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Ola Electric IPO pricing; insolvency order against Byju’s
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Ola Electric's initial public offering (IPO) may hit the market at around 25% below its last valuation. This and more on today’s ETtech Top 5.
Also in the letter:
■ Paytm gets Sebi notice
■ Micron CBO on India facility
■ Namma Yatri raises $11 million
Bhavish Aggarwal, founder, Ola Electric
Electric vehicle (EV) firm Ola Electric’s public offering is likely to be priced at a valuation of around $4 billion, a discount of 25% to its last private funding round.
Tell me more: The Bhavish Aggarwal-led EV maker is expected to raise Rs 5,500 crore in capital via the IPO, aside from an offer-for-sale (OFS) component.
At a valuation of $4 billion, Aggarwal could make around $52 million from the share sale.
“The valuation expectation has undergone readjustment since the EV major first filed its draft IPO papers. The founder has agreed to a 25-27% discount to its last round pricing,” a person aware of the matter said.
![Ola Electric Charging to make a buzz on IPO street shareholders July 2024 Graphic ETTECH Ola Electric Charging to make a buzz on IPO street shareholders July 2024 Graphic ETTECH](https://img.etimg.com/photo/msid-111788328/Ola Electric Charging to make a buzz on IPO street shareholders July 2024 Graphic ETTECH.jpg)
Sebi nod: Ola Electric secured markets regulator Sebi’s nod for its IPO last month, we had reported. The company, per its December draft red herring prospectus (DRHP), is also facilitating an OFS of 95.2 million shares.
Context: The Bengaluru-based company was initially aiming for a $6-7 billion valuation but has tempered it since then.
Its plan to hit the market comes amid recent launches from Bajaj Auto and TVS Motor, which have challenged Ola Electric’s market share in the first half of July, per Vahan data.
Run up to IPO: In a bid to rein in costs, Ola Electric let go of around 600-800 employees, along with making internal transfers within the group as part of a business restructuring.
On June 29, CEO Aggarwal said he plans to invest $100 million (about Rs 834 crore) in the first phase of building its Gigafactory for producing lithium-ion battery cells.
Byju Raveendran, founder, Byju's
The National Company Law Tribunal (NCLT) on Tuesday admitted troubled edtech Byju’s parent company Think and Learn into insolvency over unpaid sponsorship dues of Rs 158 crore to the Board of Control for Cricket in India (BCCI).
Details: The tribunal detemined that Byju's fulfilled the criteria for insolvency due to an outstanding debt and failure to make payments.
![BCCI vs Byju s Timeline July 2024 Graphic ETTECH BCCI vs Byju s Timeline July 2024 Graphic ETTECH](https://img.etimg.com/photo/msid-111787582/BCCI vs Byju s Timeline July 2024 Graphic ETTECH.jpg)
Case history: Byju's initially signed a jersey sponsorship agreement with the BCCI in March 2019 for three years, which was extended by one year. The company made payments till September 2022. The case pertains to dues from October 2022 till March 2023. BCCI initiated insolvency proceedings against the firm in September 2023. Byju’s later sought arbitration on the matter.
Also read: Explainer: How Byju's went from startup star to facing insolvency
No value left: Byju’s has troubles on other fronts as well. ET reported on June 24 that Dutch-listed technology investment firm Prosus has written off its 9.6% stake in the cash-strapped firm, marking a $493 million loss.
Vijay Shekhar Sharma, CEO, Paytm
Paytm received a warning letter from the Securities and Exchange Board of India (Sebi) stating that transactions in FY22 between Paytm and the now defunct Paytm Payments Bank occurred without approval from the company's audit committee or its shareholders.
Tell me more: Sebi's warning focuses on related party transactions worth Rs 360 crore. These deals, conducted during FY21-22, lacked necessary approvals from both the audit committee and shareholders. Taking a servious view on the violations, the stock market regulator has warned Paytm parent One 97 Communications to improve its compliance systems.
Company statement: Paytm said it has consistently adhered to all listing regulations and will address Sebi's concerns with a detailed response. This comes at a time when the listed fintech firm has been facing regulatory scrutiny across multiple businesses.
