📉 Baron Capital values BYJU'S at $24M; Where have all the entry-level tech jobs gone?

The most interesting news selected specially for you! 09 June 2024 [View in Browser]( POWERED BY Hello, Now, startups and enterprises can enhance their brand engagement by partnering with YourStory and advertising on our YS Buzz and Weekly Wrap newsletters. [Click here]( to know more. In today's newsletter, we will talk about: - Baron Capital slashes BYJU’S valuation - Where have all the entry-level tech jobs gone? - VC funding crosses $1B mark in May - Turning texts into visual designs - ICYMI: A tête-à-tête with Zeenat Aman Here’s your trivia for today: Before the early 1980s, the Japanese automaker Nissan was known by what name? --------------------------------------------------------------- Edtech Baron Capital slashes BYJU’S valuation asset management company Baron Capital Group has reduced the valuation of its stake in edtech firm BYJU'S by 99.85% as of March 31, 2024. The decline in Baron Capital's investment value resulted in the venture capital firm sharply cutting the edtech company's valuation to nearly $24 million. Liquidity crunch: - Baron Capital, holding 15,334 shares through Baron Emerging Markets Fund and 9,201 shares via Baron Global Advantage Fund, has appraised its investment in BYJU’S at $75,485 and $45,294, respectively. - This marks a decrease from its peak valuation of $22 billion in October 2022, aligning with the valuation concern around BYJU’S $200 million rights issue. - Meanwhile, BYJU'S has reportedly processed employees' [May salaries]( from the month's business collections. The company in the past month also raised various debts to bear the salary expense. [Read More]( --------------------------------------------------------------- From the CapTable Lull in entry-level tech jobs continues; can India’s non-tech sectors compensate? It’s not the proverbial lull before the storm, but the one after it. Following a pandemic-induced hiring frenzy in 2021 and early 2022, the golden tap of tech jobs has run dry in the last 12-15 months. New employment generated in core tech and engineering sectors hit a two-decade low in FY24, with India’s legacy IT companies drastically cutting down on hiring. Even startups, which absorbed a fair share of tech talent post the VC funding highs of 2021, have tempered their recruitment plans. What’s unfolding is quite the white-collar job crisis. There have been record low levels of placements in the IITs—a story that has been well-documented by now—sending chills down the spine of the country’s education system. “India's fancy education sector is riding on the back of the IT industry. And in the last 20-25 years, the IT industry’s headcount never went down. So, this is a definite problem area, and the next few years will be difficult,” the head of a recruitment agency tells The CapTable. “The question is: How will the volume of jobs be created? Will we be able to create half a million engineering jobs in FY25?” he asks. Key takeaways: - Entry-level jobseekers—those with 1-3 years of experience—are finding it challenging to get roles with decent pay packages as recruiters opt for mid-level talent to save on training costs. - About 26 lakh entry-level jobseekers (including freshers with no work experience) were looking for active openings in the last 30-day period, per industry estimates. - Negative net hiring in the IT sector in FY24, coupled with mass layoffs in Big Tech globally, has led to oversupply of tech talent in the Indian market. - Tech attrition is down from 32% two years ago to 7-8% now, with companies lowballing entry-level candidates until they settle for below-par pay. [Continue Reading]( --------------------------------------------------------------- Funding VC funding crosses $1B mark in May May turned out to be red hot for the Indian startup ecosystem as venture capital funding rose by 29% annually, crossing the $1 billion mark for the first time this year. The total funding for May was $1.31 billion compared to $1 billion in May 2023, as per data from Yourstory Research. This sharp increase in VC funding can be attributed to the large deals from Meesho and Pharmeasy. Key takeaways: - On a month-on-month basis, VC funding rose by 56% with $848 million for April 2024. - In terms of stage-wise funding, the late-stage category received the highest amount at $605 million. Early-stage startups attracted $365 million. - Healthtech followed by social commerce and fintech sectors were the investor favourites for the month. [Read More]( --------------------------------------------------------------- Startup Turning texts into visual designs platform Sivi is streamlining design processes. Started by Sona J and Ram Ganeshan in 2019, the Bengaluru-based startup lets users input their message to generate multiple AI-designed options. These designs can be used as-is or fine-tuned manually to enhance the final product. Key takeaways: - Sivi's product lets users instantly generate ads, social posts, product banners, profile covers, and more in multiple languages. - Unlike other popular AI image generators such as Midjourney or Dall-E, Sivi’s model is trained on design compositions, allowing users to select any object, such as a shape or text, within a design and manipulate it as desired. - With its product, Sivi aims to compete with the likes of California-based Canva. Microsoft has also developed a Gen AI model that outputs layered designs, but it is hard to access and available only to researchers. [Read More]( --------------------------------------------------------------- Interview ICYMI: A tête-à-tête with Zeenat Aman 72, Zeenat Aman is defying the myth of ageing and enjoying new-found stardom on social media by connecting to an audience far younger than her. Aman’s Instagram persona is that of a star who is not afraid of straight talk. Whether she’s asking couples to live together before getting married, talking about how her ‘sex symbol’ tag is difficult to shake off, or describing her competitive streak, Aman tells it the way it is—without the need to please everyone. New chapter: - Aman’s fans traverse different generations. As she revealed in a recent Instagram post, 60% of her followers are between the ages of 25 and 44 years—an audience that has perhaps never seen her in her heydays. - Aman doesn’t see herself as someone who can just post pictures of herself or write endless banalities. - She is of the view that public figures play a huge role in shaping and guiding conversations—in the living room and on the national stage. [Read More]( --------------------------------------------------------------- News & Updates - [Roaring Kitty:]( GameStop jumped 21% on Monday after "Roaring Kitty" Keith Gill, the stocks influencer behind the 2021 retail trading frenzy, returned to Reddit with a post showing a $116 million bet on the embattled videogame retailer. - [Splashdown:]( SpaceX completed a test flight of its Starship rocket for the first time on Thursday. About an hour after the launch, Starship visibly survived reentry through the Earth’s atmosphere, and the company confirmed that the rocket splashed down in the Indian Ocean to complete the mission. - [Rates:]( The European Central Bank on Thursday confirmed a widely-anticipated reduction in interest rates at its meeting, despite lingering inflationary pressures in the 20-nation eurozone. It takes the central bank’s key rate to 3.75%, down from a record 4% where it has been since September 2023. Did you know? Before the early 1980s, the Japanese automaker Nissan was known by what name? Answer: Datsun. We would love to hear from you! To let us know what you liked and disliked about our newsletter, please mail nslfeedback@yourstory.com. If you don’t already get this newsletter in your inbox, [sign up here](. For past editions of the YourStory Buzz, you can check our [Daily Capsule page here](. [Feedback]( [Unsubscribe]( [Newsletters](