July 20: Desi capital grows

Stability & Alignment: Local, rupee-denominated capital is patient and offers greater stability for founders, especially as 59% of 2024 exits occurred via local IPOs.

Local Savvy is Key: Success in India requires teams with practical experience due to the country’s diverse landscape and complex financial and regulatory rules, leading to more buyouts by knowledgeable local groups.

Smart Fund Sizing: Smaller early-stage funds (INR 200-400 Cr/$25-50 million) have proven more effective in leading investment rounds and ensuring capital returns, without relying on rare, outsized gains.

India-EFTA trade deal: India’s new European Free Trade Agreement (EFTA) trade deal will taken effect on October 1, promising $100B investment and one million direct jobs over 15 years. India’s economy is currently growing at 6.5%-7%, with an eye towards 8%+ growth through investment in infrastructure, new trade agreements, and improving ease of doing business.

Alliance with Allianz: Jio Financial Services and insurance giant Allianz Group have formed a 50:50 reinsurance joint venture, combining Jio’s digital capabilities with Allianz’s global expertise to strengthen India’s insurance market.

India’s chip play: Union Minister Ashwini Vaishnaw announced that India’s first indigenous semiconductor chip will be launched in 2025, with six plants currently under construction. This marks India’s emergence as a key global player in the semiconductor industry.

Crypto hungama: The crypto market reached a historic $4 trillion in value, led by altcoin rallies and Bitcoin reaching $123K. The US House passed landmark stablecoin legislation that helps establish a comprehensive regulatory framework for stablecoins—cryptocurrencies designed to maintain a stable 1:1 peg to the US dollar.

Funding FOMO: Indian startups raised $80 million across 21 deals this week, a 40% decline from the previous week. The advanced hardware and technology sector secured the most funding at $37.6 million, while seed funding dropped significantly to $7.5 million.

Terror tag for TRF: The US designated The Resistance Front (TRF), a Lashkar-e-Tayyiba proxy, as a Foreign Terrorist Organization (FTO) and Specially Designated Global Terrorist (SDGT) after its April 22 Pahalgam attack that killed 26 civilians. China condemned the attack, supported the US designation, and called for stronger regional cooperation.

Trump vs. WSJ: Donald Trump has filed a $10 billion suit against The Wall Street Journal, calling their report on a 2003 Epstein birthday note “fake” and defamatory. The Journal alleged that Trump signed a suggestive message in Epstein’s book. Meanwhile, the US government is moving to unseal Epstein grand jury transcripts, in an effort to increase transparency.  

America Party fizzles: Elon Musk’s new “America Party” has flopped hard with voters, with only 22% backing the idea and 77% in opposition. Musk’s popularity is tanking with a net approval of -37, with most Americans not wanting him in politics. Polls show that while Americans may want alternatives to the two major parties, they do not see Musk as the right leader for such a movement.

India and Philippines set sail together: India and the Philippines will kick off their first-ever joint naval drills on August 3–4 near the contested Scarborough Shoal. This coincides with President Marcos Jr.'s state visit to India from August 4–8. Four Indian Navy ships, potential $200 million missile deals, and plans for a strategic partnership signal potential collaboration on defence ties amid growing friction with China in the South China Sea.

In the next cage match - “UP MLAs vs. AI”: Uttar Pradesh is planning to roll out AI-powered cameras in its Assembly. The tech, which will be fed all MLA data in advance, will help keep a track of MLA presence/time spent in assembly, topics spoken about and even speech analysis. Officials are saying this is about transparency and not surveillance. We’re saying…endless meme material?

Verified Fake X handles? In a dramatic move, the Centre created a fake but verified X account named “Supreme Court of Karnataka” to show the Karnataka High Court how easily social media can be misused.

10 held in Kashmir for encrypted terror plots: J&K Police's Counter-Intelligence Kashmir (CIK) detained 10 individuals for allegedly using encrypted messaging apps to plan, fund, and execute terror activities on orders of Pakistani handlers. Raids were conducted at 10 locations across the Valley in a two-year-old case under UAPA and IPC Section 120-B. The crackdown highlights growing concerns over digital terror coordination.

Kabaddi World Cup in Hyderabad: Hyderabad is set to host the Women's Kabaddi World Cup from August 3rd-10th, with 14 nations competing at the Gachibowli Indoor Stadium.

IT BEGINS! Netflix uses AI generated footage: For the first time in its history, Netflix used footage generated by AI in one of its TV shows - Argentine science fiction series "El Eternauta". The scene which shows a building collapsing in Buenos Aires was apparently completed 10x faster, and left the creators "thrilled" with the outcome, and the CEO “thrilled” by potential cost savings.