The World Opinion

Tag: BYJU

  • Byju’s Employees Haven’t Received July Salaries Yet, CEO Explains Why | Economy News

    New Delhi: Employees at Edtech firm Think and Learn, the company behind Byju’s have not received their July salaries. According to CEO Byju Raveendran, the delay occurred because the company was temporarily unable to access its accounts due to a Supreme Court stay on a recent decision by the National Company Law Appellate Tribunal (NCLAT).

    The National Company Law Appellate Tribunal (NCLAT) on August 2 approved Byju’s settlement of Rs 158.9 crore in dues with the BCCI and dismissed the insolvency proceedings against the company. On August 14, the Supreme Court put a hold on this decision, followed by a plea from US-based creditor Glas Trust Company LLC, effectively reinstating the insolvency case against the ed-tech giant.

    In an email to employees, Byju Raveendran expressed that each legal hurdle has prolonged the company’s journey toward recovery and stated, “I want to address the matter of utmost concern to you – and to me as well. Your salary for July 2024 has not been credited yet.”

    He further added, “Our company recently faced a serious challenge that pushed us into insolvency due to a dispute with the BCCI. We settled the case and were on the brink of regaining control of our finances after the NCLAT ruled in our favour. The apex court has issued a temporary stay on the NCLAT’s decision, which means the control of the company’s accounts has not yet been restored to us.”

    He mentioned that some foreign lenders have been challenging the company in court and have appealed the NCLAT ruling to the Supreme Court.

  • MCA Denies Clean Chit To Byju’s In Financial Fraud Case, Confirms Ongoing Probe | Companies News

    New Delhi: The Centre clarified on Wednesday that an investigation by the Ministry of Corporate Affairs has not cleared edtech firm Byju’s of financial fraud, confirming that the investigation is still ongoing.

    “There have been reports claiming that edtech startup Byju’s has been cleared of financial fraud in an ongoing investigation by the Ministry of Corporate Affairs (MCA). It is categorically clarified that such reports are factually incorrect and misleading,” the Ministry stated. (Also Read: No Jobs for Married Women In iPhone Factory In India? Foxconn Faces Discrimination Claims)

    The Ministry added that proceedings under the Companies Act, 2013, initiated by the MCA are still ongoing and no conclusions should be drawn at this stage. Byju’s, facing multiple legal battles in courts and the National Company Law Tribunal (NCLT) is attempting to raise 200 million dollars through a rights issue. However, the NCLT has prohibited the company from using any funds for now. (Also Read: Top Stocks On D-Street: Bharti Airtel, SBI, And Vedanta Among 7 In Spotlight Today)

    Byju’s is also exploring out-of-court settlements with some of its creditors. Once valued at $22 billion, the edtech company is now worth zero. Global investment giant Prosus wrote off the value of its shareholding in Byju’s, recording a loss of $493 million in its annual report for FY24. (With IANS Inputs)

  • Byju’s, Once Valued At $22 Billion, Is Now Worth “Zero” | Companies News

    New Delhi: In what could be a shocker to many, edtech firm Byju’s, which was once valued at $22 billion, is now worth zero, according to a research note by financial firm HSBC. “We assign zero value to Byju’s stake amid multiple legal cases and funding crunch,” HSBC said in a note on May 21. “Previously, we valued around 10% stake in Byju’s by applying (an) 80% discount to the latest publicly disclosed valuation.”

    The embattled edtech firm is struggling to pay employee salaries amid mounting legal battles. “Byju’s is facing multiple headwinds. We and other shareholders are working everyday to improve the situation. We are in close discussions with the company every day,” a senior Prosus executive was quoted as saying in reports late last year. (Also Read: BSE Denies Technical Glitch On June 4 Causing Mutual Fund To Lose Money On Election Day)

    In fact, Byju’s was preparing to go public in early 2022 through an SPAC deal that would have valued the company at up to $40 billion. In January this year, US-based investment firm BlackRock (NYSE:BLK) cut the value of its holding in Byju’s to a mere $1 billion from $22 billion in early 2022. BlackRock owns less than 1 per cent of Byju’s. (Also Read: RBI Sticks To 6.5% Key Lending Rate For 8th Consecutive Time, Fighting Inflation Remains Focus)

    Earlier this week, a group of lenders petitioned against the new entities tied to Byju’s US subsidiary into bankruptcy in a US court, alleging that these entities are not paying their debts.

