BlackRock, the global asset manager, has taken a significant step by reducing the valuation of its stake in Indian edtech giant Byju's by 95 per cent, lowering it from $22 billion in early 2022 to a new valuation of $1 billion.<o:p></o:p>

According to a TechCrunch report, the asset manager's disclosed adjustment, indicates a significant devaluation of Byju's, which once held the title of India's most valuable startup. <o:p></o:p>

This markdown by BlackRock is the latest in a series of revaluations, with Prosus, another investor in Byju's, stating last year that it valued the startup at "sub $3 billion".<o:p></o:p>

The devaluation is a notable setback for Byju's, which was once hailed as a star in the Indian startup ecosystem. <o:p></o:p>

BlackRock's disclosures reveal a sharp decline in the implied valuation of Byju's shares, from about $4,660 at its peak in 2022 to $209.6 per share at the end of October last year. <o:p></o:p>

This drastic adjustment reflects the challenges faced by Byju's, once a high-flying unicorn. <o:p></o:p>

The startup, which raised substantial funds and achieved a valuation as high as $50 billion, now grapples with financial hurdles, missed revenue targets, and an uncertain business outlook.<o:p></o:p>

Byju's, backed by a roster of industry heavyweights such as Peak XV Partners, Lightspeed, UBS, and the Chan Zuckerberg Initiative, had ambitious plans for an IPO in early 2022. <o:p></o:p>

However, external factors, including Russia's invasion of Ukraine in February, disrupted market conditions and forced Byju's to postpone its IPO plans. <o:p></o:p>

The startup's challenges intensified as market conditions worsened, leading to increased scrutiny from investors and a halt in its business outlook. <o:p></o:p>

Byju's, once lauded for its innovative teaching methods, is now dealing with difficulties in raising capital, meeting payroll, and addressing substantial debt obligations.<o:p></o:p>

The departure of key personnel, including CFO Ajay Goel and auditor Deloitte, coupled with public criticism from investor Prosus, has added to Byju's woes. <o:p></o:p>

The company's failure to evolve and heed investor advice has been a point of contention, contributing to its current struggles. <o:p></o:p>

BlackRock, the global asset manager, has taken a significant step by reducing the valuation of its stake in Indian edtech giant Byju's by 95 per cent, lowering it from $22 billion in early 2022 to a new valuation of $1 billion.

BlackRock, the global asset manager, has taken a significant step by reducing the valuation of its stake in Indian edtech giant Byju's by 95 per cent, lowering it from $22 billion in early 2022 to a new valuation of $1 billion. According to a TechCrunch report, the asset manager's disclosed adjustment, indicates a significant devaluation of Byju's, which once held the title of India's most valuable startup. This markdown by BlackRock is the latest in a series of revaluations, with Prosus, another investor in Byju's, stating last year that it valued the startup at "sub $3 billion". The devaluation is a notable setback for Byju's, which was once hailed as a star in the Indian startup ecosystem. BlackRock's disclosures reveal a sharp decline in the implied valuation of Byju's shares, from about $4,660 at its peak in 2022 to $209.6 per share at the end of October last year. This drastic adjustment reflects the challenges faced by Byju's, once a high-flying unicorn. The startup, which raised substantial funds and achieved a valuation as high as $50 billion, now grapples with financial hurdles, missed revenue targets, and an uncertain business outlook. Byju's, backed by a roster of industry heavyweights such as Peak XV Partners, Lightspeed, UBS, and the Chan Zuckerberg Initiative, had ambitious plans for an IPO in early 2022. However, external factors, including Russia's invasion of Ukraine in February, disrupted market conditions and forced Byju's to postpone its IPO plans. The startup's challenges intensified as market conditions worsened, leading to increased scrutiny from investors and a halt in its business outlook. Byju's, once lauded for its innovative teaching methods, is now dealing with difficulties in raising capital, meeting payroll, and addressing substantial debt obligations. The departure of key personnel, including CFO Ajay Goel and auditor Deloitte, coupled with public criticism from investor Prosus, has added to Byju's woes. The company's failure to evolve and heed investor advice has been a point of contention, contributing to its current struggles.

Byju's faces setback as BlackRock slashes valuation by 95pc to $1 billion

In a closed-door meeting with 50 top leaders, Byju Raveendran, the founder of edtech giant Byju’s, compared the company's current challenges to a "war on multiple fronts," expressing confidence that they would emerge victorious, according to media reports.&nbsp;

Amid a liquidity crisis and efforts to raise funds, Raveendran acknowledged the difficulties and apologised for the limited engagement with the team. He mentioned that he regretted not providing sufficient capital. He assured leaders that Byju’s would rebound in a few months, outlining plans to address key issues such as term loan challenges, Enforcement Directorate notices, asset sales, and liquidity positions.&nbsp;

Raveendran updated leaders on active negotiations with lenders, highlighting that the term loan challenges should be resolved post the sale of Epic, a subsidiary in the US. With three bids received for Epic, the company anticipates tapping into significant funds from the transaction, helping alleviate the liquidity crunch. &nbsp;

Regarding the Enforcement Directorate (ED) notice, Raveendran clarified that it pertains to procedural deficiencies under FEMA, emphasising that most issues have already been addressed. He also addressed challenges related to FY23 statutory audits and litigation surrounding loans raised against Aakash Educational Services Ltd, assuring resolution and a promising admissions season for Aakash.&nbsp;

A Moneycontrol report cited CEO Arjun Mohan, who shared Byju’s plan to enhance productivity through the incorporation of Artificial Intelligence across business aspects. Describing the approach as Byju's 3.0, Mohan emphasised selling the right products to the right people without maximising sales aggressively.&nbsp;

The company aims to better monetise existing assets, offer diverse options across price points, and enhance product ranges for potential customers. Byju’s has concurrently reduced the employee notice period to 15-30 days, a move aligned with ongoing efforts to address various challenges.&nbsp;

Byju's, India's most-valued startup, has faced a series of challenges, including accounting irregularities, ED notices, mass layoffs, and term loan issues. The company, confident in weathering the liquidity crisis without external help, is focused on raising funds through asset sales and strategic divestments. Despite setbacks, Raveendran has been actively investing to keep the company afloat, and Byju’s is in discussions to divest assets like Great Learning and Epic.&nbsp;

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In a closed-door meeting with 50 top leaders, Byju Raveendran, the founder of edtech giant Byju’s, compared the company's current challenges to a "war on multiple fronts," expressing confidence that they would emerge victorious, according to media reports.

In a closed-door meeting with 50 top leaders, Byju Raveendran, the founder of edtech giant Byju’s, compared the company's current challenges to a "war on multiple fronts," expressing confidence that they would emerge victorious, according to media reports. Amid a liquidity crisis and efforts to raise funds, Raveendran acknowledged the difficulties and apologised for the limited engagement with the team. He mentioned that he regretted not providing sufficient capital. He assured leaders that Byju’s would rebound in a few months, outlining plans to address key issues such as term loan challenges, Enforcement Directorate notices, asset sales, and liquidity positions. Raveendran updated leaders on active negotiations with lenders, highlighting that the term loan challenges should be resolved post the sale of Epic, a subsidiary in the US. With three bids received for Epic, the company anticipates tapping into significant funds from the transaction, helping alleviate the liquidity crunch. Regarding the Enforcement Directorate (ED) notice, Raveendran clarified that it pertains to procedural deficiencies under FEMA, emphasising that most issues have already been addressed. He also addressed challenges related to FY23 statutory audits and litigation surrounding loans raised against Aakash Educational Services Ltd, assuring resolution and a promising admissions season for Aakash. A Moneycontrol report cited CEO Arjun Mohan, who shared Byju’s plan to enhance productivity through the incorporation of Artificial Intelligence across business aspects. Describing the approach as Byju's 3.0, Mohan emphasised selling the right products to the right people without maximising sales aggressively. The company aims to better monetise existing assets, offer diverse options across price points, and enhance product ranges for potential customers. Byju’s has concurrently reduced the employee notice period to 15-30 days, a move aligned with ongoing efforts to address various challenges. Byju's, India's most-valued startup, has faced a series of challenges, including accounting irregularities, ED notices, mass layoffs, and term loan issues. The company, confident in weathering the liquidity crisis without external help, is focused on raising funds through asset sales and strategic divestments. Despite setbacks, Raveendran has been actively investing to keep the company afloat, and Byju’s is in discussions to divest assets like Great Learning and Epic. WATCH WION LIVE HERE

Byju's founder rallying leadership amidst challenges, confident of victory in ongoing crisis 

Ed-tech platform Byju's founder, Byju Raveendran, has pledged his home and the property owned by his family members to raise funds for the salaries of the ones employed by his firm, Bloomberg News reported on Monday (Dec&nbsp;4).

According to the reports, the properties include two houses owned by Raveendran's family and an under-construction villa in the southern city of Bengaluru, as collateral to borrow $12 million.

The generated funds would help the billionaire founder pay 15,000 employees working with the company's parent firm, Think &amp; Learn Pvt, added the report.

The organisation is facing a spate of challenges, from investors slashing the company's valuation to its board members resigning.

<h2>Byju's receives notice from ED</h2>

Earlier, the firm had received a notice from India's federal financial crime-fighting agency over allegedly violating India's foreign exchange laws.

The company was also expected to pay a nominal fine.

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The Enforcement Directorate (ED) released a statement saying that the firm violated India's Foreign Exchange Management Act (FEMA) norms by delaying the filing of documents against the foreign investment of about 80 billion Indian rupees ($960.30 million) and failing to allot shares against these.

"The company has, however, filed requisite intimation contemporaneously for all FDI which is received in accordance with the eligibility criteria in law and not affected by the alleged non-filing of APR," the firm said on the ED notice.

Byju's responded to the accusations by saying that the queries presented in the show cause notice by ED are "solely technical in nature," and based on precedents, it expects fines, if any, will be nominal.

The company said it "maintains and will continue to maintain adherence to all relevant FEMA regulations".

"This is being clarified to the company is advised that the delayed filing of APR (particularly when returns in relation to receipt of FDI have been filed in time) is a technical issue and the Company is confident of successfully dealing with the case."

"Based on precedent actions by the Adjudicating Authority, we anticipate that the fines, if any, will be nominal," Byju's said.

(With inputs from agencies)

Ed-tech platform Byju's founder, Byju Raveendran, has pledged his home and the property owned by his family members to raise funds for the salaries of the ones employed by his firm, Bloomberg News reported on Monday (Dec 4).

Ed-tech platform Byju's founder, Byju Raveendran, has pledged his home and the property owned by his family members to raise funds for the salaries of the ones employed by his firm, Bloomberg News reported on Monday (Dec 4). According to the reports, the properties include two houses owned by Raveendran's family and an under-construction villa in the southern city of Bengaluru, as collateral to borrow $12 million. The generated funds would help the billionaire founder pay 15,000 employees working with the company's parent firm, Think & Learn Pvt, added the report. The organisation is facing a spate of challenges, from investors slashing the company's valuation to its board members resigning. Byju's receives notice from ED Earlier, the firm had received a notice from India's federal financial crime-fighting agency over allegedly violating India's foreign exchange laws. The company was also expected to pay a nominal fine. Also read: Israel-Hamas war: PM Benjamin Netanyahu’s graft trial resumes in Israel The Enforcement Directorate (ED) released a statement saying that the firm violated India's Foreign Exchange Management Act (FEMA) norms by delaying the filing of documents against the foreign investment of about 80 billion Indian rupees ($960.30 million) and failing to allot shares against these. "The company has, however, filed requisite intimation contemporaneously for all FDI which is received in accordance with the eligibility criteria in law and not affected by the alleged non-filing of APR," the firm said on the ED notice. Byju's responded to the accusations by saying that the queries presented in the show cause notice by ED are "solely technical in nature," and based on precedents, it expects fines, if any, will be nominal. The company said it "maintains and will continue to maintain adherence to all relevant FEMA regulations". "This is being clarified to the company is advised that the delayed filing of APR (particularly when returns in relation to receipt of FDI have been filed in time) is a technical issue and the Company is confident of successfully dealing with the case." "Based on precedent actions by the Adjudicating Authority, we anticipate that the fines, if any, will be nominal," Byju's said. (With inputs from agencies)

Byju's founder Raveendran pledges property to generate funds for salaries of employees: Report

India's ed-tech giant Byju's has been slapped with a whopping 9,000 crore rupees ($1 billion) penalty by the Enforcement Directorate (ED) for allegedly violating foreign funding laws.

An NDTV report citing&nbsp;sources revealed that&nbsp;Byju's received around 28,000 crore ($3 billion) rupees in foreign direct investment (FDI) between 2011 and 2023, remitting about 9,754 crore rupees overseas in the same period.

Byju's denies having received any such communication from the authorities, marking the latest twist in the unravelling saga of India's once most-valued startup.

The ED's notice adds a new chapter to Byju's tumultuous journey from a startup sensation to legal turmoil.

Founded by Byju Raveendran and Divya Gokulnath in 2011, Byju's initially offered online learning programs for competitive exams, expanding with its popular learning app in 2015. The app's widespread adoption during the pandemic fuelled its growth.

