Ahead of India's upcoming budget, all eyes are on capital expenditure (capex) as the government continues to&nbsp;focus on&nbsp;infrastructure projects. With the current fiscal year projecting a government spending of around $120 billion; analysts are optimistic that the upcoming budget will witness a surge of at least 10 per cent in capex.<o:p></o:p>

Government's big infra push<o:p></o:p>

Since the onset of the COVID-19 pandemic, the Indian government has significantly upped its game in capex. The figures have more than doubled since the 2020-21 budget, highlighting a remarkable commitment to fortify the nation's economic foundation. This boost in government spending has played a pivotal role in ensuring India's economic resilience amid the global slowdown.<o:p></o:p>

Key role of capex in development<o:p></o:p>

Capital expenditure primarily channels funds into critical infrastructure projects, such as roads and railways. Beyond immediate economic stimulus, this investment aims to enhance productivity, job creation, and stimulate long-term demand and trade.<o:p></o:p>

The private sector, which faced subdued capex between 2020 and 2022 due to global uncertainties, has seen a positive shift. In the April-September 2023 period, India's private businesses announced capex exceeding $75 billion. This marked a staggering 40 per cent increase compared to the ten-year average, indicating a robust economic outlook for the country.<o:p></o:p>

Analysts' expectations<o:p></o:p>

Analysts are closely monitoring the interim budget, recognising its potential to shape private capex. While 2023 showcased a remarkable rebound for the private sector, the upcoming budget is expected to provide crucial cues that will influence the trajectory of private investment in the nation.<o:p></o:p>

The collective surge in both government and private capex underscores India's economic buoyancy. Increased investment in infrastructure and development projects is set to not only fortify the economy but also position India as a key player in the global economic landscape.<o:p></o:p>

Ahead of India's upcoming budget, all eyes are on capital expenditure (capex) as the government continues to focus on infrastructure projects. With the current fiscal year projecting a government spending of around $120 billion; analysts are optimistic that the upcoming budget will witness a surge of at least 10 per cent in capex.

Ahead of India's upcoming budget, all eyes are on capital expenditure (capex) as the government continues to focus on infrastructure projects. With the current fiscal year projecting a government spending of around $120 billion; analysts are optimistic that the upcoming budget will witness a surge of at least 10 per cent in capex. Government's big infra push Since the onset of the COVID-19 pandemic, the Indian government has significantly upped its game in capex. The figures have more than doubled since the 2020-21 budget, highlighting a remarkable commitment to fortify the nation's economic foundation. This boost in government spending has played a pivotal role in ensuring India's economic resilience amid the global slowdown. Key role of capex in development Capital expenditure primarily channels funds into critical infrastructure projects, such as roads and railways. Beyond immediate economic stimulus, this investment aims to enhance productivity, job creation, and stimulate long-term demand and trade. The private sector, which faced subdued capex between 2020 and 2022 due to global uncertainties, has seen a positive shift. In the April-September 2023 period, India's private businesses announced capex exceeding $75 billion. This marked a staggering 40 per cent increase compared to the ten-year average, indicating a robust economic outlook for the country. Analysts' expectations Analysts are closely monitoring the interim budget, recognising its potential to shape private capex. While 2023 showcased a remarkable rebound for the private sector, the upcoming budget is expected to provide crucial cues that will influence the trajectory of private investment in the nation. The collective surge in both government and private capex underscores India's economic buoyancy. Increased investment in infrastructure and development projects is set to not only fortify the economy but also position India as a key player in the global economic landscape.

Budget 2024: All eyes on the government's capex as India pushes for big-ticket infrastructure

Saudi Arabia's unexpected decision to abandon plans to increase its oil production capacity by 8 per cent to 13 million barrels a day by 2027 has sparked speculation about the kingdom's outlook on future oil demand.<o:p></o:p>

This is based on a Bloomberg report.<o:p></o:p>

The announcement from state-run Saudi Aramco has fuelled discussions about whether Riyadh is growing more pessimistic about oil consumption amid the global shift towards low-carbon energy. <o:p></o:p>

While concerns about demand are part of the equation, another significant factor is the competition from rival oil producers, particularly US shale.<o:p></o:p>

The lack of a detailed explanation from Saudi Aramco regarding the shift in production plans has led to speculation within the industry. <o:p></o:p>

Some experts believe that Riyadh's decision is not necessarily permanent shelving but a delay in upstream expansion plans, possibly due to concerns about softer oil balances in the coming years. <o:p></o:p>

Bob McNally, President of Rapidan Energy Group, suggests that Riyadh is responding to the challenges posed by increased supply outside the OPEC+ alliance, indicating a strategic move to adapt to changing market dynamics.<o:p></o:p>

The surge in production from rival suppliers, particularly US shale, has been a persistent concern for Saudi Arabia and its OPEC+ allies. <o:p></o:p>

The shale oil revolution, which began around a decade ago, had a profound impact on global oil markets, leading to a significant drop in crude prices. <o:p></o:p>

Despite the initial retreat of shale drillers during the COVID-19 pandemic, they have staged a comeback in recent years, contributing to record-breaking American output exceeding 13 million barrels a day. <o:p></o:p>

The resilience of shale, coupled with increased production from other nations like Brazil and Guyana, has created a scenario of plenty in the oil market, impacting prices and influencing strategic decisions by major oil-producing nations.<o:p></o:p>

While Saudi Arabia's decision has been associated with global oil market trends, domestic factors are also in play. <o:p></o:p>

The kingdom is expected to face a budget shortfall of about 4.3 per cent of GDP in 2024, with funding requirements exceeding $46 billion. <o:p></o:p>

Economic diversification initiatives, championed by Crown Prince Mohammed bin Salman, involve substantial spending on tourism, sports, and other projects. Aramco, being 98 per cent state-owned, pays significant dividends to the government, even with production cuts. <o:p></o:p>

Abandoning the expansion plans to reach 13 million barrels a day could alleviate budgetary pressures on Aramco by reducing annual spending by approximately $5 billion, providing financial flexibility amid economic challenges.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

Saudi Arabia's unexpected decision to abandon plans to increase its oil production capacity by 8 per cent to 13 million barrels a day by 2027 has sparked speculation about the kingdom's outlook on future oil demand.

Saudi Arabia's unexpected decision to abandon plans to increase its oil production capacity by 8 per cent to 13 million barrels a day by 2027 has sparked speculation about the kingdom's outlook on future oil demand. This is based on a Bloomberg report. The announcement from state-run Saudi Aramco has fuelled discussions about whether Riyadh is growing more pessimistic about oil consumption amid the global shift towards low-carbon energy. While concerns about demand are part of the equation, another significant factor is the competition from rival oil producers, particularly US shale. The lack of a detailed explanation from Saudi Aramco regarding the shift in production plans has led to speculation within the industry. Some experts believe that Riyadh's decision is not necessarily permanent shelving but a delay in upstream expansion plans, possibly due to concerns about softer oil balances in the coming years. Bob McNally, President of Rapidan Energy Group, suggests that Riyadh is responding to the challenges posed by increased supply outside the OPEC+ alliance, indicating a strategic move to adapt to changing market dynamics. The surge in production from rival suppliers, particularly US shale, has been a persistent concern for Saudi Arabia and its OPEC+ allies. The shale oil revolution, which began around a decade ago, had a profound impact on global oil markets, leading to a significant drop in crude prices. Despite the initial retreat of shale drillers during the COVID-19 pandemic, they have staged a comeback in recent years, contributing to record-breaking American output exceeding 13 million barrels a day. The resilience of shale, coupled with increased production from other nations like Brazil and Guyana, has created a scenario of plenty in the oil market, impacting prices and influencing strategic decisions by major oil-producing nations. While Saudi Arabia's decision has been associated with global oil market trends, domestic factors are also in play. The kingdom is expected to face a budget shortfall of about 4.3 per cent of GDP in 2024, with funding requirements exceeding $46 billion. Economic diversification initiatives, championed by Crown Prince Mohammed bin Salman, involve substantial spending on tourism, sports, and other projects. Aramco, being 98 per cent state-owned, pays significant dividends to the government, even with production cuts. Abandoning the expansion plans to reach 13 million barrels a day could alleviate budgetary pressures on Aramco by reducing annual spending by approximately $5 billion, providing financial flexibility amid economic challenges. (With inputs from Bloomberg)

Saudi Arabia shelves oil production expansion plans, raising questions on future demand

The International Monetary Fund (IMF) has revised down Pakistan's growth estimate for fiscal year 2024 to two per cent, marking a 0.5 per cent reduction from October's projection of 2.5 per cent, AFP reported.<o:p></o:p>

The World Economic Outlook (WEO) report for January highlighted challenges facing Pakistan's economy, with the IMF estimate falling below the government's target of 3.5 per cent GDP growth for the current year. <o:p></o:p>

In contrast, the IMF raised its global growth forecast to 3.1 per cent for 2024, citing unexpected resilience in major economies worldwide, including the United States and China.<o:p></o:p>

AFP cited IMF Chief Economist Pierre-Olivier Gourinchas, who noted, "The global economy continues to display remarkable resilience, with inflation declining steadily and growth holding up."<o:p></o:p>

Economists express concerns about Pakistan's economic trajectory, emphasising the need for targeted reforms to stimulate growth. The downgraded growth estimate signals a challenging environment for the country, requiring proactive measures to address structural issues and boost economic prospects.<o:p></o:p>

The IMF's revised projection is indicative of the multifaceted challenges Pakistan faces, including inflation, energy prices, and weakened foreign demand. Experts stress the importance of policy interventions to navigate these challenges and foster a more robust economic landscape.<o:p></o:p>

While Pakistan faces economic headwinds, the global economic outlook appears more optimistic, with the IMF upgrading its 2024 global growth forecast to 3.1 per cent. Despite acknowledging the remarkable resilience of the global economy, Gourinchas highlighted the persistence of risks and challenges. <o:p></o:p>

Policymakers worldwide continue to grapple with the impact of elevated interest rates, the withdrawal of pandemic-related government support, and consistently low levels of productivity. The IMF predicts that global growth will remain below its recent historical average, indicating a cautious approach toward the ongoing complexities of the global economic landscape.<o:p></o:p>

The United States and China, the world's two largest economies, received significant upgrades to their growth outlook for 2024. The IMF now expects the US economy to grow by 2.1 per cent, down slightly from an estimated 2.5 per cent in 2023. <o:p></o:p>

In contrast, China's economy is on track to achieve 4.6 per cent growth, reflecting carryover from stronger-than-expected growth in 2023 and increased government spending on capacity building. India continues to shine as a bright spot in the global economy, with a growth estimate of 6.5 per cent for 2024.<o:p></o:p>

Despite ongoing challenges in Europe, Asia remains buoyant, contributing to an overall positive growth outlook for many countries in 2024.<o:p></o:p>

(With inputs from AFP)<o:p></o:p>

The International Monetary Fund (IMF) has revised down Pakistan's growth estimate for fiscal year 2024 to two per cent, marking a 0.5 per cent reduction from October's projection of 2.

The International Monetary Fund (IMF) has revised down Pakistan's growth estimate for fiscal year 2024 to two per cent, marking a 0.5 per cent reduction from October's projection of 2.5 per cent, AFP reported. The World Economic Outlook (WEO) report for January highlighted challenges facing Pakistan's economy, with the IMF estimate falling below the government's target of 3.5 per cent GDP growth for the current year. In contrast, the IMF raised its global growth forecast to 3.1 per cent for 2024, citing unexpected resilience in major economies worldwide, including the United States and China. AFP cited IMF Chief Economist Pierre-Olivier Gourinchas, who noted, "The global economy continues to display remarkable resilience, with inflation declining steadily and growth holding up." Economists express concerns about Pakistan's economic trajectory, emphasising the need for targeted reforms to stimulate growth. The downgraded growth estimate signals a challenging environment for the country, requiring proactive measures to address structural issues and boost economic prospects. The IMF's revised projection is indicative of the multifaceted challenges Pakistan faces, including inflation, energy prices, and weakened foreign demand. Experts stress the importance of policy interventions to navigate these challenges and foster a more robust economic landscape. While Pakistan faces economic headwinds, the global economic outlook appears more optimistic, with the IMF upgrading its 2024 global growth forecast to 3.1 per cent. Despite acknowledging the remarkable resilience of the global economy, Gourinchas highlighted the persistence of risks and challenges. Policymakers worldwide continue to grapple with the impact of elevated interest rates, the withdrawal of pandemic-related government support, and consistently low levels of productivity. The IMF predicts that global growth will remain below its recent historical average, indicating a cautious approach toward the ongoing complexities of the global economic landscape. The United States and China, the world's two largest economies, received significant upgrades to their growth outlook for 2024. The IMF now expects the US economy to grow by 2.1 per cent, down slightly from an estimated 2.5 per cent in 2023. In contrast, China's economy is on track to achieve 4.6 per cent growth, reflecting carryover from stronger-than-expected growth in 2023 and increased government spending on capacity building. India continues to shine as a bright spot in the global economy, with a growth estimate of 6.5 per cent for 2024. Despite ongoing challenges in Europe, Asia remains buoyant, contributing to an overall positive growth outlook for many countries in 2024. (With inputs from AFP)

IMF downgrades Pakistan's growth forecast for 2024: Report

The German economy, already grappling with persistent inflation, high energy prices, and weak foreign demand, experienced a contraction of 0.3 per cent in the final quarter of 2023, signalling a challenging start to the new year.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

While the contraction in the fourth quarter avoided technically qualifying as a recession, with GDP stagnating in the previous two quarters, economists are cautioning that a recession may be imminent.<o:p></o:p>

The Ifo institute forecasted a 0.2 per cent decline in GDP for the first quarter of 2024, indicating a potentially challenging economic landscape. <o:p></o:p>

Reuters cited Commerzbank economist Joerg Kraemer, who noted, "Private consumption, on which the optimists are counting, has disappointed right up to the end," while Alexander Krueger from Hauck Aufhaeuser Lampe highlighted that economic output in Germany hasn't seen growth in the past four years.<o:p></o:p>

In response to the economic challenges, the heads of four prominent German lobby groups sent a joint letter to Chancellor Olaf Scholz, urging reforms to boost the country's industry. The letter, dated Tuesday, appealed for measures to address major structural challenges faced by the German economy.<o:p></o:p>

The presidents of the BDI industry association, the BDA employers' association, the DIHK Chambers of Commerce, and the ZDH association for skilled trade called for cheaper electricity prices, investment in infrastructure, and tax reform to spur an economic turnaround.<o:p></o:p>

&nbsp;The letter emphasised the urgency of implementing these measures to support German industry in the face of the economic headwinds.<o:p></o:p>

Chancellor Scholz's government faces increasing pressure as it navigates the dual challenges of transitioning toward a greener economy and shielding industries from high production costs and global competition. The recent economic downturn has heightened the urgency for reforms. <o:p></o:p>

Despite the bleak outlook, Thomas Gitzel of VP Bank identified a silver lining in easing inflation, offering potential relief. <o:p></o:p>

With the consumer price index expected to return towards the European Central Bank's 2 per cent target by the middle of the year, Gitzel sees an opportunity for European monetary authorities to cut interest rates. <o:p></o:p>

This, he believes, would benefit companies, consumers, and particularly the struggling construction industry.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

The German economy, already grappling with persistent inflation, high energy prices, and weak foreign demand, experienced a contraction of 0.3 per cent in the final quarter of 2023, signalling a challenging start to the new year.

The German economy, already grappling with persistent inflation, high energy prices, and weak foreign demand, experienced a contraction of 0.3 per cent in the final quarter of 2023, signalling a challenging start to the new year. This is based on a Reuters report. While the contraction in the fourth quarter avoided technically qualifying as a recession, with GDP stagnating in the previous two quarters, economists are cautioning that a recession may be imminent. The Ifo institute forecasted a 0.2 per cent decline in GDP for the first quarter of 2024, indicating a potentially challenging economic landscape. Reuters cited Commerzbank economist Joerg Kraemer, who noted, "Private consumption, on which the optimists are counting, has disappointed right up to the end," while Alexander Krueger from Hauck Aufhaeuser Lampe highlighted that economic output in Germany hasn't seen growth in the past four years. In response to the economic challenges, the heads of four prominent German lobby groups sent a joint letter to Chancellor Olaf Scholz, urging reforms to boost the country's industry. The letter, dated Tuesday, appealed for measures to address major structural challenges faced by the German economy. The presidents of the BDI industry association, the BDA employers' association, the DIHK Chambers of Commerce, and the ZDH association for skilled trade called for cheaper electricity prices, investment in infrastructure, and tax reform to spur an economic turnaround. The letter emphasised the urgency of implementing these measures to support German industry in the face of the economic headwinds. Chancellor Scholz's government faces increasing pressure as it navigates the dual challenges of transitioning toward a greener economy and shielding industries from high production costs and global competition. The recent economic downturn has heightened the urgency for reforms. Despite the bleak outlook, Thomas Gitzel of VP Bank identified a silver lining in easing inflation, offering potential relief. With the consumer price index expected to return towards the European Central Bank's 2 per cent target by the middle of the year, Gitzel sees an opportunity for European monetary authorities to cut interest rates. This, he believes, would benefit companies, consumers, and particularly the struggling construction industry. (With inputs from Reuters)

German economy nears recession as end-of-year contraction sparks concerns

Chipmaker AMD on Tuesday announced a $1.5 billion boost to its 2024 forecast for artificial intelligence (AI) processors, aiming for a total of $3.5 billion. However, this optimistic projection fell short of meeting the high expectations set by Wall Street, leaving investors wanting more. <o:p></o:p>

According to Reuters, AMD's stock, which has surged approximately 140 per cent in the past year, saw a decline of about 6 per cent in extended trading as the company also provided first-quarter revenue estimates below Wall Street's predictions.<o:p></o:p>

Investing.com analyst Jesse Cohn expressed disappointment with AMD's performance, highlighting a "notable miss on operating income and operating margins." <o:p></o:p>

Cohn emphasised the challenge the company faced amid elevated expectations, stating, "The company had little margin for error amid lofty expectations, and investors were disappointed with the forward guidance provided for the current quarter." <o:p></o:p>

AMD's CEO Lisa Su acknowledged the company's potential to surpass the projected $3.5 billion worth of AI chip sales once additional capacity comes online in the second half of the year. <o:p></o:p>

However, analysts, who had previously projected figures ranging from $4 billion to $8 billion for the AI segment, found the update fell short of their expectations, impacting the stock valuation.<o:p></o:p>

During a conference call, Lisa Su commented on the soft demand from cloud computing companies within AMD's data centre segment, which includes both traditional server chips and AI processors. <o:p></o:p>

Su noted that as companies strive to develop their own generative AI applications, enterprise budgets are directed towards processors used in AI servers. <o:p></o:p>

With Nvidia holding a dominant 80 per cent market share, AMD's position as a viable alternative in the market is crucial. <o:p></o:p>

Despite the overall growth of AMD's data centre segment by 38 per cent to $2.3 billion, the company faces challenges in the evolving landscape of AI and cloud computing.<o:p></o:p>

AMD's struggles extend beyond the AI segment, with weaknesses evident in the programmable chip market, which has seen a downturn due to a chip supply glut impacting industries like automotive and industrial. <o:p></o:p>

The fourth-quarter embedded segment revenue for AMD fell roughly 24 per cent to $1.1 billion. Additionally, the gaming segment experienced a 17 per cent contraction to $1.4 billion, influenced by reaching peak revenue from chip designs for gaming consoles like Microsoft's Xbox and Sony's PlayStation 5. <o:p></o:p>

While AMD anticipates growth in the PC market with built-in AI capabilities, scepticism remains among investors and analysts regarding the company's ability to meet the expectations set by its competitors.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Chipmaker AMD on Tuesday announced a $1.5 billion boost to its 2024 forecast for artificial intelligence (AI) processors, aiming for a total of $3.5 billion. However, this optimistic projection fell short of meeting the high expectations set by Wall Street, leaving investors wanting more.

Chipmaker AMD on Tuesday announced a $1.5 billion boost to its 2024 forecast for artificial intelligence (AI) processors, aiming for a total of $3.5 billion. However, this optimistic projection fell short of meeting the high expectations set by Wall Street, leaving investors wanting more. According to Reuters, AMD's stock, which has surged approximately 140 per cent in the past year, saw a decline of about 6 per cent in extended trading as the company also provided first-quarter revenue estimates below Wall Street's predictions. Investing.com analyst Jesse Cohn expressed disappointment with AMD's performance, highlighting a "notable miss on operating income and operating margins." Cohn emphasised the challenge the company faced amid elevated expectations, stating, "The company had little margin for error amid lofty expectations, and investors were disappointed with the forward guidance provided for the current quarter." AMD's CEO Lisa Su acknowledged the company's potential to surpass the projected $3.5 billion worth of AI chip sales once additional capacity comes online in the second half of the year. However, analysts, who had previously projected figures ranging from $4 billion to $8 billion for the AI segment, found the update fell short of their expectations, impacting the stock valuation. During a conference call, Lisa Su commented on the soft demand from cloud computing companies within AMD's data centre segment, which includes both traditional server chips and AI processors. Su noted that as companies strive to develop their own generative AI applications, enterprise budgets are directed towards processors used in AI servers. With Nvidia holding a dominant 80 per cent market share, AMD's position as a viable alternative in the market is crucial. Despite the overall growth of AMD's data centre segment by 38 per cent to $2.3 billion, the company faces challenges in the evolving landscape of AI and cloud computing. AMD's struggles extend beyond the AI segment, with weaknesses evident in the programmable chip market, which has seen a downturn due to a chip supply glut impacting industries like automotive and industrial. The fourth-quarter embedded segment revenue for AMD fell roughly 24 per cent to $1.1 billion. Additionally, the gaming segment experienced a 17 per cent contraction to $1.4 billion, influenced by reaching peak revenue from chip designs for gaming consoles like Microsoft's Xbox and Sony's PlayStation 5. While AMD anticipates growth in the PC market with built-in AI capabilities, scepticism remains among investors and analysts regarding the company's ability to meet the expectations set by its competitors. (With inputs from Reuters)

AMD's AI Chip ambitions face Wall Street skepticism despite $1.5 bn boost in forecast

Amazon and iRobot have abandoned their $1.4 billion merger plans, citing opposition from both EU and US antitrust regulators. <o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

The decision follows concerns raised by EU antitrust chief Margrethe Vestager, who revealed that an in-depth investigation indicated the acquisition "would have enabled Amazon to foreclose iRobot's rivals by restricting or degrading access to Amazon stores." <o:p></o:p>

Amazon's General Counsel, David Zapolsky, expressed disappointment, stating, "We're believers in the future of consumer robotics in the home and have always been fans of iRobot's products."<o:p></o:p>

In response to the collapsed merger, iRobot has announced a significant restructuring plan, aiming to reduce costs. <o:p></o:p>

As part of this plan, approximately 31 per cent of iRobot's workforce, equivalent to 350 jobs, will be cut.<o:p></o:p>

Additionally, founder Colin Angle has stepped down as the CEO of the Roomba robot vacuum manufacturer, with Angle and the board mutually agreeing that a new leader with turnaround experience would better serve iRobot in the face of current challenges. <o:p></o:p>

The termination of the merger deal comes after the EU and US antitrust regulators raised concerns about potential anti-competitive practices.<o:p></o:p>

The EU antitrust chief, Vestager, explained that the preliminary investigation suggested Amazon's acquisition of iRobot could have resulted in adverse effects on competition. <o:p></o:p>

Vestager highlighted concerns that Amazon might delist rival robot vacuum cleaners, reduce their visibility, or raise advertising costs for competitors on Amazon's marketplace, particularly in key European markets. <o:p></o:p>

The Federal Trade Commission (FTC) in the US was also set to reject the deal, planning to recommend a legal challenge to block the acquisition before the companies officially abandoned it.<o:p></o:p>

While Amazon expressed disappointment over the deal's failure, iRobot faces financial implications. <o:p></o:p>

The robot vacuum manufacturer anticipates reporting a 25 per cent reduction in full-year 2023 revenue, amounting to $891 million, with an expected loss between $265 and $285 million. <o:p></o:p>

As per the terms of the merger agreement, Amazon will pay iRobot a termination fee of $94 million. iRobot shares experienced a 7.2 per cent drop in afternoon trading on Monday, continuing a downward trend since the EU regulators' initial reports about potential blocks two weeks ago.<o:p></o:p>

In contrast, Amazon shares saw a rise of nearly 1 per cent.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Amazon and iRobot have abandoned their $1.4 billion merger plans, citing opposition from both EU and US antitrust regulators. This is based on a Reuters report. The decision follows concerns raised by EU antitrust chief Margrethe Vestager, who revealed that an in-depth investigation indicated the acquisition "would have enabled Amazon to foreclose iRobot's rivals by restricting or degrading access to Amazon stores.

Amazon and iRobot have abandoned their $1.4 billion merger plans, citing opposition from both EU and US antitrust regulators. This is based on a Reuters report. The decision follows concerns raised by EU antitrust chief Margrethe Vestager, who revealed that an in-depth investigation indicated the acquisition "would have enabled Amazon to foreclose iRobot's rivals by restricting or degrading access to Amazon stores." Amazon's General Counsel, David Zapolsky, expressed disappointment, stating, "We're believers in the future of consumer robotics in the home and have always been fans of iRobot's products." In response to the collapsed merger, iRobot has announced a significant restructuring plan, aiming to reduce costs. As part of this plan, approximately 31 per cent of iRobot's workforce, equivalent to 350 jobs, will be cut. Additionally, founder Colin Angle has stepped down as the CEO of the Roomba robot vacuum manufacturer, with Angle and the board mutually agreeing that a new leader with turnaround experience would better serve iRobot in the face of current challenges. The termination of the merger deal comes after the EU and US antitrust regulators raised concerns about potential anti-competitive practices. The EU antitrust chief, Vestager, explained that the preliminary investigation suggested Amazon's acquisition of iRobot could have resulted in adverse effects on competition. Vestager highlighted concerns that Amazon might delist rival robot vacuum cleaners, reduce their visibility, or raise advertising costs for competitors on Amazon's marketplace, particularly in key European markets. The Federal Trade Commission (FTC) in the US was also set to reject the deal, planning to recommend a legal challenge to block the acquisition before the companies officially abandoned it. While Amazon expressed disappointment over the deal's failure, iRobot faces financial implications. The robot vacuum manufacturer anticipates reporting a 25 per cent reduction in full-year 2023 revenue, amounting to $891 million, with an expected loss between $265 and $285 million. As per the terms of the merger agreement, Amazon will pay iRobot a termination fee of $94 million. iRobot shares experienced a 7.2 per cent drop in afternoon trading on Monday, continuing a downward trend since the EU regulators' initial reports about potential blocks two weeks ago. In contrast, Amazon shares saw a rise of nearly 1 per cent. (With inputs from Reuters)

Amazon & iRobot scrap $1.4 billion merger amid antitrust concerns

Teradyne, a prominent supplier of semiconductor testing equipment, has relocated manufacturing operations worth approximately $1 billion out of China, citing disruptions caused by US export controls.<o:p></o:p>

According to Reuters, the Massachusetts-based company made this strategic move in response to US regulations issued in October 2022, which restricted exports to semiconductor manufacturing facilities in China, aiming to safeguard US technology from contributing to the country's military capabilities.<o:p></o:p>

The main manufacturing site affected by Teradyne's decision was a factory in Suzhou, where the company subcontracted semiconductor test equipment production to Flextronics. <o:p></o:p>

The relocation of manufacturing activities followed the US rules implemented in October 2022, reflecting a broader trend among US companies seeking to reduce dependence on China amid heightened tensions and regulatory constraints in the US-China tech battle. <o:p></o:p>

Teradyne's annual report for 2022 had already cautioned investors about potential repercussions from the October regulations, emphasizing the impact on sales and operations in China.<o:p></o:p>

Brian Amero, Teradyne's Director of Global Compliance and Ethics, revealed details of the move during a virtual export conference. <o:p></o:p>

Amero explained, "We did manufacturing in China, so we had to get an emergency authorization to continue that activity. We decided that was too risky, so we moved manufacturing out of China — at no insignificant expense."<o:p></o:p>

&nbsp;The company faced supply chain disruptions as some suppliers hesitated to ship to Teradyne, despite authorisation. <o:p></o:p>

However, Amero noted that Teradyne eventually obtained licenses to mitigate the impact of the regulations. <o:p></o:p>

He emphasised that the US updated the rules in October 2023, carving out an exception for testing equipment used after a wafer is created.<o:p></o:p>

Amero acknowledged the ongoing challenges posed by the evolving export controls, stating, "It's still a front-burner issue." <o:p></o:p>

While Teradyne was not a "direct target" of the regulations, the company experienced significant impacts, particularly in market share. <o:p></o:p>

Although Amero did not provide specific figures, Teradyne's financials for the three months ending October 1, 2023, revealed a shift, with China accounting for 12 per cent of revenues, down from 16 per cent during the same quarter the previous year. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Teradyne, a prominent supplier of semiconductor testing equipment, has relocated manufacturing operations worth approximately $1 billion out of China, citing disruptions caused by US export controls.

Teradyne, a prominent supplier of semiconductor testing equipment, has relocated manufacturing operations worth approximately $1 billion out of China, citing disruptions caused by US export controls. According to Reuters, the Massachusetts-based company made this strategic move in response to US regulations issued in October 2022, which restricted exports to semiconductor manufacturing facilities in China, aiming to safeguard US technology from contributing to the country's military capabilities. The main manufacturing site affected by Teradyne's decision was a factory in Suzhou, where the company subcontracted semiconductor test equipment production to Flextronics. The relocation of manufacturing activities followed the US rules implemented in October 2022, reflecting a broader trend among US companies seeking to reduce dependence on China amid heightened tensions and regulatory constraints in the US-China tech battle. Teradyne's annual report for 2022 had already cautioned investors about potential repercussions from the October regulations, emphasizing the impact on sales and operations in China. Brian Amero, Teradyne's Director of Global Compliance and Ethics, revealed details of the move during a virtual export conference. Amero explained, "We did manufacturing in China, so we had to get an emergency authorization to continue that activity. We decided that was too risky, so we moved manufacturing out of China — at no insignificant expense." The company faced supply chain disruptions as some suppliers hesitated to ship to Teradyne, despite authorisation. However, Amero noted that Teradyne eventually obtained licenses to mitigate the impact of the regulations. He emphasised that the US updated the rules in October 2023, carving out an exception for testing equipment used after a wafer is created. Amero acknowledged the ongoing challenges posed by the evolving export controls, stating, "It's still a front-burner issue." While Teradyne was not a "direct target" of the regulations, the company experienced significant impacts, particularly in market share. Although Amero did not provide specific figures, Teradyne's financials for the three months ending October 1, 2023, revealed a shift, with China accounting for 12 per cent of revenues, down from 16 per cent during the same quarter the previous year. (With inputs from Reuters)

Teradyne shifts $1 billion manufacturing out of China amid US export controls

Pandora, the world's leading jeweller in terms of products sold, has made a groundbreaking decision to cease the use of mined silver and gold in its manufacturing process. <o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

The Danish company, renowned for its popular charm bracelets ranging from $65 to $95, now exclusively utilises recycled precious metals, significantly reducing its carbon footprint. <o:p></o:p>

"Using recycled metals cuts Pandora's indirect CO2 emissions by around 58,000 tonnes annually,” Reuters quoted Mads Twomey-Madsen, the Senior Vice President of Communications and Sustainability at Pandora, as saying.<o:p></o:p>

Previously, Pandora used to purchase about 340 tonnes of silver and one tonne of gold, generating about 264,224 tonnes of CO2 though its supply chain.<o:p></o:p>

The shift to recycled metals aligns with Pandora's broader environmental goals, aiming to mitigate the ecological impact of its operations. <o:p></o:p>

The move is part of a significant investment by the company, allocating approximately $10 million annually to facilitate the transition, a cost that Pandora intends to absorb without passing it on to consumers through price hikes.<o:p></o:p>

While the adoption of recycled metals presents environmental benefits, it also introduces unique challenges, notably the risk associated with stolen gold being sold as scrap for recycling. <o:p></o:p>

In response, Pandora has implemented a chain of custody standard developed by the Responsible Jewellery Council (RJC). <o:p></o:p>

This standard includes exclusions, such as gold coins and gold bars, as a source of recycled gold. <o:p></o:p>

Twomey-Madsen noted that Pandora requires suppliers to adhere to the RJC standard, ensuring transparency and accountability in the sourcing of recycled silver and gold. <o:p></o:p>

As part of this transition, suppliers are mandated to segregate certified recycled metals from non-certified ones.<o:p></o:p>

Twomey-Madsen also highlighted the company's willingness to pay a premium for recycled metals, emphasising the support provided to suppliers in making this transition. <o:p></o:p>

Rivals in the industry, such as Monica Vinader and Missoma, also tout their commitment to using 100 per cent recycled silver and gold, aligning with the growing trend towards sustainable practices in the jewellery sector.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Pandora, the world's leading jeweller in terms of products sold, has made a groundbreaking decision to cease the use of mined silver and gold in its manufacturing process.

Pandora, the world's leading jeweller in terms of products sold, has made a groundbreaking decision to cease the use of mined silver and gold in its manufacturing process. This is based on a Reuters report. The Danish company, renowned for its popular charm bracelets ranging from $65 to $95, now exclusively utilises recycled precious metals, significantly reducing its carbon footprint. "Using recycled metals cuts Pandora's indirect CO2 emissions by around 58,000 tonnes annually,” Reuters quoted Mads Twomey-Madsen, the Senior Vice President of Communications and Sustainability at Pandora, as saying. Previously, Pandora used to purchase about 340 tonnes of silver and one tonne of gold, generating about 264,224 tonnes of CO2 though its supply chain. The shift to recycled metals aligns with Pandora's broader environmental goals, aiming to mitigate the ecological impact of its operations. The move is part of a significant investment by the company, allocating approximately $10 million annually to facilitate the transition, a cost that Pandora intends to absorb without passing it on to consumers through price hikes. While the adoption of recycled metals presents environmental benefits, it also introduces unique challenges, notably the risk associated with stolen gold being sold as scrap for recycling. In response, Pandora has implemented a chain of custody standard developed by the Responsible Jewellery Council (RJC). This standard includes exclusions, such as gold coins and gold bars, as a source of recycled gold. Twomey-Madsen noted that Pandora requires suppliers to adhere to the RJC standard, ensuring transparency and accountability in the sourcing of recycled silver and gold. As part of this transition, suppliers are mandated to segregate certified recycled metals from non-certified ones. Twomey-Madsen also highlighted the company's willingness to pay a premium for recycled metals, emphasising the support provided to suppliers in making this transition. Rivals in the industry, such as Monica Vinader and Missoma, also tout their commitment to using 100 per cent recycled silver and gold, aligning with the growing trend towards sustainable practices in the jewellery sector. (With inputs from Reuters)

World's largest jeweller, shifts to 100pc recycled metals, abandoning mined gold & silver

In a comprehensive report titled "The Indian Economy: A Review," prepared by V Anantha Nageswaran, Chief Economic Advisor to the government, and his team of economists, India takes stock of its economic journey over the past decade.

According to Nageswaran, India is confident in weathering emerging disturbances, transitioning from fragility to stability and strength.

The report emphasises India's deft management of crude oil supply and predicts a growth rate pegged at or above 7 per cent for FY24 and FY25, marking a resilient economic recovery after the Covid-era disruptions.&nbsp;

<div dir="auto">Moreover, it projects India's economy could potentially reach $7 trillion by 2030.</div>

Trends and challenges in the coming years

The report highlights three key trends India will face in the years ahead.

Firstly, the era of hyper-globalisation in global manufacturing has ended.

Secondly, India is not expected to witness de-globalisation soon, but the government plans to focus on onshoring and friend-shoring of production.

Thirdly, India will have to address challenges such as supply chain disruptions, the impact of Artificial Intelligence on services trade and employment, and the energy transition.

Government's green initiatives and infrastructure development

The report also covers rising concerns over climate change and the increasing focus on reducing carbon emissions.&nbsp;

In the report, Nageswaran commends India's skilful navigation of the trade-off between economic growth and energy transition.

He applauds the government's progress in building infrastructure at an unprecedented rate, noting a significant increase in public sector capital investment from 5.6 lakh crore rupees in FY15 to 18.6 lakh crore rupees in FY24.

The report details advancements in highways, freight corridors, airports, metro rail networks, and trans-sea links, showcasing tangible and transformative growth in physical and digital infrastructure.

Financial sector's strength and key reforms post 2014&nbsp;

India's financial sector, with a stronger balance sheet, active lending, and robust non-food credit growth is also in a healthy position.

The report points out that 51 crore Jan Dhan Yojana bank accounts, holding over 2.1 lakh crore rupees in deposits, indicate good financial health among Indian households.

It calls India's journey in the last 10 years as the 'decade of transformative growth' in the last decade, with key reforms such as the Goods and Services Tax and the Insolvency and Bankruptcy Code, and the government's&nbsp;all-inclusive welfare approach boosting India's economic profile.

The Finance Ministry document also notes the transformative impact of India's Digital Public Infrastructure on e-commerce and middle-class consumption.&nbsp;

The report, in short, argues that India's 'transformative growth' has helped its economy remain a bright spot in an otherwise gloomy global economy.&nbsp;

In a comprehensive report titled "The Indian Economy: A Review," prepared by V Anantha Nageswaran, Chief Economic Advisor to the government, and his team of economists, India takes stock of its economic journey over the past decade.

In a comprehensive report titled "The Indian Economy: A Review," prepared by V Anantha Nageswaran, Chief Economic Advisor to the government, and his team of economists, India takes stock of its economic journey over the past decade. According to Nageswaran, India is confident in weathering emerging disturbances, transitioning from fragility to stability and strength. The report emphasises India's deft management of crude oil supply and predicts a growth rate pegged at or above 7 per cent for FY24 and FY25, marking a resilient economic recovery after the Covid-era disruptions. Moreover, it projects India's economy could potentially reach $7 trillion by 2030. Trends and challenges in the coming years The report highlights three key trends India will face in the years ahead. Firstly, the era of hyper-globalisation in global manufacturing has ended. Secondly, India is not expected to witness de-globalisation soon, but the government plans to focus on onshoring and friend-shoring of production. Thirdly, India will have to address challenges such as supply chain disruptions, the impact of Artificial Intelligence on services trade and employment, and the energy transition. Government's green initiatives and infrastructure development The report also covers rising concerns over climate change and the increasing focus on reducing carbon emissions. In the report, Nageswaran commends India's skilful navigation of the trade-off between economic growth and energy transition. He applauds the government's progress in building infrastructure at an unprecedented rate, noting a significant increase in public sector capital investment from 5.6 lakh crore rupees in FY15 to 18.6 lakh crore rupees in FY24. The report details advancements in highways, freight corridors, airports, metro rail networks, and trans-sea links, showcasing tangible and transformative growth in physical and digital infrastructure. Financial sector's strength and key reforms post 2014 India's financial sector, with a stronger balance sheet, active lending, and robust non-food credit growth is also in a healthy position. The report points out that 51 crore Jan Dhan Yojana bank accounts, holding over 2.1 lakh crore rupees in deposits, indicate good financial health among Indian households. It calls India's journey in the last 10 years as the 'decade of transformative growth' in the last decade, with key reforms such as the Goods and Services Tax and the Insolvency and Bankruptcy Code, and the government's all-inclusive welfare approach boosting India's economic profile. The Finance Ministry document also notes the transformative impact of India's Digital Public Infrastructure on e-commerce and middle-class consumption. The report, in short, argues that India's 'transformative growth' has helped its economy remain a bright spot in an otherwise gloomy global economy.

India to be a $7 trillion economy by 2030? Here's what the Finance Ministry report says 

<o:p></o:p>Boeing has officially withdrawn its request for a safety exemption for the Boeing 737 MAX 7, a move that comes in the wake of heightened safety concerns and opposition from key figures within the aviation industry. <o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

The request, submitted to the Federal Aviation Administration (FAA) last year, sought exemption from a safety standard crucial for the certification of the 737 MAX 7. <o:p></o:p>

The decision to withdraw the bid was confirmed by Boeing on Monday.<o:p></o:p>

Senator Tammy Duckworth, who chairs an aviation subcommittee, expressed her strong opposition to Boeing's exemption request, emphasising that it could allow the 737 MAX 7 to enter commercial service prematurely. <o:p></o:p>

Senator Duckworth highlighted a specific safety concern related to the exemption, stating, "This involves an anti-ice system that can overheat and cause the engine nacelle to break apart and fall off. This could generate fuselage-penetrating debris, which could endanger passengers in window seats behind the wing."<o:p></o:p>

In a statement released on Monday, the company stated, "While we are confident that the proposed time-limited exemption for that system follows established FAA processes to ensure safe operation, we will instead incorporate an engineering solution that will be completed during the certification process." <o:p></o:p>

The withdrawal of the exemption request is likely to have implications for the overall timeline of the 737 MAX 7 certification, as Boeing now pivots towards integrating an engineering solution to meet safety standards.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

<o:p>&nbsp;</o:p>

Boeing has officially withdrawn its request for a safety exemption for the Boeing 737 MAX 7, a move that comes in the wake of heightened safety concerns and opposition from key figures within the aviation industry.

Boeing has officially withdrawn its request for a safety exemption for the Boeing 737 MAX 7, a move that comes in the wake of heightened safety concerns and opposition from key figures within the aviation industry. This is based on a Reuters report. The request, submitted to the Federal Aviation Administration (FAA) last year, sought exemption from a safety standard crucial for the certification of the 737 MAX 7. The decision to withdraw the bid was confirmed by Boeing on Monday. Senator Tammy Duckworth, who chairs an aviation subcommittee, expressed her strong opposition to Boeing's exemption request, emphasising that it could allow the 737 MAX 7 to enter commercial service prematurely. Senator Duckworth highlighted a specific safety concern related to the exemption, stating, "This involves an anti-ice system that can overheat and cause the engine nacelle to break apart and fall off. This could generate fuselage-penetrating debris, which could endanger passengers in window seats behind the wing." In a statement released on Monday, the company stated, "While we are confident that the proposed time-limited exemption for that system follows established FAA processes to ensure safe operation, we will instead incorporate an engineering solution that will be completed during the certification process." The withdrawal of the exemption request is likely to have implications for the overall timeline of the 737 MAX 7 certification, as Boeing now pivots towards integrating an engineering solution to meet safety standards. (With inputs from Reuters)

Boeing withdraws safety exemption bid for 737 MAX 7: Report

Toyota Motor has issued a warning urging approximately 50,000 owners of older US vehicles to stop driving immediately and seek prompt recall repairs due to a potentially lethal defect in the air bag inflators. <o:p></o:p>

The advisory specifically covers certain 2003-2004 model year Corolla, 2003-2004 Corolla Matrix, and 2004-2005 RAV4s equipped with Takata air bag inflators. The Japanese automaker highlighted the gravity of the situation, stating that the faulty inflator could explode, posing a severe threat.<o:p></o:p>

Toyota's precautionary measure comes as a response to the longstanding global issue of Takata air bag inflators, linked to over 30 deaths worldwide, including 26 in the United States, and hundreds of injuries across various automakers since 2009. <o:p></o:p>

The defect causes the inflators to explode, releasing dangerous metal shrapnel within vehicles. This alarming situation has led to the recall of more than 67 million Takata air bag inflators in the United States alone by over 20 automakers, constituting the largest auto safety callback in history.<o:p></o:p>

In this latest recall by Toyota, the focus is on specific models, with the RAV4 recall involving the driver's airbag and the other recalls concerning the front passenger airbag only. Additionally, certain Corolla and Corolla Matrix models are subject to a second recall that may cause the airbag to deploy even in the absence of a crash. <o:p></o:p>

Toyota refrained from disclosing whether the "Do Not Drive" warning stemmed from a specific incident, such as a serious injury or fatality. The National Highway Traffic Safety Administration is yet to provide immediate comment on the matter.<o:p></o:p>

The urgency surrounding air bag safety recalls is not new to the automotive industry. Stellantis, the parent company of Chrysler, issued a similar warning in July for 29,000 owners of 2003 Dodge Ram pickups after a fatal incident involving a Takata air-bag inflator. <o:p></o:p>

Stellantis had previously urged owners of 276,000 older US vehicles to stop driving in November 2022 following three crash deaths linked to faulty Takata air bag inflators reported that year. Honda Motor also faced a similar situation in February 2023, issuing a "Do Not Drive" warning for 8,200 Acura and Honda vehicles after a driver's death in Kentucky from a defective Takata air bag inflator.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Toyota Motor has issued a warning urging approximately 50,000 owners of older US vehicles to stop driving immediately and seek prompt recall repairs due to a potentially lethal defect in the air bag inflators.

Toyota Motor has issued a warning urging approximately 50,000 owners of older US vehicles to stop driving immediately and seek prompt recall repairs due to a potentially lethal defect in the air bag inflators. The advisory specifically covers certain 2003-2004 model year Corolla, 2003-2004 Corolla Matrix, and 2004-2005 RAV4s equipped with Takata air bag inflators. The Japanese automaker highlighted the gravity of the situation, stating that the faulty inflator could explode, posing a severe threat. Toyota's precautionary measure comes as a response to the longstanding global issue of Takata air bag inflators, linked to over 30 deaths worldwide, including 26 in the United States, and hundreds of injuries across various automakers since 2009. The defect causes the inflators to explode, releasing dangerous metal shrapnel within vehicles. This alarming situation has led to the recall of more than 67 million Takata air bag inflators in the United States alone by over 20 automakers, constituting the largest auto safety callback in history. In this latest recall by Toyota, the focus is on specific models, with the RAV4 recall involving the driver's airbag and the other recalls concerning the front passenger airbag only. Additionally, certain Corolla and Corolla Matrix models are subject to a second recall that may cause the airbag to deploy even in the absence of a crash. Toyota refrained from disclosing whether the "Do Not Drive" warning stemmed from a specific incident, such as a serious injury or fatality. The National Highway Traffic Safety Administration is yet to provide immediate comment on the matter. The urgency surrounding air bag safety recalls is not new to the automotive industry. Stellantis, the parent company of Chrysler, issued a similar warning in July for 29,000 owners of 2003 Dodge Ram pickups after a fatal incident involving a Takata air-bag inflator. Stellantis had previously urged owners of 276,000 older US vehicles to stop driving in November 2022 following three crash deaths linked to faulty Takata air bag inflators reported that year. Honda Motor also faced a similar situation in February 2023, issuing a "Do Not Drive" warning for 8,200 Acura and Honda vehicles after a driver's death in Kentucky from a defective Takata air bag inflator. (With inputs from Reuters)

Toyota urges immediate repairs for 50,000 US vehicles over air bag threats

<o:p></o:p>

Byju’s, the leading edtech startup and once India's most valuable, has launched a rights issue aiming to raise $200 million as it grapples with a severe funding crunch. <o:p></o:p>

According to a Techcrunch report, the company has significantly reduced its valuation asks by 99 per cent, seeking essential capital to address liabilities and operational costs. <o:p></o:p>

If successful, the post-money valuation is expected to be in the range of $220 million to $225 million, marking a substantial drop from its $22 billion valuation in 2022.<o:p></o:p>

Byju Raveendran, the founder of Byju’s, communicated to shareholders in a letter the urgency of the rights issue, emphasising personal investments of $1.1 billion by the founders in the last 18 months.<o:p></o:p>

As per the Techcrunch report, Raveendran highlighted the sacrifices made for the company, stating, "We have spent our lives building this company and are fervent believers in its mission." <o:p></o:p>

The rights issue provides existing investors with an opportunity to participate, but failure to do so would result in a loss of their entire equity position in the startup.<o:p></o:p>

The move comes as Byju’s faces a challenging financial landscape, having spent $2.5 billion on acquisitions in 2021 and 2022. The startup has raised over $5 billion in equity and debt from notable backers such as General Atlantic, Silver Lake, Lightspeed, and others. <o:p></o:p>

Byju’s anticipates the rights issue to conclude within 30 days and views it as imperative for creating a glidepath to deliver strong shareholder value.<o:p></o:p>

Byju’s, aiming to go public in early 2022 through a SPAC deal, had to put its IPO plans on hold due to market uncertainties caused by Russia’s invasion of Ukraine. <o:p></o:p>

The startup faced challenges in raising capital, with the auditor Deloitte resigning, and three key board members quitting. <o:p></o:p>

The rights issue allows Byju’s to part ways with dissenting investors, as those who do not participate stand to lose their entire equity position in the startup.<o:p></o:p>

Byju’s, the leading edtech startup and once India's most valuable, has launched a rights issue aiming to raise $200 million as it grapples with a severe funding crunch.

Byju’s, the leading edtech startup and once India's most valuable, has launched a rights issue aiming to raise $200 million as it grapples with a severe funding crunch. According to a Techcrunch report, the company has significantly reduced its valuation asks by 99 per cent, seeking essential capital to address liabilities and operational costs. If successful, the post-money valuation is expected to be in the range of $220 million to $225 million, marking a substantial drop from its $22 billion valuation in 2022. Byju Raveendran, the founder of Byju’s, communicated to shareholders in a letter the urgency of the rights issue, emphasising personal investments of $1.1 billion by the founders in the last 18 months. As per the Techcrunch report, Raveendran highlighted the sacrifices made for the company, stating, "We have spent our lives building this company and are fervent believers in its mission." The rights issue provides existing investors with an opportunity to participate, but failure to do so would result in a loss of their entire equity position in the startup. The move comes as Byju’s faces a challenging financial landscape, having spent $2.5 billion on acquisitions in 2021 and 2022. The startup has raised over $5 billion in equity and debt from notable backers such as General Atlantic, Silver Lake, Lightspeed, and others. Byju’s anticipates the rights issue to conclude within 30 days and views it as imperative for creating a glidepath to deliver strong shareholder value. Byju’s, aiming to go public in early 2022 through a SPAC deal, had to put its IPO plans on hold due to market uncertainties caused by Russia’s invasion of Ukraine. The startup faced challenges in raising capital, with the auditor Deloitte resigning, and three key board members quitting. The rights issue allows Byju’s to part ways with dissenting investors, as those who do not participate stand to lose their entire equity position in the startup.

Byju’s valuation falls 99 pc in $200m rights issue: Report

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