  • Byju’s Delays March Salaries; Blames Few Foreign Investors | Companies News

    New Delhi: Embattled edtech company Byju’s has informed its employees that there will “again” be a delay in disbursement of salaries. Byju’s management in a communication to employees blamed the situation on an interim order obtained by “a few misguided foreign investors” in late February which “restricted usage of the funds raised through the successful rights issue”.

    Byju’s also sought to assure staff that it is following a parallel line of credit to ensure that employees get their salaries by April 8. “We are writing to you today with a heavy heart but with a message of hope and reassurance. We regret to inform you that there will again be a delay in the disbursement of salaries. A few misguided foreign investors in BYJU’S have obtained an interim order in late February which has restricted usage of the funds raised through the successful rights issue,” the management wrote.

    The note further said: “This irresponsible action by the four foreign investors has compelled us to temporarily hold the disbursal of salaries until the restriction is lifted.” Byju’s said it has full faith in the Indian judicial system and eagerly awaits a favourable outcome that will enable it to utilise the funds raised through the rights issue and alleviate the financial challenges it is currently facing.”

    As you know, the founders have put everything back into the company, and regardless of the court verdict, we are following a parallel line of credit to ensure that you receive your salary by 8th of April,” the management said.

    On a positive note, the management said, it has the necessary vote to increase the authorised capital for the rights issue.”It means that once the restrictions on using the raised funds are lifted, we can meet all our salary commitments immediately. As you might have read, our founder, Byju Raveendran, has once again appealed to disgruntled investors in a collaborative spirit, and we are hoping that litigating investors would have a reasonable spirit in not frustrating our daily lives any longer,” it said.

    The company said it understood the feelings of helplessness that may arise due to these circumstances, and added “we share your frustration”.

    “However, we urge you to hold onto hope and remain resilient. BYJU’S has overcome challenges recently, and we firmly believe that together, we will overcome this last hurdle. We are confident that justice will prevail and the financial constraints will be resolved soon,” the management wrote thanking employees for their patience, understanding, and continued dedication during the difficult time.

  • DNA Exclusive: Analysis Of Factors Behind BYJU’s Downfall |

    NEW DELHI: BYJU’s, a name synonymous with revolutionizing education, emerged from a small coaching centre to become India’s premier Ed-Tech giant. With expert teachers, high-tech classrooms, and cutting-edge apps, BYJU’s became the epitome of digital education in the country. However, the fortunes of BYJU’s took a sudden turn for the worse. The Enforcement Directorate (ED) has now instructed the Bureau of Immigration (BOI) to issue a lookout notice against BYJU’s founder and CEO, Byju Raveendran. This directive aims to prevent Raveendran from fleeing the country amid ongoing investigations.

     

    DNA : Byju’s का बंटाधार हो गया. क्या Byju’s को over confidence ले डूबा ?

    चमत्कार से हाहाकार..The Rise and Fall of Byju’s#DNA #DNAWithSourabh #Byjus @saurabhraajjain @shivank_8mishra pic.twitter.com/cRIZO48fZJ
    — Zee News (@ZeeNews) February 22, 2024

     

    The ED had previously initiated action against Think & Learn Private Ltd, BYJU’s parent company, and Raveendran under the Foreign Exchange Management Act (FEMA) in November 2023. The allegations involve a substantial sum of Rs 9,362 crores, accusing the company of illegally transferring funds abroad, resulting in revenue loss to the Indian government.

    The company’s valuation plummeted by 86% over the past two and a half years. From Rs 30,600 crores in 2022, its assets dwindled to Rs 833 crores. Consequently, BYJU’s is grappling with financial constraints, struggling to meet employee salaries while accumulating debts.

    The financial turmoil has led to salary delays for employees and mounting debts for the company. Despite revolutionizing education and amassing immense wealth, BYJU’s finds itself unable to sustain its operations, resulting in the unfortunate layoffs of thousands of employees.

    From transforming the educational landscape to facing financial crises, BYJU’s journey reflects the highs and lows of entrepreneurship. As tonight’s edition of DNA dives into the factors contributing to BYJU’s downfall, it underscores the need for accountability and transparency in corporate governance.