[1] Masulipatnam was originally an unimportant fishing village located in the Sultanate of Golconda, however, in the 17th century its commercial importance began to grow, and the Danes established a factory there.

[2] Initially, the relations with the local sultan remained stable, and he had been eager to acquire cloves from the Danish Company.

[7] Because of the financial situation, Christian IV sent Captain Willem Leyel to Dansborg to investigate the company's affairs.

[10][4] Leyel initiated a blockade of Masulipatnam,[4] the biggest trading town in the Sultanate, and launched privateering ventures to the Coromandel Coast.

[10] As a result, Leyel and the Golcondian sultan, Abdullah Qutb Shah, would agree to a peaceful settlement.