Byju’s says loan dispute will be resolved in a few weeks

Edtech firm Byju’s co-founder and CEO Byju Raveendran on Thursday tried to clear the air and alleviate the panic by asking his team to “rise above the noise”.
Image used for representational purposes only. (Photo | BYJU'S YouTube Screengrab)
Image used for representational purposes only. (Photo | BYJU'S YouTube Screengrab)

BENGALURU:  Edtech firm Byju’s co-founder and CEO Byju Raveendran on Thursday tried to clear the air and alleviate the panic by asking his team to “rise above the noise”. Since the announcement of layoffs, legal battle with lenders over $1.2 billion term loan B (TLB), exit of Deloitte and resignation of three prominent board members, there was an atmosphere of panic among employees.

The virtual town hall meeting went on for 45 minutes, and Raveendran acknowledged the challenges faced by the company and emphasised the team’s talent, strength to overcome obstacles. He also told employees that the TLB dispute is being resolved through constructive discussions, and the company is confident about achieving a positive outcome in the next few weeks without court intervention. Since the chat function was disabled during the meet, employees were asked to mail their questions and according to sources, Raveendran said he would answer each and every question addressed to him.

An employee on condition of anonymity said the co-founder did not mention anything about layoffs, bonus or PF. Talking about the appointment of BDO as the company’s statutory auditors for the next five years, Raveendran said it was a mutually agreed-upon decision and it was taken to focus on efficient and timely audits going forward. The edtech firm is yet to file its FY22 financial statements, and Deloitte had exited with immediate effect due to the delay in the filing of the results.

Raveendran also said the departures of three board members are unrelated to Deloitte’s resignation. He assured that their exit was amicable and carried out with mutual understanding. It is said that the edtech firm’s investors, including those represented by the departing Board members, continue to support its growth trajectory.   The edtech firm recently lost board members representing Peak XV, Prosus and Chan Zuckerberg Initiative.

Raveendran also addressed the doubts raised about the viability of edtech as an industry post-covid and he highlighted the substantial growth projections for the global and Indian edtech markets, emphasising that edtech is not a ‘pandemic phenomenon’ but a permanent fixture in education.

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