Business
Why Sameer Arora Is Betting On Loss-Making Companies: The Logic Behind His Strategy
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Sameer Arora credits these companies’ success to resilience, noting that most competitors exited early, leaving only the strongest players in the market
Sameer Arora remarks that the valuations of unlisted startups remain high because they are not yet publicly traded. (News18 Hindi)
In a recent statement, Helios Capital founder and renowned investor Sameer Arora emphasised three essential factors for investing in new companies today: survival, penetration, and monetisation.
Reflecting this philosophy, Helios Capital has persistently invested in emerging technology companies such as Eternal, Paytm, Ola, Ather, and Swiggy. By August, they had notably increased their stakes in One97 Communications (Paytm), Swiggy, Delhivery, Ola, and Ather Energy. The firm is also investing in CarTrade and PB Fintech.
Sameer Arora attributes the success of these companies to their resilience during challenging times. He recalls that in the early stages, these companies faced competition from hundreds of rivals. Over time, however, most competitors have exited, leaving only a select few.
For instance, the food delivery industry once had 20 players, but now only two remain. Hence, Arora’s strategy focuses on investing in companies that have emerged as winners in this competitive landscape.
Why Sameer Arora Is Betting Big On Quick Commerce
Arora has a particular interest in Quick Commerce. He explains that instead of focusing on the sector’s overall growth, he prioritises the rapid adoption of new features by consumers. He believes that consumers will increasingly prefer Quick Commerce over traditional stores due to the convenience of fast delivery at minimal cost. These companies earn Rs 8-10 per order, with Rs 5 from margins and Rs 3-4 from advertising.
Arora holds a similar view on digital companies like Paytm, noting that consumers are simply shifting their existing expenses to the app, not creating new ones. His team has observed a 70-75 percent profit from their investment in Ather. They also invested in Ola when its market capitalisation was $2 billion, by which time the company had 500 outlets and a solid production system.
Investment Outlook On Loss-Making Companies
Arora remarks that the valuations of unlisted startups remain high because they are not yet publicly traded. He advises making small investments in companies that are not incurring daily losses, as these companies will gradually grow over time.
According to Arora, the market has humbled the founders of such companies, who were previously overconfident. He suggests waiting a year or two before investing in any new company unless it has a particularly compelling story.
Uncertainty Over Consumer Spending Patterns
Arora also shared his views on the GST rate cut. He mentioned that he purchased Hero Motors stock with the GST cut in mind. He believes that when the scheme was announced on August 15, many people delayed buying vehicles to benefit from the price adjustment, causing a temporary halt in sales in late August and early September.
Arora underscores that the real benefit depends on how people choose to spend their money. While there is money in the system, which is positive for consumption, it is not guaranteed that people will buy products from the companies in which they have invested. They could invest in SIPs, pay off debt, or purchase an AC from a foreign brand. Therefore, it is crucial to carefully consider which companies will truly benefit.
September 26, 2025, 19:18 IST
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Grocery price inflation has slowed in some good news for consumers as retailers ramp up festive deals ahead of Christmas, figures show.
Supermarket prices were still 4.7% higher than a year ago in October, but this was down from September’s 5.2%, according to market research firm Worldpanel by Numerator, formerly Kantar.
Spending on deals climbed by 9.4% to just under 30% of all grocery purchases, while spending on full-priced goods rose by just 1.8%.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: “Christmas ads are hitting our screens and the race to the big day is on in the supermarket sector.
“Retailers are very alive to the financial struggles that some households are facing, not least ahead of this year’s Budget.
“They’re eager to show how they’re offering shoppers value for money, putting the emphasis on price cuts rather than multibuy offers.”
Despite tightening belts, Worldpanel is predicting a new sales record for retailer premium lines this year, suggesting it has the potential to hit more than £1 billion in December.
Mr McKevitt said: “It’s important to remember that shoppers often look for great value and quality, not just the cheapest product.
“At Christmas especially people want to treat themselves and throughout the cost-of-living crisis we’ve seen them turning to retailers’ premium own label lines to do that in a way that’s more affordable.”
Online remains the fastest growing part of the grocery market and spending on home delivery rose by 11% over the month.
On average, households who use online grocery now buy three shops a month.
Ocado posted a new record share for the 12 weeks to November 2, hitting 2.1%, as it remained the fastest-growing grocer for the third month in a row.
Tesco and Lidl both added half a percentage point of share to their market positions, with Lidl boosting sales by 10.8% over the 12 weeks to take its share to 8.2% and Tesco now accounting for 28.2% of the market with a sales increase of 5.9%.
Sainsbury’s achieved growth of 5.2% to gain market share of 15.7%.
