This week's recap: Nestle's $1B Buyout, OYO's IPO Plans, & More Layoffs
This Week in Business: Valuation Cuts, Acquisitions, and Layoffs.
Good morning, We’re Back! It's time to grab a cup of chai and dive into the exciting world of business. From funding rounds to product launches, we've got you covered. So sit back, relax, and let's see what's been brewing in the scene this week.
In today’s email:
BYJU'S Valuation Takes a Hit: BlackRock Cuts Value by 50%
$1 Billion Buyout: Nestle to acquire Ching’s Noodle Brand
OYO Plans for an IPO: Slashes IPO Size To $400-$600 Mn
Layoff Continues: Accenture, Unadcemdy, and many more
1. BYJU'S Valuation Takes a Hit 📉
BlackRock, a US-based asset manager, has slashed the valuation of Byju's, an Indian edtech giant, by about 50% to $11.5 billion.
This is a significant markdown from the $22 billion valuation that Byju's had achieved in 2022 after raising $250 million in funding. BlackRock, which owns less than 1% stake in Byju's, has been marking down the value of its shares in the company since June last year. The reason for this valuation cut is not clear, but it could be related to Byju's increasing losses, regulatory issues, and competitive pressures in the edtech sector.
Byju's is one of the most valued startups in India and has acquired several companies in the past year, including WhiteHat Jr, Aakash Educational Services, and Epic. However, it has also faced several challenges, such as lawsuits, layoffs, and loan defaults. BlackRock's valuation cut could impact Byju's future fundraising plans and growth prospects. Read More.
2. Nestle to acquire Ching’s Noodle Brand 🥡
Nestle SA, the world’s biggest food group, is among final bidders competing to acquire India’s Capital Foods Pvt as it seeks to boost its presence in the fast-growing economy, people familiar with the matter said.
The Swiss company has been discussing terms of a potential deal for Mumbai-based Capital Foods, the people said, asking not to be identified because the information is private. Any transaction would likely value the Indian firm at more than $1 billion, according to the people.
Capital Foods makes the Ching’s Secret brand of spicy noodles and fusion chutneys infused with so-called “desi Chinese” flavors. It also sells Smith & Jones cooking pastes and masala mixes. Read More.
3. OYO Plans for an IPO 🏠
Three months after markets regulator SEBI directed OYO to refile its DRHP, the hospitality major has filed the documents through the confidential pre-filing route and with a reduced size.
Analysts say IPO size has been reduced to $400-$600 Mn. The unicorn will raise the funds through the issuance of fresh shares to repay its debt.
OYO is now eyeing a public listing around Diwali pursuant to SEBI approval, the sources added. It is pertinent to note that OYO first filed its DRHP in September 2021. At that time, it planned to raise INR 8,430 Cr ($1.2 Bn) through the market listing.
Catch Up Quick 🚀
Meta Blue Tick To Cost INR 1,450 For Mobile In India: Meta Verified will cost Rs 1,099/month if subscribed from a web browser. The program is in the beta phase, and interested users have to currently join the waiting list to get their accounts verified.
Government fines Google: National Company Law Appellate Tribunal has ordered Google to deposit the Rs 1,337 crore penalty alleging abuse of its dominant market position by Google in the Android ecosystem.
Swiggy Valuation Dropped: Invesco, one of the top investors in food tech giant Swiggy, has slashed the company's valuation from $10.7 billion to $8 billion amid challenging market conditions.
ZestMoney Layoffs: The company plans to layoffs after digital payments giant PhonePe canceled its plans to acquire the company over due diligence concerns, according to Moneycontrol.
Dunzo plans to raise $50 Million: Two months after laying off 3% of its employees, Reliance-backed Dunzo is now looking to raise nearly $50 million in a fresh round of funding.
India collects Rs 157.9 crore on crypto taxes: According to Finance Ministry, India has collected Rs 157.9 crore direct tax on payments made upon virtual digital assets (VDA) transfer until March 20, 2023.
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See you next week 👋