However, post-2021 losses, a decline in value, and allegations of coercive sales tactics and poor employee treatment have tarnished Byju's image. Earlier this year, the ED raided Byju's office over suspected foreign funding law violations.

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India's ed-tech giant Byju's has been slapped with a whopping 9,000 crore rupees ($1 billion) penalty by the Enforcement Directorate (ED) for allegedly violating foreign funding laws.

India's ed-tech giant Byju's has been slapped with a whopping 9,000 crore rupees ($1 billion) penalty by the Enforcement Directorate (ED) for allegedly violating foreign funding laws. An NDTV report citing sources revealed that Byju's received around 28,000 crore ($3 billion) rupees in foreign direct investment (FDI) between 2011 and 2023, remitting about 9,754 crore rupees overseas in the same period. Byju's denies having received any such communication from the authorities, marking the latest twist in the unravelling saga of India's once most-valued startup. The ED's notice adds a new chapter to Byju's tumultuous journey from a startup sensation to legal turmoil. Founded by Byju Raveendran and Divya Gokulnath in 2011, Byju's initially offered online learning programs for competitive exams, expanding with its popular learning app in 2015. The app's widespread adoption during the pandemic fuelled its growth. However, post-2021 losses, a decline in value, and allegations of coercive sales tactics and poor employee treatment have tarnished Byju's image. Earlier this year, the ED raided Byju's office over suspected foreign funding law violations. WATCH WION LIVE HERE

Byju's faces $1 billion penalty amid foreign funding law violation probe

Indian ed-tech startup, Byju’s, faced a setback as lenders successfully claimed a default on a $1.2 billion loan, enabling them to assume control of a unit of the education-technology giant. &nbsp;

According to a Bloomberg report, the lenders, including Redwood Investments LLC and Silver Point Capital LP, exercised their contractual rights to replace a relative of Byju’s founder, Byju Raveendran, on the board of Byju’s Alpha. Delaware Chancery Court Judge Morgan Zurn ruled in favour of the lenders, rejecting Byju’s complaint that Timothy Pohl, the lenders’ nominee, was improperly authorised to take control. Judge Zurn stated that Pohl's appointment was a consequence of the defaults.&nbsp;

Amid the company's financial distress following the waning of the pandemic-driven surge in online learning, lenders pressed for the repayment of the $1.2 billion loan. Byju’s had been actively managing the loan issue and seeking to sell assets when government investigators conducted searches at the company's offices earlier this year. &nbsp;

The lender dispute also led some investors to devalue their stakes in one of the world's largest ed-tech firms. The lenders clarified that their intention was not to take over the entire ed-tech company but rather to protect their rights through Byju’s Alpha, which served as a holding company, as stated by Brock Czeschin, a lawyer for Red Tree and Silver Lake, in a May court hearing.&nbsp;

The company had previously dismissed the lenders' default claims as baseless. A spokesperson for the lender group expressed satisfaction with the Delaware Chancery Court's acknowledgement of Byju’s repeated loan defaults. The lenders asserted that they reserve all rights available to them.&nbsp;

The loan terms permitted lenders to take control of pledged Byju’s Alpha shares if a default triggered this right, as outlined in Judge Zurn's November 2 ruling. Following a failure to secure the Indian government’s backing as a loan guarantor, lenders filed a notice of default in March. &nbsp;

Timothy Pohl, appointed as the sole director of Byju’s Alpha, assumed the role of CEO after removing all company officers. The legal dispute over the loan was initiated by Glas Trust Co., the trustee for the lenders, which appointed Pohl to oversee Byju’s Alpha on behalf of the creditors.&nbsp;

Byju’s raised concerns about Pohl's compensation, asserting that he, as the former lawyer, was receiving excessive fees. However, Judge Zurn rejected this argument, stating that Pohl's $75,000-per-month pay was authorized by a "status-quo" order entered in the case to safeguard Byju’s Alpha. &nbsp;

(With inputs from Bloomberg)&nbsp;

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Indian ed-tech startup, Byju’s, faced a setback as lenders successfully claimed a default on a $1.2 billion loan, enabling them to assume control of a unit of the education-technology giant.

Indian ed-tech startup, Byju’s, faced a setback as lenders successfully claimed a default on a $1.2 billion loan, enabling them to assume control of a unit of the education-technology giant. According to a Bloomberg report, the lenders, including Redwood Investments LLC and Silver Point Capital LP, exercised their contractual rights to replace a relative of Byju’s founder, Byju Raveendran, on the board of Byju’s Alpha. Delaware Chancery Court Judge Morgan Zurn ruled in favour of the lenders, rejecting Byju’s complaint that Timothy Pohl, the lenders’ nominee, was improperly authorised to take control. Judge Zurn stated that Pohl's appointment was a consequence of the defaults. Amid the company's financial distress following the waning of the pandemic-driven surge in online learning, lenders pressed for the repayment of the $1.2 billion loan. Byju’s had been actively managing the loan issue and seeking to sell assets when government investigators conducted searches at the company's offices earlier this year. The lender dispute also led some investors to devalue their stakes in one of the world's largest ed-tech firms. The lenders clarified that their intention was not to take over the entire ed-tech company but rather to protect their rights through Byju’s Alpha, which served as a holding company, as stated by Brock Czeschin, a lawyer for Red Tree and Silver Lake, in a May court hearing. The company had previously dismissed the lenders' default claims as baseless. A spokesperson for the lender group expressed satisfaction with the Delaware Chancery Court's acknowledgement of Byju’s repeated loan defaults. The lenders asserted that they reserve all rights available to them. The loan terms permitted lenders to take control of pledged Byju’s Alpha shares if a default triggered this right, as outlined in Judge Zurn's November 2 ruling. Following a failure to secure the Indian government’s backing as a loan guarantor, lenders filed a notice of default in March. Timothy Pohl, appointed as the sole director of Byju’s Alpha, assumed the role of CEO after removing all company officers. The legal dispute over the loan was initiated by Glas Trust Co., the trustee for the lenders, which appointed Pohl to oversee Byju’s Alpha on behalf of the creditors. Byju’s raised concerns about Pohl's compensation, asserting that he, as the former lawyer, was receiving excessive fees. However, Judge Zurn rejected this argument, stating that Pohl's $75,000-per-month pay was authorized by a "status-quo" order entered in the case to safeguard Byju’s Alpha. (With inputs from Bloomberg) WATCH WION LIVE HERE

Byju’s lenders prevail in legal battle over loan default, assert control of unit 

Indian ed-tech&nbsp;company Byju's is reportedly in the final stages of discussions to sell its US-based children's digital reading platform, Epic! Creations, to private equity fund Joffre Capital for approximately $400 million.

The move is seen as an effort to secure financial support and alleviate the company's ongoing financial challenges, according to sources cited by Bloomberg.&nbsp;&nbsp;

Byju's has been actively seeking to raise up to $1 billion by divesting two entities: Great Learning and Epic, as part of its broader strategy to streamline its operations and address its outstanding financial obligations. This development aligns with earlier reports by Reuters from September.&nbsp;

The prospective sale of Epic is expected to assist Byju's in raising funds to manage its disputed $1.2 billion term loan, Bloomberg's report indicates. The report also notes that other potential buyers, including Duolingo, a company specialising in the development of mobile learning platforms, have expressed interest in acquiring Epic.&nbsp;

At the time of reporting, Byju's had not provided a response to Reuters' request for comment, while Joffre Capital and Duolingo remained unavailable for immediate contact due to time zone differences with the United States.&nbsp;

The sale process for Epic is being overseen by Moelis and Co, and a final agreement could be reached as soon as this month, as mentioned in the report.&nbsp;

Byju's, with support from investors like General Atlantic, Prosus, and Silver Lake, had achieved a valuation of $22 billion in 2022. However, the company has faced a series of challenges, including the resignation of its auditor and board members, along with the ongoing negotiations related to a $1.2 billion loan repayment over the last several months.&nbsp;

(With inputs from Reuters)&nbsp;

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Indian ed-tech company Byju's is reportedly in the final stages of discussions to sell its US-based children's digital reading platform, Epic! Creations, to private equity fund Joffre Capital for approximately $400 million.

Indian ed-tech company Byju's is reportedly in the final stages of discussions to sell its US-based children's digital reading platform, Epic! Creations, to private equity fund Joffre Capital for approximately $400 million. The move is seen as an effort to secure financial support and alleviate the company's ongoing financial challenges, according to sources cited by Bloomberg. Byju's has been actively seeking to raise up to $1 billion by divesting two entities: Great Learning and Epic, as part of its broader strategy to streamline its operations and address its outstanding financial obligations. This development aligns with earlier reports by Reuters from September. The prospective sale of Epic is expected to assist Byju's in raising funds to manage its disputed $1.2 billion term loan, Bloomberg's report indicates. The report also notes that other potential buyers, including Duolingo, a company specialising in the development of mobile learning platforms, have expressed interest in acquiring Epic. At the time of reporting, Byju's had not provided a response to Reuters' request for comment, while Joffre Capital and Duolingo remained unavailable for immediate contact due to time zone differences with the United States. The sale process for Epic is being overseen by Moelis and Co, and a final agreement could be reached as soon as this month, as mentioned in the report. Byju's, with support from investors like General Atlantic, Prosus, and Silver Lake, had achieved a valuation of $22 billion in 2022. However, the company has faced a series of challenges, including the resignation of its auditor and board members, along with the ongoing negotiations related to a $1.2 billion loan repayment over the last several months. (With inputs from Reuters) WATCH WION LIVE HERE

Byju's in advanced talks to sell EPIC to Joffre Capital for $400 million 

Byju Raveendran, the man behind the ed-tech giant Byju's, has experienced a whirlwind of success and setbacks. In April, he broke into tears as his company faced a high-profile raid, raising concerns about potential foreign exchange violations. This marked a sharp turn from the previous year when Raveendran's personal wealth had surged by 26 per cent, reaching a remarkable 30,600 crore rupees ($4.1 billion). However, the company's fortunes took a hit as investors lowered their valuations, and Raveendran's name vanished from the 2023 Hurun India rich list.&nbsp;

In this story, we look back at how Byju began and built up his company and to where it stands at present.&nbsp;

The beginnings and early success&nbsp;

In 2011, Byju Raveendran embarked on a journey that would eventually reshape the landscape of online education in India. Driven by his passion for teaching and a commitment to make learning more engaging and accessible, Raveendran founded Byju's. Using a unique approach that incorporated adaptive learning technology, he aimed to provide personalised learning experiences for students across the country.&nbsp;

Raveendran's innovative methods quickly garnered attention from both students and investors alike. The ability to tailor learning to individual needs struck a chord with learners, and it wasn't long before major investors like the Chan Zuckerberg Initiative and Sequoia Capital joined the bandwagon, transforming Byju's into a billion-dollar start-up. Its valuation skyrocketed, reflecting the high hopes and expectations for the future of online education in India.&nbsp;

Ups and downs&nbsp;

However, Byju's journey was far from smooth sailing. As the company expanded rapidly, it encountered corporate governance issues that began to erode its reputation. Allegations of unethical accounting practices, including inflating operational revenue, and mishandling of user data tarnished its image. Deloitte, the company's auditor, resigned, citing delayed financial statement submissions, while independent directors left the board. These issues resulted in defaults on loans and counter-lawsuits against creditors, exposing the pressing need for robust corporate governance.&nbsp;

Boost during the pandemic&nbsp;

The emergence of the COVID-19 pandemic brought a mixed bag of opportunities and challenges for Byju's. The sudden shift towards remote learning created a surge in demand for online education platforms. Byju's responded by introducing 'Live Classes' on its app, replicating the traditional classroom environment, and attracting millions of students. Aggressive acquisitions further solidified its position, with the $300 million WhiteHat Jr deal and fundraising campaigns during the pandemic bringing billions of dollars into the company's reserves.&nbsp;

Challenges&nbsp;

However, as the pandemic began to wane, Byju's faced unexpected challenges. The anticipated sustained demand for ed-tech solutions in India didn't materialise as expected. Factors such as cultural preferences for traditional classroom-based learning, the persistent digital divide, and limited access to high-speed internet posed roadblocks to the adoption of online learning. In 2021, Byju's reported a loss of $327 million, raising questions about its financial stability.&nbsp;

Cracks in the foundation&nbsp;

According to a report by The New Indian Express, while Byju's gained immense popularity, the company began to face severe criticism for its marketing strategies. These strategies preyed on parental fears about their children's academic future. The report mentioned that Filmmaker Hansal Mehta was among those who publicly condemned Byju's aggressive marketing, highlighting how salespeople attempted to convince his daughter that she was academically poor.&nbsp;

Additionally, a wave of disturbing allegations hit Byju's. These included the targeting of first-generation learners and the use of aggressive sales strategies. These tactics ranged from secret enrollment in loan programs to the registration of fictitious students, causing public outrage.&nbsp;

The downfall&nbsp;

The accumulating allegations, combined with the decreased demand for online learning and technical glitches, pushed Byju's into a crisis. The company's financial situation deteriorated, and investors began losing confidence. Byju's stock, once India's most valued start-up at $22 billion, saw its valuation plummet to $5.1 billion. Key investors, such as Prosus NV, significantly reduced their stake.&nbsp;

In a desperate bid to rescue the dream he had turned into a billion-dollar reality, Byju Raveendran initiated several strategic moves. He appointed a new auditor and sought new shareholders. However, these steps alone couldn't mend the fundamental issues plaguing the company's corporate governance and business model.&nbsp;

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Byju Raveendran, the man behind the ed-tech giant Byju's, has experienced a whirlwind of success and setbacks. In April, he broke into tears as his company faced a high-profile raid, raising concerns about potential foreign exchange violations.

