BUSINESS
Late-stage investors wait it out as startups struggle to grow into their valuations
SoftBank’s Rajeev Misra, among others, said that capital isn’t a constraint for the Japanese investor when it comes to investing in India, but opportunities are.
BUSINESS
Byju’s, lenders miss August 3 timeline to rework loan terms
The timeline for reaching an amendment was formally announced on July 24 by a steering committee of ad hoc term loan lenders who collectively own more than 85 percent of Byju’s $1.2-billion term loan. The committee had said that it and the company agreed to work collaboratively toward a signed and completed term loan amendment (the “Amendment”) prior to August 3, 2023
BUSINESS
Investors will be more sceptical about investing in Indian edtechs following Byju's crisis: Cuemath's Manan Khurma
Cuemath founder Manan Khurma added that the crisis at Byju's has had an impact on how parents in the country view edtech in India.
BUSINESS
White Knight? Ranjan Pai in talks to invest $80-90 million in Byju’s-owned Aakash
The company is further seeking another $200 million (Rs 1,600 crore) in Aakash as a part of the funding round where sovereign wealth funds are expected to come on board.
BUSINESS
End of an era as Binny Bansal, Accel and Tiger Global exit Flipkart with bumper returns
Walmart has bought out Flipkart early investors Accel, Tiger Global and co-founder Binny Bansal has also fully divested his stake in Flipkart which is valued at around $35 billion.
BUSINESS
Cuemath's Manan Khurma expects Indian business to grow slower than international ops over the next year, cites limited depth
Khurma has joined a growing list of founders and venture capitalists to talk about the over-valuation of India's internet market, which seems to be slowing post the pandemic-led boost.
BUSINESS
Byju’s defers FY24 appraisals as it looks to conserve cash amid delay in funding
A majority of the company’s employees are also yet to receive variable pay and other incentives.
BUSINESS
Lack of transparency prompted board exit, says Byju's shareholder Peak XV
Peak XV Partners writes to LPs to clarify GV Ravishankar’s reason to step down from Byju’s board, cites lack of transparency as reason for his exit. Peak XV told LPs that Ravishankar wasn’t able to discharge his fiduciary duties as an investor and a board member
BUSINESS
Byju's clears PF payments of most employees after EPFO quizzes company
Byju's remitted PF payments worth Rs 8.54 crore for around 24,027 employees on July 25, sources in EPFO told Moneycontrol. The data will take about three days to reflect on the official portal.
BUSINESS
Byju’s delays PF payments for most employees again despite EPFO nudge
The company had agreed to clear June PF payments by July 15 after Moneycontrol and a few other media outlets reported about a delay in PF payments.
BUSINESS
Byju’s vacates its biggest office space in Bengaluru to save costs
Over the weekend, Moneycontrol visited Kalyani Tech Park and the two remaining offices of Byju’s — IBC Knowledge Park, Bannerghatta and Prestige Tech Park, Kadabeesanahalli, to confirm the development.
BUSINESS
Byju’s rules out layoffs at tuition centres, agrees to pay incentives, variable pay
Rising problems at Byju’s Tuition Centres add to the already extensive list of troubles encountered by the world's most valued edtech company this year. These challenges include resignations of auditors and directors, govt authorities conducting searches, and tensions with term loan B lenders.
BUSINESS
The tragedy of Kota: From edtech wars to rising suicide numbers
With 11 lives lost in the past three months, students are wilting under pressure amid cutthroat competition and exam pressure.
BUSINESS
SoftBank offloads another 2% stake in Paytm via open market transactions
SoftBank has been offloading shares regularly over the last month in small tranches through open market transactions and largely at a profit as Paytm’s share price has been above Rs 830 during the period, which was the cost price for the Japanese investor
BUSINESS
When a market leader is in blues, entire sector gets painted in the same shade: Ashwin Damera of Eruditus
Damera's remarks regarding the influence of the crisis at Byju's on India's edtech industry comes during a period of a significant decline in investments within the sector. Resumption of in-person education at schools, colleges, and tuition centers, coupled with the internal problems at Byju's have exacerbated the situation.
BUSINESS
AI may not impact higher education segment much: Eruditus’ Ashwin Damera
Damera's remarks about the disruptive effects of AI coincide with the growing discourse on the influence of generative AI models such as ChatGPT in the global edtech sector. Prominent companies like Byju's, Coursera, and Khan Academy are embracing these models to enhance their services
BUSINESS
Fintech startup Easebuzz doubles revenue to Rs 236 crore in FY23 as demand surges
Since the end of last year, Easebuzz has witnessed jump in its services after the RBI directed some of its competitors like Razorpay, and Cashfree to pause on-boarding new merchants
BUSINESS
Eruditus FY23 loss excluding exceptional items narrows to $40mn as revenue tops $400mn
The company says it has managed to achieve a small EBITDA, excluding ESOPs, of about $3 million in its latest quarter on a pro-forma basis. Eruditus is aiming for an EBITDA of $40 million in FY24 as it sees its revenue growing by 40 percent to about $560 million.
BUSINESS
Byju's ropes in upGrad's former CEO Arjun Mohan to lead international business
Arjun Mohan, who previously served as Byju's' chief business officer for over 11 years, joined upGrad in April 2020, during the first wave of the pandemic. He left upGrad in December last year to explore outside opportunities.
BUSINESS
Fintechs jump onto digital lending frenzy as disbursement volumes double in FY23
Lending-focused companies dominated startup funding this year, attracting approximately a third of all investments. Paytm and BharatPe have also bolstered their management leadership in the lending verticals, as a substantial portion of their revenue stems from lending operations
BUSINESS
SoftBank's funding drought worst since 2014, Tiger Global’s deal count least in 5 years
SoftBank’s prolonged absence and Tiger Global's significant deceleration underscores the cautious approach of investors towards India's startup ecosystem. The two are among the country’s largest global investors, having infused more than $18 billion in the past nine years.
BUSINESS
India’s market is 'definitely' overestimated: SoftBank’s Rajeev Misra
Misra’s comments on overestimation of the Indian market echo those of Nithin Kamath, co-founder, and CEO of India’s largest stock broking platform Zerodha. Last week, on Twitter, Kamath, whose Zerodha has not raised a single dollar from external investors to date, blamed the VC (venture capital) ecosystem, along with startup founders, for overestimating the Indian market
BUSINESS
Byju’s Blues: More scrutiny of revenue recognition on cards for India’s edtech firms
Investors are interested in how revenue is accounted for when bookings are finalised, such as whether a straight-line revenue recognition is employed (dividing revenue by the subscription period), how discounts and cancellations are accounted for, and the proportion of revenue derived from subscriptions versus the sale of hardware.
BUSINESS
A funding winter’s tale: Corporate governance failures hold many lessons for startups
VC funds are likely to ask for revenue recognition clarity and regular audit reports. And they will likely prod founders to hire independent directors.
