‘Best of BYJU'S is yet to come’: Byju Raveendran assures employees, addresses departure of board members

Co-founder and CEO of edtech giant BYJU'S, Byju Raveendran, reassured his employees during a townhall on Thursday. He said that he was optimistic about the future and that “the best of BYJU'S is yet to come”. Raveendran also said that the company has “not come this far, only to come this far”.

The CEO of the edtech company also addressed the recent developments amid the edtech company’s biggest crisis so far. Three board members – Peak XV Partners, Prosus and Chan Zuckerberg Initiative – quit following the resignation of auditor Deloitte Haskins & Sells. The edtech company then quickly appointed BDO (MSKA & Associates) as statutory auditors. 

Raveendran said that the decision to appoint BDO as the statutory auditors was taken to focus on the efficient and timely audits going forwards. He said that this is a reflection of the company’s commitment to enhance financial governance practices and to strengthen governance standards. 

Also read: BYJU'S may face EPFO action over delay in PF payments: Report

Deloitte’s resignation came after it said that it had not been provided with the necessary documents it sought to complete the audit on time. In a letter to board members of Think & Learn Private Limited, the parent company of BYJU'S, Deloitte said the financial statements for year-ended March 31, 2022 are long delayed. It said that this delay will significantly impact their ability to plan, design, perform and complete the audit, and hence has decided to tender their resignation. It subsequently told the investors that it will file the 2022 audited earnings by September and 2023 results by December. 

Raveendran, in the townhall, further stated that the departures of the board members were unrelated to Deloitte’s resignation. He assured the employees that their exit was amicable and carried out with mutual understanding. BYJU'S investors continue to support its growth trajectory, he added. Raveendran said that now the company is actively expanding and diversifying its board to reflect the scale, scope, and reach of operations. 

Also read: 'Not all rags to riches stories are honest': Hansal Mehta's scathing takedown of BYJU'S

He also spoke about the TLB dispute and said that it is being resolved through constructive discussions, and is confident of a positive outcome in the next few weeks. BYJU'S Term Loan B lenders have filed a suit against its US-based subsidiary for moving out $500 million from BYJU'S Alpha and on other issues around TLB. However, a Delaware court rejected a request by the TLB lenders to investigate the $500 million transfer from BYJU'S Alpha to other entities. 

Raveendran sounded optimistic about the viability of edtech as an industry and said that it is not a ‘pandemic phenomenon’ but a permanent fixture. Moreover, BYJU'S is close to achieving profitability at the group level, he added. Despite the challenges globally, BYJU'S has made substantial progress, Raveendran said. 

While reflecting on his journey and commitment to education, Raveendran said that he has made investments to his “last penny” to the growth of the company. 

BYJU'S has weathered storms before and has emerged stronger, said Raveendran, urging the team to “rise above the noise”.

Also read: BYJU'S auditor Deloitte resigns amid 'long delayed' FY22 financials, replacement announced

Also read: BYJU'S tells investors it will file 2022 earnings by September: Report

Also read: Three board members confirm resigning from BYJU'S; edtech firm says 'working towards constituting a diverse board'