic congestion and underdeveloped infrastructure can make even short trips time-consuming, the demand for convenience is particularly strong. However, while the model thrives in markets where labor costs are low and infrastructure issues amplify consumer demand for convenience, it isn’t necessarily limited to these markets. In developed countries, high wages and stronger infrastructure may mean delivery fees are higher, but the demand for time-saving services is often just as strong. In fact, premium markets may even support a higher willingness to pay for expedited and reliable service. The business model can, therefore, be tailored across various regions by adjusting the cost structure, fee tiers, or subscription options, all of which have been seen in markets across North America, Europe, and parts of Asia. The ethical considerations primarily relate to labor conditions and pay for delivery personnel. Companies often classify delivery workers as independent contractors, which can exempt the companies from offering benefits, a minimum wage, or job security. In low-wage markets, this often translates to a reliance on flexible, precarious labor. While this arrangement is attractive to companies and some workers alike, there’s an ongoing debate about the sustainability of such models, especially as more developed economies advocate for labor protections. Ensuring fair wages and humane working conditions is essential to make the model ethically sound and sustainable across diverse markets. #AswathDamodaran makes a lot of sense talking about his take on the Swiggy IPO #Quickcommerce #Ecommerce #fooddelivery https://lnkd.in/dU8xWmpF

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Is Zomato’s new 'Food Rescue' feature really going to solve for food wastage or is it just a PR stunt?! Lets find out. While we can do some guesstimates based on available data, but only time will tell if it truly delivers on the expected impact, like: - How much food is actually saved? (Conversion rate from food rescue notification to order) - Are there second-order effects impacting BAU (Business as usual)? (Think: changes in cancellation rates, order trends, or AOV in areas with higher cancellations). While the idea sounds great, I’ve learned to stay focused on the problem, not the solution—that’s how we iterate faster and solve effectively. One thing I found curious: if Zomato tested this feature in smaller markets first, wouldn’t they have mentioned initial results in their PR? Since I don't have the test data, Lets proceed with some guesstimates: Some data we have(thanks to Perplexity) - 400K cancellation per month, 13K per day, 550 Pincodes of Operations, ~20 Million DAU - 24 cancellation per pincode - in 24 hours, 1 cancellation per pincode per hour - 36K active users per pincode The success of this idea depends on several “ifs”: - User proximity: Must be within 3 km of the cancellation point (~36K DAU per pincode, assuming 3 km per pincode). - Notification read/action: Within 10 minutes. India’s average notification read rate is ~8% within 3 hours; assuming active users read 3x faster (~24%), this becomes 1.3% for a 10-minute window (24%/18). - User hunger: 80% of orders happen during meal times, with a 50% chance the user is hungry, giving ~40% probability. - No other food plans: ~20% probability they haven’t made other arrangements. - Food preference match: ~25% probability, assuming 50% chance for veg/non-veg and 50% for cuisine. - Acceptance of deal price: ~50%. (These are some back of the envelop estimates, don't hold me for these ;)) Combining these, we might find ~5 users likely to convert. But even if the conversion rate is as low as 0.00001, that’s okay—since there’s only one item to sell. So, the odds look decent for saving the food :) ! As a product person, I know these kind of interesting ideas are often discussed in backlogs but shelved due to some “pessimism” or because they don’t seem to move any needle on growth or cost savings. Yet, hats off to the product manager who pushed this forward! Here the leadership who approved this probably knew that even if the metric value wasn’t huge, it would make for great PR. This is a great reminder that sometimes it’s worth building features that might not directly impact key metrics but are simply good for customers or society—and, as a bonus, they often bring some free PR. #ProductManagement #ProductImpact #Zomato #FoodRescue

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#AppointmentAlert ✨ Pepperfry, a prominent #ecommerce platform for furniture and home decor, has appointed Madhusudan Bihani as its new Chief Financial Officer (CFO). This strategic move is part of the company’s plan to enhance its #leadership team as it prepares for its next phase of #growth. By appointing Bihani, Pepperfry aims to leverage his extensive experience and leadership to strengthen its financial foundation and accelerate its growth trajectory. https://lnkd.in/g9btniwF #CFOAppointment #MadhusudanBihani #FinancialLeadership #EcommerceGrowth #HomeDecor #FurnitureIndustry #StrategicGrowth

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Traditional retail is feeling the pressure as quick commerce platforms like Swiggy, Blinkit, and Zepto rapidly improve SKU availability and pricing, challenging players like DMart. Dive into Morgan Stanley’s latest data in our blog. Also, discover how WareIQ is helping brands navigate this disruption with our advanced fulfillment solutions designed for the quick commerce era. https://lnkd.in/gU9Neqf5

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Manyavar also now delivering in 10 mins via Zepto Electronics, F&B, Clothing, health/wellness products being delivered in 10-30 mins Quick Commerce companies should also think of partnering with Kirana stores - Will save money on dark stores and also reach more pin codes! Zepto now delivers Manyavar in 10 minutes - So if the Groom’s jooti gets stolen and he gets money demand from the bride side, he can now order a new one from Zepto. Negative on Banks, Positive on Manyavar (Just on a lighter note)

