India’s once most valuable startup, Byju’s, has been struggling financially and facing delays in salary payments. The National Company Law Tribunal (NCLT) has ordered the company to pay salaries regardless of access to funds raised through a rights issue, threatening an audit by ICAI if they fail to comply. The delay is attributed to funds being tied up in escrow and lawsuits from vendors.
Gaurav Munjal, Co-founder and CEO of Unacademy, criticized Byju Raveendran, founder of Byju’s, for failing to listen to advice and isolating himself. He attributed Byju’s struggles to this leadership style, emphasizing the importance of seeking feedback and understanding unit economics. Meanwhile, Prosus, a global investment firm, wrote off its investment in Byju’s, recording a significant loss.
Ed-tech giant Byju’s, founded by Byju Raveendran, has been struggling financially, leading to the founder’s removal from the Forbes Billionaires list and a reduction of his net worth to zero. Previously valued at $22 billion, Byju’s valuation has plummeted to $1 billion. To support employees, Raveendran mortgaged his house to pay salaries. NCLT has directed Byju’s to maintain the status quo regarding an ongoing rights issue. A group of investors, including Prosus and General Atlantic, approached NCLT over the issue. The company claims to have received commitment for a USD 200 million rights issue but has not raised the full amount.
The Bengaluru bench of the National Company Law Tribunal (NCLT) has imposed a cost of ₹20,000 on edtech giant Byju’s for delaying its response to a petition filed by Surfer Technologies. The petition initiated an insolvency process against Byju’s due to an unpaid debt of ₹2.3 crore. The matter has been adjourned for further hearing on May 1.
Byju’s founder and CEO, Byju Raveendran, has reportedly taken on personal debt to cover March salaries for employees. The company previously experienced salary delays in February and March, due to funds raised through a rights issue being held in escrow as part of a dispute at the National Company Law Tribunal (NCLT). The NCLT is hearing a case brought by four investors who allege oppression and mismanagement in Byju’s $200 million rights issue.
