/dq/media/agency_attachments/UPxQAOdkwhCk8EYzqyvs.png)
Follow Us/dq/media/media_files/2025/03/04/MNooW2kcrzvjJ1Z1cjFZ.png)
Byju’s issues another public notice in two days, as it battles financial and governance issues. The edtech giant that was once valued at $22 billion is now worth around $8.4 billion. Byju’s has a $1.2 billion loan repayment issue that is putting immense pressure on the company. Also, Byju’s is locked in a legal battle with investors over a blocked rights issue and allegations of mismanagement which is further complicating its recovery. Byju’s recent public notices seem to be an attempt to rebuild trust with investors, employees and stakeholders. Read further to know complete details.
Byju’s: Financial Issues
Byju’s aggressive expansion strategy involves high profile acquisitions like Aakash Educational Services and Great Learning has put tremendous financial pressure on the company. The company has faced cash flow issues, delayed salaries, operational cuts and has had to lay off thousands of employees to cut costs. Also, it has struggled to raise fresh funds as investor confidence has dipped.
Governance Issues
The company leadership is under the scanner with investors questioning its corporate governance practices and financial transparency. Byju’s faced criticism for not releasing audited financial reports, delayed regulatory filings and allegations of fund misuse. A group of investors recently tried to remove CEO Byju Raveendran, which has intensified the governance crisis.
Recent Public Statements
Byju’s recent public notices seem to be an attempt to rebuild trust with investors, employees and stakeholders. The company has said it will focus on debt resolution, improved governance and strategic restructuring to get back to stability. It is also planning to sell assets and raise fresh capital to solve its financial obligations. Due to Byju’s financial difficulties, employee salaries have been delayed. To solve these issues the company has set up other credit lines. Prosus and General Atlantic are among the investors who have filed petitions at National Company Law Tribunal (NCLT) to remove CEO Byju Raveendran and reconstitute the board. These cases are still pending. Investor protests have forced NCLT to put on hold Byju’s $200 million rights issue which has further complicated the company’s financial situation.
Byju’s Future Plans
Byju’s plans to raise $250 million at a lower valuation. Other financing options like structured credit transactions against the cash flows of its subsidiary Aakash Education Services are also being explored by the company.
● Byju’s is planning to list its test-prep business Aakash Education Services as an IPO in mid 2024. This move is to unlock value and cash out of Aakash’s growing business.
● If investors succeed in reconstituting the board and removing the current management, the company may have to implement governance reforms.
Despite the troubles, Byju’s is a big player in India’s edtech space. But its survival depends on debt restructuring, getting back investor trust and operational stability. With increasing regulatory vigil and legal battles, the next few months will be critical for Byju’s’ future in global edtech.
Read More:
US court rules against Byju’s; finds founder guilty of fraud
Byju’s Employees Struggle as CEO Addresses Unpaid Salaries & PF Issues
Edtech Sector Revives: Companies Show Growth After Byju’s Collapse
Byju’s Creditors to Decide on Resolution Professional: Who Benefits and How?