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Hello Ashoka!
If you are reading this in the middle of mid-sem week, we congratulate you for at least having tried to live on the margins of sanity during examinations. We assure you that the read ahead is going to be worthwhile!
The Monocle is a production of the Ashoka Business Review which we are trying to cultivate as a newsletter - your readability is a major or rather the only salient facet of that cultivation. This newsletter might not be able to tell you when the market is going to crash or whether you’ll be allotted the next big IPO, much worse whether you’ll be able to get the tickets for Coldplay in the black market. But it would surely pique your interest in things which you might have missed.
Things That Caught Our Eye
Is Tax Amnesty better than Demonetization?
Deposits in Argentina reached $728 million in August under their tax amnesty scheme which further aims to draw $252 billion from the gray to the white economy. Argentina’s history of economic turmoil and hyperinflation has led to people holding some $258 billion dollars outside the official financial system. The recent tax amnesty measures by the Miles government has led to people depositing money they previously held as cash in safe deposit boxes in countries such as the US, into Argentine banks. Numbers shared with the IMF suggest the government expects nearly $40 billion in dollars, properties and assets to be declared. They hope to collect about $1.5 billion in taxes from the declared money, which will be a significant boost to the Argentine economy.
The Rise of Low-Cost Warfare
In a recent incident, an Ukrainian $500 first-person-view drone successfully shot down a Russian Mi-8 helicopter - highlighting a significant shift in modern warfare tactics. This event has sparked interest among venture capitalists (VCs) in defense technology, leading to a surge in investments. Notably, Y Combinator invested in its first-ever weapons startup, Ares Industries, which aims to develop low-cost cruise missiles that are ten times smaller and cheaper than current alternatives. This trend reflects a broader movement towards innovative defense solutions as traditional military strategies evolve. As the conflict in Ukraine continues to demonstrate the effectiveness of inexpensive drones against larger military assets, the defense sector is witnessing a wave of new startups aiming to capitalize on these emerging opportunities. In fact, Mounttech Growth Fund, India’s first defence focused VC fund announced a fundraise of around 250 crores just 3 months back. The combination of advanced technology and lower costs is poised to reshape the landscape of modern warfare.
Zomato's Entry into Event Ticketing
Zomato finished their acquisition of Paytm Insider on the 28th of August, at a time when the industry was at the risk of being monopolized by BookMyShow. Since then, Zomato’s ticket booking platform ‘Zomato Live’ has overseen the sale of tickets for Diljit Dosanjh’s new concert, whereas Paytm oversaw the handling for Coldplay’s new concert in India. While both shows suffered from lack of enough tickets to meet demands, in the case of Coldplay, the anger was directed at BookMyShow. The company even being taken to court over the row. This has led to an opening in the market, and with big-ticket events only increasing in the country, the market is open for a new entrant in Zomato.
Articles We Found Interesting
The cement company that paid millions to Isis - A brilliant read and lots of interesting details about a French cement company sending protection money to the Islamic State, to keep open its Syrian operation.
China's undersea cable drive defies U.S. sanctions - A very interesting long read on how China is trying to break US’s grip on the undersea cable network which carries over 95% of the world’s data and is the backbone of global communications
We hope you enjoyed reading this and all the best for all upcoming midterm exams!
Contributors:
Karmanya Wahi (UG27), Devansh Gupta (UG27), Suryansh Dalmia (UG23 Intake), Neeraja Asnani (UG27), Ishan Yellurkar (ASP 25)