📉 Baron Capital values BYJU'S at $24M

The most interesting news selected specially for you!

04 June 2024 View in Browser

Hello,   Most Indian startup stocks were trading higher on the bourses on June 3, in step with the wider stock market which touched a new high buoyed by the exit polls that predicted the return of the BJP-led NDA government to power for the third time.   In other news, US-based asset management firm Baron Capital marked up the valuation of its stake in Swiggy to $109.16 million from its original investment of $76.77 million, as per regulatory filings filed with US Security and Exchange Commission.   Bundl Technologies Pvt Limited, Swiggy’s parent company, is currently valued at $15.1 billion, nearly 25% higher than the previous assessment of $12.1 billion.   Another startup seeing a boost in its valuation is SoftBank-backed eyewear retailer Lenskart, which has raised $200 million in secondary investment from Temasek and Fidelity Management and Research Company. The company had joined the coveted unicorn club in 2019. With the latest fundraise, its valuation has crossed $5 billion, according to TechCrunch.   In other news, the government-backed protocol Open Network for Digital Commerce (ONDC) recorded 8.9 million transactions across retail and ride-hailing segments in May 2024—an all-time high and a 23% month-on-month increase.   Lastly, meet the 500-pound (226 kg) goose-like bird that once roamed the Australian outback.    In today’s newsletter, we will talk about  Baron Capital slashes BYJU’S valuation Ganesh Balakrishnan’s mantra for founders Empowering women to travel solo   Here’s your trivia for today: Before the early 1980s, the Japanese automaker Nissan was known by what name?

Edtech Baron Capital slashes BYJU’S valuation US-based asset management company Baron Capital Group has reduced the valuation of its stake in edtech firm BYJU'S by 99.85% as of March 31, 2024. The decline in Baron Capital's investment value resulted in the venture capital firm sharply cutting the edtech company's valuation to nearly $24 million.   Liquidity crunch: Baron Capital, holding 15,334 shares through Baron Emerging Markets Fund and 9,201 shares via Baron Global Advantage Fund, has appraised its investment in BYJU’S at $75,485 and $45,294, respectively. This marks a decrease from its peak valuation of $22 billion in October 2022, aligning with the valuation concern around BYJU’S $200 million rights issue. Meanwhile, BYJU'S has reportedly processed employees' May salaries from the month's business collections. The company in the past month also raised various debts to bear the salary expense. Read More

Funding Alert   1) Lenskart: $200M|Secondary investment 2) AstroTalk: $9.5M|Series A 3) LogicLadder: $2.5M|Equity

Entrepreneurship Ganesh Balakrishnan’s mantra for founders Understand decision-making, learn from mistakes, and double down on things that work. This is the key to staying ahead in the entrepreneurial game, said Ganesh Balakrishnan, serial entrepreneur, marketer, and co-founder of fintech firm Aurm.     “Every startup is somebody's baby. It’s a very hard thing to let go of that emotional connection. You need to balance the emotion with the objective,” he said during a fireside chat at YourStory’s Brands of India 2024 event.   Staying ahead: Before Aurm, the entrepreneur had co-founded several companies, including Momoe, a mobile payment app, and D2C casual sneaker brand Flatheads—which was featured on Shark Tank India. “Through the journey, multiple mentors, including investors and partners with us in our entrepreneurial journey, give you a perspective which is very different from what we have,” he adds. The entrepreneur believes in balancing emotions with objectivity. “There are pivots you can do, different categories you can get into, you can change your business model, or you can say, ‘Hey, I've tried everything, it doesn't really work, maybe I need to step back.’”  Read More

Women Entrepreneurs Empowering women to travel solo Started by Zinal Doshi in 2016, Flapper Life focuses on solo women travellers looking for adventurous travel and exploring local culture across India and Asian countries.   So far, the startup has hosted around 1,000 women and has curated around 250 trips.   Safe travel:  The startup employs three to four local people on a commission basis in all its travel locations who pre-check the accommodation facilities. Flapper Life offers pan-India domestic trips in Meghalaya, Ladakh, Kashmir, Rajasthan, Kerala, and more. For international trips, the startup covers Asian countries like Vietnam, Indonesia, and Singapore, among others. The average cost of a domestic and international trip for six nights and seven days is around Rs 55,000 and Rs 1 lakh, respectively. Read More

The CapTable Lull in entry-level tech jobs continues; can India’s non-tech sectors compensate? It’s not the proverbial lull before the storm, but the one after it.    Following a pandemic-induced hiring frenzy in 2021 and early 2022, the golden tap of tech jobs has run dry in the last 12-15 months. New employment generated in core tech and engineering sectors hit a two-decade low in FY24, with India’s legacy IT companies drastically cutting down on hiring. Even startups, which absorbed a fair share of tech talent post the VC funding highs of 2021, have tempered their recruitment plans.    What’s unfolding is quite the white-collar job crisis. There have been record low levels of placements in the IITs—a story that has been well-documented by now—sending chills down the spine of the country’s education system.   “India's fancy education sector is riding on the back of the IT industry. And in the last 20-25 years, the IT industry’s headcount never went down. So, this is a definite problem area, and the next few years will be difficult,” the head of a recruitment agency tells The CapTable.    “The question is: How will the volume of jobs be created? Will we be able to create half a million engineering jobs in FY25?” he asks. Read More

News & Updates Roaring Kitty: GameStop jumped 21% on Monday after "Roaring Kitty" Keith Gill, the stocks influencer behind the 2021 retail trading frenzy, returned to Reddit with a post showing a $116 million bet on the embattled videogame retailer. Historic win: Claudia Sheinbaum has won a landslide victory to become Mexico’s first female president, inheriting the project of her mentor and outgoing leader, Andrés Manuel López Obrador, whose popularity among the poor helped drive her triumph. AI chips: Advanced Micro Devices unveiled its latest artificial intelligence processors on Monday and detailed its plan to develop AI chips over the next two years in a bid to challenge industry leader Nvidia.

Did you know?   Before the early 1980s, the Japanese automaker Nissan was known by what name? Answer: Datsun.

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