Later in the day, eight-seeded Indian men's doubles pair of Pruthvi Krishnamurthy Roy and K Sai Pratheek will be up against second seeds Muhammad Shohibul Fikri and Daniel Marthin of Indonesia.
Former world No.1 shuttler Kidambi Srikanth and Sankar Muthusamy Subramanian crashed out of the Thailand Masters Super 300 badminton tournament as the Indian challenge ended in Bangkok on Friday.
Sen, 26, who had made it to the Hong Kong Open final but has gone without a title this year, had a tough time beating Shetty in the opening game.
The top-seeded Indian pair lost in straight games against Muhammad Shohibul Fikri and Bagas Maulana of Indonesia in Birmingham on Thursday.
yush Shetty and former World championships bronze medallist Lakshya Sen advanced in the Australian Open in contrasting fashion to set up an all-Indian quarterfinal clash.
Star Indian shuttlers Satwiksairaj Rankireddy and Chirag Shetty showed nerves of steel to stun Olympic silver medallists Liang Wei Keng and Wang Chang in their opening Group B match at the BWF World Tour Finals in Hangzhou, China, on Wednesday.
In the quarterfinals, Lakshya will face Malaysian qualifier Leong Jun Hao.
Indian challenge ends after Satwik-Chirag bow out in opening round of China Open
Sudirman Cup: India bow out after defeat against Indonesia
Satwik and Chirag have looked in ominous form, winning the Asian Games gold in Hangzhou, a Super 1000 crown in Indonesia, the Korea Open Super 500 and the Swiss Open super 300 last year before grabbing a a career-best ranking of World No.1, albeit for a brief time.
Defending champions India's hopes of entering the Thomas Cup knockout stage as group topper were dashed by a clinical Indonesia who emerged 4-1 winners in their final pool match in Chengdu on Wednesday.
Tokyo Olympian B Sai Praneeth will meet compatriot HS Prannoy in his opening match, while former Commonwealth Games champion Parupalli Kashyap will square off against a qualifier.
India Open winner Lakshya Sen and Mithun Manjunath gave a good account of themselves.
H S Prannoy dished out another splendid show to progress to the quarter-finals with a thrilling win over Indonesia's Chico Aura Dwi Wardoyo.
Prannoy and Sen played five times in 2022 with Sen coming into the match with a slender 3-2 advantage.
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