Byju’s founder Byju Raveendran
Dear reader,
The dramatic devaluation of Byju’s, once valued at US$22 billion and now deemed worthless by HSBC, marks a significant turning point in the edutech sector.
This spectacular decline highlights the challenges the Indian startup has faced, from financial misreporting and governance issues to abrupt resignations and failed fundraising efforts.
Prosus, a major investor, has publicly criticised Byju’s for disregarding advice, further straining relations and complicating financial recovery. The US$200 million raised recently, under contentious legal circumstances, underscores the tumultuous state of the company.
This situation isn’t isolated; HSBC’s analysis reveals a broader trend of declining valuations among various startups, reflecting a market correction in tech investments. Byju’s collapse serves as a cautionary tale of how swiftly fortunes can change in the volatile startup ecosystem, emphasising the critical importance of robust governance and transparent financial practices.
As the dust settles, stakeholders in the tech industry must reassess valuations and strategies in light of these sobering 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 give them financial details about the three units — Neuron Fuel, Epic! Creations, and Tangible Play.
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The investors are Kingsway Capital, Animoca, LG Tech Ventures and True Global Ventures; The Sandbox is an immersive metaverse platform in which users play, create, and monetise unique experiences alongside their favourite brands and celebrities.
98% startups in India, SEA agree AI is pivotal in future strategy: HubSpot study
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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Singapore’s Clime Capital is the lead investor; The green logistics firm will develop a new 3,000 sqm charging yard in Pasay City and establish charging points across southern and northern Luzon.
iPiD bags US$5.3M for its payee verification, identification solutions
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.
Botsync closes US$5.2M Series A to further develop autonomous mobile robots
The investors include Capital 2B, Betatron Venture Group, IvyCap Ventures, and AppWorks; Botsync plans to aggressively expand deeper into Southeast Asia and India and enter Australia and the Middle East.
Indonesian logistics SaaS firm McEasy adds US$4.5M to Series A round
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;
Consumer fintech firm Elevate nets US$5M in debt for Asia, SEA expansion
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.
Myanmar HR tech startup Better HR raises bridge round to fuel SEA expansion
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.
Meet the 7 startups selected for batch 9 of TINC accelerator programme
The six-month TINC programme will showcase startups creating innovative solutions for healthcare, fintech, climate, marketing, and smart homes.
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
Top-funded Southeast Asian startups in May 2024
In May 2024, Southeast Asian tech startups secured US$143M in investments across 30 rounds; This is a decline of almost 43.5% from April 2024 and a plunge of 94.3% from May 2023.
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Navigating the gender divide in Southeast Asia’s fintech landscape
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How Mylo Speech enhances speech therapy accessibility for autistic children in PH
Mylo Speech is an app designed to support individuals with speech delays and ASD in their speech therapy journey; It has recently earned a spot at the TOP100 Program 2024, held in conjunction with Echelon X in Singapore.
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Nautisense wants to ensure that seafarers and maritime operators have access to the best tools for navigating modern sea travel.
CONTRIBUTORY ARTICLES
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