| | SEPTEMBER 20238According to Rajiv Biswas, Asia Pacific chief economist with S&P Global Market Intelligence, the near-term economic outlook for India is for continued rapid expansion during fiscal 2023-24, underpinned by strong growth in private consumption and investment.The acceleration of foreign direct investment inflows into India over the last decade reflects the Indian economy's favourable long-term growth outlook, aided by a youthful demographic profile and rapidly rising urban household incomes, he wrote on the company's website.India's nominal gross domestic product (GDP) measured in US dollar terms is projected to rise from $3.5 trillion in 2022 to $7.3 trillion by 2030. This rapid pace of economic expansion would result in the size of the Indian GDP exceeding Japanese and German GDP by 2030, making India the second largest economy in the Asia-Pacific region, he noted.The seasonally adjusted S&P Global India manufacturing purchasing managers' index (PMI) was 57.7 in July, broadly in line with the previous month's reading of 57.8. The index indicated that the manufacturing sector would continue to expand rapidly. He wrote that business conditions have improved in each of the last 25 months.Cost inflation pressures strengthened in July, with acceleration noted by both goods producers and service providers. At the composite level, input costs increased at the fastest rate in a year, he added. Zepto, a Mumbai-based quick commerce platform, has raised $200 million in new capital at a valuation of $1.4 billion, making it the country's first unicorn in nearly a year. This round was led by new investors StepStone Group and Goodwater Capital, as well as existing backers Nexus Venture Partners (where StepStone is a limited partner) and GladeBrook Capital, as well as individual investor Lachy Groom.The timing of Zepto's fundraising is significant, given the drop in investments into growth- and late-stage startups on one hand, and the correction in the quick commerce segment on the other. In May 2022, the startup raised $200 million at a valuation of $900 million.The latest fundraiser gives Zepto firepower in a highly competitive segment, where the company is jostling for position with the likes of Zomato-owned Blinkit, Swiggy Instamart, and Tata-owned BigBasket. The other key player in the segment, Reliance Retail-backed Dunzo, has seen a sharp downturn in its consumer business and is struggling to close new financing to clear pending dues.Aadit Palicha, cofounder and CEO of Zepto, stated that the funds will be used primarily to invest in growth while aiming for Ebitda profitability in the next 12-15 months. He also stated that Zepto intends to expand its presence in existing markets and to invest more in its add-on offerings, such as Zepto Cafe, which delivers beverages and snacks from its dark stores in 10 to 20 minutes. To that end, Zepto has formed alliances with quick service restaurant chains such as Chaayos and Blue Tokai. INDIA'S GDP TO GROW TO $7.3 TRILLION, SAYS APAC CHIEF ECONOMISTZEPTO RAISES $200 MILLION FROM VCS AND INVESTORS MAKING IT'S WAY TO INDIA'S FIRST UNICORNIN FOCUSIN FOCUS
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