Have you ever opened your phone to order food and found yourself stuck choosing between Zomato and Swiggy? We’ve all been there! But which one is truly better? Speaking of mind-blowing news, did you know India’s giant edtech startup BYJU’S is currently worth… well, zero rupees? Crazy, right? And that’s not all—Flipkart just launched a brand-new fintech app.
This is just a taste of what’s been cooking in the wild world of Indian startups. Want the inside scoop on all the juicy developments? Let’s dive into the “Startup Spotlight.” Here, we will unravel the top startup news from the week!
BYJU’S and Corporate Affairs Ministry
Despite rumors, BYJU’S has not been given a clean chit by the Ministry of Corporate Affairs. Reports surfaced claiming that BYJU’S had been cleared by the Ministry, but the center clarified that these reports are baseless. The investigation into BYJU’S is still ongoing. Once the apple of investors’ eyes, BYJU’S was valued at $22 billion at its peak, but today its net worth has significantly plummeted.
Government Investigation into BYJU’S
Big revelations have come from the government investigation into BYJU’S. Reports indicate there was no fund siphoning or account manipulation, but major corporate governance lapses have been flagged. Corporate governance is a growing concern among startups, and BYJU’S is no exception. The company is currently embroiled in multiple legal cases both in India and abroad, including proceedings in the National Company Law Tribunal.
Legal Battle Between Affle and Bobble AI
Another investor-startup rift is heating up. Affle India Limited is demanding a thorough inspection of Bobble AI. Affle secured a Delhi High Court order for this inspection, alleging resistance from Bobble AI. Affle claims Bobble AI is defying court orders and violating the Shareholders’ Agreement. Meanwhile, tensions escalated as Bobble AI failed to comply with the court’s orders, prompting Affle to pursue a contempt petition against Bobble AI. Affle alleges suspicious activities and breaches by Bobble AI’s management, including financial and regulatory issues.
Zomato Overtakes Swiggy in Food Delivery
Zomato is steadily winning over Swiggy in the food delivery race. According to a report from Goldman Sachs, Zomato now holds a 57% market share in India’s food ordering space, while Swiggy is trailing with 43%. This is up from Zomato’s 55% market share last year, continuing a trend of annual growth since 2011. Swiggy started food delivery in 2014, and Zomato joined the game in 2015. By 2019, Swiggy led with a 60% share, but Zomato has steadily gained ground ever since. Financially, Zomato is also winning. It reported an EBITDA income of $55 million last year, whereas Swiggy reported a loss of $150 million.
BYJU’S Valuation and Current Challenges
BYJU’S, once a shining star in the edtech industry, is now facing significant challenges. The company’s valuation has dropped to zero, a dramatic fall from its previous $22 billion valuation. This decline is due to multiple factors, including ongoing investigations, corporate governance issues, and financial struggles. Despite these setbacks, BYJU’S continues to be a major player in the edtech space, and its future developments will be closely watched by industry experts and investors alike.
New Launches and Innovations
In other exciting news, Flipkart has launched a new fintech app aimed at revolutionizing the digital payment landscape in India. This move is part of Flipkart’s broader strategy to expand its footprint in the fintech sector, offering a range of financial services to its vast customer base.
The startup ecosystem in India is buzzing with activity and innovation. From legal battles and corporate investigations to market share wars and new product launches, the landscape is constantly evolving. As startups like BYJU’S and SuperKalam navigate challenges and opportunities, they are shaping the future of business in India. Stay tuned to the “Startup Spotlight” for more updates and insights into the dynamic world of Indian startups.
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