Byju's Founder Borrowing Money From Friends, Relatives To Pay Salaries; Starts Selling Assets As Rs 500 Crore Needed By March


Radhika Kajarekar

Radhika Kajarekar

Dec 07, 2023


Byju Raveendran, the founder of Byju’s, a prominent edtech unicorn, has called for a meeting with senior management to update them on the company’s business and liquidity situation. 

Byju's Founder Borrowing Money From Friends, Relatives To Pay Salaries; Starts Selling Assets As Rs 500 Crore Needed By March

The meeting, anticipated to take place on December 5, is expected to provide clarity on Byju’s current financial position.

Byju Raveendran Calls For a Meeting With Senior Management

Sources reveal that Byju’s requires a cash infusion of 500-600 crore by March to settle pending employee dues, vendor payments, tax obligations, and commitments to the Board of Control for Cricket in India (BCCI). 

Byju is reportedly confident about addressing this liquidity requirement through asset sales and potential pledging of his holdings in Aakash or Think and Learn.

The company has faced financial challenges, leading Byju to borrow from family, friends, and other entrepreneurs in recent months to meet salary and vendor payment obligations. Byju’s monthly shortfall is estimated at Rs 60-70 crore, despite successfully reducing its overall costs. 

While its wage bill has decreased from over Rs 300 crore a year ago to Rs 130 crore, the company is actively exploring avenues to raise funds, including selling some of its acquired assets.

Byju’s To Sell Assets to Generate Funds

At its peak during the edtech boom in 2020-2021, Byju’s aggressively raised funds and acquired numerous companies. However, the company is now relying on selling these assets to generate funds and sustain its core edtech business in India.

The anticipated sale of assets, particularly the Epic sale, is expected to address the company’s older liabilities, amounting to less than 100 million. Byju Raveendran, the founder, is reportedly confident in navigating the liquidity crunch without the immediate need for investor support.

These developments unfold against the backdrop of Byju’s recent struggles, including alleged accounting irregularities, mis-selling of courses, and mass layoffs. The company has undergone significant changes, with early investor Ranjan Pai injecting capital, the establishment of an advisory council, and the elevation of Arjun Mohan as CEO. 

Byju’s is also exploring divestment options for assets like Great Learning and Epic. The upcoming annual general meeting on December 20 is expected to address various matters, including approving audited financials, the appointment of statutory auditors, and remuneration discussions.


Radhika Kajarekar
Radhika Kajarekar
  • 775 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online