Weekly Business Updates: From Zomato’s Co-founder’s resignation to ED action on Fiewin Scam

1. Akriti Chopra’s Departure Marks a New Era for Zomato

The news that Akriti Chopra is leaving Zomato after 13 years is not only a big shift in the company’s leadership but also a deeply personal one. Chopra, a major contributor to Zomato’s HR strategy, was crucial in forming the company’s culture and staff as it expanded to become one of the biggest food tech companies in India. Her departure casts doubt on the company’s viability in a cutthroat industry.

2. Online Gambling Scam: ED’s Crackdown on Fiewin App

The Enforcement Directorate (ED) has made a significant arrest in relation to a large-scale internet gaming scam that defrauded unwary consumers of over INR 400 crore, or roughly $47.6 million. The fraudulent activity was centered on the well-known software Fiewin, an online gambling platform that enticed users with fast payouts only to defraud them of their money.

3. Zerodha Continues Its Winning Streak Amid Growing Financial Landscape

The leading discount brokerage company in India, Zerodha, has continued to grow rapidly, with revenue in FY24 rising to ₹8,320 crore from ₹6,875 crore the year before. Profits for the corporation shot up to ₹4,700 crore, demonstrating its supremacy in the Indian banking system. However, Zerodha’s development in response to a complicated and heavily regulated financial environment is what makes the company’s story intriguing.

4. Byju’s Legal Woes Deepen with Delaware Court Ruling

The once-dominant edtech company Byju’s has run across yet another legal obstacle. In a case involving a $1.2 billion loan default, the Delaware Supreme Court rendered a landmark decision, siding with the company’s lenders, Glas Trust LLC. Byju’s Alpha, Byju’s subsidiary, was judged by the court to have violated its financial responsibilities, so giving the lenders the right to pursue legal claims against the company. For Byju’s, which has been struggling financially for the past year, this decision is a severe blow.

What does this mean for Byju’s? The court ruling not only intensifies the financial strain but also casts a shadow over its future operations, particularly in the international market. The edtech giant, once celebrated for revolutionizing online learning, now faces the challenge of restructuring its debt and rebuilding trust with investors. The ruling also signals potential operational disruptions if Glas Trust takes control of Byju’s Alpha. This case has become a cautionary tale for Indian startups that expand aggressively but face governance and financial accountability issues on a global scale.

5. Foxconn’s $1 Billion Bet on Tamil Nadu: A Boost for India’s Manufacturing Ambitions

An exciting new chapter in India’s development as a major hub for the production of electronics is likely to begin with Foxconn, a major participant in Apple’s supply chain, allegedly mulling a $1 billion investment to establish a smartphone display module factory in Tamil Nadu. The proposed investment, which would be Foxconn’s first of its kind in India, would be concentrated on providing display modules for iPhones, and it might further enhance India’s standing as a key manufacturing hub.

This is not just an Apple move. It is indicative of a larger trend in which multinational corporations are shifting their supply networks away from China. Foxconn is taking a chance on India’s increasing significance in global manufacturing by establishing a facility there. The new facility is expected to strengthen India’s technological infrastructure, provide thousands of jobs, and solidify the country’s position as a key player in the global electronics supply chain.

6. Byju’s Bankruptcy Proceedings Temporarily Paused Amid Legal Battle

Byju’s bankruptcy procedures have been temporarily halted by the Supreme Court of India, giving the struggling edtech company a little respite. This decision is made in the middle of a legal dispute between Byju’s and Glas Trust, which has turned into a fierce conflict over who will control Byju’s Alpha, the company’s subsidiary located in Delaware. Byju’s has some breathing room after the Supreme Court’s verdict on September 26, 2024, but the legal battle is far from over.