Byju Raveendran, the man behind the ed-tech giant Byju's, has experienced a whirlwind of success and setbacks. In April, he broke into tears as his company faced a high-profile raid, raising concerns about potential foreign exchange violations. This marked a sharp turn from the previous year when Raveendran's personal wealth had surged by 26 per cent, reaching a remarkable 30,600 crore rupees ($4.1 billion). However, the company's fortunes took a hit as investors lowered their valuations, and Raveendran's name vanished from the 2023 Hurun India rich list. In this story, we look back at how Byju began and built up his company and to where it stands at present. The beginnings and early success In 2011, Byju Raveendran embarked on a journey that would eventually reshape the landscape of online education in India. Driven by his passion for teaching and a commitment to make learning more engaging and accessible, Raveendran founded Byju's. Using a unique approach that incorporated adaptive learning technology, he aimed to provide personalised learning experiences for students across the country. Raveendran's innovative methods quickly garnered attention from both students and investors alike. The ability to tailor learning to individual needs struck a chord with learners, and it wasn't long before major investors like the Chan Zuckerberg Initiative and Sequoia Capital joined the bandwagon, transforming Byju's into a billion-dollar start-up. Its valuation skyrocketed, reflecting the high hopes and expectations for the future of online education in India. Ups and downs However, Byju's journey was far from smooth sailing. As the company expanded rapidly, it encountered corporate governance issues that began to erode its reputation. Allegations of unethical accounting practices, including inflating operational revenue, and mishandling of user data tarnished its image. Deloitte, the company's auditor, resigned, citing delayed financial statement submissions, while independent directors left the board. These issues resulted in defaults on loans and counter-lawsuits against creditors, exposing the pressing need for robust corporate governance. Boost during the pandemic The emergence of the COVID-19 pandemic brought a mixed bag of opportunities and challenges for Byju's. The sudden shift towards remote learning created a surge in demand for online education platforms. Byju's responded by introducing 'Live Classes' on its app, replicating the traditional classroom environment, and attracting millions of students. Aggressive acquisitions further solidified its position, with the $300 million WhiteHat Jr deal and fundraising campaigns during the pandemic bringing billions of dollars into the company's reserves. Challenges However, as the pandemic began to wane, Byju's faced unexpected challenges. The anticipated sustained demand for ed-tech solutions in India didn't materialise as expected. Factors such as cultural preferences for traditional classroom-based learning, the persistent digital divide, and limited access to high-speed internet posed roadblocks to the adoption of online learning. In 2021, Byju's reported a loss of $327 million, raising questions about its financial stability. Cracks in the foundation According to a report by The New Indian Express, while Byju's gained immense popularity, the company began to face severe criticism for its marketing strategies. These strategies preyed on parental fears about their children's academic future. The report mentioned that Filmmaker Hansal Mehta was among those who publicly condemned Byju's aggressive marketing, highlighting how salespeople attempted to convince his daughter that she was academically poor. Additionally, a wave of disturbing allegations hit Byju's. These included the targeting of first-generation learners and the use of aggressive sales strategies. These tactics ranged from secret enrollment in loan programs to the registration of fictitious students, causing public outrage. The downfall The accumulating allegations, combined with the decreased demand for online learning and technical glitches, pushed Byju's into a crisis. The company's financial situation deteriorated, and investors began losing confidence. Byju's stock, once India's most valued start-up at $22 billion, saw its valuation plummet to $5.1 billion. Key investors, such as Prosus NV, significantly reduced their stake. In a desperate bid to rescue the dream he had turned into a billion-dollar reality, Byju Raveendran initiated several strategic moves. He appointed a new auditor and sought new shareholders. However, these steps alone couldn't mend the fundamental issues plaguing the company's corporate governance and business model. WATCH WION LIVE HERE

Flashback Friday: Tracing the rise and fall of ed-tech start-up, Byju’s

An ex-employee of Byju's posted a tearful video stating that the Indian ed-tech company has been pressurising her to resign and threatened to not pay her salary beyond August 1 if she fails to resign.&nbsp;

Akansha Khemka, , who has been laid off recently, was employed as an academic specialist with the Indian unicorn.

In the video that has gone viral, Khemka said she is the sole breadwinner of the family and if all her dues are not cleared by the company, it would drive her to commit suicide. The woman worked for the startup for around a year and a half.

In the video posted on LinkedIn on July 26, a tearful Khemka stated, "I was abruptly told in a meeting that I have to quit the company by July 28 or else I won't get my salary on August 1. They'll need around 30-35 more days. I am the only earning member in the family, my husband is unwell, I have loans to repay, how will I survive if they don't release my salary on the first?"

ALSO READ |&nbsp;<a href="https://www.wionews.com/india-news/indian-government-orders-probe-of-byjus-account-books-reports-614305">Indian government orders probe into Byju’s account books: Reports</a>

She said that when her termination was announced during the meeting, her manager said that she had been laid off because of her behaviour and performance. However, when Khemka spoke to HR, she was informed that it was not the reason why she was being fired.&nbsp;

"Byju's had also promised variable pay, and I took loans for my family accordingly, but the company never paid up and now the vendors are after me. Where do I go? How will I eat?" Khemka stated in the video.

<h2>Not even a month's notice given</h2>

She also stated that if she was given at least a month's notice by the company, she would have been able to find another job and not be left in the lurch by the end of the month.&nbsp;

Speaking about the purpose of posting the video, Khemka stated that if the video gets a better reach, it can help in creating pressure on the company to clear her salary and her other dues.&nbsp;

"I have not taken a single day's leave in this company. I want my salary, I want my variable pay, I want to encash my paid leaves and I want my PF payments cleared. Unless the company releases the money, I will not be able to feed my family and in this condition, and may have to eventually commit suicide," she said.&nbsp;

She appealed to India's Prime Minister Narendra Modi for help. "The Indian government makes statements on justice abroad, at least ensure that the people of your country are given justice. Byju's is taking money from parents and not allocating classes to them, employees are being laid off without any notice," she stated.&nbsp;

WATCH |&nbsp;Gravitas: Is Byju's story a lesson for Indian start-ups? | Story of Byju Raveendran

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Talking about the problem that social media is filled with complaints from parents, especially regarding refunds, Khemka said, "They burned through all the parents' money. Every time there's a meeting, parents keep demanding their money back. Why is this happening? Byju's has been eating away everybody's money. What they are doing with parents and employees is fraud."

She further requested other professionals not to join Byju's. "Do whatever you want in life, teach wherever, do not get a job at Byju's and ruin your lives. I ruined 1.5 years of my life here," she said.&nbsp;

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An ex-employee of Byju's posted a tearful video stating that the Indian ed-tech company has been pressurising her to resign and threatened to not pay her salary beyond August 1 if she fails to resign.

An ex-employee of Byju's posted a tearful video stating that the Indian ed-tech company has been pressurising her to resign and threatened to not pay her salary beyond August 1 if she fails to resign. Akansha Khemka, , who has been laid off recently, was employed as an academic specialist with the Indian unicorn. In the video that has gone viral, Khemka said she is the sole breadwinner of the family and if all her dues are not cleared by the company, it would drive her to commit suicide. The woman worked for the startup for around a year and a half. In the video posted on LinkedIn on July 26, a tearful Khemka stated, "I was abruptly told in a meeting that I have to quit the company by July 28 or else I won't get my salary on August 1. They'll need around 30-35 more days. I am the only earning member in the family, my husband is unwell, I have loans to repay, how will I survive if they don't release my salary on the first?" ALSO READ | Indian government orders probe into Byju’s account books: Reports She said that when her termination was announced during the meeting, her manager said that she had been laid off because of her behaviour and performance. However, when Khemka spoke to HR, she was informed that it was not the reason why she was being fired. "Byju's had also promised variable pay, and I took loans for my family accordingly, but the company never paid up and now the vendors are after me. Where do I go? How will I eat?" Khemka stated in the video. Not even a month's notice given She also stated that if she was given at least a month's notice by the company, she would have been able to find another job and not be left in the lurch by the end of the month. Speaking about the purpose of posting the video, Khemka stated that if the video gets a better reach, it can help in creating pressure on the company to clear her salary and her other dues. "I have not taken a single day's leave in this company. I want my salary, I want my variable pay, I want to encash my paid leaves and I want my PF payments cleared. Unless the company releases the money, I will not be able to feed my family and in this condition, and may have to eventually commit suicide," she said. She appealed to India's Prime Minister Narendra Modi for help. "The Indian government makes statements on justice abroad, at least ensure that the people of your country are given justice. Byju's is taking money from parents and not allocating classes to them, employees are being laid off without any notice," she stated. WATCH | Gravitas: Is Byju's story a lesson for Indian start-ups? | Story of Byju Raveendran Talking about the problem that social media is filled with complaints from parents, especially regarding refunds, Khemka said, "They burned through all the parents' money. Every time there's a meeting, parents keep demanding their money back. Why is this happening? Byju's has been eating away everybody's money. What they are doing with parents and employees is fraud." She further requested other professionals not to join Byju's. "Do whatever you want in life, teach wherever, do not get a job at Byju's and ruin your lives. I ruined 1.5 years of my life here," she said. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE

‘Terminated suddenly, salary delayed’: Indian startup Byju's ex-staffer breaks down in video

A report by Bloomberg News citing people familiar with the matter, on Tuesday (July 11) reported that the Indian Ministry of Corporate Affairs (MCA) has ordered an inspection into the ed-tech startup Byju’s accounts over alleged governance lapses and compliance failures.

<h2>Indian government to probe Byju’s accounts?</h2>

The report by Bloomberg citing sources also said that the ministry had sought a report on the Indian ed-tech startup in six weeks. The decision to escalate the matter to the Serious Fraud Investigation Office (SFIO) will be based on the findings of the inspection, the report added.&nbsp;

CNBC-TV18, on Monday, citing ministry sources reported that the company, as of now, is not facing any investigations by the SFIO. But the matter is being probed by the ministry, the report added. The matter will reportedly be taken up with the SFIO following the ministry probe into Byju’s alleged financial reporting compliance failures and governance lapses.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/byjus-might-face-epfo-action-over-delayed-provident-fund-payments-report-608944">Byju’s might face EPFO action over delayed provident fund payments: Report</a>

This comes days after a report by The Hindu Business Line, citing an anonymous source, said that the SFIO, a multi-disciplinary organisation which operates under MCA, has already launched an investigation into Byju’s case.&nbsp;

In a statement to Mint, following the recent reports, Byju’s said it has “not received any communication from the SFIO to date.” Meanwhile, the ed-tech start-up has reportedly decided to create a Board Advisory Committee (BAC) to handle the corporate governance issues.

<h2>What happened so far?</h2>

The recent reports come amid mounting trouble for the Indian company after three of Byju’s board members stepped down, its auditor Deloitte quit over pending financial statements, and the ed-tech start-up reportedly fell behind on its delayed provident fund payments to the Employees’ Provident Fund Organisation.&nbsp;

In the letter sent to Byju’s parent company Think &amp; Learn Private Limited&nbsp;last month, about quitting with “immediate effect,” Deloitte, one of the world’s largest auditing firms, said that the company has not submitted financial statements for 2022.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/indias-byjus-denies-reports-of-three-board-members-quitting-deloitte-resigns-as-auditors-reports-607470">India’s Byju’s denies three board members quitting; Deloitte resigns as auditors: Reports</a>

However, a person with direct knowledge of the matter told Reuters&nbsp;that the company has told its investors that it would file them by this September.&nbsp; 
 
A report by Moneycontrol, on June 26, citing the data sourced from EPFO, said that the company has been making delayed PF payments since October last year.&nbsp;

(With inputs from agencies)&nbsp; 
 
&nbsp;

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A report by Bloomberg News citing people familiar with the matter, on Tuesday (July 11) reported that the Indian Ministry of Corporate Affairs (MCA) has ordered an inspection into the ed-tech startup Byju’s accounts over alleged governance lapses and compliance failures.