Corporate misconduct: Industry insiders said such related party transactions need to be conducted as per legal procedures, and lapses do not hold the company in good stead. A senior lawyer said while it might be a genuine oversight, such cases always raise queries. This could invite further scrutiny from the markets regulator going forward, he said.
Impact: Paytm has seen a massive value erosion over the last six months. In January, before the Reserve Bank of India cracked down on PPBL’s business, Paytm was trading at around Rs 761. The stock closed down 2% on Tuesday at Rs 469.
![ONDC Bengaluru auto booking app Namma Yatri ONDC THUMB IMAGE ET TECH ONDC Bengaluru auto booking app Namma Yatri ONDC THUMB IMAGE ET TECH](https://img.etimg.com/photo/msid-111787654/ONDC Bengaluru auto booking app Namma Yatri ONDC THUMB IMAGE ET TECH.jpg)
Bengaluru-based ride-hailing app Namma Yatri has raised Rs 92 crore ($11 million) in a funding round led by Blume Ventures and Antler. Tech giant Google was also among the investors who participated in this pre-Series A round.
Tell me more: Namma Yatri gained traction over the past couple of years in Bengaluru as it offered its services to auto drivers for zero commissions. But from September last year, the ride-hailing platform kicked off subscription fees for drivers.
Quote, unquote: "We were amazed by the simplicity of what the tech and a robust product can do to solve mass mobility. We are glad to partner with an exceptional team and back their grand vision," Karthik Reddy, partner at Blume Ventures, said about the latest funding.
Also read: Namma Yatri launches cab services in Bengaluru, says no subscription fees till October
Healthcare finance startup Icanheal raises Rs 15 crore funding from IvyCap Ventures: Icanheal, a healthcare financing startup, has raised Rs 15 crore from early-stage venture capital firm IvyCap Ventures. The funds will be used to scale operations, recruit more employees, invest in technology, and expand geographically.
Also read: EV ride-hailing company BluSmart raises $24 million in funding
Sumit Sadana, chief business officer, Micron Technology
American technology firm Micron is hoping to start its India facility by 2025, which will complement a part of its global sales given its AI-led products are sold out till 2025, chief business officer Sumit Sadana told ET in an interview.
He also spoke of expensive AI products, investment in Indian startups, and more. Edited excerpts:
On upcoming India facility: We have been working with various organisations in India to make this project a reality and we expect it to be operational in 2025. We expect to start shipping volume from there as the largest semiconductor back-end manufacturing facility, assembly, packaging in India.
Startups keeping up: The data centre infrastructure needed to train these models is quite expensive and not easy for startups to afford. Startups that have a good value proposition for new capabilities can certainly partner with large companies and can create a win-win solution because the large companies do put up these massive data centres and put that infrastructure in there.
Infographic insight | Who are the big guns fuelling AI?
![AI AI](https://img.etimg.com/photo/msid-111787728/AI.jpg)
Generative artificial intelligence (GenAI) startups are attracting attention from companies and venture capitalists (VCs), drawing investments across fields like healthcare, finance and robotics. A report shows that private investment in GenAI has increased to $25.23 billion in 2023 from less than $5 billion in 2022.
![The big guns fuelling AI July 2024 Graphic ETTECH The big guns fuelling AI July 2024 Graphic ETTECH](https://img.etimg.com/photo/msid-111787749/The big guns fuelling AI July 2024 Graphic ETTECH.jpg)
Also read: Indian AI startups funding plunges 91% to $8.2 million in Q2
Today’s ETtech Top 5 newsletter was curated by Riya Roy Chowdhury and Vaibhavi Khanwalkar in Bengaluru.
Also in the letter:
■ Paytm gets Sebi notice
■ Micron CBO on India facility
■ Namma Yatri raises $11 million
Ola Electric IPO pricing likely at 25% lower than private valuation of $5.4 billion: sources
![ola funding bhavish aggarwal thumb ettech 1 ola funding bhavish aggarwal thumb ettech 1](https://img.etimg.com/photo/msid-111787522/ola funding bhavish aggarwal thumb ettech 1.jpg)
Electric vehicle (EV) firm Ola Electric’s public offering is likely to be priced at a valuation of around $4 billion, a discount of 25% to its last private funding round.
