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In today’s newsletter: 

• Byju's future hangs by a thread
• The great Indian GCC divide
• Inside TCS’ big semiconductor bet

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Byju's, the Indian edtech giant, is facing a perfect storm: financial straits, legal challenges, and dwindling hope. 

• In desperate need of funds to stay afloat, the company's quest for a lifeline has hit a roadblock

The National Company Law Tribunal (NCLT) in Bengaluru has referred a plea by Byju's investors against the company to the tribunal president.

• This decision stems from a disagreement between the tribunal's technical and judicial members

• A third member from another NCLT bench will likely be assigned to re-hear the interim application

With the case on hold, questions arise about the scheduled NCLT hearing on April 4. 

• Meanwhile, Byju's continues its efforts to take the case out of NCLT as it filed an application to refer the dispute to arbitration

This legal hurdle comes at a critical time for Byju's. The company is struggling with:

• Severe cash shortage: Byju's reportedly can't even afford staff salaries and has resorted to further layoffs

• Office closures: The company is consolidating its physical presence by shutting down offices across India

• Tuition center consolidation: Byju's is streamlining its network of tuition centers

Byju's recently launched a rights issue, a potential source of much-needed funds. 

• However, the success of this fundraising effort hinges on the NCLT's final verdict

Go deeper

Ever wondered why so many global companies set up their first Indian outposts in bustling metropolises like Delhi and Mumbai?

• It all boils down to location, location, location – especially for companies setting up their first Global Capability Centres (GCCs) in India

Just 8% of the 2,740 GCCs in India reside in Tier II cities. 

• These dedicated offshore centers handle IT and related business functions for international companies 

In fact, only a measly 5 out of 112 GCCs established between 2022 and 2023 found homes in Tier II locations.

Several factors make Tier I cities the go-to choice for companies setting up their first GCC in India.

• Top-notch infrastructure
  
  
• Connectivity
  
  
• Superior hospitality
  
  
• Talent pool

While many state governments are actively promoting Tier II cities as viable GCC destinations, the current landscape heavily favours Tier I. 

• Experts predict this trend to remain stable for a "very long time to come"

Go deeper

Chips are everywhere these days, and Tata Consultancy Services (TCS) is diving headfirst into the game. 

• But unlike their competitors, TCS is taking a unique approach

TCS is building a suite of "end-to-end" semiconductor solutions, according to Reguraman Ayyaswamy, Global Head of IoT and Digital Engineering. 

• This includes using cutting-edge technologies like Industry 4.0, AI, and IoT right from the planning stages of setting up a chip factory
  
  
• It is also involved in chip design, testing, and final validation

TCS is teaming up with its parent company, the Tata Group, to offer these solutions. 

• The Tata Group is heavily invested in semiconductor manufacturing, with a massive fabrication plant underway in Gujarat and an assembling and testing unit coming up in Assam

Unlike its competitors – Accenture, Infosys, HCLTech, and Tech Mahindra – who acquired smaller R&D companies, TCS has built its capabilities organically over the past few years. 

Find out more

On February 17, Paytm received a crucial lifeline in the form of a new nodal bank partner—Axis Bank—to stabilise its merchant payments settlement business. While it's too soon to gauge how the newly-forged alliance will pan out, it holds potential for broader opportunities, including credit cards.

• Currently, Axis Bank is working with Paytm on three main areas—nodal account manager for merchants’ transactions, UPI, and FASTag business. 

In a freewheeling chat, Axis Bank MD and CEO Amitabh Chaudhry shares insights into the current state of affairs with Paytm, progress at Axis-Citi retail integration, his personal journey as a CEO, fintech partnerships, and more.

Read the full interview

• HCLTech and Google Cloud are deepening their partnership to equip engineers with advanced AI capabilities from Google's Gemini model for developing industry-specific solutions in healthcare, manufacturing, and telecom.
  
  
• Meta is grappling with AI competition, poaching talent while facing an exodus of its own researchers including Erik Meijer and Devi Parikh.

• Yahoo has acquired Instagram co-founders' AI news platform Artifact, aiming to integrate its technology into Yahoo News and other web services.
  
  
• Over 200 musicians, including Billie Eilish and Stevie Wonder, signed an open letter seeking protection against the predatory use of AI that imitates artists' voices and likenesses.

The world of tech is a rocketship, and if you're feeling left behind, fear not! 

NVIDIA offers a treasure trove of free courses to launch you into the thrilling world of AI.

• Generative AI explained: Demystify the tech behind creating everything from funky fake art to next-level chatbots.

• Digital fingerprinting with Morpheus: Learn to sniff out threats faster than a digital bloodhound with NVIDIA's cybersecurity AI tricks

• Build a brain in 10 minutes: This crash course will have you understanding how neural networks learn

Find out more

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