ERUDITUS LOSSES
Prosus writes off investment in Byju's marking $493 million loss
Prosus writes off 9.6% stake in Byju's worth $493 million due to value decrease as per HSBC note. Also marks investment in Primrose Hill (ZestMoney) to zero against $38 million FY22.
Oyo may pause IPO plans; GSV Ventures' Deborah Quazzo on Byju's and edtech
Oyo's initial IPO attempt hit a snag in January 2023 when the regulator sent its papers back for revisions. Following this, the SoftBank-backed company resubmitted a toned-down version, aiming for a much smaller offering through a confidential filing. Oyo was among several companies asked to adjust their IPO plans.
Macquarie downgrades Paytm; IT headcount drops again
Global brokerage Macquarie has downgraded Patym’s stock and slashed its target price following the recent action by the central bank. This and more in today’s ETtech Top 5.
No spending freeze at startups; Swiggy, PharmEasy FY23 report card
Top internet firms didn’t let a ‘funding winter’ dampen their urge to spend in the last fiscal, an ET analysis found. Details of this and more in today’s ETtech Morning Dispatch.
Eruditus joins queue of reverse flips by Indian startups, weighs IPO
Edtech unicorn Eruditus is planning a shift in domicile from Singapore to India, or reverse flipping, and joins the growing list of Indian internet firms — Pine Labs, Udaan, Razorpay and Groww, among others. Eruditus is evaluating a listing on the domestic bourses.
Eruditus plans India flip; Ayodhya boost for spiritual apps
Indian IT majors are eyeing upcoming US federal contracts as several large deals are set for renewal in the next two quarters. While it is still challenging for Indian companies to win these contracts, there is a more positive attitude towards Indian-heritage suppliers.
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Baron Capital raises Swiggy, Pine Labs valuation; Jio to bring AI to everyone, everywhere: Mukesh Ambani
US-based asset management firm Baron Capital has marked up the valuation of Swiggy and Pine Labs while slashing the valuation of edtech major Byju’s by almost half. This comes at a time when several Indian startups have faced valuation markdowns in the past few months.
FIR filed against 4B Networks founder Rahul Yadav; Prosus announces org changes, shuffles top deck
Mumbai Police’s Economic Offences Wing (EOW) has registered an FIR against 4B Networks founder Rahul Yadav and senior executive Sanjay Saini for allegedly cheating an advertising firm of more than Rs 10 crore.
Eruditus’ FY23 revenue jumps 63% to $400 million
Revenue rose to $400 million (around Rs 3,280 crore as per current exchange rates) in 2022-23 from $245 million the previous year, said Ashwin Damera. Eruditus follows a July-June fiscal year.
Rajeev Misra steps back at SoftBank to launch new fund
Rajeev Misra, who has led the SoftBank Vision Fund since 2017 when it raised $100 billion, the largest pool of private capital, is likely to launch a new asset management platform backed by Middle Eastern funds.
Expect further corrections in startup valuations: Prosus CEO Bob van Dijk
The froth of the low-interest rate regime hasn’t fully been washed away and the startup ecosystem is likely to see valuations drop further, especially as companies at the end of their runways come back for more funding, said the Prosus boss.
Prosus reports 80% jump in Swiggy's Jan-Dec loss, 26% growth in food-delivery GMV
Prosus, which has backed companies such as Byju’s, PharmEasy and Eruditus, holds a 33% stake in Bengaluru-based Swiggy.
What is really happening with digital credit in India, and other top stories this week
The aftermath of Covid-19 and the subsequent moratorium on loan repayments burnt a massive hole in the loan books of lenders. While the large players managed their books somehow, fintech non-banking financial companies (NBFC) have grappled with ballooning non-performing assets (NPAs).
US fund cuts edtech Eruditus’ valuation by 9% to $2.9 billion
The markdown has translated to a valuation of about $2.9 billion as of March 31, 2023, a drop from $3.2 billion in August 2021, a price at which the Mumbai-based startup had last raised equity-based capital from investors.
