Top Startup News: From Byju’s Legal Battles to the Rise of Drones

India’s startup ecosystem is bustling with activity, showcasing a mix of groundbreaking innovations, high-stakes legal tussles, and government interventions aimed at shaping the country’s entrepreneurial future. This week, Byju’s finds itself embroiled in another legal quagmire, while OfBusiness takes significant steps toward a billion-dollar IPO. Zomato and Swiggy continue their rivalry in the food delivery space, and the government doubles down on its push for electric vehicles and IT development.

On another front, West Bengal is positioning itself as a tech hub with policies that support drones and semiconductors. Meanwhile, SEBI’s proposed changes to SME IPO norms and the tightening of social media influencer guidelines hint at a more regulated future for these sectors. The drone industry, in particular, is soaring to new heights, capturing attention with its rapid innovation.

TICE puts spotlight at the top startup stories of the week that are setting the stage for transformative changes.

Top Startup News Of The Week

1. NCLT Halts Aakash’s Governance Restructure Amid Byju’s Legal Troubles

The National Company Law Tribunal (NCLT) has stepped in to block Aakash Educational Services from amending its Articles of Association (AoA), a move that prevents Byju’s from diluting its stake in the edtech giant. This comes as part of a larger legal dispute involving allegations of asset misuse and shareholder rights violations after Byju’s acquired Aakash in 2021. The decision intensifies pressure on Byju’s, already under scrutiny from investors and regulators.

Read More: Byju’s Lenders Accuse Ex-Management of Diluting Aakash Stake

2. OfBusiness Eyes $1 Billion IPO With Top Investment Banks

B2B tech platform OfBusiness is gearing up for a $1 billion IPO by late 2025, partnering with Axis Capital, JPMorgan, and Citigroup. Known for its robust supply chain solutions, the company reported an impressive $2.3 billion revenue in 2023. Backed by SoftBank and Tiger Global, OfBusiness plans to scale its operations ahead of the IPO, showcasing resilience amidst challenging market conditions.

3. Zomato Tightens Grip on Food Delivery Market Over Swiggy

Zomato continues to dominate India’s food delivery market with a 58% share in Q2 2024, outpacing its competitor Swiggy, which holds 42%. Zomato’s expansive restaurant network and strong brand recall have played a significant role in its success. However, Swiggy isn’t backing down, leveraging better take rates and higher revenues. Both players are investing heavily in technology and marketing, ensuring a fierce battle for market supremacy.

4. Government Accelerates EV Adoption With Electrification Drive

India is speeding up its push for electric vehicles (EVs) by planning to electrify its official fleets. Alongside this, the PM E-Drive scheme aims to encourage EV adoption among consumers. These measures align with India’s vision of reducing fossil fuel dependency and advancing sustainable mobility. The move is expected to boost the EV industry and contribute to India’s clean energy goals.

5. West Bengal’s IT Push: New Policies and Tech Hubs in Focus

At the Tech Meet 2024, West Bengal unveiled initiatives to attract IT investments, focusing on semiconductors, drones, and Global Capability Centers (GCCs). The state is also launching a drone academy and updating drone policies to foster innovation. These measures are designed to position West Bengal as a major player in India’s tech landscape, tapping into the country’s growing demand for cutting-edge solutions.

6. SEBI Proposes Overhaul of SME IPO Framework

To address issues in the SME IPO market, SEBI has proposed new rules, including increasing the minimum IPO size to ₹10 crore and mandating ₹3 crore in operating profit for eligible companies. These changes aim to enhance transparency and safeguard investor interests. If implemented, the new framework could reshape opportunities for smaller enterprises seeking public funding.

7. Stricter Guidelines for Social Media Influencers in India

The Indian government has introduced new guidelines requiring social media influencers to disclose sponsored content clearly. The move ensures greater transparency in influencer marketing, protecting consumers from misleading promotions. Non-compliance could lead to penalties, signaling a shift in how brands and influencers collaborate. This development is set to impact the rapidly growing influencer ecosystem.

Read More: Adani Bribery Case: Who Bribed Whom? Why Are US Authorities Involved?

8. Drone Industry Soars With Focus on Research and Innovation

India’s drone industry is taking off, driven by increased focus on research, innovation, and production scaling. Centers of Excellence are being established nationwide to promote advancements in drone technology. West Bengal has been proactive with updated drone policies and infrastructure initiatives, highlighting the sector’s potential in transforming industries like agriculture, logistics, and defense.

As the Indian startup ecosystem continues to evolve, these stories reflect the opportunities and challenges that lie ahead. Stay tuned for more updates on the innovations and transformations shaping the country’s entrepreneurial landscape.

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