Tell me more: The Bhavish Aggarwal-led EV maker is expected to raise Rs 5,500 crore in capital via the IPO, aside from an offer-for-sale (OFS) component.
At a valuation of $4 billion, Aggarwal could make around $52 million from the share sale.
“The valuation expectation has undergone readjustment since the EV major first filed its draft IPO papers. The founder has agreed to a 25-27% discount to its last round pricing,” a person aware of the matter said.
![Ola Electric Charging to make a buzz on IPO street shareholders July 2024 Graphic ETTECH Ola Electric Charging to make a buzz on IPO street shareholders July 2024 Graphic ETTECH](https://img.etimg.com/photo/msid-111788328/Ola Electric Charging to make a buzz on IPO street shareholders July 2024 Graphic ETTECH.jpg)
Sebi nod: Ola Electric secured markets regulator Sebi’s nod for its IPO last month, we had reported. The company, per its December draft red herring prospectus (DRHP), is also facilitating an OFS of 95.2 million shares.
Context: The Bengaluru-based company was initially aiming for a $6-7 billion valuation but has tempered it since then.
Its plan to hit the market comes amid recent launches from Bajaj Auto and TVS Motor, which have challenged Ola Electric’s market share in the first half of July, per Vahan data.
Run up to IPO: In a bid to rein in costs, Ola Electric let go of around 600-800 employees, along with making internal transfers within the group as part of a business restructuring.
On June 29, CEO Aggarwal said he plans to invest $100 million (about Rs 834 crore) in the first phase of building its Gigafactory for producing lithium-ion battery cells.
NCLT admits BCCI's plea seeking insolvency proceedings against Byju's
![Byjus Crisis Byjus Crisis](https://img.etimg.com/photo/msid-111787543/Byjus Crisis.jpg)
The National Company Law Tribunal (NCLT) on Tuesday admitted troubled edtech Byju’s parent company Think and Learn into insolvency over unpaid sponsorship dues of Rs 158 crore to the Board of Control for Cricket in India (BCCI).
Details: The tribunal detemined that Byju's fulfilled the criteria for insolvency due to an outstanding debt and failure to make payments.
- Under insolvency, the edtech’s current management stands automatically suspended
- Pankaj Srivastava has been appointed as the interim resolution professional to run ops until a Committee of Creditors (CoC) is formed
- Byju’s assets will be protected under moratorium, preventing any transfer or sale of its assets and institution of any new suits against it
![BCCI vs Byju s Timeline July 2024 Graphic ETTECH BCCI vs Byju s Timeline July 2024 Graphic ETTECH](https://img.etimg.com/photo/msid-111787582/BCCI vs Byju s Timeline July 2024 Graphic ETTECH.jpg)
Case history: Byju's initially signed a jersey sponsorship agreement with the BCCI in March 2019 for three years, which was extended by one year. The company made payments till September 2022. The case pertains to dues from October 2022 till March 2023. BCCI initiated insolvency proceedings against the firm in September 2023. Byju’s later sought arbitration on the matter.
Also read: Explainer: How Byju's went from startup star to facing insolvency
No value left: Byju’s has troubles on other fronts as well. ET reported on June 24 that Dutch-listed technology investment firm Prosus has written off its 9.6% stake in the cash-strapped firm, marking a $493 million loss.
Sebi raps Paytm for related party transactions with payments bank
![Vijay Shekhar Sharma Paytm Vijay Shekhar Sharma Paytm](https://img.etimg.com/photo/msid-111787636/Vijay Shekhar Sharma Paytm.jpg)
Paytm received a warning letter from the Securities and Exchange Board of India (Sebi) stating that transactions in FY22 between Paytm and the now defunct Paytm Payments Bank occurred without approval from the company's audit committee or its shareholders.
Tell me more: Sebi's warning focuses on related party transactions worth Rs 360 crore. These deals, conducted during FY21-22, lacked necessary approvals from both the audit committee and shareholders. Taking a servious view on the violations, the stock market regulator has warned Paytm parent One 97 Communications to improve its compliance systems.
Company statement: Paytm said it has consistently adhered to all listing regulations and will address Sebi's concerns with a detailed response. This comes at a time when the listed fintech firm has been facing regulatory scrutiny across multiple businesses.
