💰 BYJU'S rights issue not just about money; Decoding RBI's card network shuffle

The most interesting news selected specially for you! 17 March 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: - BYJU'S rights issue: A deep dive - Decoding RBI's card network shuffle - Healthy snacking with Farmley - Perfios raises $80M; turns unicorn - How startups can become AI-resilient Here’s your trivia for today: Which popular vegetable had a purple colour until the Middle Ages? --------------------------------------------------------------- Edtech BYJU'S rights issue: A deep dive last July, BYJU’S encountered a series of challenges: the Davidson Kempner issue, resolved by Ranjan Pai’s intervention; escalation of the $1.2-billion term loan B dispute, leading to insolvency proceedings; bankruptcy filing by BYJU’S' American unit Alpha; government-initiated inspection of BYJU’S' accounts, and more. And this is not even the complete list. Ahead of a hearing at the Karnataka High Court, we piece together the events leading to the lawsuits involving BYJU'S and the potential ramifications of the rights issue. All the details: - In January, BYJU’S floated a rights issue to raise $200 million through equity rights at an enterprise valuation of about $220 million, marking a 99% reduction from its peak valuation of $22 billion. - Unlike many other investors, Prosus has not sold a single share of BYJU’S since it first invested in the company, according to data collated by market intelligence platform PrivateCircle. - Karnataka High Court’s interim relief—ahead of the EGM—stated that decisions made by BYJU’S shareholders during the EGM on February 23 will be on hold until the next hearing scheduled for March 13. [Read More]( --------------------------------------------------------------- From the CapTable Choice is the new currency: Decoding RBI's mandate for credit card portability The Reserve Bank of India (RBI) recently mandated that credit card issuers offer customers the flexibility to select from a range of card networks, effectively prohibiting them from engaging in exclusive partnerships with any single card network for credit card issuance. According to the directive, card issuers must offer eligible customers the choice to select from multiple card networks during the issuance process, with the central bank giving credit card issuers a six-month deadline to comply with the new rules. While many commentators are celebrating the notion of increased consumer choice with the introduction of credit card portability, this perspective may not accurately reflect consumer behaviour. Rarely do customers prioritise the network itself when selecting a credit card. Instead, their focus tends to centre around the specific card product and its associated benefits. Despite this, however, RBI’s latest diktat has tremendous upside, both for consumers as well as the Indian financial system at large. Key Takeaways: - RBI recently mandated that credit card issuers offer customers the flexibility to select from a range of card networks. - The move’s impact on consumer decision-making and behaviour may be limited since individuals tend to select cards that align with their lifestyle and needs. - What it could do, though, is intensify competition among card networks, which may see them offer better perks and offers to attract cardholders. - RBI’s new directive is also anticipated to level the playing field between domestic and foreign networks, giving RuPay a leg-up. [Continue Reading]( --------------------------------------------------------------- Startup Healthy snacking with Farmley Post-pandemic, more consumers are paying attention to healthy eating. However, healthy snacks are often more expensive, which causes consumers to buy other ready-to-eat snacks loaded with high levels of calories, sodium, sugar, and saturated fat. Delhi-based D2C startup Farmley focuses on providing unadulterated dry fruits and nuts sourced by establishing deep back-end linkages with farmers. Go nuts: - According to Akash Sharma, Co-founder and CEO of Farmley, two meals are a thing of the past and consumers now eat around 7-8 meals a day. - Farmley's initial focus was on B2B wholesale, supplying to traditional wholesalers based in mandis and private retailers. Three years later, it pivoted to a D2C model to reach the end customers directly. - Its revenue reached approximately Rs 150 crore in FY23, with an ARR of Rs 300 crore and it is fast expanding its offline presence across modern trade and general trade. [Read More]( --------------------------------------------------------------- Startup Perfios raises $80M; turns unicorn SaaS fintech company Perfios has raised $80 million in a Series D1 funding round from Teachers’ Venture Growth (TVG)—the venture and growth investment arm of Ontario Teachers' Pension Plan. The Bengaluru-headquartered company has crossed $1 billion in valuation with the current infusion. Key takeaways: - Perfios will use the capital for international expansion to Southeast Asia, the Middle East and Africa, utilising part of the capital for inorganic growth. - It will also invest in developing its tech stack to power end-to-end customer journeys in banking, insurance, and embedded finance. - Perfios has raised a total equity funding of $464 million across multiple rounds, according to Tracxn. It last raised a Series D funding of $229 million in September 2023 at a post-money valuation of $901 million. [Read More]( --------------------------------------------------------------- TechSparks How startups can become AI-resilient AI emerging as a key disruptor for businesses, Roli Gupta, Co-founder and CEO of Babblebots, and Job Philip, Co-founder and CEO of Assert AI, discussed the key areas of disruption startups are experiencing because of AI and how they can implement no-code AI solutions to stay relevant at TechSparks Mumbai 2024. Tips and tricks: - Assert AI’s Philip said, "From now [on], all startups should have people who understand tech and who can find a way to streamline AI into the business." - Roli Gupta added, "Based on our research, the acceptance of automated agents seems to be higher in India than in some other countries. Going forward, AI will become so commonplace that you will only notice it when it's missing." - According to her, the hiring market is ripe for disruption, and Indian startups must start making the most of AI solutions to build efficiency in their recruitment processes. [Read More]( --------------------------------------------------------------- News & Updates - [Direct download:]( Apple is planning to make further changes in EU countries to allow some developers to distribute their iOS apps directly from a website, provided they’re willing to adhere to Apple’s strict rules. The new web distribution feature will be available with a software update “later this spring,” according to Apple. - [Features:]( Spotify is adding music videos to its mobile and desktop apps in some markets. They are tightly integrated with the company’s music library as the streaming giant lets users seamlessly switch between audio and music videos in its mobile and desktop apps. - [Missing bolts:]( The US federal audit of plane manufacturer Boeing found over thirty failures in the company's operations. Boeing failed 33 aspects of the audit with a total of 97 points of noncompliance, according to The New York Times. The company passed 56 points of the audit. Did you know? Which popular vegetable had a purple colour until the Middle Ages? Answer: Carrots. We would love to hear from you! To let us know what you liked and disliked about our newsletter, please mail nslfeedback@yourstory.com. If you don’t already get this newsletter in your inbox, [sign up here](. For past editions of the YourStory Buzz, you can check our [Daily Capsule page here](. [Feedback]( [Unsubscribe]( [Newsletters](