A report by Bloomberg News citing people familiar with the matter, on Tuesday (July 11) reported that the Indian Ministry of Corporate Affairs (MCA) has ordered an inspection into the ed-tech startup Byju’s accounts over alleged governance lapses and compliance failures. Indian government to probe Byju’s accounts? The report by Bloomberg citing sources also said that the ministry had sought a report on the Indian ed-tech startup in six weeks. The decision to escalate the matter to the Serious Fraud Investigation Office (SFIO) will be based on the findings of the inspection, the report added. CNBC-TV18, on Monday, citing ministry sources reported that the company, as of now, is not facing any investigations by the SFIO. But the matter is being probed by the ministry, the report added. The matter will reportedly be taken up with the SFIO following the ministry probe into Byju’s alleged financial reporting compliance failures and governance lapses. ALSO READ | Byju’s might face EPFO action over delayed provident fund payments: Report This comes days after a report by The Hindu Business Line, citing an anonymous source, said that the SFIO, a multi-disciplinary organisation which operates under MCA, has already launched an investigation into Byju’s case. In a statement to Mint, following the recent reports, Byju’s said it has “not received any communication from the SFIO to date.” Meanwhile, the ed-tech start-up has reportedly decided to create a Board Advisory Committee (BAC) to handle the corporate governance issues. What happened so far? The recent reports come amid mounting trouble for the Indian company after three of Byju’s board members stepped down, its auditor Deloitte quit over pending financial statements, and the ed-tech start-up reportedly fell behind on its delayed provident fund payments to the Employees’ Provident Fund Organisation. In the letter sent to Byju’s parent company Think & Learn Private Limited last month, about quitting with “immediate effect,” Deloitte, one of the world’s largest auditing firms, said that the company has not submitted financial statements for 2022. ALSO READ | India’s Byju’s denies three board members quitting; Deloitte resigns as auditors: Reports However, a person with direct knowledge of the matter told Reuters that the company has told its investors that it would file them by this September. A report by Moneycontrol, on June 26, citing the data sourced from EPFO, said that the company has been making delayed PF payments since October last year. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Indian government orders probe into Byju’s account books: Reports

Embattled Indian ed-tech company Byju's has started talks with some of its lenders to restructure its $1.2 billion term loan, sources told Bloomberg.&nbsp;

The latest development comes amid allegations that India's most-valued startup had breached certain terms of its debt agreement. However, Bloomberg quoting unnamed sources said that Byju's and lenders want a swift resolution in order to not escalate the legal matter.&nbsp;

According to the Bloomberg report, the lenders have sought debt pay down, coupon boost and better investor protections on the billion-dollar loan. Byju's is expected to review the new proposal and reply by early next week, the report added.&nbsp;

For the uninitiated, Byju's troubles with the $1.2 billion loan began when late last year, when it failed to make an immediate payment after filing its audited results for March 2022 by September - a breach of the loan agreement.&nbsp;

Byju's has been mirred in several financial problems, including several failed rounds of restructuring its term loan, which it secured in November 2021 from overseas market.&nbsp;

In a bizarre turn of events, the ed-tech firm chose to miss an interest payment of $40 million on its term loan in June, and instead filed a suit against its lenders, including Redwood, for 'predatory tactics'.&nbsp;

Byju's growing list of troubles

It is not just the billion-dollar term loan which has been bothering the startup, which was valued at a whopping $22 billion in 2022. The company has been struggling to make a profit but has seen its losses widening every year.&nbsp;

The edtech startup recorded a loss of $550.5 million in September for the fiscal year 2021, while revenue fell 3 percent.&nbsp;

In a bid to cut costs and become profitable, the company has also conducted three rounds of layoffs since last year. The mass layoffs have impacted over 4,500 employees across various verticals in the company.&nbsp;

Moreover, the company has not been filing its financial reports at regular intervals, leading to its auditor Deloitte resigning. The company has not yet submitted its audit report for the fiscal year 2022.&nbsp;

Byju's loan troubles and financial losses&nbsp;have forced foreign investors to&nbsp;cut down Byju's sky-high valuation. Blackrock, one of the investors in Byju's, holding about a percentage of equity, cut the ed-tech's valuation to $8.3 billion in May this year.&nbsp;

In June, Prosus NV, a Dutch tech investor, cut Byju's valuation to $5.1 billion, a fall of over 75 percent from the $22 billion valuation last year.

Prosus cut the value of its 9.6 percent stake in Byju’s to around $493 million in the financial year ended March 31, Reuters reported.&nbsp;

 
(With inputs from agencies)&nbsp;

Embattled Indian ed-tech company Byju's has started talks with some of its lenders to restructure its $1.2 billion term loan, sources told Bloomberg. The latest development comes amid allegations that India's most-valued startup had breached certain terms of its debt agreement.

Embattled Indian ed-tech company Byju's has started talks with some of its lenders to restructure its $1.2 billion term loan, sources told Bloomberg. The latest development comes amid allegations that India's most-valued startup had breached certain terms of its debt agreement. However, Bloomberg quoting unnamed sources said that Byju's and lenders want a swift resolution in order to not escalate the legal matter. According to the Bloomberg report, the lenders have sought debt pay down, coupon boost and better investor protections on the billion-dollar loan. Byju's is expected to review the new proposal and reply by early next week, the report added. For the uninitiated, Byju's troubles with the $1.2 billion loan began when late last year, when it failed to make an immediate payment after filing its audited results for March 2022 by September - a breach of the loan agreement. Byju's has been mirred in several financial problems, including several failed rounds of restructuring its term loan, which it secured in November 2021 from overseas market. In a bizarre turn of events, the ed-tech firm chose to miss an interest payment of $40 million on its term loan in June, and instead filed a suit against its lenders, including Redwood, for 'predatory tactics'. Byju's growing list of troubles It is not just the billion-dollar term loan which has been bothering the startup, which was valued at a whopping $22 billion in 2022. The company has been struggling to make a profit but has seen its losses widening every year. The edtech startup recorded a loss of $550.5 million in September for the fiscal year 2021, while revenue fell 3 percent. In a bid to cut costs and become profitable, the company has also conducted three rounds of layoffs since last year. The mass layoffs have impacted over 4,500 employees across various verticals in the company. Moreover, the company has not been filing its financial reports at regular intervals, leading to its auditor Deloitte resigning. The company has not yet submitted its audit report for the fiscal year 2022. Byju's loan troubles and financial losses have forced foreign investors to cut down Byju's sky-high valuation. Blackrock, one of the investors in Byju's, holding about a percentage of equity, cut the ed-tech's valuation to $8.3 billion in May this year. In June, Prosus NV, a Dutch tech investor, cut Byju's valuation to $5.1 billion, a fall of over 75 percent from the $22 billion valuation last year. Prosus cut the value of its 9.6 percent stake in Byju’s to around $493 million in the financial year ended March 31, Reuters reported. (With inputs from agencies)

Indian ed-tech Byju's, lenders start talks to restructure $1.2 billion term loan

Byju's- a prominent Indian education technology startup- is facing a slew of problems. On Tuesday (June 27), a Delaware court rejected a request by Byju's Term Loan B lenders to probe into a $500 million transfer from its US-based subsidiary Byju's Alpha to other entities.

Byju's- a prominent Indian education technology startup- is facing a slew of problems. On Tuesday (June 27), a Delaware court rejected a request by Byju's Term Loan B lenders to probe into a $500 million transfer from its US-based subsidiary Byju's Alpha to other entities. The startup's valuation in Prosus NV has dropped to $5.1 billion. And last Friday (June 23), all three global investors at Byju's confirmed that their representatives had resigned from the board. These are just a few of the issues that Byju's is dealing with and the overall situation at the ed-tech startup remains uncertain. So what has gone wrong with Byju's in recent days? What has happened with Byju's recently? > On Tuesday, a lawyer representing Byju's told news agency Reuters that the startup had made up a shortfall in payments to a national pension fund. Byju's is currently battling a US lawsuit over a $1.2 billion loan. The lawyer's remark came after sources from India's labour ministry told Reuters that the Employees Provident Fund Organisation (EPFO) identified a shortfall in payments from Byju's for August 2022 to May this year. The sources said the startup deposited $15 million after a directive issued by the EPFO, and the remaining balance would be deposited in a couple of days. > The above development comes as a Delaware court on Tuesday rejected a request by Byju's Term Loan B lenders to probe into a $500 million transfer from Byju's Alpha to other entities, the news agency PTI reported citing sources. Byju's denied the allegations levelled by its $1.2 billion Term Loan B lenders, saying it never defaulted on payments. > A report by the news agency Bloomberg on Tuesday said that Byju's was in talks with potential new shareholders to raise $1 billion in funding. Sources told Bloomberg that the startup was offering benefits like preferential treatment in the case of liquidation to the potential investors-an option that none of its existing shareholders has. > Last week, Byju's lost board members representing three global investors- Peak XV, Prosus NV, and the Chan-Zuckerberg Initiative. Byju's auditor Deloitte also severed ties with the company. > Peak XV, Prosus NV, and the Chan-Zuckerberg Initiative did not give reasons for stepping down. However, Deloitte said it was resigning from Byju's as the company had delayed financial statements for the year ending March 31, 2022. Deloitte also said that it did not receive the necessary documents even after writing several letters to the board. Byju's has now appointed BDO as its new auditor. > Following the above resignations, Byju's told its investors it would file 2022 audited earnings by September this year and 2023 results by December this year, Reuters reported last Sunday citing a person familiar with developments. > In recent months, the company's investors cut their valuation estimates. Blackrock, for example, slashed its internal valuation of Byju's by more than 60% to $8.2 billion, disclosures showed, Reuters also reported. What is Byju's? Byju's claims that it is the world's largest education technology company. It offers courses in mathematics, physics and chemistry for school students and also offers courses on competitive examinations conducted in India. As students worldwide shifted to the online mode of teaching due to the Covid pandemic, Byju's valuation shot up from $5 billion before the pandemic to $22 billion last year. However, the company's growth slowed as the effect of the pandemic reduced and students resumed offline classes. Byju's is run by its founder Byju Raveendran, and his wife, Divya Gokulnath. Raveendran launched the startup in 2011 and its app in 2015. The layoffs Last week, Byju's initiated a fresh round of layoffs which would impact around 500-1,000 full-time employees across the companies departments, according to a report by the Times of India. This comes after around 2,500 employees were laid off in October last year. The report said that the current layoffs would affect employees across sales, marketing, product and other teams. Several employees are uncertain about their future due to the recent job cuts. "Morale is at an all-time low. Literally, every person has a job portal open on their laptop at all times. Everyone wants to leave desperately before they are asked to pack up overnight," a senior manager at Byju's, who chose to remain anonymous, told Reuters on Sunday. "Right now the situation is so dismal, subordinates are sitting with their managers and job hunting," the manager added. Other employees, who also chose to remain anonymous, said they received no memos about the exit of Deloitte and the board members. Two other employees told the news agency that performance incentives, bonuses and appraisals were stalled amid the turmoil. Byju's response Last Friday, Byju's defended its governance practices and business, saying it is fixing and improving them. Playing down Blackrock's valuation cut, Byju's said that Blackrock was a minor shareholder with less than 1% of the company, Reuters reported. The ed-tech startup also dismissed concerns over the job cuts, saying that while it did lay some people off, it hired more. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Explained: What is wrong with Indian ed-tech startup Byju's?

Trouble mounts for the Bengaluru-based ed-tech company Byju’s as it might face action over delayed provident fund (PF) payments to the EPFO (Employees’ Provident Fund Organisation), reported the Indian media on Monday (June 26). A report by Moneycontrol citing data from the EPFO claimed that the company’s PF contributions have been lagging for months now.&nbsp;

<h2>What did the report find?</h2>

The report by Moneycontrol, citing the data sourced from EPFO, said that the company has been making delayed PF payments since October&nbsp;last year. Additionally, for some employees Byju’s made PF contributions for December only in June, said the report. &nbsp;

Similarly, several employees have reportedly accused the company of not depositing the PF from their salaries in their Employees Provident Fund (EPF) accounts.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/byjus-cuts-more-than-900-jobs-across-teams-senior-management-executives-asked-to-step-down-too-558238">BYJU'S cuts more than 900 jobs across teams, senior executives asked to step down too</a>

The report also noted a lag of three to four months in payments citing the data. However, the company has since reportedly expedited PF payment contributions following another report by Moneycontrol&nbsp;last week.&nbsp;

In the report, the media outlet claimed that employees’ PF passbooks were not showing contributions from November last year while their salary slips showed PF contribution entries.&nbsp;

The data also indicated that only around 10,000-13,000 employees received PF payments for January, February, and March, while a majority of them are still waiting for their PF payments for April and June, the report noted.&nbsp;

<h2>Indian law about PF contributions</h2>

Last year, in February, the Supreme Court ruled that an employer is required to cover damages if there is a delay in an employee’s PF contribution under the PF Act. The legislation requires the companies to make PF contributions before the 15th of next month and in case of any delays employees have the right to file a complaint with the EPFO against the employer.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/byjus-founders-planning-to-increase-their-stake-in-company-to-40-report-549433">BYJU's founders planning to increase stake in the company to 40%: Report</a>

The complaint would prompt the EPFO to initiate an enquiry against the employer, which in this case could be Byju’s. The company&nbsp;could be asked to recover the damage amount for the late deposit. In some cases, the employees can even file a police complaint against their employers. However, before any action or penalty against the employer, they are given time and opportunity to present their case.&nbsp;

In 2016, the EPFO was probing the now-defunct Kingfisher Airlines for delaying its PF&nbsp;contribution to international workers and was later fined $885,240 (Rs 7.62 lakh) for non-compliance. A similar penalty could be issued by the EPFO for Byju’s, said the report by Moneycontrol, citing PF consultants, personal finance experts, and lawyers.&nbsp;

<h2>Has Byju’s responded to these allegations?</h2>

When asked about the allegations of non-payment by Moneycontrol, the company declined to comment. However, also in response to the media outlet’s queries, a Byju’s spokesperson, as per Moneycontrol, said, “This is to confirm that there are no pending PF payments towards employees. There are no dues."

