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Prosus 2024 report card: Byju’s write-off, Swiggy and PayU growth

EntrackrEntrackr · 1y ago
Prosus 2024 report card: Byju’s write-off, Swiggy and PayU growth
Medial

Prosus, (formerly Naspers) has published its 2024 annual report which includes its Indian portfolio companies. While the company wrote-off its investment in Byju’s, the South African investment conglomerate also offered performance of its bet in India. Fintrackr has analyzed the report to decode insights and nuggets into the Prosus’ portfolio which invested $8-9 billion in the country since 2018. Let’s start with Byju’s which is staring at bankruptcy. [Byju’s] During FY24, the investor wrote off its 9.6% stake in Byju’s, amounting to an investment of $493 million, due to a significant decline in the edtech giant’s equity value. They’d done the same with Zest Money in FY2023: wrote off their substantial 19.4% stake. [Swiggy] Prosus holds a 32.6% stake in Swiggy (excluding ESOP) which is set to make its public debut in the coming months. According to the report, the food delivery and quick commerce firm’s revenue from operations increased by 24%, driven by a 26% rise in its gross order value during the fiscal year ending March 2024. While the investor didn’t give revenue numbers, per our calculation, Swiggy ended FY24 with Rs 10,695 crore revenue in the fiscal year ending March 2024. Supported by a fleet of around 3,87,000 active delivery partners, Swiggy’s user base reached 104 million, according to the report. Its food delivery biz grew in double digits while the other revenue streams including restaurant advertising and platform fees helped Swiggy improve its operational profitability, the report added. Prosus also added a positive note to Swiggy’s quick commerce segment (Instamart) as its GOV increased with improved unit economics. Read: IPO Prep-Swiggy paints a healthy financial picture in the first 9 months of FY24, for more details. [PayU] Prosus operates and owns PayU (a subsidiary of Prosus) which reported a 22% year-on-year growth on a consolidated basis to $1.1 billion in FY24. PayU’s core payment gateway biz formed 88% of its overall collection which increased 23% to $975 million while the firm’s TPV (total payment value) spiked 22% in the previous fiscal year. According to the report, India is the largest market for its PSP business contributing 46% of core PSP revenue and 60% of TPV. Despite not being able to onboard new customers in FY24, this business grew 11% to $444 million in the said fiscal year. PayU’s India BNPL and personal credit revenue grew 29% to $107 million while the losses for this segment increased to $20 million followed by continuous investment in building the merchant lending portfolio, as per the report. PayU received in-principle authorization from the Reserve Bank of India (RBI) on 23 April 2024 to operate as a payment aggregator. The Gurugram-based firm also began onboarding new merchants.

Creditors may take over Byju’s as NCLT admits insolvency resolution

EntrackrEntrackr · 1y ago
Creditors may take over Byju’s as NCLT admits insolvency resolution
Medial

Byju’s, once the highest valued Indian startup, is set to face insolvency resolution process at the National Company Law Tribunal (NCLT) following a plea filed by the Indian cricket board. The Board of Control of Cricket in India (BCCI) had filed under section 9 of the Insolvency and Bankruptcy Code (IBC) 2016 which permits creditors to take control of the company from the current management. NCLT order in November 2023 said that Byju’s had defaulted on a payment of Rs 158 crore. NCLT has appointed Pankaj Srivastava as the interim resolution professional and he will run Byju’s till the lenders form a committee known as the Committee of Creditors. “The Interim Resolution Professional shall after collation of all the claims received against Think and Learn Pvt Ltd the Corporate Debtor and the determination of the financial position of the Corporate Debtor constitutes a Committee of Creditors,” the arbitrator order said. The NCLT order asserts that there is no ground to deny Corporate Insolvency Resolution Process (CIRP) by BCCI against Byju’s as defaults have been established by the Bengaluru-based edtech firm. Byju’s has been going through turmoil for the past couple of years. The firm already faced a funding crisis and saw an exodus at the top as well as board level in the past 12 months. In October 2023, the company’s chief financial officer Ajay Goel left whereas Arjun Mohoan, its chief executive for India, put in his papers in April this year. Rajnish Kumar and T V Mohandas Pai also left the company as advisors in July this year. Last month, investment firm Prosus, which has invested around $500 million in Byju’s over the years, wrote off the value of its 9.6% stake in the company. This came soon after Byju’s raised a $200 million rights issue at a valuation of $225 million. This is a 99% discount to its peak valuation of $22 billion. Not only Byju’s, its founder Raveendran’s net worth also went down to zero, according to Forbes Billionaire Index 2024.

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