Byju Raveendran, co-founder and CEO of Byju’s, in his first official communication with employees after three board members and auditor Deloitte resigned last week, tried to alleviate the panic among employees, assuring them of a stronger comeback. “We are in a tough phase, but we will come back soon,” Raveendran told employees in a 45-minute townhall on June 29.
“Last 12 months we have been struggling. But edtech will stay forever, and we are the pioneers. It is one of the most important sectors and we are in the correct space,” Raveendran added.
Raveendran also told employees that the company’s board members did not step down because of Deloitte’s resignation, and thanked all the three board members for their support and guidance, employees told Moneycontrol.
Earlier this week, Moneycontrol reported how the three board members -- GV Ravishankar of Sequoia Capital India (Peak XV Partners), Vivian Wu of Chan Zuckerberg Initiative, and Russel Dreisenstock of Prosus -- stepped down due to differences with Raveendran. He also mentioned that Deloitte’s resignation was a mutual decision.
Last week, Moneycontrol reported that Deloitte had resigned as Byju’s and its wholly-owned subsidiary Aakash’s auditor, citing a long delay in the company’s FY22 (2021-22) financials. Byju’s new CFO (chief financial officer) Ajay Goel, who was hired in April, was tasked with changing the company’s auditor, Moneycontrol reported.
Raveendran further told employees that the company’s ongoing discussions with its term loan B lenders due to the recent issues are progressing well. “These discussions have taken a significant turn and we will get positive development within weeks,” he said.
On June 28, Moneycontrol reported that Raveendran will be addressing employees about the ongoing issues at the company, India’s biggest startup, on June 29. The town hall was scheduled at 11 AM on June 29.
'No clarity still'
During the townhall, while the chat box was disabled, employees were later given an option to post their questions. However, these questions were not answered immediately, leaving employees with little clarity on layoffs, hikes, incentives, and provident fund payments.
“We were asked to send questions later but there is no clarity on when they will revert. There was no clarification about layoffs, hikes, incentives and provident fund payments as well,” said an employee requesting anonymity.
Byju’s declined to comment to queries sent by Moneycontrol.
Raveendran further talked about his optimism on India’s edtech sector. He said that the sector offers a huge potential with the edtech market slated to grow 2x in the long term. He also said that about 4 of Byju’s 6 biggest acquisitions are profitable, with Aakash, Great Learning and Tynker doing well.
“Byju’s will continue to grow for the next 5-10-20 years,” he added.
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