One quick thing: No shortage of funds for startups with strong business models: Amitabh Kant

In today’s newsletter:

• Byju's woes cast shadow on edtechs
• To get legal backing, IN-SPACe needs a law: Pawan Goenka
• Infosys to get a new HR head

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The past two weeks have been tough for the world's largest edtech startup, Byju's. So it is natural for other edtech startups to feel the heat, especially in India.

When asked what is in store for these firms, industry observers promptly said that stricter scrutiny of recognising sales is likely.

Following the crisis at Byju’s, investors have become increasingly concerned about the revenue recognition practices of edtech startups.

Investors are particularly curious to know: 

• Whether a straight-line revenue recognition is used (dividing revenue by the subscription period)
  
  
• How discounts and cancellations are recorded
  
  
• The proportion of sales coming from subscriptions vs the sale of hardware

These issues came to light last year when Byju’s filed its FY21 results after a long delay of over 18 months.

The results showed that Byju's had been advised by its former auditor to make changes to the way it recognised sales, which significantly reduced its revenue numbers for the year.

The growing scrutiny on such issues will potentially elongate fundraising for edtech startups and significantly change investment metrics. This also comes at a time when edtech companies will start hitting the market to raise fresh funds.

• An investor said, when edtechs next raise funds, the focus will be on their valuations. Startups won't be able to show vanity metrics like ARR anymore

As is, edtech valuations have fallen drastically over the last 12 months, across the globe. Even in India, investors have slashed fair values of edtech unicorns like Byju’s and Eruditus. 

Find out more

The United States' Office of Commercial Space Transportation, under the Federal Aviation Administration, acts as a regulator for commercial space launches.

• Closer to home, the Indian Space Promotion and Authorisation Centre (IN-SPACe) has taken on the role of regulator for space activities by both the government and private sector.

However, it turns out that the lack of a legal mandate for the establishment of IN-SPACe could cast doubt on the body's decisions.

• A law is necessary to solidify the body's creation under the law, IN-SPACe's chairperson Pawan Kumar Goenka told us in an interview

As of now, IN-SPACe's roles have been clearly laid out in the Indian Space Policy 2023 and it functions as an autonomous body under the Department of Space.

• Goenka said that the government is looking into the draft Space Activities Bill (introduced in 2017), but admitted that there is no timeline for when it could become a law

In our interview with Goenka, the industry veteran who assumed the position of chairperson in 2021, he also touched upon two key points:

• The need for “one or two big hits” in the country’s space startup ecosystem to generate more enthusiasm in the area
  
  
• He also provided an update on the status of the long-awaited policy for FDI in the space sector

Read the full interview

In a leadership rejig at Infosys, Sushanth Tharappan, who was previously the head of the firm's leadership institute, is set to take charge as the new Human Resources (HR) head.

• He will be replacing Richard Lobo, who has held the position since 2015
  
  
• This marks the second change in HR leadership at Infosys this year

Tharappan, who has been associated with Infosys since 2000, has held various leadership positions within the company, including global head for talent acquisition, head of HR for Products, Platforms and Solutions, and Chief People Officer at subsidiary Edgeverve.

Lobo, the outgoing head of HR, will be joining a special projects team under chief executive Salil Parekh.

Tharappan's appointment follows the earlier change in HR leadership at Infosys, where Shaji Mathew assumed the role of global head of HR in March after Krish Shankar's retirement.

Go deeper

On July 3, 1987, British millionaire Richard Branson and Per Lindstrand became the first to cross the Atlantic Ocean in a hot air balloon, named Virgin Atlantic Flyer. They travelled 2,900 miles from Sugarloaf Mountain in Maine to Limavady, Northern Ireland, in 33 hours, setting a new record for hot air ballooning.

• Addenbrooke’s Hospital in Cambridge has harnessed the power of AI to streamline the planning of radiotherapy treatments, leading to faster turnaround times and decreased wait periods.

• Greyparrot, a UK-based startup, has developed an AI system specifically designed for waste processing analysis. The company installs cameras at waste and recycling facilities, enabling real-time analysis of the materials moving through the conveyor belts.

Hold onto your seats, because the future of transportation is about to take flight! 

Alef Aeronautics, a California-based startup, has just received the stamp of approval from the Federal Aviation Administration (FAA) in the US. This brings us one step closer to turning our sci-fi dreams into reality.

The company plans to deliver these cutting-edge airborne vehicles to eager customers by the end of 2025. 

But what about the price tag, you ask? Well, prepare to be amazed. The all-electric flying car is priced at roughly $300,000 which is approximately Rs 2.46 crore. (You can pre-order the car here)

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