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Join us for a panel discussion on the evolution of D2C brands into omnichannel powerhouses✨ Panel Discussion on the Evolution of D2C Brands into Omnichannel Powerhouses Moderator: Kumar Rajagopalan, CEO, Retailers Association of India Panelists: Abhishek Daga, Co-Founder, Nasher Miles AMit Sarda, Managing Director, Soulflower Co Ltd Jasmit Tibb, Managing Director, Tibbs Foods Private Limited Pradeep Krishnakumar, Co-Founder, Zouk Siddhartha Gondal, Co-Founder, XYXX Apparels Abhishe Daga, Co-Founder, Nasher Miles Starting as online aggregators, Nasher Miles took a bold leap to challenge the giants in the luggage industry. With a data-driven approach and a mix of passion and gut feeling, the brand transitioned from a push strategy to a pull one, expanding its presence to 400+ locations with an ambitious goal of reaching 1,000+. Amit Sarda, Managing Director, Soulflower From brick-and-mortar beginnings, Soulflower has consistently adapted to changing consumer needs. As the digital landscape grew crowded, the brand returned to its roots with frugal marketing and offline expansion, turning challenges into opportunities by focusing on one product and channel, and scaling up after a viral success. Jasmit Tibb, Managing Director, Tibb's Frankie Custodian of a legacy brand, Tibb's Frankie embraced an omnichannel strategy while maintaining the simplicity and consistency of their beloved taste. From transitioning to a corporate structure to ensuring quality across various outlets, the brand’s power lies in moving from customers’ stomachs to their hearts. Pradeep Krishnakumar, Co-Founder, Zouk Zouk, a modern Indian lifestyle brand, bootstrapped its way to success with a clear brand proposition. Balancing online growth with the need for customers to experience their products firsthand, Zouk leveraged omnichannel strategies to elevate their functionally-driven, fashion accessory brand. Siddhartha Gondal, Co-Founder, XYXX Apparel XYXX began with a mission to revolutionize men’s innerwear and has since expanded into 20,000+ MBOs. By focusing on quality control, experimenting with EBOs, and leveraging celebrity endorsements, the brand has maintained a strong connection with young customers while navigating the complexities of scaling both online and offline. #D2C #Omnichannel #RetailInnovation #BrandStrategy #CustomerExperience #RetailLeadership #BusinessGrowth #DigitalTransformation #Entrepreneurship #RetailSuccess

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🏆 **Management Lessons from KKR's IPL Victory** 🏏 If you're looking for a masterclass in management, take a page from the Kolkata Knight Riders' playbook. Here's how their winning formula can be applied to the corporate world: **CMD - SRK:** - Cool, composed, and confident. - He never interferes with the professionals' work. Instead, he shows up to cheer the team and boost their morale. - Lesson: Great leaders trust their teams and provide unwavering support. **CEO - Gautam Gambhir:** - Aggressive, professional, and dedicated. - He even offered to resign when he wasn't performing. SRK rejected the resignation, showing trust and belief in his abilities. - Lesson: True leadership is about accountability and the courage to take bold steps. **Employees - The Team:** - Highly paid, highly motivated. - Inspired to give their best performance every time. - Lesson: Invest in your people and create an environment where they can thrive. **And the Result?** - Three-time IPL champions. - Record holders for the longest winning streak in IPL history (14 matches). The synergy between SRK's charismatic leadership, Gambhir's strategic acumen, and the team's relentless drive exemplifies how diverse strengths can come together to create an unstoppable force.Remember, it's not just about having the right people; it's about creating the right culture. **Biggest Lesson:** - Just focus on doing your job. Individually we are tiny together as a team we are giant . Sometimes, simplicity and trust in your team are the keys to victory. हर एक परिणाम में big management lesson नहीं होता है भाई 😊as GG said Just Dare to Dream !. Korbo Lorbo Jeetbo | করব লড়ব জিতব 🏆 #KKR #Leadership #Management #IPL #Success #Teamwork #CorporateLessons #LeadMK

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It is not often that you come across a founder who seeks to redefine design and functionality for the Gen Z consumer. It’s even harder to find someone who can sell that concept well. Siddharth Gadodia, Founder & CEO of Palette Brands fits the bill. When Siddharth told me how affluent Indians spend a fortune building the most modern kitchens for their homes but continue to use last-century utensils, it rang a bell. Consider this: Aspiring households spend a fortune - between Rs. 5-50 lakhs - to build modern kitchens with the latest gadgets, but won't loosen the purse strings when it comes to buying utensils worth a few thousands. Surprising as it may sound, Palette’s research shows the same households may pay a maximum 40% more for premium cookware, not the 2x or 3x that some niche brands are charging now. But that is still a huge opportunity. Siddharth and his Palette Brands see themselves sitting in the midst of a gigantic shift in consumer preferences in which Indians are obsessing about healthy eating and high-end living. Ember’s target audience is the top 100 million Indian households which, Siddharth hopes, will be tempted by a combination of attractive, safe utensils which are yet affordable. Indian kitchens typically have three kinds of utensils - cast iron, stainless steel or non-stick (most popular) with an aluminium and Teflon coating. Questions have been raised about the safety of some of these traditional coating materials. Palette Brands wants to position its sleek Ember range of utensils as safe and modern - using non-toxic coating materials and having the latest form factor. It is hoping that the standout, internationally-designed range will win Indian hearts. Palette Brands and Ember certainly have a large playground to work in. Ember will hit the wider market later this week. Its prospects certainly look exciting. https://embercookware.com #cookware #kitchenware #heathyliving #productdesign #innovation #entrepreneurship Himanshi Tandon Siddharth Gadodia Palette Brands (formerly White.Inc) Sreekant Khandekar Jugjiv Singh Tarshish K. Sonali Tyagi Marsha Menezes

