MANIPAL GROUP CHAIRMAN Ranjan Pai recently emerged as the saviour for two prominent privately-held start-ups, Byju’s and PharmEasy. With an infusion of ? 1,400 crore into Byju’s subsidiary, Aakash Educational Services, and a substantial pledge of ₹1,300 crore for PharmEasy’s rights issue, Pai deftly averted impending debt threats for both entities. However, these rescue missions were not without their nuances—marked by significant valuation markdowns and the concession of attractive terms, including multiple board seats. The once-soaring trajectories of these category-leading start-ups, now grappling with debt challenges, cast a discerning spotlight on the looming debt crisis within India’s dynamic start-up landscape.
A lot of it can be attributed to the 2021 funding frenzy and the subsequent deceleration, leaving several Indian unicorns— start-ups with a valuation of $1 billion or more—with a substantial debt burden on their cap tables. According to PrivateCircle Research, a private market intelligence platform, 115 unicorns have collectively amassed over ₹50,000 crore of debt in 2022 alone, and for many, the burn of this debt burden is already being felt.
Denne historien er fra January 21, 2024-utgaven av Business Today India.
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Denne historien er fra January 21, 2024-utgaven av Business Today India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
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CORPORATE - Calling to Account
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TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS