Over the past week, numerous multinational corporations have been involved in fundraising activities to support their future projects. Additionally, Byjus, the prominent Indian edtech company, has faced escalating crises, while the CEO of Alibaba has been removed from his position.
In this article, we will provide a recap of some of the most significant events that occurred in the business world over the past week.
Byju’s Board Members Resign
Byju’s, the leading edtech company in India, has experienced a significant surge in its crisis as three board members have tendered their resignations within the past few weeks. Media reports indicate that the departing board members are GV Ravishankar from Peak XV Partners, Russell Dreidenstock from Prosus, and Vivian Wu from Chan Zuckerberg Initiative.
Sources suggest that they had disagreements with Byju Raveendran, the founder and CEO, regarding key operational matters. These resignations have raised concerns regarding the governance and transparency of Byju’s, a company that was valued at $22 billion last year and has been actively acquiring other entities.
Adding to the company’s troubles, Deloitte, Byju’s auditor, has also resigned recently, citing delays in financial statements and a lack of necessary documentation.
Alibaba CEO Daniel Zhang Stepping Down as Chairman and CEO
Alibaba, the Chinese tech giant, is currently experiencing its most significant leadership shake-up to date, with the replacement of Daniel Zhang as chairman and CEO. Joseph Tsai, executive vice chairman and co-founder of Alibaba, will assume the role of chairman, while Eddie Wu, chairman of the e-commerce unit Taobao and Tmall Group, will become the new chief executive officer. These leadership changes are scheduled to take effect in September 2023.
Despite stepping down as chairman and CEO, Zhang will retain his position as the chairman and CEO of Alibaba’s cloud unit. In a memo addressed to the company’s staff, Zhang stated his reasons for the transition, citing the crucial stage of Alibaba Cloud Intelligence Group and its progress towards a complete spin-off.
This marks the second major change in executive leadership for Alibaba in recent years, following co-founder Jack Ma’s departure in 2019. Moreover, it comes just a few months after the company’s extensive restructuring announcement, wherein it disclosed the division into six distinct units encompassing cloud, e-commerce, logistics, media, and entertainment sectors.
AdaniConneX Raises $213 Million for Data Centre Construction
AdaniConneX, a joint venture between Adani Enterprises and EdgeConneX (ECX), has successfully raised $213 million to fund its ongoing construction of data centres in Noida and Chennai. These funds will specifically support the development of AdaniConneX’s data centre portfolio, which has a combined capacity of 67 MW.
The financing facility will be utilized to build two data centres, namely the ‘Chennai 1’ campus with an initial phase capacity of 17 MW, and the Noida campus with a capacity of 50 MW. CRISIL estimates indicate that India’s data centre capacity is anticipated to double from approximately 870 MW in FY22 to 1700-1800 MW by FY25.
Several prominent lenders, including ING Bank NV, Mizuho Bank Ltd, MUFG Bank Ltd, Natixis, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation, have committed to providing the financing for these projects. The joint venture, known as AdaniConneX, aims to establish a 1 GW clean energy data centre platform by 2030, with plans to invest in data centres across the country.
Google to Establish Global Fintech Operation Center at GIFT City in Gujarat
Google CEO Sundar Pichai has announced that the company will establish its global fintech operation centre at GIFT City in Gujarat. The decision was made after Pichai’s meeting with Prime Minister Narendra Modi during his visit to the United States. Pichai commended the Prime Minister’s Digital India vision, a flagship campaign of the Modi government, and expressed Google’s commitment to investing in India through its $10 billion digitization fund.
GIFT City, also known as the Gujarat International Finance Tec-City, is situated in Gandhinagar, the capital of the state. It is positioned as a prominent global fintech hub and is home to India’s first International Financial Services Centre (IFSC). The upcoming centre at GIFT City will house teams dedicated to specialized fintech operations that support Google’s GPay and other product operations.
This investment serves as a significant boost for GIFT City, aligning with Prime Minister Modi’s aspiration to establish it as a truly global fintech hub. It represents an exciting development for India’s growing influence in the fintech landscape.
