Buzz: Investors play hardball for ed-tech firm

ET’s weekly roundup of the wackiest whispers and murmurs in corporate corridors & policy parlours:Credit CallsThe big news last week was the Supreme Court judgement related to one of India’s biggest corporate feuds. While the verdict was straight forward, we are wondering about unintended consequences, if any. For example, for the creditors of the minority shareholder group. Most prominent among them is India’s largest mortgage lender. Is the lender going to be forced to write down its large exposure and cover that with gains from the sale of minority stakes in one of its arms, or will it simply continue to carry it at its current value? In the recent past, several analysts have been examining the group’s exposure. We wonder how the relationship between the two will play out in these trying times?Purse Strings ControlOver recent weeks there’s a spring cleaning underway of both portfolio and personnel at this Mumbai-based conglomerate. The group CFO role is vacant — we gather it will most likely be an internal candidate from the services side of the group. The individual had played a pivotal role in the acquisition and integration of one of the group’s most daring buyouts, so he’s well suited to take charge of its finances that do need a bit of a vitamin shot.Tough GradesLooking at the skyhigh valuations of Byju’s and its edu-tech peers, the VC community is clearly betting heavily on the sector. We were therefore quite surprised to hear that this relatively young company, blessed by a well-known entrepreneur influencer, seems to be facing rough weather. Its numbers are down by almost 40% this fiscal and the three topnotch investors who were all set to join the cap table with a mega infusion are now playing hardball. Hope this one won’t flunk even before graduation just as campuses are thinking of opening up.Be a SportWe never thought a cry for help from this young business leader would translate to a red card! Turns out his SoS to the chief patron of one of our top sporting leagues created a flutter among the office bearers who misconstrued it as a rough tackle. We still don’t understand why since all he wanted to understand was the financial viability of the tournament amid mounting losses. After all, sports too is big business and we see no reason why simple questions should be regarded as acts of insolence. 81742017Maharaja’s MinionsA former high-flying PE executive, who once managed money for none other than Michael Dell before being part of a controversial investment firm accused of fraud, seems ready to be in the cockpit once again. Turns out he’s helping put together a bid for Air India behind the scenes. Though the executive is not formally involved in the consortium, he’s been dialling his old Wall Street contacts and HBS alumni to put together a financing arrangement for his friends. Politically connected and wealthy, his bond with the leader of the pack has been further cemented by board positions and proximity to a late cabinet minister. But we wonder if his credentials will convince global moneybags to bankroll his friends after billions got sunk in Gurgaon real estate.Tunnel VisionThe passion and zeal of a founder could be a double-edged sword, burning up the team or even creating a toxic work culture. A little bird tells us this highflying unicorn is facing internal turmoil. At least three CXOs have quit in quick succession with one serving out the notice period as you read this. A senior human resources hand left recently and a top backend logistics executive is also on the way out. We have seen too many startups trip once they start to scale up—time to take a chill pill perhaps and share responsibilities.

from Economic Times https://ift.tt/3w62MYT