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Valuation

Spring Health’s Valuation Jumps to $3.3 Billion After $100 Million Series E

Mental health funding has been as hot as the weather these past few weeks. Spring Health became the latest startup in the sector to raise big, locking up a $100 million Series E at a $3.3 billion valuation — a 65% increase from the $2 billion valuation it received in 2021 after a $190 million Series C. The new round was led by Generation Investment Management, with participation from existing investors including Kinnevik, The William K Warren Foundation, RRE Ventures, and Northzone. Founded in 2016, the company has raised nearly $467 million, per Crunchbase. New York-based Spring Health partners with employers to provide mental health services to their employees. The company also uses artificial intelligence to help members get care faster. “Our continued growth trajectory means more people are getting the care they need and this new funding allows us to double down on our strengths, increase access, scale our impact, and continue to deliver even greater ROI to employers,” said co-founder and CEO April Koh in a release. Mental Health Funding Ticking Up Just in the past several weeks, mental health has seen its biggest raises of the year. Along with Spring Health, New York-based Talkiatry, a psychiatric care startup, picked up $130 million in mid-June. The round consisted of a combination of Series C equity financing led by Andreessen Horowitz, and debt financing from Banc of California. Then just last week, mental healthcare platform Headway closed a $100 million Series D led by Spark Capital. The new funding values the company at $2.3 billion — a 130% increase just from October when it raised a $125 million Series C at a $1 billion valuation. While well off its 2021 high, mental health funding has remained relatively stable this year.

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Madras HC Refuses to Interfere with LVB-DBS Merger, Directs RBI to Reassess Tier-II Bond Write-Off

The Madras High Court, in a ruling on April 26, declined to intervene in the 2020 merger of Lakshmi Vilas Bank (LVB) with DBS Bank India Ltd (DBIL). However, the court directed the Reserve Bank of India (RBI) to conduct a fresh valuation of the assets and shares of both entities to determine any reduction in the value of shares and to reconsider Tier-II bond write-offs. The court’s directive instructed the RBI to evaluate the shares and assets of both DBIL and LVB as of the date preceding the amalgamation. Based on this evaluation, the RBI is mandated to make a fresh decision regarding the reduction in the value of shares and the writing off of Tier-II Bonds. This ruling comes after investors contested the LVB-DBS merger, particularly challenging the Tier-II bond write-offs. While the decision is seen as partially favorable to bond and equity investors, as it requires the RBI to reassess the Tier-II bond write-off, the court’s order provides hope for further scrutiny and redressal of grievances. The bench, comprising Chief Justice Sanjay V. Gangapurwala and Justice D. Bharatha Chakravarthy, has directed the central bank to complete the reassessment process within four months. The court emphasized that the RBI should consider the concerns of shareholders and bondholders while undertaking this exercise. In a related development, the Supreme Court in March 2022 permitted Lakshmi Vilas Bank minority shareholders to transfer all cases pertaining to the LVB’s amalgamation with DBS Bank India Ltd to the Madras High Court. The High Court, in its recent ruling, urged the RBI to address shareholder and bondholder grievances and alleviate hardships arising from the compulsory amalgamation scheme to the best extent possible.  

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Byju’s Seeks Fresh Funds, Slashes Valuation by 90% to Tackle Financial Woes

Indian education giant Byju’s is reportedly planning to raise funds through a share issuance next month, seeking over $100 million from existing investors. The catch, however, is that the valuation of the once $22 billion startup will plummet by more than 90%, now placing the company at less than $2 billion. Sources familiar with the matter revealed that Byju’s founder, Byju Raveendran, will partake in the share sale to maintain his stake in the company. The move comes as Byju’s grapples with financial challenges, planning to utilize the proceeds to settle outstanding payments to vendors and stabilize its operations. Byju’s had previously attained a valuation of $22 billion during its funding round in late 2022, marking a significant decline in its perceived value. The company has been navigating a cash crunch for several months and is concurrently engaged in a legal dispute with creditors over a missed interest payment on a $1.2 billion term loan. In a bid to alleviate financial pressures, Byju’s is set to sell its US-based kids’ digital reading platform for approximately $400 million. The spokesperson for the company has declined to comment on the recent developments. Post the share sale, Byju’s aims to refocus on its core business and intensify efforts in the realm of generative artificial intelligence for hyper-personalized learning. Backed by prominent investors like the Chan Zuckerberg Initiative, General Atlantic, and Prosus NV, Byju’s had previously embarked on a global acquisition spree before encountering the challenges of a tech funding downturn. Noteworthy participants in the upcoming share sale include existing shareholders, such as the Chan Zuckerberg Initiative, General Atlantic, and Prosus NV. Byju’s endeavors to rebuild its business amid the financial restructuring, emphasizing innovation in education technology. The company’s proactive measures highlight the resilience of Byju’s leadership in adapting to market dynamics while ensuring a sustainable future for the prominent education technology firm.

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