Corporate misconduct: Industry insiders said such related party transactions need to be conducted as per legal procedures, and lapses do not hold the company in good stead. A senior lawyer said while it might be a genuine oversight, such cases always raise queries. This could invite further scrutiny from the markets regulator going forward, he said.
Impact: Paytm has seen a massive value erosion over the last six months. In January, before the Reserve Bank of India cracked down on PPBL’s business, Paytm was trading at around Rs 761. The stock closed down 2% on Tuesday at Rs 469.
Namma Yatri raises maiden $11-million funding from Google, Blume Ventures, Antler
![ONDC Bengaluru auto booking app Namma Yatri ONDC THUMB IMAGE ET TECH ONDC Bengaluru auto booking app Namma Yatri ONDC THUMB IMAGE ET TECH](https://img.etimg.com/photo/msid-111787654/ONDC Bengaluru auto booking app Namma Yatri ONDC THUMB IMAGE ET TECH.jpg)
Bengaluru-based ride-hailing app Namma Yatri has raised Rs 92 crore ($11 million) in a funding round led by Blume Ventures and Antler. Tech giant Google was also among the investors who participated in this pre-Series A round.
Tell me more: Namma Yatri gained traction over the past couple of years in Bengaluru as it offered its services to auto drivers for zero commissions. But from September last year, the ride-hailing platform kicked off subscription fees for drivers.
Quote, unquote: "We were amazed by the simplicity of what the tech and a robust product can do to solve mass mobility. We are glad to partner with an exceptional team and back their grand vision," Karthik Reddy, partner at Blume Ventures, said about the latest funding.
Also read: Namma Yatri launches cab services in Bengaluru, says no subscription fees till October
Healthcare finance startup Icanheal raises Rs 15 crore funding from IvyCap Ventures: Icanheal, a healthcare financing startup, has raised Rs 15 crore from early-stage venture capital firm IvyCap Ventures. The funds will be used to scale operations, recruit more employees, invest in technology, and expand geographically.
Also read: EV ride-hailing company BluSmart raises $24 million in funding
AI is as foundational as discovery of fire, says Micron global CBO
![sumit sadana sumit sadana](https://img.etimg.com/photo/msid-111787698/sumit sadana.jpg)
American technology firm Micron is hoping to start its India facility by 2025, which will complement a part of its global sales given its AI-led products are sold out till 2025, chief business officer Sumit Sadana told ET in an interview.
He also spoke of expensive AI products, investment in Indian startups, and more. Edited excerpts:
On upcoming India facility: We have been working with various organisations in India to make this project a reality and we expect it to be operational in 2025. We expect to start shipping volume from there as the largest semiconductor back-end manufacturing facility, assembly, packaging in India.
Startups keeping up: The data centre infrastructure needed to train these models is quite expensive and not easy for startups to afford. Startups that have a good value proposition for new capabilities can certainly partner with large companies and can create a win-win solution because the large companies do put up these massive data centres and put that infrastructure in there.
Infographic insight | Who are the big guns fuelling AI?
![AI AI](https://img.etimg.com/photo/msid-111787728/AI.jpg)
Generative artificial intelligence (GenAI) startups are attracting attention from companies and venture capitalists (VCs), drawing investments across fields like healthcare, finance and robotics. A report shows that private investment in GenAI has increased to $25.23 billion in 2023 from less than $5 billion in 2022.
![The big guns fuelling AI July 2024 Graphic ETTECH The big guns fuelling AI July 2024 Graphic ETTECH](https://img.etimg.com/photo/msid-111787749/The big guns fuelling AI July 2024 Graphic ETTECH.jpg)
Also read: Indian AI startups funding plunges 91% to $8.2 million in Q2
Today’s ETtech Top 5 newsletter was curated by Riya Roy Chowdhury and Vaibhavi Khanwalkar in Bengaluru.
Want this newsletter delivered to your inbox?
I agree to receive newsletters and marketing communications via e-mail
![](https://img.etimg.com/photo/msid-81268931,quality-100/et-logo.jpg)
Thank you for subscribing to Daily Top 5
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