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/indias-byjus-denies-reports-of-three-board-members-quitting-deloitte-resigns-as-auditors-reports-607470">India’s Byju’s denies three board members quitting; Deloitte resigns as auditors: Reports</a>

Meanwhile, some sources close to the company told Moneycontrol that it was a reflection issue and that the company has been timely making PF payments.

<h2>Byju’s board members quit, Deloitte resigns as auditors</h2>

This comes days after media reports said that three board members of Byju’s – Peak XV Partners’ (previously known as Sequoia Capital India) GV Ravishankar, Prosus’ Russell Dreisenstock and Chan Zuckerberg Initiative’s Vivian Wu, quit.&nbsp;

Additionally, Deloitte, one of the world’s largest auditing firms which was supposed to audit Byju’s until 2025, also resigned with “immediate effect” citing “long-delayed” financial statements of the company for the year March 31, 2022.&nbsp;

(With inputs from agencies)&nbsp; 
 
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Trouble mounts for the Bengaluru-based ed-tech company Byju’s as it might face action over delayed provident fund (PF) payments to the EPFO (Employees’ Provident Fund Organisation), reported the Indian media on Monday (June 26).

Trouble mounts for the Bengaluru-based ed-tech company Byju’s as it might face action over delayed provident fund (PF) payments to the EPFO (Employees’ Provident Fund Organisation), reported the Indian media on Monday (June 26). A report by Moneycontrol citing data from the EPFO claimed that the company’s PF contributions have been lagging for months now. What did the report find? The report by Moneycontrol, citing the data sourced from EPFO, said that the company has been making delayed PF payments since October last year. Additionally, for some employees Byju’s made PF contributions for December only in June, said the report. Similarly, several employees have reportedly accused the company of not depositing the PF from their salaries in their Employees Provident Fund (EPF) accounts. ALSO READ | BYJU'S cuts more than 900 jobs across teams, senior executives asked to step down too The report also noted a lag of three to four months in payments citing the data. However, the company has since reportedly expedited PF payment contributions following another report by Moneycontrol last week. In the report, the media outlet claimed that employees’ PF passbooks were not showing contributions from November last year while their salary slips showed PF contribution entries. The data also indicated that only around 10,000-13,000 employees received PF payments for January, February, and March, while a majority of them are still waiting for their PF payments for April and June, the report noted. Indian law about PF contributions Last year, in February, the Supreme Court ruled that an employer is required to cover damages if there is a delay in an employee’s PF contribution under the PF Act. The legislation requires the companies to make PF contributions before the 15th of next month and in case of any delays employees have the right to file a complaint with the EPFO against the employer. ALSO READ | BYJU's founders planning to increase stake in the company to 40%: Report The complaint would prompt the EPFO to initiate an enquiry against the employer, which in this case could be Byju’s. The company could be asked to recover the damage amount for the late deposit. In some cases, the employees can even file a police complaint against their employers. However, before any action or penalty against the employer, they are given time and opportunity to present their case. In 2016, the EPFO was probing the now-defunct Kingfisher Airlines for delaying its PF contribution to international workers and was later fined $885,240 (Rs 7.62 lakh) for non-compliance. A similar penalty could be issued by the EPFO for Byju’s, said the report by Moneycontrol, citing PF consultants, personal finance experts, and lawyers. Has Byju’s responded to these allegations? When asked about the allegations of non-payment by Moneycontrol, the company declined to comment. However, also in response to the media outlet’s queries, a Byju’s spokesperson, as per Moneycontrol, said, “This is to confirm that there are no pending PF payments towards employees. There are no dues." ALSO READ | India’s Byju’s denies three board members quitting; Deloitte resigns as auditors: Reports Meanwhile, some sources close to the company told Moneycontrol that it was a reflection issue and that the company has been timely making PF payments. Byju’s board members quit, Deloitte resigns as auditors This comes days after media reports said that three board members of Byju’s – Peak XV Partners’ (previously known as Sequoia Capital India) GV Ravishankar, Prosus’ Russell Dreisenstock and Chan Zuckerberg Initiative’s Vivian Wu, quit. Additionally, Deloitte, one of the world’s largest auditing firms which was supposed to audit Byju’s until 2025, also resigned with “immediate effect” citing “long-delayed” financial statements of the company for the year March 31, 2022. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Byju’s might face EPFO action over delayed provident fund payments: Report

In a major blow to India's leading startup, Byju's, renowned audit firm Deloitte has tendered its resignation as the company's statutory auditor. Deloitte cited significant delays in receiving financial statements and the lack of resolution regarding audit report modifications. In an issued statement, Deloitte said that due to such irregularities, they are unable to plan and complete the audit in accordance with the applicable auditing standards.

Deloitte resigns as Byju's auditor amid financial irregularities

A report by Reuters, citing three sources familiar with the matter, on Thursday (June 22) said that three board members of the Indian ed-tech company&nbsp;Byju’s have quit. Additionally, multiple media reports have also said that Deloitte has stepped down as the company’s auditor due to the delay in the company’s filing of financial results. This also comes amid the company’s reported disagreement with lenders when an investor slashed its valuation.&nbsp;

<h2>Three board members of Byju’s decide to step down</h2>

A report by Reuters, citing the three sources, said that the board members of Byju’s who quit were – Peak XV Partners’ (previously known as Sequoia Capital India) GV Ravishankar, Prosus’ Russell Dreisenstock and Chan Zuckerberg Initiative’s Vivian Wu.&nbsp;

However, the three possibly former board members could not be reached by the news agency for comment. Sources told Reuters that the departures mean Byju’s board members now include&nbsp;only the founder’s family – Chief Executive Byju Raveendran, his wife Divya Gokulnath, and brother Riju Raveendran.&nbsp;

<h2>Byju’s denies reports</h2>

Addressing the reports, Byju’s spokesperson called the resignations of the board members “entirely speculative” and denied the claims, as per Reuters. In a statement, the company added, significant developments or changes within the organisation are shared through official channels.

<h2>Byju’s auditor Deloitte quits</h2>

In the letter addressed to the board members of Think &amp; Learn Private Limited, the parent company of Byju’s, audit firm Deloitte said that the financial statements of the company for the year March 31, 2022, have been "long-delayed"&nbsp;and due to which it is resigning with "immediate effect".&nbsp;

It added, “We have not received any communications on the resolution of the audit report modifications in the respect of the year ended March 31, 2022, the status of the audit readiness of the financial statements and the underlying books and records for the year ended March 31, 2022, and we have not been able to commence the audit as on date,” as quoted by multiple Indian media reports.&nbsp;

The statement also said how this delay&nbsp;had a “significant impact” on Deloitte’s ability to plan, design, perform and complete the audit in accordance with the applicable auditing standards. “In view of the aforesaid, we are tendering our resignation as statutory auditors of the Company with immediate effect,” Deloitte added.&nbsp;

This comes as Deloitte, one of the world’s largest auditing firms, was supposed to audit Byju’s until 2025. However, Byju’s in a statement, as per Reuters, that it has appointed BDO (MSKA &amp; Associates) as Deloitte’s replacement and that it will help the company “uphold the highest standards of financial scrutiny and accountability.”&nbsp;

BDO is now slated to be Byju’s statutory auditors for the year commencing from FY22 for the next five years. 
 
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A report by Reuters, citing three sources familiar with the matter, on Thursday (June 22) said that three board members of the Indian ed-tech company Byju’s have quit.

A report by Reuters, citing three sources familiar with the matter, on Thursday (June 22) said that three board members of the Indian ed-tech company Byju’s have quit. Additionally, multiple media reports have also said that Deloitte has stepped down as the company’s auditor due to the delay in the company’s filing of financial results. This also comes amid the company’s reported disagreement with lenders when an investor slashed its valuation. Three board members of Byju’s decide to step down A report by Reuters, citing the three sources, said that the board members of Byju’s who quit were – Peak XV Partners’ (previously known as Sequoia Capital India) GV Ravishankar, Prosus’ Russell Dreisenstock and Chan Zuckerberg Initiative’s Vivian Wu. However, the three possibly former board members could not be reached by the news agency for comment. Sources told Reuters that the departures mean Byju’s board members now include only the founder’s family – Chief Executive Byju Raveendran, his wife Divya Gokulnath, and brother Riju Raveendran. Byju’s denies reports Addressing the reports, Byju’s spokesperson called the resignations of the board members “entirely speculative” and denied the claims, as per Reuters. In a statement, the company added, significant developments or changes within the organisation are shared through official channels. Byju’s auditor Deloitte quits In the letter addressed to the board members of Think & Learn Private Limited, the parent company of Byju’s, audit firm Deloitte said that the financial statements of the company for the year March 31, 2022, have been "long-delayed" and due to which it is resigning with "immediate effect". It added, “We have not received any communications on the resolution of the audit report modifications in the respect of the year ended March 31, 2022, the status of the audit readiness of the financial statements and the underlying books and records for the year ended March 31, 2022, and we have not been able to commence the audit as on date,” as quoted by multiple Indian media reports. The statement also said how this delay had a “significant impact” on Deloitte’s ability to plan, design, perform and complete the audit in accordance with the applicable auditing standards. “In view of the aforesaid, we are tendering our resignation as statutory auditors of the Company with immediate effect,” Deloitte added. This comes as Deloitte, one of the world’s largest auditing firms, was supposed to audit Byju’s until 2025. However, Byju’s in a statement, as per Reuters, that it has appointed BDO (MSKA & Associates) as Deloitte’s replacement and that it will help the company “uphold the highest standards of financial scrutiny and accountability.” BDO is now slated to be Byju’s statutory auditors for the year commencing from FY22 for the next five years. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India’s Byju’s denies three board members quitting; Deloitte resigns as auditors: Reports

Indian edtech giant Byju's has laid off nearly 1,000 employees across all the departments amid its tussle with lenders in the us for a 1 billion dollar term loan.

1,000 lose jobs at Indian edtech Byju's | World Business Watch

India's educational technology giant Byju's is expected to be laying off more employees, The Morning Context reported this on Wednesday citing an internal communication seen by it. The company hasn't denied or confirmed the report so far.&nbsp;

The report mentioned that the ed-tech company intends to lay off around 1,000 employees and the move will hurt sales and marketing teams the most.&nbsp;

The report also mentioned that the marketing executives are on third-party payrolls of the companies such as Channelplay, Randstad, and more.&nbsp;

Earlier this year in January, the company fired around 5,000 people across verticals in a mass layoff. The company has also reportedly sacked many top executives, including senior vice presidents who were apparently taking big salaries (reported to be around Rs10 million).&nbsp;

<h2>Byju's sued by agent linked to $1.2 billion loan&nbsp;</h2>

A couple of days back, the company said that it filed a suit against investment management firm Redwood to challenge the acceleration of a $1.2 billion term loan B facility and disqualify the lender for its "predatory tactics".&nbsp;

Byju's said Redwood purchased a significant portion of the loan while primarily trading in distressed debt, which was contrary to the conditions of the term loan facility. The company filed the suit in the New York Supreme Court.&nbsp;

Byju's also issued a notice to Redwood entities disqualifying the investment firm as a lender with critical rights under the term loan norms once it takes effect, the company said in a statement.&nbsp;

"We had to take these measures following a series of predatory tactics by the lenders, led by Redwood," the startup said.&nbsp;

Bloomberg reported in May that Byju's Alpha was sued by an agent for lenders owed $1.2 billion after months of negotiations between creditors and the education technology firm.&nbsp;

The report added that Glas Trust Company and investor Timothy R. Pohl filed the action against Byju's Alpha, Tangible Play, Inc., and Riju Ravindran. Think and Learn Private, which is the ed-tech giant founded by Byju Raveendran, is suing the two firms. The regulatory filing noted that Ravindran is a director of Think and Learn.&nbsp;

Court filings have been redacted with details on why the complaint was brought and what does Glas Trust and Pohl want. The report mentioned that one filing suggests that the case may be in connection to a fight over the election of directors, although it does not include specific charges.&nbsp;

Before an anti-money laundering investigation began in April, Byju's was scrambling to please creditors on the refinancing of the loan.

(With inputs from agencies)&nbsp;

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India's educational technology giant Byju's is expected to be laying off more employees, The Morning Context reported this on Wednesday citing an internal communication seen by it.

