In June 2023, Byju’s failed to repay the loan raised from abroad.Image Credit source: File photo
Edtech startup Byju’s, which provides online education solutions to the people, is facing increasing difficulties. Surrounded by retrenchment and questions of corporate governance, there is news of resignation of many board members of BYJU’S. Byju’s is the company that was once the most valuable startup in the country.
According to media reports, Sequoia Capital India (now Peak XV Partners) Managing Director G.V. Ravi Shankar has resigned from the board of the company.
Resignation of many senior officers
The Economic Times, quoting sources, has reported that along with Ravi Shankar, Russell Dreysenstock of Prosus (earlier Naspers) and Vivian Wu of the Chan Zuckerberg Initiative have also left their posts. Although the resignations of all these have not been accepted by the company yet. But these resignations have happened at a time when the company is going through its most difficult phase.
Byju’s deteriorating condition
Byju’s is currently facing several court cases. Along with this, he is also troubled by the case of loan default. Not only this, the company has not yet released the financial results of the last financial year 2021-22.
A source aware of the matter said that the three investors of the company have jointly decided to resign. Continuous discussions are going on between the company and its shareholders.
Know when what happened with Byju’s?
There is a special connection between Byju’s getting into this situation and its increasing debt. You can understand it like this.
- In November 2021, the company raised a loan of $ 1.2 billion from foreign markets.
- In July 2022, the company said that there is a delay in getting its audited results, which it will release soon.
- In August 2022, the Ministry of Corporate Affairs asked the company the reason for the delay of 17 months in sending the financial results.
- In September 2022, the company released its results, its losses increased 18 times to Rs 4,588 crore.
- In October 2022, the company completed a finance round of $ 250 million.
- In April 2023, the lenders to the company demanded payment of $200 million. Also demanded high interest.
- In May 2023, Byju’s completed a funding round of Rs 2000 crore with Davidson Campaigner.
- In June 2023, Byju’s failed to repay the loan raised from abroad.