 Morning Dispatch |
How Byju’s parent funded Aakash rights issue; Zetwerk IPO fully subscribed
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Happy Dussehra! Byju’s parent used money repaid by Great Learning to back Aakash’s rights issue. This and more in today’s ETtech Morning Dispatch.
Also in the letter:
■ LTTS Q2 net profit jumps
■ Super.money FY26 revenue triples
■ Even Healthcare raises funds
Programming note: There will be no edition of the ETtech Morning Dispatch on Wednesday, October 21. We’ll be back in your inbox on Thursday. Happy festivities.
Byju Raveendran, founder and CEO of Byju's
Think & Learn Pvt Ltd (TLPL), the bankrupt parent of edtech platform Byju’s, used part of a loan repayment received from Great Learning Education Services to subscribe to Aakash Educational Services’ rights issue, people aware of the matter told us.
Driving the news: A September 28 National Company Law Tribunal (NCLT) order approving TLPL’s settlement with Aakash, Manipal Education & Medical Group and other parties records utilisation of a portion of the money received from Great Learning. The money represented repayment of a Rs 160 crore loan by Great Learning, an upskilling company once part of Byju’s.
The transaction shows how the cash-strapped company funded its effort to preserve its holding in one of the few valuable assets remaining in the Byju’s ecosystem.
Yes, and:
Context: The transaction also adds to a years-long movement of cash and financing between Byju’s and businesses it acquired during its expansion phase. The amount received by TLPL and the portion deployed towards Aakash could not be ascertained.
Also Read: Byju’s parent to hold 32% in Aakash after settlement
(L-R) Zetwerk cofounders Ankit Fatehpuria, Vishal Chaudhary, Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma
Business-to-business (B2B) manufacturing platform Zetwerk’s Rs 5,012-crore initial public offering (IPO) was subscribed 3.06 times on Monday, its final bidding day, with institutional demand driving the sale while the retail portion remained undersubscribed.
Subscription details:
Valuation: The company is seeking a valuation of up to Rs 25,583 crore ($2.69 billion) at the upper end of the price band of Rs 143-151 per share.
Issue details: The IPO comprises a fresh issue of up to Rs 2,830 crore and an offer for sale (OFS) of 144.53 million shares by existing investors. The OFS includes 51.4 million shares from co-founders Amrit Acharya and Srinath Ramakkrushnan, and Creovate Innovation. Peak XV Partners, Lightspeed Venture Partners, and Accel India are also trimming their holdings.
Also Read: US AI infra demand driving Zetwerk’s order book growth: CEO Amrit Acharya
LTTS CEO Amit Chadha
Mid-tier engineering services firm L&T Technology Services (LTTS) on Monday reported a nearly 67% year-on-year increase in September-quarter net profit, helped by a one-time gain from the sale of its Smart World and Communication (SWC) business.
Financials:
One-time gain: The Pune-headquartered company booked a capital gain of Rs 165 crore from the SWC divestment, agreed in March to AMI Paradigm Solutions for Rs 452 crore, with proceeds directed toward AI, software and digital manufacturing.
Management take: “We are clearly seeing our clients talking about how to grow their markets. And given where we are on our order backlog and where we are on our order inflow, we are fairly comfortable to say that H2 will be better than H1,” chief executive and managing director Amit Chadha told us.
Super.money CEO Prakash Sikaria
Walmart-owned Flipkart’s payments and financial services platform Super.money more than tripled its FY26 operating revenues as its credit marketplace scaled up.
Numbers:
Even Healthcare raises funds: Bengaluru-based Even Healthcare has raised $50 million in a funding round led by existing investor Khosla Ventures, with participation from Alpha Wave, as it plans to expand its hospital network and scale up its managed care model.
Infosys expands partnership with Truist: Infosys on Monday announced the expansion of its collaboration with US-based financial services company Truist to help build the bank’s AI-first Global Capability Center in Hyderabad. The GCC will be adding 1,000 employees later this month, Infosys informed in a statement, and is expected to further expand with more people.
Will Meta’s earnings restore confidence in the AI boom? (FT)
Will developing nations be able to handle millions of AI agents? (Rest of World)
Anthropic thinks its AI might be conscious. It has profound consequences for your life (BBC)
Also in the letter:
■ LTTS Q2 net profit jumps
■ Super.money FY26 revenue triples
■ Even Healthcare raises funds
Programming note: There will be no edition of the ETtech Morning Dispatch on Wednesday, October 21. We’ll be back in your inbox on Thursday. Happy festivities.
Byju’s parent uses Great Learning loan repayment to fund Aakash rights issue
Think & Learn Pvt Ltd (TLPL), the bankrupt parent of edtech platform Byju’s, used part of a loan repayment received from Great Learning Education Services to subscribe to Aakash Educational Services’ rights issue, people aware of the matter told us.
