💊 A clash of retail and e-pharmacies; The curious case of Byju's second rights issue

The most interesting news selected specially for you! 07 July 2024 [View in Browser]( POWERED BY Hello, Now, startups and enterprises can enhance their brand engagement by partnering with YourStory and advertising on our YS Buzz and Weekly Wrap newsletters. [Click here]( to know more. In today's newsletter, we will talk about: - A clash of retail and e-pharmacies - The curious case of Byju's second rights issue. - Trouble brewing at ReshaMandi - VC funding’s big comeback - Sustainable travel companions Here’s your trivia for today: Which player took the most wickets in T20 World Cup tournaments? --------------------------------------------------------------- Explainer A clash of retail and e-pharmacies June 25, the Madras High Court overturned an earlier November 2018 ruling by a single-judge bench that restricted online pharmacies from delivering medicines to customers. This decision is just the latest chapter of a long legal back and forth between conventional and online pharmacies. But why are brick-and-mortar and online pharmacies at odds with each other? A legal rollercoaster: - The overturned ruling followed a plea from the Chennai-based Tamil Nadu Chemists and Druggists Association that placed an interim injunction restraining online sales of medicines, highlighting concerns about unfair discounts, unlicensed and unregulated drugs, counterfeiting concerns and data privacy risks. - The association also stated that permitting the sale of drugs online defeats the purpose of the Drugs and Cosmetics Act, of 1940 which regulated the manufacture and sale of drugs under prescribed storage conditions by qualified pharmacists. - More people are opting for online pharmacies, owing to greater convenience for those in remote areas or those unable to visit physical stores, transparent tracking systems and easy-to-access prescription records. [Read More]( --------------------------------------------------------------- From the CapTable The curious case of Byju’s second rights issue In January, beleaguered edtech Byju’s made a last-ditch effort to stay afloat. With its cash reserves running out, the Bengaluru-based company—once India’s most valuable startup—launched a rights issue to raise $200 million at a 99% discount to its last valuation of $22 billion. While Byju’s claimed the rights issue was fully subscribed, its hopes were dashed when many of its investors—including Prosus, General Atlantic, Peak XV Partners, and Sofina Ventures—refused to participate, stating they would only invest further if the management of Byju’s was changed. Their opposition saw the proceeds of the rights issues locked away in an escrow account while the National Company Law Tribunal, or NCLT, adjudicated the matter. On the evening of June 13 when the Bengaluru bench of the NCLT convened for the latest hearing of the case, things got even murkier. Byju’s was accused of covertly launching a second rights issue even as its first remained in limbo. With Byju’s largest shareholders having lost faith in the leadership of the company’s founder, Byju Raveendran, raising more funds through a second rights issue was never going to be easy. Especially with the first rights issue still sub judice. This time around, investors allege that the company did not comply with the procedures required by the Companies Act. [Continue Reading]( --------------------------------------------------------------- Employees Trouble brewing at ReshaMandi startup ReshaMandi raised $5.6 million in a Series A funding round led by Creation Investments and Omnivore in June 2023 at a valuation of $74 million—the same month it informed its employees of salary delays. Former employees allege that management told them salary payments would be delayed for three months. However, what followed was not pay regularisation, but the first of many rounds of layoffs. A tale of two startups: - Founded in May 2020 by Mayank Tiwari and ex-Cisco employee Saurabh Agarwal, ReshaMandi is a B2B silk agritech startup that links farmers to consumers. The farmers sell yarn to the company, which is then sold at the marketplace, with ReshaMandi pocketing a margin of the sale. - Some employees were asked by the startup to join a new Noida-based entity called Genzr, for similar job profiles, offer letters reveal. These employees claim they were also promised that any remaining salary dues would be paid in the form of a joining bonus if they signed the letter. - Employees say administrative mismanagement and incorrectly handled processes are hurting future prospects, including leaving some unable to access their provident fund accounts because of a botch-up related to their exit dates by the ReshaMandi HR team. [Read More]( --------------------------------------------------------------- Funding VC funding’s big comeback the first six months of 2024, venture capital (VC) funding into Indian startups showed all the signs of a steady upward trajectory, as it rose by 45% compared to the preceding six months between July and December 2023. Indian startups raised a total of $6.4 billion in VC funding in the first six months of 2024. In contrast, they secured $4.4 billion in the second half of 2023, according to YourStory Research. Steady recovery: - The last two months—May and June—saw VC funding crossing $1 billion, an important benchmark for the ecosystem and an indication that this year’s funding will likely surpass the $10.8 billion figure in 2023. - The first six months of 2024 saw a total of 665 deals, but only eight deals exceeded the total value of $100 million. - Fewer large-value deals are the primary reason for VC funding continuing to remain at a modest level. Given the present funding winter scenario, such high-value deals have become few and far between. [Read More]( --------------------------------------------------------------- Startup Sustainable travel companions luggage market is pegged at about Rs 50,000 crore in India. The sector is dominated by a few players and is utility-driven. Customers care for good quality, smart-looking luggage. Mumbai-based Uppercase knows this, which is why it is making stylish yet durable luggage. Sustainability is an added advantage. Reducing waste: - Uppercase differentiates itself with its hard-backed polycarbonate luggage manufactured using a combination of virgin polycarbonate and recycled polycarbonate. - The company raised $1.5 million in a seed round from Emam Holdings in March 2022, followed by $7 million in a pre-Series A round led by Sixth Sense India Opportunities III later in July 2022. - The company currently manufactures 30,000 units of hard luggage per month and plans to raise production up to 60,000 to 75,000 units per month. [Read More]( --------------------------------------------------------------- News & Updates - [Bumper year:]( Qatar Airways posted a 39% jump in annual net profit to a record 6.1 billion Qatari riyals ($1.67 billion) on Tuesday. The Qatar government-owned airline said its revenue grew by 6% to 81 billion riyals in the year ended March 31. - [Long week:]( Greece has controversially introduced a six-day working week for some businesses to boost productivity and employment in the southern European country. The regulation, which came into force on July 1, bucks a global trend of companies exploring a shorter working week. - [For sale:]( The ownership group that controls the NBA champion Boston Celtics says it intends to sell all its shares of the team. In a statement, Boston Basketball Partners LLC said it intends to sell a majority of its shares in 2024 or early 2025. The balance of its shares would then close in 2028. Did you know? Which player took the most wickets in T20 World Cup tournaments? Answer: Former Bangladesh captain Shakib Al Hasan - 41 wickets in 31 matches We would love to hear from you! To let us know what you liked and disliked about our newsletter, please mail nslfeedback@yourstory.com. 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