ETtech Scoop: Reliance enters zero-commission fashion marketplace; mid-to-senior hirings in startups plummet
Reliance Industries’ online fashion platform Ajio will launch Ajio Street — a zero-commission fashion marketplace aimed at value products for non-metro audiences, similar to ecommerce firm Meesho.
Swiggy CTO Dale Vaz resigns; Eruditus’ FY22 revenue jumps 87%
Vaz, who had joined Swiggy as its head of engineering and data science, was promoted to the CTO post in 2020 after Rahul Jaimini, who cofounded Swiggy with chief executive Sriharsha Majety and Nandan Reddy in 2014, exited the company.
Eruditus FY22 revenue up 87%; loss excluding exceptional items at $66 million
In the financial year ending FY21, Eruditus had reported a cash loss of $31 million, filings reviewed by ET showed. The Mumbai-based edtech unicorn’s total net loss swelled by 46% to $386.82 million, including exceptional items, the filings showed.
Upskilling companies see brisk business as K-12, test prep stall
Upskilling startup founders told ET that they are expecting to clock a strong rate of growth in the ongoing year even as a funding crunch has set in the broader edtech sector.
Funding crunch healthy for startups as it’ll bring profitability to the fore: GSV’s Deborah Quazzo
Deborah Quazzo told ET during an exclusive interaction that the pace of investments has slowed down in both the US and India and is likely to remain muted for the rest of the year at least.
Byju’s continues to cut jobs, another 1,000 employees laid off
The layoffs are part of a massive cost cutting exercise Byju’s initiated last year to streamline its operations at a time when digital K12 education businesses are finding it difficult to acquire new customers.
Late-stage startups tap alternative funding routes amid softening valuations
To preserve their valuation, Udaan, PharmEasy shore up capital through debt instruments like convertible notes.
2022 Year in Review: Fund-starved startups sacked nearly 18,000 employees
Edtech companies accounted for a staggering 44% of the total layoffs. In total, 52 startups fired 17,989 employees spread across edtech, consumer services, ecommerce, health tech, logistics, fintech, enterprise tech, media and entertainment, agri-tech and cleantech
2022 | The year of governance misses, layoffs, a funding winter & regulatory diktats
In the span of a year, the technology world went from euphoria to turbulence – be it in the stock markets or in the private funding space. Collapse of FTX and the crypto sector to the sale of Twitter to Elon Musk, globally tech news hogged the headlines through the year.
Edtech companies need to rework models to keep parents happy
The survey covered 521 parents to understand their experience with edtech offerings in the K-12 and JEE-NEET preparation segments.
SoftBank India head Sumer Juneja gets larger role, to also oversee Europe, Middle East
SoftBank Vision Fund’s managing partner Sumer Juneja and India head has been given the additional responsibility of overseeing Europe, the Middle East, and Africa (EMEA), as per an official communication from the firm on Friday. Juneja will continue to lead the India operations of the Vision Fund - one of the country’s largest investors in new-age technology companies such as Delhivery, Swiggy, and Meesho, among others.
Prosus reports strong growth in India; ASCI flags over 400 crypto ads in five months
Last year, Prosus NV invested more than $1.03 billion in various Indian startups, including Swiggy, Byju’s, Eruditus and Meesho. Now, the Dutch-listed arm of technology investor Naspers has reported strong growth in its Indian portfolio for FY22, driven by Swiggy, Byju’s, and its local fintech arm PayU India.
Prosus says Indian portfolio firms Swiggy, Byju’s saw strong growth in FY22
“Our food platforms continued to grow strongly at the core of the food delivery business and are now investing to extend that growth through new initiatives such as quick commerce,” Prosus said in its investor presentation on Monday.
Startups shed flab amid slowdown in large funding rounds
The trend is likely to play out further, though the early-stage funding ecosystem has yet to significantly taper off. Investors have begun to ask high-growth companies to go back to basics — chase profits and reduce their cash burn, multiple people told ET.
UpGrad expects revenue to touch Rs 1,900 crore in FY22
For upGrad, the expected revenue growth comes on the back of the company making close to five acquisitions in the current fiscal year, contributing to its topline.
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