Byju Raveendran’s Borrowings, OYO’s $525 Mn Acquisition, Physics Wallah’s Hunt and more

Byju Raveendran is making headlines as he secures funds to address overdue payments to BYJU’S teachers, just in time for the festive season. Meanwhile, Amazon is gearing up for the Great Indian Festival by rolling out its AI chatbot to enhance customer engagement.

OYO is making waves with its bold $525 Mn acquisition of Blackstone-owned G6 Hospitality as it expands its footprint in the US. Physics Wallah is on the hunt for investment bankers ahead of its anticipated 2025 market debut, and Capital A has launched a new INR 400 Cr fund to support 20 innovative startups.

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What Matters

“Badi Mushkil Baba, Badi Mushkil”: Byju Raveendran Borrows Funds To Make Small Payment To BYJU’S Teachers

In a recent turn of events, Byju Raveendran told teachers that he’s managed to scrape together some funds for a “small payment” by the weekend—a first after three months of silence on their salaries.

Despite ongoing challenges, including a Supreme Court case filed by US-based lenders Glas Trust, Raveendran remains optimistic about turning the tide. He also assured educators that they'll receive more than their “fair share” once he regains control of BYJU’S, but for now, they’ll have to settle for this interim lifeline.

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“Badhaai Ho Badhaai”: Ahead Of Festivity Kickoff, Amazon Rolls Out AI Chatbot To Boost Customer Reach

Just in time for the festive frenzy, Amazon India has introduced Rufus, an AI-powered shopping chatbot, on its mobile app ahead of the Great Indian Festival sale starting September 27. Rufus aims to enhance customer experience with natural language interactions and AI-generated review summaries.

Alongside this tech boost, Amazon has ramped up its operations with three new fulfillment centers and 110,000 seasonal jobs to ensure a shopping spree.

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“Hukumat Ki Jung”: OYO’s US Expansion As It Acquires Blackstone-Owned G6 Hospitality For $525 Mn

OYO is making moves in the US, snapping up Blackstone-owned G6 Hospitality for $525 million. The deal, set to close by the end of 2024, will see OYO bring its tech and marketing prowess to the Motel 6 and Studio 6 brands, aiming to boost their presence and profitability.

With Motel 6 already raking in $1.7 billion in gross room revenues, this acquisition positions OYO for a promising cash flow and a stronger foothold in the American market.

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“Aane Wala Kal”: Physics Wallah Seeks Investment Bankers For Market Debut In 2025

Physics Wallah is gearing up for a market splash, as it invites investment bankers to pitch for its IPO in 2025. The edtech giant is eyeing a valuation north of $2.8 billion, following its recent $210 million Series B raise.

With aggressive listing plans on the horizon, the company is setting the stage for a blockbuster debut that could reshape the edtech landscape.

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“Kaddu Katega, Sab Mein Batega”: Capital A Launches INR 400 Cr Fund II, Eyes Investments In 20 Startups

Capital A is doubling down on India’s startup scene with the launch of its INR 400 Cr Fund II, targeting investments in 20 promising startups across manufacturing, deeptech, climate tech, and fintech.

The VC firm plans to invest $2-3 million per company, nurturing them through their growth journey. After backing innovative names like Chargeup and Bambrew through Fund I, Capital A is now on the hunt for its next breakout success stories.

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1. Nykaa has boosted its stake in skincare brand Dot & Key to 90%, up from 51%, solidifying its control over the profitable company. This move follows plans to increase its share in Earth Rhythm, signaling Nykaa’s aggressive growth strategy in the beauty space.

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2. GlobalBees has boosted its stake in Solarista Renewables, the company behind ‘The Clownfish’ brand, by acquiring an additional 22.5% for INR 5.88 Cr. The investment strengthens GlobalBees’ portfolio in the bags and rainwear segment under its parent, FirstCry.

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3. Moglix has infused $50 Mn into its financing arm Credlix to fuel its expansion into the US, aiming to offer “collateral-free financing solutions” to SMEs in the manufacturing sector. With a strong base serving 16,000 SMEs in India and Southeast Asia, Credlix is set to scale its impact globally.

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4. BlueStone has crossed the INR 1,000 Cr revenue mark in FY24, hitting INR 1,265.8 Cr with a 64% surge while narrowing its losses by 15%. The jewellery brand's growth from existing stores has improved margins, and it recently raised INR 900 Cr in a pre-IPO round, valuing the company at $970 Mn.

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5. ELIVAAS has secured $5 Mn in funding led by 3one4 Capital, with support from Surge and angel investors, to enhance its vacation home management platform. The startup aims to use the funds to boost its tech capabilities, expand market reach, and scale operations.

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6. Big Bang Boom Solutions has raised $30 Mn from investors like Mumbai Angels Network and SBI Startup Branch Chennai to enhance its anti-drone technology. The deeptech startup plans to expand operations and develop new defense technologies, following a previous INR 200 Cr order from the Indian Air Force and Army.

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7. KreditBee's NBFC arm, KrazyBee, reported a net profit of INR 200.3 Cr in FY24, more than tripling from INR 65.1 Cr the previous year. Operating revenue also nearly doubled, highlighting the strong growth trajectory of the lendingtech startup.

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