Byju Raveendran, founder and CEO of the world’s most valued edtech company Byju’s, will address employees in a company-wide townhall scheduled for June 29, amid ongoing crisis, sources told Moneycontrol.
In an email sent to all employees, in the evening of June 28, the company said the town hall is being organised for Raveendran to address the team on ‘recent developments.’
“Founder CEO, Byju Raveendran, as he addresses the team on recent developments. This town hall will provide clarity and a positive action plan to navigate through the challenges we have encountered recently. Your presence is invaluable as we work together with resilience and towards success,” said the mail, a copy of which Moneycontrol has seen.
The town hall will be Raveendran’s first formal communication with employees, in what will be an attempt to allay fears triggered by the resignations of the company’s board members and auditor last week. Raveendran has typically been sending formal emails to employees to address issues at the company.
This also comes at a time when the company is facing backlash from multiple stakeholders including lenders, investors, and government authorities.
Also Read: Behind the scenes: What happened between Byju’s and board members?
Earlier, today Moneycontrol reported that Byju’s has cleared nearly 97 percent of its provident fund (PF) dues after the Employees Provident Fund Organisation (EPFO) probed the company over delays in PF payments.
This also comes at a time when the company is facing backlash from multiple stakeholders including lenders, investors, and government authorities. The company is also yet to receive about Rs 400 crore ($100 million) or a fifth of what Davidson Kempner committed. In May, Moneycontrol reported that the company entered into an agreement to raise $250 million (Rs 2,000 crore) from Davidson Kempner through structured instruments.
Byju's and Davidson Kempner declined to comment.
Earlier this month, Byju’s said that it had filed a case against one of its lenders in the New York Supreme Court challenging the acceleration of the term loan B it raised in November 2021. Byju’s also skipped paying $40 million in interest that was due on June 5, technically defaulting on the loan.
To be sure, Byju’s has been engaging in discussions with its lenders since December last year when the company sought easier terms on the loan as it was looking to save costs with an aim to achieve profitability.
But the company’s lenders asked for quicker part payment of the $1.2 billion loan after Byju’s failed to meet certain conditions, including a September 2022 deadline for filing its results for the year ended March 31, 2022, Bloomberg News reported. Earlier this month, the lenders scrapped these negotiation talks after filing a case against the company in the Delaware court.
On June 19, Moneycontrol reported that the company once again started laying off close to 1,000 staff members across departments as a cost-saving measure amid increased tension with lenders.
Byju's soared to new highs in March last year, when it raised a massive $800 million round at a $22 billion valuation. But since then, the company has come under fire for a number of reasons including accounting irregularities, tussle with lenders, mass layoffs and mounting losses.
Byju's offices in Bengaluru were also searched by India's financial probe agency Enforcement Directorate in April under provisions of the Foreign Exchange Management Act. The company is yet to file audited results for FY22 (2021-22).
For FY21 (2020-21), Byju's reported a huge jump in losses to more than Rs 4,500 crore, while its revenue dropped marginally, a surprise since FY21 was the first year of Covid that gave online learning companies a shot in the arm.
Founded over a decade ago by former teacher Byju Raveendran, Byju’s has raised over $5 billion, most of it in the past five years.
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