BYJU’S Insolvency Saga, Ather Revs Up For IPO & More

Now, Khaitan & Co Tangled In BYJU’S Insolvency Mess

The twists and turns in the insolvency saga of BYJU’S continue to unfold. Now, the troubled edtech startup’s suspended resolution professional (RP) Pankaj Srivastava has blown the whistle, alleging that legal firm Khaitan & Co strong-armed him into appointing EY India as the process advisor for insolvency proceedings against BYJU’S.

In a confidential filing with the Insolvency and Bankruptcy Board of India (IBBI), Srivastava claimed that the legal firm threatened to “malign” his image as an RP if he did not appoint EY India as the process advisor.

Notably, Khaitan & Co is representing GLAS Trust, a consortium of US-based lenders who extended the $1.2 Bn term loan B (TLB) to BYJU’S in 2021, in its legal battle against the edtech platform.

Training guns on GLAS Trust, Srivastava is also said to have told the IBBI that the lenders, via Khaitan & Co and other counsel Eliis, sent several unwarranted directions to Srivastava. Meanwhile, the Indian law firm has refuted Srivastava’s claims and called the allegations “untrue and baseless”. 

This comes days after BYJU’S founder and CEO Byju Raveendran alleged that he had received a document with “conclusive evidence of criminal collusion” between EY India, the lenders and Srivastava. 

While it seems unlikely that BYJU’S will come out of this ongoing turmoil unscathed, here’s how Khaitan & Co has been dragged into the dead decacorn’s insolvency mess. Continue reading….

From The Editor’s Desk

Ather Revs Up For IPO: The EV maker’s board has approved a proposal to convert 1.73 Lakh outstanding CCPS into 24 Cr fully paid-up equity shares. The conversion is mandatory before filing RHP. Meanwhile, Ather is expected to float its IPO by April to raise INR 3,100 Cr.

GIVA Nets $12 Mn: The D2C Jewellery brand has raised the capital in a mix of debt and equity. GIVA allotted 1,360 shares at INR 14,700 ia Capital to raise INR 52 Cr in equity while the rest was raised in debt from Northern Arc.

Zepto Gets HC Respite: The Delhi HC has ruled in favour of the quick commerce major’s parent Kiranakart in a year-long trademark dispute. The startup had sought the removal of the ‘Zepto’ trademark, registered by Mohammad Arshad in 2014, from the register of trade marks.

CARS24 Ventures Into ‘New Cars’: The IPO-bound used car marketplace has ventured into the new cars market. With this, the company will now lock horns with the likes of industry giants such as CarDekho, CarWale, and CarTrade. 

DSP Acquires Volt Money: The asset management company has bought the fintech startup for an undisclosed amount. Founded in 2022, Titan Capital and All In Capital-backed Volt Money offers loans against mutual fund investments.  

Zomato Is Now Eternal: The foodtech giant’s shareholders have approved a proposal to change the name of the company. The rebranding would help Zomato differentiate its corporate identity from its food delivery platform, especially as its quick commerce arm, Blinkit, emerges as a key growth driver.

Rusk Media Eyeing INR 74 Cr: The Nazara-backed digital entertainment startup is looking to raise around $8.5 Mn in its Series B funding round led by Woori Venture Partners. Founded in 2019, Rusk Media operates brands such as Alright!, Playground, and LIT. 

Online Gaming Industry Sets ‘Code Of Ethics’: Three gaming federations have banded together to adopt a framework, which includes age-gating, adopting stringent KYC norms and capping spending limits. The code will be applicable to all the members of the three federations.

Inc42 Startup Spotlight

How ArthAlpha Is Helping Retail Investors Make Smart Bets? 

Indian share markets continue to lure a new wave of retail investors looking to make a quick buck. While some find success, others may not be so lucky due to a lack of proper guidance and knowledge about markets.  

To bridge this knowledge gap, Rohit Beri and Rohit Jha founded ArthAlpha in 2023. The investment tech platform leverages AI and machine learning (ML) to analyse market trends and generate insights, which can help investors better optimise their financial decision-making process. 

The Bengaluru-based startup also specialises in delivering long-term investment outcomes by combining market understanding with quantitative analytics.

Backed by DSP, the AI-driven platform, going forward, aims to shore up its tech stack and enhance its predictive capabilities for smarter, data-driven investment decisions.