Byju Raveendran
Dear reader,
The recent upheaval within Byju’s, marked by the removal of founder and CEO Byju Raveendran, underscores a significant rift between the leadership and key investors in the once-celebrated Indian edtech giant. The decision, fuelled by concerns over governance, financial mismanagement, and accountability, has culminated in a legal battle and strategic moves to block a rights issue.
This development signals a critical juncture in Byju’s trajectory, once hailed as India’s most valuable startup. Despite ambitious plans for expansion and public listing, the company faces mounting challenges, including investor dissatisfaction and failed attempts to secure substantial funding.
The dispute highlights broader issues plaguing the startup ecosystem, particularly regarding corporate governance and investor relations. Byju’s, with its ambitious acquisitions and rapid growth, now confronts a pivotal moment in its evolution, where leadership transitions and legal battles may shape its future trajectory.
As Byju’s navigates this turbulent period, restoring investor confidence and addressing governance concerns will be paramount for its sustainability and long-term success. The outcome of this power struggle will not only impact Byju’s but also serve as a cautionary tale for other startups navigating similar challenges in the competitive edtech landscape.
Sainul,
Editor.
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NEWS
Byju’s investors vote to remove founder
At an emergency general meeting, a group of investors including Prosus Ventures and Peak XV Partners voted to change the leadership at the startup; Byju’s, which has raised over US$5B to date, was valued at US$22B in early 2022.
Byju’s founder, ousted by shareholders, insists he is still the CEO
Byju Rveendran said that rumors of his firing have been “greatly exaggerated,” a day after a shareholder group voted to remove him at an emergency general meeting; He claimed that the shareholders violated several “essential” local rules.
Govt expedites inspection of crisis-hit Byju’S
The corporate affairs ministry has asked its field officers to expedite the inspection of the books of Byju’s and submit the report; The ministry will decide the further course of action after receiving the report from its regional office.
Singapore launches project to promote fintech firm expansion into Malaysia
The collaboration between the Singapore Fintech Association, Artem Ventures and OSK Ventures aims to promote the expansion of Singaporean fintech firms into Malaysia; The project will target startups in payments, insurtech, AI, and emerging tech.
QIA to invest US$1B in international and regional VC funds
The programme seeks to attract international VC funds and startups to Qatar and the wider GCC region, with a particular focus on fintech, edtech, and healthcare; QIA will invest indirectly through other VC funds but also make targeted co-investments.
Vijay Shekhar Sharma steps down from Paytm Payments Bank board
The development follows the Indian central bank penalising Paytm Payments Bank, in which Sharma owns a 51% stake, with severe business restrictions; Most of the restrictions are set to go into effect on March 15.
Tech-enabled Filipino SME lender ProCredit secures US$4.1M pre-seed funding
Investors include Integra Partners, M Venture Partners, Cento Ventures, and Gobi; ProCredit employs credit-first client engagements, a rules-based underwriting and portfolio management architecture, and flexible product offerings incorporating risk-based pricing.
Monk’s Hill, Iterative back Vietnamese wealth management startup 1Long
1Long offers two principal savings products, 1Safe and 1Term, designed for flexible savings with annual returns of up to 6.6 per cent and the possibility of earning rewards up to 9 per cent for long-term deposits.
Web3 development tools startup BuildBear Labs nets US$1.9M funding
Investors include Superscrypt, Tribe Capital, 1kx, Iterative, and Plug-N-Play; BuildBear Labs offers developers the ability to craft customised Private Testnet sandboxes across multiple EVM and EVM-compatible blockchain networks.
Indonesian e-commerce enabler Komerce gets seed funding
Investors include Achmad Zaky and 500 Global; Komerce offers solutions, including remote teams for e-commerce development, e-fulfillment, and CRM; The startup has 25K SMEs in its ecosystem, which recorded over 2M transactions in 2023.
Wavemaker Impact backs AI-powered green asset fintech financier Refy
Refy aims to de-risk these smaller green assets for investors by offering asset-based financing solutions; By prioritising decarbonisation, Refy aims to eliminate barriers to project deployment stemming from issues related to bankability.
Peak XV’s female-focused programme picks 14 startups for new cohort
The 14 companies will receive a US$100K equity-free grant, mentorship from industry experts, access to a strong founder community, and over US$1M in invaluable resources.
‘Embarrassing and wrong’: Google admits it lost control of image-generating AI
The AI system in question is Gemini, the company’s flagship conversational AI platform, which when asked calls out to a version of the Imagen 2 model to create images on demand.
Alipay ramps up efforts to monetise huge user base amid fierce competition with WeChat
Despite having over 700M monthly active users, the payment app lacks the features to entice its huge user base to stay on the platform beyond making transactions.
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