India's educational technology giant Byju's is expected to be laying off more employees, The Morning Context reported this on Wednesday citing an internal communication seen by it. The company hasn't denied or confirmed the report so far. The report mentioned that the ed-tech company intends to lay off around 1,000 employees and the move will hurt sales and marketing teams the most. The report also mentioned that the marketing executives are on third-party payrolls of the companies such as Channelplay, Randstad, and more. Earlier this year in January, the company fired around 5,000 people across verticals in a mass layoff. The company has also reportedly sacked many top executives, including senior vice presidents who were apparently taking big salaries (reported to be around Rs10 million). Byju's sued by agent linked to $1.2 billion loan A couple of days back, the company said that it filed a suit against investment management firm Redwood to challenge the acceleration of a $1.2 billion term loan B facility and disqualify the lender for its "predatory tactics". Byju's said Redwood purchased a significant portion of the loan while primarily trading in distressed debt, which was contrary to the conditions of the term loan facility. The company filed the suit in the New York Supreme Court. Byju's also issued a notice to Redwood entities disqualifying the investment firm as a lender with critical rights under the term loan norms once it takes effect, the company said in a statement. "We had to take these measures following a series of predatory tactics by the lenders, led by Redwood," the startup said. Bloomberg reported in May that Byju's Alpha was sued by an agent for lenders owed $1.2 billion after months of negotiations between creditors and the education technology firm. The report added that Glas Trust Company and investor Timothy R. Pohl filed the action against Byju's Alpha, Tangible Play, Inc., and Riju Ravindran. Think and Learn Private, which is the ed-tech giant founded by Byju Raveendran, is suing the two firms. The regulatory filing noted that Ravindran is a director of Think and Learn. Court filings have been redacted with details on why the complaint was brought and what does Glas Trust and Pohl want. The report mentioned that one filing suggests that the case may be in connection to a fight over the election of directors, although it does not include specific charges. Before an anti-money laundering investigation began in April, Byju's was scrambling to please creditors on the refinancing of the loan. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India's edtech giant Byju's to lay off 1,000 more employees: Report

Byju's, an Indian edtech powerhouse, is preparing to lay off about 1000 employees due to ongoing issues with foreign lenders. The newest reports of layoffs come at a time when the edtech company is looking for a new infusion of funding while resolving disputes with creditors. Media sources indicate that the layoffs may mostly affect the contractual staff who work in the sales and marketing teams.

India: Byju's to cut jobs, sales and marketing teams to face the heat

Byju's, India's&nbsp;billion-dollar ed-tech start-up, is all set to hit the market with an Initial Public Offering (IPO) of its test preparation&nbsp;division Aakash, a Moneycontrol report said on Monday.&nbsp;

According to the report, Aakash is likely to go public by mid-2024 and Byju's, its parent company, has given the nod to start the IPO process.&nbsp;

The development comes on the same day as the deadline for India's most valuable start-up to pay a quarterly interest of nearly $40 million on a $1.2 billion loan.

Byju's had bought Aakash, a test preparation platform, for $950 million in April 2021. In the last two years, the company has recorded a three-fold jump in revenue.&nbsp;

"The upcoming IPO will provide a significant capital infusion to bolster Aakash's infrastructure, broaden its reach, and extend high-quality test-prep education to a larger number of students across the nation," various media reports quoted the company as saying.&nbsp;

Aakash Education Services Limited (AESL) revenue is on track to reach Rs 4,000 crore (approximately&nbsp;$500 million)&nbsp;with an EBITDA (operational profit) of Rs 900 crore (approximately $110 million) in the fiscal year 2023-24, the company said in a statement.&nbsp;

Aakash has over 325 centres currently serving more than 4,00,000 students across the country.&nbsp;

According to Ken Research, test-preparation&nbsp;market revenues are predicted to grow at a compound annual growth rate of 9.3 percent over 2020-2025, led by the online test preparation segment which is predicted to grow at a CAGR of 42.3 per cent over the same duration.

(With PTI inputs)&nbsp;

Byju's, India's billion-dollar ed-tech start-up, is all set to hit the market with an Initial Public Offering (IPO) of its test preparation division Aakash, a Moneycontrol report said on Monday.

Byju's, India's billion-dollar ed-tech start-up, is all set to hit the market with an Initial Public Offering (IPO) of its test preparation division Aakash, a Moneycontrol report said on Monday. According to the report, Aakash is likely to go public by mid-2024 and Byju's, its parent company, has given the nod to start the IPO process. The development comes on the same day as the deadline for India's most valuable start-up to pay a quarterly interest of nearly $40 million on a $1.2 billion loan. Byju's had bought Aakash, a test preparation platform, for $950 million in April 2021. In the last two years, the company has recorded a three-fold jump in revenue. "The upcoming IPO will provide a significant capital infusion to bolster Aakash's infrastructure, broaden its reach, and extend high-quality test-prep education to a larger number of students across the nation," various media reports quoted the company as saying. Aakash Education Services Limited (AESL) revenue is on track to reach Rs 4,000 crore (approximately $500 million) with an EBITDA (operational profit) of Rs 900 crore (approximately $110 million) in the fiscal year 2023-24, the company said in a statement. Aakash has over 325 centres currently serving more than 4,00,000 students across the country. According to Ken Research, test-preparation market revenues are predicted to grow at a compound annual growth rate of 9.3 percent over 2020-2025, led by the online test preparation segment which is predicted to grow at a CAGR of 42.3 per cent over the same duration. (With PTI inputs)

Byju's test-prep division Aakash to launch an IPO in mid-2024

Byju's Alpha was sued by an agent for lenders owed $1.2 billion after months of negotiations between creditors and the education technology firm, Bloomberg reported on Thursday.&nbsp;

The report further added that Glas Trust Company and investor Timothy R. Pohl filed the action against Byju's Alpha, Tangible Play, Inc., and Riju Ravindran.

Think and Learn Private, which is the ed-tech giant&nbsp;founded&nbsp;by Byju Raveendran, is suing the two firms. The regulatory filing noted that Ravindran is a director of Think and Learn.&nbsp;

Court filings have been redacted with details&nbsp;on why the complaint was brought and what does&nbsp;Glas Trust and Pohl want. The report mentioned that one filing suggests that the case may be in connection to&nbsp;a fight&nbsp;over the election of directors, although it does not include&nbsp;specific charges.&nbsp;

According to the Bloomberg report, a judge in Wilmington, Delaware, scheduled a telephone hearing for Thursday to decide whether to expedite the case. The lawsuit was reportedly filed there earlier this month.&nbsp;

The report mentioned that Ravindran's and Byju's request to close Thursday's hearing to the public was denied by Delaware Chancery Court Judge Morgan Zurn.&nbsp;

As quoted by Bloomberg report, Zurn said in a public filing: "Defendants seek to keep under seal the events at the crux of this case, but have only speculated that harm may result from their disclosure."&nbsp;

"Defendants have not met the stringent burden required to deviate from the constitutional mandate that this Court be open to the public," Zurn added.&nbsp;

Byju's reportedly sought more time from lenders earlier this year to restructure an arrangement regulating a $1.2 billion loan that is in breach of covenants, media reports stated citing sources.&nbsp;

According to those familiar with the case, the lenders objected to the company's request to restructure its debt by raising the interest rate on the $1.2 billion term loan due in 2026. &nbsp;

Before an anti-money laundering investigation began in April, Byju's was scrambling to please creditors on the refinancing of the loan.

Recently, two people familiar with knowledge told TechCrunch that Byju's raised $250 million in fresh funding and is close to securing an additional $700 million.&nbsp;

The people said on condition of anonymity that the New York-headquartered investment firm Davidson Kempner has invested $250 million in Byju's via structured instruments.&nbsp;

So far, Byju's founder, Raveendran, and company director Ravindran did not respond.&nbsp;

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Byju's Alpha was sued by an agent for lenders owed $1.2 billion after months of negotiations between creditors and the education technology firm, Bloomberg reported on Thursday.

Byju's Alpha was sued by an agent for lenders owed $1.2 billion after months of negotiations between creditors and the education technology firm, Bloomberg reported on Thursday. The report further added that Glas Trust Company and investor Timothy R. Pohl filed the action against Byju's Alpha, Tangible Play, Inc., and Riju Ravindran. Think and Learn Private, which is the ed-tech giant founded by Byju Raveendran, is suing the two firms. The regulatory filing noted that Ravindran is a director of Think and Learn. Court filings have been redacted with details on why the complaint was brought and what does Glas Trust and Pohl want. The report mentioned that one filing suggests that the case may be in connection to a fight over the election of directors, although it does not include specific charges. According to the Bloomberg report, a judge in Wilmington, Delaware, scheduled a telephone hearing for Thursday to decide whether to expedite the case. The lawsuit was reportedly filed there earlier this month. The report mentioned that Ravindran's and Byju's request to close Thursday's hearing to the public was denied by Delaware Chancery Court Judge Morgan Zurn. As quoted by Bloomberg report, Zurn said in a public filing: "Defendants seek to keep under seal the events at the crux of this case, but have only speculated that harm may result from their disclosure." "Defendants have not met the stringent burden required to deviate from the constitutional mandate that this Court be open to the public," Zurn added. Byju's reportedly sought more time from lenders earlier this year to restructure an arrangement regulating a $1.2 billion loan that is in breach of covenants, media reports stated citing sources. According to those familiar with the case, the lenders objected to the company's request to restructure its debt by raising the interest rate on the $1.2 billion term loan due in 2026. Before an anti-money laundering investigation began in April, Byju's was scrambling to please creditors on the refinancing of the loan. Recently, two people familiar with knowledge told TechCrunch that Byju's raised $250 million in fresh funding and is close to securing an additional $700 million. The people said on condition of anonymity that the New York-headquartered investment firm Davidson Kempner has invested $250 million in Byju's via structured instruments. So far, Byju's founder, Raveendran, and company director Ravindran did not respond. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Indian tech firm Byju's sued by agent linked to $1.2 billion loan: Report

Indian edtech firm Byju’s and Bollywood star Shah Rukh Khan have been asked to compensate an aspirant of the Indian Administration Service (IAS) for alleged “fraudulent behaviour” and “unfair trade practice”.

Indian edtech firm Byju’s and Bollywood star Shah Rukh Khan have been asked to compensate an aspirant of the Indian Administration Service (IAS) for alleged “fraudulent behaviour” and “unfair trade practice”. The order was issued by the District Consumer Disputes Redressal Commission of Indore, a city in the Indian state of Madhya Pradesh. The complainant woman, Priyanka Dixit, said she enrolled for the IAS coaching course with Byju’s after being influenced by its advertisement which featured Shah Rukh Khan. She paid INR 1.08 lakh in fees for the course in 2021. She was promised by the company that her course would start on January 14, 2021, but it never did. What did the commission say? The redressal commission asked Byju’s to return the full course fees to Priyanka along with 12 per cent annual interest. It also asked both Khan and Byju’s to give her INR 5,000 as litigation cost and INR 50,000 as compensation and mental agony. The commission also clarified that the local manager of Byju’s in Indore and actor Khan must pay the amount “jointly or severally” to Dixit. Also Read | Indian startup Byju's under radar The order released by the redressal commission read, “The woman complainant was encouraged to take admission in Byju’s coaching (course) by placing false and misleading online advertisements on behalf of the opposition parties. No coaching facility was provided after receiving the fee and despite assurance of refund of the amount, the fee was not refunded, which in itself is fraudulent behaviour and shows unfair trade practice.” Why was Shah Rukh Khan implicated in the case? As per Priyanka Dixit’s lawyer Suresh Kanga, consumers in India can rightfully sue even the people advertising the product. “As per provisions of the Consumer Protection Act, a person can file a complaint against a company for errors in services as well as against those advertising it”, Kanga said. Byju’s in hot water Byju’s has already run afoul of India’s prime economic intelligence agency Enforcement Directorate or ED for allegedly remitting abroad over INR 9,700 crore of the INR 28,000 crore it received as Foreign Direct Investment (FDI) since 2011. The ED carried out searches at the premises of a Bengaluru firm linked to the edtech giant on Saturday. On the other hand, the Byju’s has termed it a routine enquiry. In a statement, the company said, “We have been completely transparent with the authorities and have provided them with all the information they have requested. We have nothing but the utmost confidence in the integrity of our operations, and we are committed to upholding the highest standards of compliance and ethics.” WATCH WION LIVE HERE ×

India: Consumer panel takes on Byju’s and Shah Rukh Khan for “fraudulent behaviour”

India's Directorate of Enforcement (ED) raided the offices of ed-tech unicorn Byju's in Bengaluru, Karnataka on Saturday (April 29). The ED raided two business premises linked to the company and one residential property linked to its founder Raveendran Byju, under provisions of the Foreign Exchange Management Act (FEMA).

According to ED, the officials managed to seize incriminating pieces of documents and digital data during the raid. The agency noted that Byju's received Foreign Direct Investment (FDI) worth Rs 28,000 crore ($3.4 billion) between 2011 and 2023.&nbsp; Moreover, the company sent Rs 9,754 crore ($1.1 billion) overseas as FDI which is currently under the scanner.&nbsp;

Think and Learn Pvt Ltd, which runs the online private education portal, spent around Rs 944 crores ($115 million) on advertisement and marketing expenses. Notably, the ed-tech giant has not prepared its financial books since FY20-21 and is yet to get audited, which is a mandatory practice.&nbsp;

<a href="https://www.wionews.com/videos/trending-on-wion-indian-ed-tech-giant-byjus-lays-off-2500-employees-525120">WATCH |&nbsp;Trending on WION: Indian ed-tech giant Byju's lays off 2500 employees</a>

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When questioned about the Saturday raids, Byju's legal team stated they were working closely with the agencies.&nbsp;

“We have nothing but the utmost confidence in the integrity of our operations, and we are committed to upholding the highest standards of compliance and ethics. We will continue to work closely with the authorities to ensure that they have all the information they need, and we are confident that this matter will be resolved in a timely and satisfactory manner.”&nbsp;

According to the agency, despite receiving multiple summons from the ED, Raveendran has remained 'evasive' and never appeared during the investigation.&nbsp;

<h2>Byju's fires 2,500 employees</h2>

Despite having a war chest in funding, Byju's&nbsp;last year in October terminated the contract of over 2,500 employees, sending shockwaves across the ed-tech sector. Founder-CEO Byju Raveendran said at the time that he would see that laid-off workers were given access to newly established relevant positions and that they would be rehired.

