A not-so-sweet development for Cake Group

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Hello reader,

I haven’t been around the block too much, so Cake Group co-founder U-Zyn Chua filing for a compulsory winding up of the company was something completely new to me.

Naturally, I’d heard of companies running out of cash or their products failing, which would lead to them having to file for bankruptcy. However, this was the first time I’ve read about one that’s being forced into the process even though, operationally speaking, it seems fine.

We don’t know the full scope of what’s going on behind the scenes, but one thing’s for certain: this is going to air out a lot of dirty laundry and tons of accusations will start getting thrown about.

I do feel a lot of sympathy for those who work there – ultimately, they’re going to be innocent people caught in the crossfire. If there are elephants tap dancing on the grass, then you don’t want to be considered as grass.

Today we look at:

• Cake Group’s co-founder filing to liquidate the firm
• The new execs joining Resaro.ai
• Other newsy highlights such as Doctor Anywhere’s latest fundraise and SoftBank potentially lowering its stake in Zomato again.

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Let him cook

Image credit: Timmy Loen

Serious business or overblown drama? I’m not sure which is which in this scenario, but it seems like a drastic move to file for a compulsory winding up. Let’s take a closer look at what’s going down at crypto firm Cake Group.

• Order in the court: It’s up to a judge to decide whether the application from co-founder U-Zyn Chua will be granted. That said, Julian Hosp – the firm’s other co-founder and its CEO – says that Cake Group has a strong case for dismissing the filing.
• Cooling off: The company hasn’t had the best performance lately. Its revenue dropped by more than half in 2022 to US$266 million. Profits were hit harder, declining over 5x to US$23.5 million in the same period.
• High school never ends: While the exact reason for the application is unclear, Chua had previously told Tech in Asia that there is a growing rift between himself and Hosp due to decisions regarding layoffs. Insiders revealed that tensions have been high between the two in the last few months.

Read more: Cake Group co-founder files to liquidate firm, court to decide

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