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To know the story of Byju’s difficulties at this time,,,
The financial condition of India’s learning application Byju has become very bad. The startup company does not even have money to pay salaries to its employees. Byju’s founder Raveendran has mortgaged his residential house to pay the salaries of employees. Byju’s founder has mortgaged his house to take a loan of around $12 million. Let us see how much of Byju’s difficulties are solved by this step of Raveendran .Insolvency tribunal NCLT has issued notice to Byju’s over a petition filed by the BCCI over claims of claiming dues of Rs 158 crores as an oprational creditor. Byju’s replaced Oppo as the sponsor of the national team and signed a deal for three years untill 2022.
Let us see some big acquisitions
- In August 2020,the company purchased tech company WhiteHat Jr in a deal worth $300 million.
- In January 2021, the company acquired the country’s offline coaching company ,Akash Educational Service Limited.
- In December 2021,Byju’s bought math learning app GeoGebra.
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Byju’s History
Byju’s app was developed by Think and Learn Pvt. Ltd, a company which was established by Byju Raveendran, Divya Gokulnath and a group of students in 2011.In July 2019, Byju’s won the sponsorship rights for the indian cricket team jersey.In November 2020, Byju’s become the title sponsor of the Indian Super League.In March 2022, Byju’s was announced as an official sponsor of the FIFA WORLD CUP 2022.
Profit and Loss
Year | Revenue(in crores) | Profit/Loss(in crores) |
FY 2018 | 490 | -29 |
FY2019 | 1376 | -8.82 |
FY2020 | 2381 | -262.1 |
FY2021 | -2280 | -4558 |
Byju’s faced a tough time due to its acquisitions,which caused massive losses .The problem didn’t stop there.Despite sharing parts of FY2022 results the official audited financial statements remained missing.Things don’t end here for Byju’s ,the company has also came under the radar of ED.With a potential debt crisis, delayed payments, and regulatory heat, BYJU’S navigates the BCCI dispute. Yet, the road ahead is uncertain amidst financial challenges, regulatory pressures, and significant leadership changes. The complexities surrounding the $1.2 billon and unresolved transactions make for a daunting scenario in BYJU’S current business landscape.
Reason for Byju’s difficulties…
- Decreased demand for online learning
- The company’s financial situation deteriorated
- Investors began losing confidence
ED has issued a show-cause notice to Byju’s, alleging Foreign Exchange Management Act violations amounting to Rs 9,000 crore.The show-cause notice has been issued against founder of Byju’s and Think and Learn Pvt Ltd.The embattled edtech company has been facing a string of crises. The embattled edtech company is dealing with a cash crunch and has missed payment on a $1.2 billion term loan.The valuation report is also being cited as the reason for this crisis.
BYJU’s is in deep trouble. Gradually the financial condition of Byju’s is deteriorating. The situation has become such that the company’s founder Byju has had to mortgage his house to pay salaries to the staff. According to the information, the founder of Byju has mortgaged an under-construction house . By doing this he raised . about Rs 100 crore so that salaries could be paid to the staff.
Byju’s has a loan of about $800 million. At the same time, the founder has a loan of 400 million dollars. Recently, news came that Byju’s could not pay the interest on term loan , due to which the company is facing a legal battle. Apart from this, recently the company has also sold America’s Kids Digital Reading Platform for $400 million. Despite this, the company is not able to recover from the financial crisis.
BCCI and BYJU
The National Company Law Tribunal (NCLT) has now issued a notice to the decacorn in connection with a petition filed by the Board of Control for Cricket in India (BCCI).
In an order issued on November 28, the Bengaluru bench of the insolvency tribunal admitted BCCI’s petition that pertains to a dispute over the sponsorship rights of the Indian cricket team’s jerseys.
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