MC Insider: Trouble in paradise, jobs saved by fundraise, another multiplexes marriage in offing, and more

It appears there is trouble in paradise for one of India's most respected companies, whose top brass is also hugely regarded in terms of generosity. While a top executive this company hired was feted and praised even till a few months ago, a little birdie tells us his spending spree and aggression is rubbing many insiders the wrong way. They are helpless at this point because the board seems to have given him a free hand. But with unhappy employees and middling growth, it remains to be seen how long this run will last. As one industry insider pointed out, "The company is back to running in the same place."

This startup's recent funding round announcement received mixed responses. While many were sceptical about the round, valuation and the investors who came in, one investment banker was thrilled. "Quite a coup. Hum sab ki naukri bach gayee (our jobs are safe)," he is said to have quipped. Considering all the controversies dogging this startup, he said most expected it to implode, taking down the entire Indian ecosystem with it. But if investors are willing to throw more money at it, it's a sign that other startups in the same sector have a fighting chance for survival, and fund raising. Don't underestimate the power of herd mentality!

Rumour has it that merger talks are on in the exhibition industry with two more multiplex players exploring a joining of hands. Triggered by the recent merger announcement between the top two multiplex operators, these two players are looking to solidify their position in the market as the second biggest exhibitor. One of the smaller cinema chains which is looking at the merger is aggressively expanding and plans to double its screen count in one year. The company is increasing its foothold down south and in the tier II, III markets. So will these two actually take the plunge and make a ‘hit’ combo? More after this interval!

There may be a funding winter but there seems to be no dearth of parties in the Indian startup ecosystem. As one founder quipped, with deals anyway drying up, VC funds have all the time to host Diwali parties week after week. One such Diwali party in Bengaluru by a prominent fund saw some high stakes poker games by founders that went on till 4:00 am. While a foodtech and a fintech founder walked away with poker earnings worth lakhs, one celebrity fintech founder and another founder cum prolific investor lost a lakh each is what we hear. Going by the large turnout and high stakes games, this party certainly was a roaring success.

At least two automakers selling products in the entry level segment have been lobbying with the government to reduce taxes for a year. The companies have assured they will be equipping entry level cars with airbags in the process. Similar requisitions have been made by two two-wheeler makers for some minor cuts for entry level bikes (up to 110cc) for a year or so. Incidentally, both the segments of the auto industry cater largely to the rural market, which is in deep distress. A little birdie tells MC that the government may relent and give some concessions as 2024 elections are just a year away from annual Budget 2023-24. Incidentally, those at the bottom of the pyramid account for a lion's share in a vote bank.

The lab reports on cough syrups by an Indian drug maker that purportedly killed nearly 70 kids in a West African country was expected last week. The findings of the report -- though received by powers that be -- however have not been released yet. Even though there is no official word on why that has happened, babus accept in whispered tones that the idea is to let the controversy die a slow death! Red-faced that the episode has brought a bad name to the mega pharmaceutical industry in India, those in the corridors of power in the health ministry are now hoping that it fades from the public memory in some time.

This gentleman was seen as a hero and saviour on his entry to this bank after a tumultuous phase. Even the warring, powerful shareholders hailed him as an agent of change, a beacon of hope. But it seems all the camaraderie and synergy are a thing of the past and times have changed. The hero has apparently turned into a villain in the eyes of his former allies on the board. There are calls for his blood as the bank continues to face a precarious financial situation. The same shareholders who once stood by him are now seeking his exit. And that's about to happen, we hear.

The word in banking circles is that the star boy of the sector these days is making its rivals increasingly look over its shoulders. The private sector bank, which has dominated stock performance over the past couple of years, has been aggressive in chasing down its rivals in large corporate loan deals and credit card business. One of its rivals, a giant private sector bank itself, recently quipped that where it used to watch out for a certain state-owned lender of imperial vintage when it came to large loan deals, it is now looking out the market's new blue-eyed boy. Another private sector bank, which went on an acquisition spree recently to bolster its credit card business, has found it hard to defend itself from the aggression that the private sector lender is displaying.