Recent events sparked misconceptions and speculations; will grow more sustainably: Byju Raveendran

Founder and CEO of edtech firm BYJU’S, Byju Raveendran, in an email to employees, said recent events have given rise to misconceptions and speculations and that the company is “actively addressing” them to grow more sustainably.  

“While we acknowledge the challenges we are currently facing, we are actively addressing them. We have taken strategic measures to ensure sustainability and profitability by streamlining our business operations and optimizing our team size,” Raveendran said.  

He wrote to his employees soon after his town hall address on Thursday where he said company is prepared to liquidate non-core assets if the ongoing conversations for an equity funding round don’t come to fruition.   

His town hall address and subsequent email come as the company continues to face intense pressure from a serious of controversies, including the resignation of its statutory auditor, Deloitte Haskins & Sells, the departure of board members, and an ongoing legal battle concerning its $1.2 billion Term Loan B (TLB).  

The letter conveyed essentially the same message as what was communicated during the town hall address.  

Raveendran clarified that Deloitte’s resignation as the auditor was a mutually agreed-upon decision and that the resignation of the board members had no connection with Deloitte’s decision. 

“In our latest shareholders’ meeting, held five days ago, the departing Board members themselves clarified that their resignations were unrelated to Deloitte's departure. I continue to be on great terms with our board members, and I thank them for their valuable guidance over the years,” he wrote. He said the company aims to expand and diversify its board. 

Last week, three board members, namely GV Ravishankar of Peak XV Partners, Vivian Wu of Chan Zuckerberg Initiative, and Russell Dreisenstock of Prosus, tendered their resignations from the board of BYJU’S. This development now leaves Byju Raveendran, his wife Divya Gokulnath, and brother Riju Ravindran as the remaining members on the board. 

In reference to the TLB dispute between the company and its lenders, he said recent developments have been favorable and he is optimistic about a positive outcome.  

A consortium of lenders, led by investment management firm Redwood which has put in about 70 per cent of the loan capital, is pushing for an acceleration of the repayment of the term loan. 

“This is not to suggest that we are not facing some tough headwinds, many of which are related to the prevailing adverse macroeconomic conditions. Indeed, these challenges have presented us with a unique set of circumstances that demand careful navigation and strategic decision-making. However, despite the uncertainties, I assure you that BYJU'S remains resilient and stable,” his email said. 

While Raveendran did not address the layoffs at the company in town hall, he expressed empathy for the people affected by the layoffs in the letter. “My heart goes out to each and every team member who is facing the difficult reality of downsizing, a decision that was made as a last resort and with a heavy heart,” he wrote to his staff.  

“This company is not just my work; it is my life. For 18 years, I have dedicated more than 18 hours a day to BYJU’S, pouring my heart and soul into this mission. And I want to do this for at least 30 more years,” he wrote.  

Raveendran emphasized that the decision to reinvest the entire amount received through secondary sales back into the company reflects his commitment to Byju's mission and his conviction in the organization's potential. 

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