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Payments to Aakash closed, financial results to be filed in 10 days: Byju's

The delay in filing its FY21 results and pushing back of payments to Aakash come at a time when media reports have suggested that the company is struggling to manage cash for its operations and is resorting to cutting costs aggressively as well as looking at various ways to raise funds.

July 04, 2022 / 02:16 PM IST
(Source: ShutterStock)

(Source: ShutterStock)

Byju's will be filing its 2020-21 (FY21) results in the next 10 days and the company has closed its balance payments to Aakash Educational Services, the edtech unicorn claimed in a statement on July 4.

"Our payments to Aakash are closed and the audited financial results are going to be announced in the next 10 days," Byju's said.

The statement comes against the backdrop of a Moneycontrol story that said Deloitte, the edtech giant's auditor, has not signed off on its results and so Byju's could take a few more weeks to file its financial results with the Ministry of Corporate Affairs (MCA).

As a regulatory requirement, private companies have to file their annual results with the corporate affairs ministry.

Moreover, recently multiple media reports had alleged that Byju's had delayed payments to shareholders of Aakash Educational Services, for an approximately $1 billion acquisition that the edtech unicorn made last year.

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Byju's had said that the company had agreed mutually with Aakash to extend the payments to August this year.

Byju's, currently India's most valued startup, had also announced a massive $800 million fundraise in March this year. Certain media reports also alleged that the company has not been able to raise a significant amount of it.  Byju's, however, said that its fundraise is 'on track.'

"Our fundraising efforts are on track and majority of the 800 million (dollars) has been already received. The balance is also expected soon," Byju's said.

The delay in filing its FY21 results and pushing back of payments to Aakash come at a time when media reports have suggested that the company is struggling to manage cash for its operations and is resorting to cutting costs aggressively as well as looking at various ways to raise funds.

While it announced an $800 million equity fundraise earlier this year, it is reportedly in talks to raise $1 billion in acquisition debt financing. Meanwhile, to cut costs, the company is resorting to mass layoffs. Moneycontrol reported  last week that more than 2,500 employees were sacked from group companies in a bid to cut costs. A few teams have been left with no members.

The struggles of India’s biggest education company symbolise the overall edtech sector, which has been struggling as the coronavirus pandemic has ebbed and students have returned to classrooms.

India’s edtech companies have had two successive exceptional years of hypergrowth but are finding it hard to sustain the momentum this year, with schools, colleges and physical tuition centres resuming work.
Moneycontrol News
first published: Jul 4, 2022 02:16 pm
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