Byju’s founder Byju Raveendran
Dear reader,
The colossal devaluation of Byju’s, formerly valued at US$22 billion and now considered worthless by HSBC, signifies a significant shift in the edutech sector.
This astonishing decline sheds light on the obstacles the Indian startup has encountered, including financial discrepancies, governance issues, leadership departures, and unsuccessful fundraising attempts.
Prosus, a prominent investor, has publicly expressed concerns over Byju’s disregard for advice, exacerbating tensions and complicating financial recovery. The recent controversial raising of US$200 million underscores the turbulent state of the company.
This scenario is not an isolated incident; according to HSBC’s analysis, there is a broader trend of diminishing valuations among various startups, reflecting a correction in the tech investment market. Byju’s downfall serves as a cautionary tale of how fortunes can rapidly shift in the volatile startup landscape, underscoring the critical need for strong governance and transparent financial practices.
As the situation stabilises, stakeholders in the tech industry must reevaluate valuations and strategies in light of these stark developments.
Sainul,
Editor.
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NEWS
HSBC believes that US$22 billion Byju’s is now worth zero
It follows a very rough year for the Bengaluru-based edutech startup, which was India’s most valuable not long ago; It struggled to meet its financial reporting deadlines last year, ultimately falling short of its target by over 50% as it faced various governance issues.
Byju’s creditors petition to put more units in US bankruptcy
The lenders accused the firm’s founder, Byju Raveendran, of violating their debt contracts by refusing to provide financial details about the three units – Neuron Fuel, Epic! Creations, and Tangible Play.
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About 32% of the startups see AI as a faster way to bring products to market, while 30% believe it can help deliver products more quickly; As many as 30% view AI as a tool to level the playing field against bigger competitors and incumbents.
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The investors are Monk’s Hill Ventures, Quona Capital, Jungle Ventures, 1982 Ventures, Saison Capital, and Resolution Ventures; iPiD will use the capital to develop new products that prevent payments-related fraud and expand in Asia, including SEA.
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Granite Asia led the round; The Series A round now stands at US$11M; McEasy said that its client and partner base has grown 6x over the past 18 months to 1,500 companies;
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Negma Ventures is the investor; YC-backed Elevate enables remote workers to receive their wages directly into their US bank accounts, utilise their debit cards for purchases, and transfer funds to their domestic bank accounts at competitive rates.
Hong Kong’s coupons-as-a-service startup Mezzofy secures US$2M funding
The investors are Isola Capital, Ooosh Tech Lab and Hong Kong government-backed ITVF;
Mezzofy has built a ready-made digital coupon infra that helps businesses issue, distribute and process their digital coupons efficiently.
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The investors are Blibros and Satori Giants; Better HR offers a cloud-based enterprise solution to streamline HR processes for SMEs, including tracking attendance, leave, and overtime, as well as managing payroll.
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Anext Bank doubles customer base, grows cross-border transactions by 6x
This growth was driven by MSMEs in sectors such as wholesale and retail trade, professional services, and IT; Anext is the digital wholesale bank in Singapore and the subsidiary of Ant Group.
Malaysia’s Boost Bank officially opens for business
This makes it the country’s third digital bank, following Grab-backed GXBank and Islamic digibank Aeon Bank; The new digibank is a 60:40 joint venture between Boost Holdings and RHB Bank.
Billionaire Richard Li’s FWD Group revives Hong Kong IPO plan, sources say
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FEATURES
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How Mylo Speech enhances speech therapy accessibility for autistic children in PH
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Nautisense wants to ensure that seafarers and maritime operators have access to the best tools for navigating modern sea travel.
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