"I have already instructed our HR leaders to make all the newly created relevant roles available to you on an ongoing basis," Raveendran wrote in an email to employees on October 31.

The company has also been in controversy for using predatory practices to brainwash parents and get their wards signed up for highly expensive courses. Last year, India's apex child rights body the National Commission for Protection of Child Rights (NCPCR) summoned Raveendran over the issue.&nbsp;

<a href="https://www.wionews.com/india-news/ed-tech-startup-byjus-ceo-summoned-by-indias-apex-child-rights-body-over-allegations-of-malpractice-544400">ALSO READ |&nbsp;Ed-tech startup Byju's CEO summoned by India's apex child rights body over allegations of malpractice</a>

"The Commission is in observance that indulging into malpractices to lure the parents or children into entering loan-based agreements and then causing exploitation is against the welfare of children and in pursuance of the functions and powers under Section 13 and 14 of CPCR Act, 2005," said the commission.&nbsp;

(With inputs from agencies) 
 
&nbsp;

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India's Directorate of Enforcement (ED) raided the offices of ed-tech unicorn Byju's in Bengaluru, Karnataka on Saturday (April 29). The ED raided two business premises linked to the company and one residential property linked to its founder Raveendran Byju, under provisions of the Foreign Exchange Management Act (FEMA).

India's Directorate of Enforcement (ED) raided the offices of ed-tech unicorn Byju's in Bengaluru, Karnataka on Saturday (April 29). The ED raided two business premises linked to the company and one residential property linked to its founder Raveendran Byju, under provisions of the Foreign Exchange Management Act (FEMA). According to ED, the officials managed to seize incriminating pieces of documents and digital data during the raid. The agency noted that Byju's received Foreign Direct Investment (FDI) worth Rs 28,000 crore ($3.4 billion) between 2011 and 2023. Moreover, the company sent Rs 9,754 crore ($1.1 billion) overseas as FDI which is currently under the scanner. Think and Learn Pvt Ltd, which runs the online private education portal, spent around Rs 944 crores ($115 million) on advertisement and marketing expenses. Notably, the ed-tech giant has not prepared its financial books since FY20-21 and is yet to get audited, which is a mandatory practice. WATCH | Trending on WION: Indian ed-tech giant Byju's lays off 2500 employees × When questioned about the Saturday raids, Byju's legal team stated they were working closely with the agencies. “We have nothing but the utmost confidence in the integrity of our operations, and we are committed to upholding the highest standards of compliance and ethics. We will continue to work closely with the authorities to ensure that they have all the information they need, and we are confident that this matter will be resolved in a timely and satisfactory manner.” According to the agency, despite receiving multiple summons from the ED, Raveendran has remained 'evasive' and never appeared during the investigation. Byju's fires 2,500 employees Despite having a war chest in funding, Byju's last year in October terminated the contract of over 2,500 employees, sending shockwaves across the ed-tech sector. Founder-CEO Byju Raveendran said at the time that he would see that laid-off workers were given access to newly established relevant positions and that they would be rehired. "I have already instructed our HR leaders to make all the newly created relevant roles available to you on an ongoing basis," Raveendran wrote in an email to employees on October 31. The company has also been in controversy for using predatory practices to brainwash parents and get their wards signed up for highly expensive courses. Last year, India's apex child rights body the National Commission for Protection of Child Rights (NCPCR) summoned Raveendran over the issue. ALSO READ | Ed-tech startup Byju's CEO summoned by India's apex child rights body over allegations of malpractice "The Commission is in observance that indulging into malpractices to lure the parents or children into entering loan-based agreements and then causing exploitation is against the welfare of children and in pursuance of the functions and powers under Section 13 and 14 of CPCR Act, 2005," said the commission. (With inputs from agencies) WATCH WION LIVE HERE:

India’s edutech unicorn Byju’s three offices in Bengaluru raided by ED sleuths

Edtech unicorn BYJU'S&nbsp;has begun a fresh round of layoffs, putting almost 900&nbsp;plus employees from various teams and functions in jeopardy, as reported by YourStory. Under the condition of anonymity, three people from the organisation said that the layoffs have mostly affected the marketing, design, logistics, and technology departments in India as well as the product teams in the international business.

Another person who spoke to YourStory said that several senior management employees were also asked to step down as part of the tech layoff bandwagon.&nbsp;

"Folks in the international team were given a heads-up... It's very hush-hush this time. Some of the biggest contributors also have been laid off," said one of these persons.&nbsp;

The majority of the upper management, according to a senior executive at BYJU'S, is already looking for work elsewhere since they "lost faith in the company" as per the YourStory report. Another source independently corroborated the lack of enthusiasm in the company.&nbsp;

"Across most of the company, morale in teams is ridiculously low. Most people have one foot out the door, they're trying to land something else. But as you know, the market is pretty bad," said a former employee who was recently laid off after three years at BYJU'S and who spoke to YourStory.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/byjus-founders-planning-to-increase-their-stake-in-company-to-40-report-549433">BYJU's founders planning to increase stake in the company to 40%: Report</a>

The person continued by saying that top directors and HR staff were present on the video call during which they learned of the layoff.

The reasons given for not sending emails covered the typical ground, including cost-benefit analysis and the failure to generate income from a specific unit. According to the source, email addresses have been disabled, and impacted parties have been given 24 hours to wrap up.

Also watch |&nbsp;FedEx layoffs include officers, directors; cuts 10% of management jobs

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The worst was over for the edtech business, Byju&nbsp;Raveendran said in an interview with Moneycontrol mid-last month on the sidelines of The World Economic Forum in Davos, adding that the company will become profitable by the March or June quarter.

<h2>Previous round of layoffs at BYJU'S</h2>

Previously, as part of its cost-cutting&nbsp;measures, BYJU'S terminated about 2,500 employees in October 2022. The founder-CEO&nbsp;Byju Raveendran&nbsp;had said at the time that he would see that laid-off workers were given access to newly established relevant positions and that they would be rehired.

"I have already instructed our HR leaders to make all the newly created relevant roles available to you on an ongoing basis,"&nbsp;Raveendran wrote in an email to employees on October 31.

At TechSparks 2022, YourStory's flagship startup-tech event, Raveendran expressed confidence that the business will at least partially recover its losses in the fiscal years 2021–2022.

"Wait for (FY) 2022 numbers to come out; we just finished our best six months," he'd said.

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Edtech unicorn BYJU'S has begun a fresh round of layoffs, putting almost 900 plus employees from various teams and functions in jeopardy, as reported by YourStory.

Edtech unicorn BYJU'S has begun a fresh round of layoffs, putting almost 900 plus employees from various teams and functions in jeopardy, as reported by YourStory. Under the condition of anonymity, three people from the organisation said that the layoffs have mostly affected the marketing, design, logistics, and technology departments in India as well as the product teams in the international business. Another person who spoke to YourStory said that several senior management employees were also asked to step down as part of the tech layoff bandwagon. "Folks in the international team were given a heads-up... It's very hush-hush this time. Some of the biggest contributors also have been laid off," said one of these persons. The majority of the upper management, according to a senior executive at BYJU'S, is already looking for work elsewhere since they "lost faith in the company" as per the YourStory report. Another source independently corroborated the lack of enthusiasm in the company. "Across most of the company, morale in teams is ridiculously low. Most people have one foot out the door, they're trying to land something else. But as you know, the market is pretty bad," said a former employee who was recently laid off after three years at BYJU'S and who spoke to YourStory. Also read | BYJU's founders planning to increase stake in the company to 40%: Report The person continued by saying that top directors and HR staff were present on the video call during which they learned of the layoff. The reasons given for not sending emails covered the typical ground, including cost-benefit analysis and the failure to generate income from a specific unit. According to the source, email addresses have been disabled, and impacted parties have been given 24 hours to wrap up. Also watch | FedEx layoffs include officers, directors; cuts 10% of management jobs The worst was over for the edtech business, Byju Raveendran said in an interview with Moneycontrol mid-last month on the sidelines of The World Economic Forum in Davos, adding that the company will become profitable by the March or June quarter. Previous round of layoffs at BYJU'S Previously, as part of its cost-cutting measures, BYJU'S terminated about 2,500 employees in October 2022. The founder-CEO Byju Raveendran had said at the time that he would see that laid-off workers were given access to newly established relevant positions and that they would be rehired. "I have already instructed our HR leaders to make all the newly created relevant roles available to you on an ongoing basis," Raveendran wrote in an email to employees on October 31. At TechSparks 2022, YourStory's flagship startup-tech event, Raveendran expressed confidence that the business will at least partially recover its losses in the fiscal years 2021–2022. "Wait for (FY) 2022 numbers to come out; we just finished our best six months," he'd said. WATCH WION LIVE HERE:

BYJU'S cuts more than 900 jobs across teams, senior executives asked to step down too

BYJU's, a leading EdTech company, has named football star&nbsp;Lionel Messi as the first global brand ambassador of its social impact arm Education For All, the company said on Friday. Under the programme, Messi will promote equitable education, BYJU'S said in a statement. Messi currently plays for Paris Saint-Germain and is captain of the Argentinian football team.&nbsp; 
&nbsp; 
"We are honoured and excited to collaborate with Lionel Messi as our global ambassador. He rose from the grassroots to become one of the most successful sports persons ever. That is the kind of opportunity that BYJU'S Education For All (EFA) wants to create for the nearly 5.5 million children it currently empowers. No one represents the power of enhancing human potential more than Lionel Messi," BYJU'S co-founder Divya Gokulnath said.

Amid bulk job cuts, BYJU's has been spending huge amounts on sponsorship deals and endorsements. Earlier this year, BYJU'S became the official sponsor of the FIFA World Cup 2022 in Qatar. It also extended its deal with the BCCI for the next 18 months for the prime spot on front of Team India's jersey. The extension reportedly cost the company around $55 million.

Also Read |&nbsp;<a href="https://www.wionews.com/india-news/indian-edtech-giant-byjus-lays-off-2500-employees-524845">Byju's lays off 2,500 employees to cut costs, improve profitability</a>

BYJU's was going to lay off 140 employees and shut its operations in Thiruvananthapuram, Kerala, but decided to reverse the decision after meeting Kerala Chief Minister Pinarayi Vijayan. The employees had met Kerala Labor Minister V Sivankutty and asked him to get involved in the matter.

Chief executive officer (CEO), Byju Raveendran, had earlier announced that the company is cutting its workforce of 50,000 by five per cent, that is 2,500 employees, by March next year to lower costs.&nbsp;In May, the online learning platform had reported a&nbsp;loss&nbsp;of 45.64 billion rupees ($554.77 million) for fiscal 2021 due to higher promotion and employee expenses.

The latest deal between BYJU's and Messi will increase the brand's visibility firm overseas as football has roughly 3.5 billion fans worldwide. Besides, Messi has a social media following of nearly 450 million.

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"It is not really surprising that the greatest player of all time is also the greatest learner of all time. I am sure this partnership will inspire millions of people around the world to dream bigger and learn better," Gokulnath said.

Messi will be seen in feature campaigns aimed at promoting BYJU'S Education For All.

"The long-term engagement, which begins as Lionel Messi embarks on his final campaign to win the FIFA World Cup 2022 as captain of Argentina's national football team, will see him feature in campaigns promoting BYJU'S Education For All," the statement said.

Messi, meanwhile, said that the "hopes to inspire young learners to reach and remain at the top".

(With inputs from agencies)

&nbsp;

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BYJU's, a leading EdTech company, has named football star Lionel Messi as the first global brand ambassador of its social impact arm Education For All, the company said on Friday.