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#ModernTrade The recent Q2 results of D-Mart showed resilience and growth, but didn't meet analyst expectations, and suggested that the Quick Commerce players are likely to wreak havoc in their future business. So the market has discounted their performance, and are beating the stock down - a sad fall from being a darling / bellwether stock of the retail industry to be the new whipping boy. Every company becomes a legacy company, once a newbie on the block identifies the Achilles Heel of the incumbent and leverages the same. That is exactly what the Q-Comm companies are using against D-Mart. Talk to a typical D-Mart customer: she would rave on and on about the prices, the range, the depth, and the location. Probe further, she would express her dissatisfaction about the milling crowds, BBF (check out on Paco Underhill's - Why We Buy), and the really long check-out queues. The Q-Commerce players preyed on the negatives of D-Mart. Took away their creamy-layer consumers, who can give them a big bill every time they shop; who give them good margins by shopping in their high-margin sections. The Q-Commerce players offered such consumers (1) choice (Point of Parity), and (2) convenience (Point of Differentiation). They took away from the equation in the minds of these consumers the other big factor. (3) cost (Point of Disparity). Similarly, in the higher margin General Merchandise section, Zudio has played the cost factor very well, clearly presenting itself as a clever alternative to D-Mart (core competence, redux). D-Mart has now been caught in a cleft. How have they responded? Sadly, not with the agility and alacrity they are known for. They still seem to be believing that their response to Quick Commerce isn't worth it. Deja Vu moment for a retail industry student like me. Amazon did that to Walmart in the US. Q-Commerce players are doing it to D-Mart in India. Finally, cost (price war) isn't the war any one comes out winning. Temporarily yes or may be. But not forever. Let us see how all these moves, and the future, pan out! #1minuteRead https://lnkd.in/gcEH_tiF

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As most folks are talking about a #stock market bubble, I thought it would be interesting to revisit the famous #Minsky model which explains the 5 stages of a #marketbubble. 1. Displacement: primarily a shift in market sentiment; can be a result of advancements in technology, changes in interest rates or innovations. 2. Boom: prices start to increase at a steady rate before attracting the attention of the media and setting the stage for a boom phase. As demand continues to rise, speculation keeps driving prices higher. 3. Euphoria: peak of the bubble when prices skyrocket and reach unsustainable levels setting irrational exuberance. Prices continue to rise with speculators expecting the momentum to continue. 4. Profit-taking: prices begin to fall, some investors may decide to take profits, increasing selling pressure. As prices are pushed lower with the unwinding of positions, market sentiment turns negative. 5. Panic: fear spreads as media headlines warn of doom and gloom, and demand continues to falter. Coming to the present situation, here are some facts about SME IPO's which makes me believe we are definitely in the "euphoria" stage: 1. 169 SME's have IPO'd this year (5 months to go!) vs 182 in 2023, 109 in 2022 and 54 in 2019 (ignoring the covid years). The previous time such large no of SME's IPO'd was 141 in 2018. 2. These 169 SME IPO's were oversubscribed an avg of 290 times 🤯 vs the 51 mainboard IPO's this year which were subscribed an avg of 29 times. 3. Following are the top 5 oversubscribed IPO's: - HOAC Foods, a ~10 outlet grocery company in NCR with brand name "Hari Om Atta Chakki" with ~15 Cr revenue- 2556x - Fonebox Retail, a multi-brand retailer of mobile handsets & home appliances with 150+ outlets in Gujarat and ~300Cr revenue- 2066x - Koura Fine Diamond Jewelry Limited, a gold & diamond jewelry wholesaler from Ahmedabad with 36 Cr revenue- 1534x - Amkay Products Limited, a medical equipment manufacturer (facemasks, nebulizers, adult diaper, thermometers etc) with ~30 Cr revenue - 1340x - Kay Cee Energy & Infra Limited, a transmission tower EPC company from Rajasthan with ~60Cr revenue- 1311x I am not against SME's tapping public markets but the amount of frenzy we are seeing from retail investors is crazy. From tulip mania in the 17th century to the GFC in 2007-08, every boom-burst cycle is essentially driven by greed and ends with the same outcome, although the market participants keep believing that this time it is different. Thanks to my colleague Sounak Biswas for highlighting this old video from the classic Jaspal Bhatti. https://lnkd.in/dT4rgRyv

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