Driving the news: A September 28 National Company Law Tribunal (NCLT) order approving TLPL’s settlement with Aakash, Manipal Education & Medical Group and other parties records utilisation of a portion of the money received from Great Learning. The money represented repayment of a Rs 160 crore loan by Great Learning, an upskilling company once part of Byju’s.
The transaction shows how the cash-strapped company funded its effort to preserve its holding in one of the few valuable assets remaining in the Byju’s ecosystem.
Yes, and:
- The Rs 160 crore loan was unsecured and carried 6.25% annual interest, per Great Learning’s financial statements.
- Of the amount extended, Rs 100 crore was due for repayment by July 25, 2025 and another Rs 60 crore by November 30, 2025.
- TLPL had also made available a further Rs 90 crore facility to Great Learning that remained undrawn.
Context: The transaction also adds to a years-long movement of cash and financing between Byju’s and businesses it acquired during its expansion phase. The amount received by TLPL and the portion deployed towards Aakash could not be ascertained.
Also Read: Byju’s parent to hold 32% in Aakash after settlement
Zetwerk IPO subscribed three times, retail portion falls short
Business-to-business (B2B) manufacturing platform Zetwerk’s Rs 5,012-crore initial public offering (IPO) was subscribed 3.06 times on Monday, its final bidding day, with institutional demand driving the sale while the retail portion remained undersubscribed.
Subscription details:
- Qualified institutional buyers (QIBs) bid 4.73 times their allocation.
- Non-institutional investors bid 1.40 times.
- Retail bids covered 73% of the shares reserved for them.
- Overall, investors sought 566.3 million shares against 182.9 million on offer, excluding the anchor allocation.
Valuation: The company is seeking a valuation of up to Rs 25,583 crore ($2.69 billion) at the upper end of the price band of Rs 143-151 per share.
Issue details: The IPO comprises a fresh issue of up to Rs 2,830 crore and an offer for sale (OFS) of 144.53 million shares by existing investors. The OFS includes 51.4 million shares from co-founders Amrit Acharya and Srinath Ramakkrushnan, and Creovate Innovation. Peak XV Partners, Lightspeed Venture Partners, and Accel India are also trimming their holdings.
Also Read: US AI infra demand driving Zetwerk’s order book growth: CEO Amrit Acharya
LTTS reports 67% net profit surge to Rs 548.2 crore, driven by SWC business
Mid-tier engineering services firm L&T Technology Services (LTTS) on Monday reported a nearly 67% year-on-year increase in September-quarter net profit, helped by a one-time gain from the sale of its Smart World and Communication (SWC) business.
Financials:
- Net profit: Up 67% at Rs 548 crore.
- Revenue: Grew 12% on-year to Rs 3,040.4 crore.
- Operating margin: Expanded 0.6 percentage points sequentially to 16.3%.
One-time gain: The Pune-headquartered company booked a capital gain of Rs 165 crore from the SWC divestment, agreed in March to AMI Paradigm Solutions for Rs 452 crore, with proceeds directed toward AI, software and digital manufacturing.
Management take: “We are clearly seeing our clients talking about how to grow their markets. And given where we are on our order backlog and where we are on our order inflow, we are fairly comfortable to say that H2 will be better than H1,” chief executive and managing director Amit Chadha told us.
Flipkart-backed Super.money’s revenue triples to Rs 292 crore, loss widens 78%
Walmart-owned Flipkart’s payments and financial services platform Super.money more than tripled its FY26 operating revenues as its credit marketplace scaled up.
Numbers:
- Operating revenue: Rose to Rs 292.4 crore during the year.
- Net loss: Widened 78% to Rs 263.8 crore.
- Total income: Climbed to Rs 293.3 crore from Rs 94 crore in FY25.
Other Top Stories By Our Reporters
Even Healthcare raises funds: Bengaluru-based Even Healthcare has raised $50 million in a funding round led by existing investor Khosla Ventures, with participation from Alpha Wave, as it plans to expand its hospital network and scale up its managed care model.
Infosys expands partnership with Truist: Infosys on Monday announced the expansion of its collaboration with US-based financial services company Truist to help build the bank’s AI-first Global Capability Center in Hyderabad. The GCC will be adding 1,000 employees later this month, Infosys informed in a statement, and is expected to further expand with more people.
Global Picks We Are Reading
Will Meta’s earnings restore confidence in the AI boom? (FT)
Will developing nations be able to handle millions of AI agents? (Rest of World)
Anthropic thinks its AI might be conscious. It has profound consequences for your life (BBC)
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