Morning buzz: Byju's $40 million load default; Tesla vendor base in India; EV 2-wheeler sales down
Here are the top business headlines of the day. Follow along through the day for top business stories and analysis
Byju Raveendran, CEO, Byju's. Image: Manjunath Kiran/AFP
Byju’s defaults on $40 million loan payment
Byju’s missed payment on a $40 million loan installment due on June 5. It sued its lender Redwood, an American investment management firm, for accelerating its loan payment and said it would only take further action based on the outcome of the suit. Byju’s is yet to file its audited FY22 financials. In April, lenders had demanded $200 million in prepayment and Byju’s was offering a higher interest rate in exchange for postponing payment.
(Economic Times, Business Standard, Mint)
Sequoia splits into three firms, India firm to be renamed PeakXV Partners
Sequoia Capital, the famed American venture capital firm, has split into three units. The United States, China and India businesses will operate independently. The firm said the move was necessitated as different markets operate with different strategies and this had led to some brand confusion and portfolio conflict. The India and South East Asia business will be renamed PeakXV Partners.
(Economic Times, Business Standard, Financial Express)
Tesla agrees to set up vendor base
Tesla Motors has agreed to set up a vendor base in India as it works on plans to manufacture cars in the country. The government was keen that it first starts with the vendor base but there are indications that the company would only do that if and when it starts manufacturing in India. Tesla does not believe in separating the manufacturing and vendor base, the story says. According to the story, the company is working hard on extracting concessions from the government and has said it will submit a plan on setting up an indigenous supply chain.