Business
AI shift: SoftBank sells Nvidia stake for $5.8 billion; focuses on OpenAI after tripling first-half profit – The Times of India
Japan’s SoftBank Group Corp has sold its stake in US chipmaker Nvidia for $5.8 billion, signalling a strategic pivot toward artificial intelligence investments, particularly in OpenAI, the company said on Tuesday, AP reported. The tech conglomerate also reported that its profit nearly tripled in the first half of the current fiscal year, driven by strong returns from its Vision Funds.The Tokyo-based firm said the Nvidia shares were sold in October as part of Chairman Masayoshi Son’s broader plan to redirect resources toward next-generation AI ventures. SoftBank’s net profit for the April–September period surged to about 2.5 trillion yen (roughly $13 billion), while sales rose 7.7 per cent year-on-year to 3.7 trillion yen ($24 billion).SoftBank’s earnings tend to fluctuate sharply due to its exposure to multiple high-growth and high-risk ventures. However, its tech-heavy portfolio has seen a rebound in 2025 amid the global AI boom.Earlier this year, Son joined US President Donald Trump, OpenAI’s Sam Altman, and Oracle’s Larry Ellison in announcing Project Stargate — a proposed $500 billion mega-initiative to develop AI infrastructure and computing power.SoftBank has already invested tens of billions of dollars in OpenAI and plans to expand AI services in Japan through the collaboration. The sale of its Nvidia stake marks a deliberate reallocation of capital — locking in gains from Nvidia’s meteoric rise while freeing funds for direct AI ventures.Nvidia recently became the world’s first $5 trillion company, fuelled by soaring demand for AI chips. The company has also announced a $100 billion investment in OpenAI to build at least 10 gigawatts of new AI data centres to boost computing capacity.While SoftBank no longer holds Nvidia stock, it maintains ties through various portfolio companies that use Nvidia technology in AI and robotics. SoftBank also holds stakes in Arm Holdings and Taiwan Semiconductor Manufacturing Co. (TSMC), both of which have benefited from the AI-driven surge in chip demand.SoftBank’s stock has nearly doubled over the past year, rising 2 per cent in Tokyo trading on Tuesday. Nvidia shares slipped 1.3 per cent in premarket trading after climbing 5.8 per cent on Monday.The company’s latest move cements Masayoshi Son’s aggressive shift toward becoming a global powerhouse in artificial intelligence — a bet that echoes his early vision for the future of computing.
Pine Labs IPO Day 3 GMP, Subscription Status, Price, Allotment & Listing Date: Fintech firm Pine Labs witnessed the last day of its Rs 3,899.91-crore initial public offering (IPO). The IPO, whose price was fixed at Rs 210-221 apiece, has been today, November 11, at 5 pm. The IPO received a 2.48x subscription on Day 3, 13 per cent subscription on the first day of bidding on Friday and 55 per cent on Day 2 on Monday.
However, its grey market premium has further fallen to nil, compared with 1.81% on Monday.
The company raised Rs 1,754 crore from anchor investors on Thursday, a day before the IPO.
The anchor book saw participation from 71 funds, including Franklin Templeton, Nomura, Morgan Stanley Asia Singapore Pte Ltd, Amundi Funds New Silk Road, Massachusetts Institute of Technology, BNP Paribas and Eastspring Investments, according to a circular uploaded on BSE’s website.
Pine Labs IPO GMP Today
According to market observers, unlisted shares of Pine Labs are currently trading at Rs 221 apiece in the grey market, which is zero premium (or GMP) over the upper IPO price of Rs 221, indicating flat or negative listing for the company.
The GMP was Rs 5.43% on Friday and nearly 16% a few days ago.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Pine Labs IPO: Opening, Closing, Allotment, Listing Dates
The IPO was opened on November 7 and will be closed on November 11. Its allotment will be finalised on November 12, while the stock listing is scheduled to take place on November 14 on both BSE and NSE.
Pine Labs IPO: Should You Apply?
Brokerages have given a mixed response to the Pine Labs IPO, with views split between long-term optimism and near-term caution. While some see strong potential in its business model, others find the valuation steep given its loss-making status.
Cautious Voices
Arihant Capital advised investors to avoid the issue, citing losses at the PAT level and high employee and technology costs. Swastika Investmart also suggested avoiding the IPO for now, calling it “aggressively valued” with limited short-term visibility. Angel One rated it neutral, noting that the company remains loss-making and trades at a premium to peers on an EV/EBITDA basis, while warning of risks like regulatory uncertainty and intense competition.
Long-Term Optimism
On the other hand, SBI Securities gave a ‘subscribe for long-term’ rating, citing Pine Labs’ strong network of 9.8 lakh merchants and Rs 276 trillion market opportunity by FY29. It said the firm is well placed to deliver profitable growth. IDBI Capital also recommended ‘subscribe for long-term’, highlighting Pine Labs’ Rs 11,424.97 billion transaction volume in FY25 and its strategic acquisitions that strengthen its digital infrastructure ecosystem.
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