StartupTalky

Tag: MCA

  • Swiggy Receives MCA Approval to Include Sports Arm

    The corporate affairs ministry (MCA) has given foodtech giant Swiggy permission to incorporate Swiggy Sports Private Limited, its sports division. The company stated in an exchange filing on January 16 that the newly incorporated entity’s primary goals will be to engage in sports team ownership, management, talent development, event organisation, and facility operation; provide career services; acquire broadcasting and sponsorship rights; and promote sporting events using a variety of business models, among other activities.

    The approval follows a month after the foodtech major’s board approved the establishment of a new subsidiary to serve the sports and entertainment and recreation sectors. When Swiggy announced the establishment of the subsidiary in December, it stated that it was solely going to house the Mumbai pickleball team that it had purchased from the World Pickleball League (WPBL). According to Swiggy, the brand’s current connection in sports is restricted to owning the pickleball team’s rights in Mumbai, and there are no intentions to get further involved in sports.

    Swiggy Expanding its Network and Services

    The most recent development coincides with Swiggy‘s aggressive expansion into new markets and introduction of additional products. It just released its new “SNACC” app, which provides meal delivery in a few areas of Bengaluru in 15 minutes.  With the release of a new app called Pyng Professional last week, it also made an entry into the services marketplace business. In the meantime, Swiggy Scenes, a new service that allows customers to reserve parties and events at Swiggy’s partner restaurants, was introduced by the firm in December. Before that, Swiggy also unveiled “One BLCK,” a new premium invite-only membership club.

    In an attempt to cut down on food waste throughout its value chain, listed foodtech giant Swiggy has started a new campaign called “Swiggy Serves.” In an effort to combat hunger nationwide, Swiggy intends to redistribute excess food from its restaurant partners to underprivileged areas, the firm announced in a statement. The non-profit Robin Hood Army, based in Delhi NCR, has partnered with the Sriharsha Majety-led company on the Swiggy Serves project. By the end of 2030, it hopes to deliver 50 million meals to underprivileged communities. With the help of more than 126 restaurant partners, the two have already redistributed 2,000 meals among 33 locations as part of the recently established campaign’s trial.

    Zomato Also Catching Up

    Aiming to expand beyond its core food delivery services and hyper commerce, Zomato launched ‘District’ in August of last year with the goal of consolidating its going-out business, which includes eating and ticketing (movies and events). With this, Zomato entered a number of new markets under one corporate umbrella, including lifestyle services, sports ticketing, live events, retail, staycations, and more. Swiggy’s most recent move is expected to expand the rivalry between the two titans in rapid commerce beyond the food delivery industry.

    Dunzo App and Website Go Down Amid Employee Exodus
    Dunzo’s app and website experience downtime as the company faces significant employee departures, raising operational concerns.
    StartupTalkyNitin Konde

  • The Supreme Court Has Temporarily Halted the Appeals Tribunal’s Decision Over the BYJU’S-BCCI Settlement

    On Wednesday, the Supreme Court issued a stay of the NCLAT ruling that had set aside the insolvency proceedings against the ed-tech major. This effectively enabled Byju Raveendran, the owner of the company, to regain control of the business.

    The ruling of the NCLAT that approved the settlement of Byju’s dues with the BCCI amounts to INR 158.9 crore, but the highest court has placed that verdict on hold. This decision has put a strong blow on Byju’s.

    The order was issued in response to a pleading by Glas Trust Company LLC, a creditor situated in the United States, against the verdict of the NCLAT. Glas Trust Company LLC asserts that they are owed one billion dollars by Byju’s.

    Additionally, a panel that was led by Chief Justice DY Chandrachud ordered the Board of Control for Cricket in India (BCCI) to maintain a separate account for the INR 158.9 crore that it had received from Byju’s as a result of a settlement.

    Insolvency proceedings against BYJU’S were halted on August 2 after the National Company Law Appellate Tribunal (NCLAT) gave its approval to the settlement of INR 158.9 crore in dues with the BCCI.

    How This Decision Can Bring More Trouble for BYJU’S

    Following the decision of the Supreme Court, the insolvency proceedings against BYJU’S will resume. This will result in the ed-tech major, which was previously valued at USD 22 Billion, being placed under the control of an insolvency administrator chosen by the court.

    At the beginning of this month, Byju Raveendran was able to restore control of the company after the National Company Law Appellate Tribunal (NCLAT) dismissed the insolvency procedures that were being brought against the startup.

    The cricket regulating body of India filed a complaint, stating that the company had not been paid its sponsorship dues, which resulted in the company being placed in the process of going bankrupt. After some time, the two parties reached a settlement on the issue, and an appeals tribunal put a stop to the insolvency procedures.

    Why BYJU’S Is Going Through a Financial Crunch?

    The fast growth and forceful strategy of acquisitions employed by BYJU’S have put a heavy burden on its financial resources. Many are worried about the company’s long-term viability because of its substantial need for outside finance, despite the fact that it has raised billions in cash.

    Despite the initial boost to online education caused by the COVID-19 pandemic, the market became saturated, which affected Byju’s growth trajectory.

    Misleading advertising, unauthorised charges, and trouble getting your money back are just a few of the customer service issues that have plagued Byju’s. Not only have these problems damaged the company’s image, but they have also prompted lawsuits.

    Members of the Enforcement Directorate and the Ministry of Corporate Affairs (MCA) are among the regulatory agencies that are constantly monitoring the operations of the company.

    Investigations have been initiated due to allegations of financial irregularities, such as disparities in revenue recognition and possible violations of the Foreign Exchange Management Act (FEMA).

    At the heart of both the company’s success and its present problems has been Byju Raveendran, founder and CEO of Byju’s. Now that stakeholders and investors are demanding answers about the company’s performance, his leadership is under scrutiny.

    BYJU’S Faces Legal Challenges: BCCI’s Insolvency Petition Accepted by NCLT
    Explore the latest developments as the country’s education tech giant BYJU’s encounters significant financial and legal issues.
    StartupTalkyNitin Konde