Once the most-valued edtech firm in the world, Byju's is now battling serious funding issues, a corporate governance crisis, and court battles
In June 2023, Byju's missed a $40-million loan repayment of its $1.2 billion Term Loan B. Moreover, the company also has $250 million loan from AMC Davidson Kempner
Three members of Byju's board representing its investors - G.V. Ravishankar of Peak XV Partners, Vivian Wu of the Chan Zuckerberg Initiative, and Russell Andrew Dreisenstock of Prosus, quit the board earlier this year
Deloitte Haskins & Sells, the company’s auditor, which has a five-year mandate up to 2025, resigned citing lack of clarity on financial information
Aakash Educational Services is the only one among the group entities of Byju’s that is profitable. Byju's kept Aakash shares as collateral for its Davidson Kempner AMC loan, and in case they fail to pay the loan, they might lose control of the company
Byju’s reached this point by a mix of non-prudent financial decisions, like high marketing burn and big ticket acquisitions
Byju's went on an acquiring spree during the peak of valuations in the edtech sector. Moreover, majority of Byju's acquisitions are not profitable, which means the company has to pump money in its subsidiaries to keep them afloat
Byju's went on an overdrive when it came to marketing and advertising. The company signed Shahrukh Khan and Lionel Messi as its brand ambassadors. Moreover, the company also sponsored the Indian cricket team’s jersey
Byju's now needs an urgent infusion of $1.5 billion so that it can pay off its lenders. Moreover, the company also needs to align its priorities and focus on profitability