BYJU's, a leading EdTech company, has named football star Lionel Messi as the first global brand ambassador of its social impact arm Education For All, the company said on Friday. Under the programme, Messi will promote equitable education, BYJU'S said in a statement. Messi currently plays for Paris Saint-Germain and is captain of the Argentinian football team. "We are honoured and excited to collaborate with Lionel Messi as our global ambassador. He rose from the grassroots to become one of the most successful sports persons ever. That is the kind of opportunity that BYJU'S Education For All (EFA) wants to create for the nearly 5.5 million children it currently empowers. No one represents the power of enhancing human potential more than Lionel Messi," BYJU'S co-founder Divya Gokulnath said. Amid bulk job cuts, BYJU's has been spending huge amounts on sponsorship deals and endorsements. Earlier this year, BYJU'S became the official sponsor of the FIFA World Cup 2022 in Qatar. It also extended its deal with the BCCI for the next 18 months for the prime spot on front of Team India's jersey. The extension reportedly cost the company around $55 million. Also Read | Byju's lays off 2,500 employees to cut costs, improve profitability BYJU's was going to lay off 140 employees and shut its operations in Thiruvananthapuram, Kerala, but decided to reverse the decision after meeting Kerala Chief Minister Pinarayi Vijayan. The employees had met Kerala Labor Minister V Sivankutty and asked him to get involved in the matter. Chief executive officer (CEO), Byju Raveendran, had earlier announced that the company is cutting its workforce of 50,000 by five per cent, that is 2,500 employees, by March next year to lower costs. In May, the online learning platform had reported a loss of 45.64 billion rupees ($554.77 million) for fiscal 2021 due to higher promotion and employee expenses. The latest deal between BYJU's and Messi will increase the brand's visibility firm overseas as football has roughly 3.5 billion fans worldwide. Besides, Messi has a social media following of nearly 450 million. × "It is not really surprising that the greatest player of all time is also the greatest learner of all time. I am sure this partnership will inspire millions of people around the world to dream bigger and learn better," Gokulnath said. Messi will be seen in feature campaigns aimed at promoting BYJU'S Education For All. "The long-term engagement, which begins as Lionel Messi embarks on his final campaign to win the FIFA World Cup 2022 as captain of Argentina's national football team, will see him feature in campaigns promoting BYJU'S Education For All," the statement said. Messi, meanwhile, said that the "hopes to inspire young learners to reach and remain at the top". (With inputs from agencies)

Amid massive job cuts, BYJU's names Messi an ambassador for equal education

A few weeks after announcing that the company was firing 2,500 employees, Byju's founder and chief executive Byju Raveendran has written an e-mail to the workers, explaining his decision.

While the general tone of the letter is remorseful, a particular line is being called out. Reportedly, in the internal e-mail, the EdTech CEO gave his own synonym for layoff.&nbsp;&nbsp;

"Sure, the hands, hearts and minds that built the world’s leading EdTech company will always be in demand. But, no, what others see as ‘layoff’, I only see as time off," said&nbsp;Raveendran in the letter, before adding that re-hiring the laid-off employees will remain the number one priority.&nbsp;

Raveendran explained that the company scaled up massively in the last four years. However, the&nbsp;adverse macroeconomic factors in 2022 affected the business landscape, forcing the company to make tough calls.&nbsp;

<a href="https://www.wionews.com/videos/wion-business-news-byjus-founder-apologizes-to-employees-for-clumsy-layoffs-530103">WATCH |&nbsp;WION Business News | Byju's founder apologizes to employees for clumsy layoffs</a>

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"Having expanded exponentially in the past four years, it is now time for us to grow sustainably. So, we decided to define our ‘path to profitability and sustainable growth’ - and to walk on it in earnest," read the letter.&nbsp;

<a href="https://www.wionews.com/india-news/after-prolonged-audit-delay-byjus-reports-575-mn-losses-in-2021-516588">Read more:&nbsp;After prolonged audit delay, Byju's reports $575 million losses in 2021</a>

"I realize that there is a huge price to pay for walking on this path to profitability. We are having to part ways with 2500 of our colleagues to avoid role duplication across our businesses."

As reported by WION, in May, the online learning platform had reported a&nbsp;loss&nbsp;of 45.64 billion rupees ($554.77 million) for fiscal 2021 due to higher promotion and employee expenses.

<a href="https://www.wionews.com/india-news/indian-edtech-giant-byjus-lays-off-2500-employees-524845">Read more:&nbsp;Indian edtech giant Byju's lays off 2,500 employees to cut costs, improve profitability</a>

The employees who have been sacked are from its subsidiary units like Toppr, and WhiteHat Jr, apart from the core team of sales and marketing, operations, content and design teams.

(With inputs from agencies)

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A few weeks after announcing that the company was firing 2,500 employees, Byju's founder and chief executive Byju Raveendran has written an e-mail to the workers, explaining his decision.

A few weeks after announcing that the company was firing 2,500 employees, Byju's founder and chief executive Byju Raveendran has written an e-mail to the workers, explaining his decision. While the general tone of the letter is remorseful, a particular line is being called out. Reportedly, in the internal e-mail, the EdTech CEO gave his own synonym for layoff. "Sure, the hands, hearts and minds that built the world’s leading EdTech company will always be in demand. But, no, what others see as ‘layoff’, I only see as time off," said Raveendran in the letter, before adding that re-hiring the laid-off employees will remain the number one priority. Raveendran explained that the company scaled up massively in the last four years. However, the adverse macroeconomic factors in 2022 affected the business landscape, forcing the company to make tough calls. WATCH | WION Business News | Byju's founder apologizes to employees for clumsy layoffs × "Having expanded exponentially in the past four years, it is now time for us to grow sustainably. So, we decided to define our ‘path to profitability and sustainable growth’ - and to walk on it in earnest," read the letter. Read more: After prolonged audit delay, Byju's reports $575 million losses in 2021 "I realize that there is a huge price to pay for walking on this path to profitability. We are having to part ways with 2500 of our colleagues to avoid role duplication across our businesses." As reported by WION, in May, the online learning platform had reported a loss of 45.64 billion rupees ($554.77 million) for fiscal 2021 due to higher promotion and employee expenses. Read more: Indian edtech giant Byju's lays off 2,500 employees to cut costs, improve profitability The employees who have been sacked are from its subsidiary units like Toppr, and WhiteHat Jr, apart from the core team of sales and marketing, operations, content and design teams. (With inputs from agencies) WATCH WION LIVE HERE:

India: BYJU's CEO says it is not 'layoff' but 'time off' after firing employees

Let us take a look at stories generating interest across WION's social media channels.

Trending on WION: Indian ed-tech giant Byju's lays off 2500 employees

BYJU’S on Wednesday said that it will be laying off around 2,500 employees, constituting 5% of its workforce across product, content, media, and technology teams.

World Business Watch: BYJU's to fire 2,500 employees as it eyes profitability by March 2023

The listing of Indian startups was in focus last year but within months of listing, many of them have crashed. One among India's most valuable start-ups, Byju's is valued at $22 billion but recently it reported a loss of over 4,500 crore rupees or $575 million for the fiscal year that ended on March 31, 2021.

Unicorn start-ups: Unreal valuations, heavy losses

After months of delay, Indian education company Byju's has finally made its audited financial statements public. However, the revelations are unlikely to end the swirl of controversy surrounding the nation's most valued startup.&nbsp;

As it increased spending to support growth, the company's losses increased 13-fold in the year ending in March 2021, to 45.7 billion rupees ($575 million). However, sales, at 24.3 billion rupees, barely moved from the previous year.&nbsp;

Byju's attributed the performance to modifications to its accounting procedures that caused it to postpone revenue to later years. Additionally, it disclosed unaudited financial results for the year ended March 2022 and the succeeding four months, which showed a huge increase in revenues.

Investors who had been watching Byju's over the previous two years as it acquired a number of businesses—possibly too many—were disturbed by the spiralling losses.&nbsp;

According to Saurabh Daga, an analyst with London-based consultancy GlobalData Plc, the firm needs to get rid of non-core assets to reduce the number of its consumer-facing services and keep expenses in check without turning to layoffs.&nbsp;

Given its leadership position and the longer-term potential of online education in a geographically dispersed country, he said Byju's should weather the slump just fine if it takes those steps.

“Byju's will likely have to undergo a massive rejig of its business,” Mr Daga said. It “will have to initiate strong measures related with streamlining its product offerings, shedding off the businesses or apps which do not align with its core offerings, as well as overhauling its current business development and sales processes.”

After missing a deadline for submitting financial statements by several months, Byju's has been under regulatory pressure to do so.&nbsp;

After a worldwide technology crash affected valuations, the company also had delays in collecting further finance and finalising a planned merger with a blank-check company in the US.&nbsp;

The startup's financial challenges have reignited worries about India's consumer technology sector, where big competitors' public valuations, including those of Zomato Ltd. and Paytm, have fallen precipitously this year.&nbsp;

Also Read:&nbsp;<a href="https://www.wionews.com/world/kyiv-astronomical-observatory-claims-ufos-hovering-over-ukrainian-skies-516449">Kyiv astronomical observatory claims UFOs hovering over Ukrainian skies</a>

This year, Byju Raveendran invested $400 million in his business in an effort to persuade other investors of its development potential.

Byju's now records income upon the actual submission of periodic payments from customers as opposed to ahead, according to Raveendran's accounting modifications.&nbsp;

According to unaudited figures, sales for the fiscal year ending in March 2022 more than doubled to nearly 100 billion rupees. The following four months saw a rise in revenue to 45 billion rupees, and this year, sales are expected to increase by more than 50 per cent, according to Raveendran.&nbsp;

Following a decline in technology valuations, the company's plan to list on a US stock market through a merger with a special purpose acquisition company is "on complete pause", he added.

The company has failed to finish a planned $800 million investment round because committed capital from investors Sumeru Equity Partners and Oxshott Capital Partners totalling almost $300 million hasn't arrived, according to Raveendran, who added that he wasn't sure if the funds will materialise.&nbsp;

The most recent estimate given by market analyst CB Insights for Byju's was $22 billion.

( with inputs from agencies)

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After months of delay, Indian education company Byju's has finally made its audited financial statements public. However, the revelations are unlikely to end the swirl of controversy surrounding the nation's most valued startup.

After months of delay, Indian education company Byju's has finally made its audited financial statements public. However, the revelations are unlikely to end the swirl of controversy surrounding the nation's most valued startup. As it increased spending to support growth, the company's losses increased 13-fold in the year ending in March 2021, to 45.7 billion rupees ($575 million). However, sales, at 24.3 billion rupees, barely moved from the previous year. Byju's attributed the performance to modifications to its accounting procedures that caused it to postpone revenue to later years. Additionally, it disclosed unaudited financial results for the year ended March 2022 and the succeeding four months, which showed a huge increase in revenues. Investors who had been watching Byju's over the previous two years as it acquired a number of businesses—possibly too many—were disturbed by the spiralling losses. According to Saurabh Daga, an analyst with London-based consultancy GlobalData Plc, the firm needs to get rid of non-core assets to reduce the number of its consumer-facing services and keep expenses in check without turning to layoffs. Given its leadership position and the longer-term potential of online education in a geographically dispersed country, he said Byju's should weather the slump just fine if it takes those steps. “Byju's will likely have to undergo a massive rejig of its business,” Mr Daga said. It “will have to initiate strong measures related with streamlining its product offerings, shedding off the businesses or apps which do not align with its core offerings, as well as overhauling its current business development and sales processes.” After missing a deadline for submitting financial statements by several months, Byju's has been under regulatory pressure to do so. After a worldwide technology crash affected valuations, the company also had delays in collecting further finance and finalising a planned merger with a blank-check company in the US. The startup's financial challenges have reignited worries about India's consumer technology sector, where big competitors' public valuations, including those of Zomato Ltd. and Paytm, have fallen precipitously this year. Also Read: Kyiv astronomical observatory claims UFOs hovering over Ukrainian skies This year, Byju Raveendran invested $400 million in his business in an effort to persuade other investors of its development potential. Byju's now records income upon the actual submission of periodic payments from customers as opposed to ahead, according to Raveendran's accounting modifications. According to unaudited figures, sales for the fiscal year ending in March 2022 more than doubled to nearly 100 billion rupees. The following four months saw a rise in revenue to 45 billion rupees, and this year, sales are expected to increase by more than 50 per cent, according to Raveendran. Following a decline in technology valuations, the company's plan to list on a US stock market through a merger with a special purpose acquisition company is "on complete pause", he added. The company has failed to finish a planned $800 million investment round because committed capital from investors Sumeru Equity Partners and Oxshott Capital Partners totalling almost $300 million hasn't arrived, according to Raveendran, who added that he wasn't sure if the funds will materialise. The most recent estimate given by market analyst CB Insights for Byju's was $22 billion. ( with inputs from agencies)

After prolonged audit delay, Byju's reports $575 million losses in 2021

Byju's, the India's startup is now in the news for all the bad reasons and for its mounting troubles. There has been a lot brewing lately at the Bangalore headquartered EdTech unicorn Byju's. The company has been facing a series of allegations recently pertaining to its finances.

Edtech Unicorn Byju's denies allegations of finance troubles, mass layoffs

India’s online education provider Byju’s has laid off 2,500 employees across its group companies as the most valuable unicorn looks to mitigate the effects of slowing demand after two years of hypergrowth, according to Indian media reports. The Byju Raveendran-led edtech platform has laid off full-time and contractual employees from Toppr, WhiteHat Jr, and its core team across sales and marketing, operations, content and design teams, Moneycontrol reported quoting sources.&nbsp; About 1,200 employees from Toppr alone were sacked, including 300-350 permanent employees., while another 300 employees were reportedly told to tender their resignations, or were told that they will not get salaries for about 1-1.5 months.

Moreover, about 600 contractual employees were laid off, whose tenures were scheduled to end around October or November, this year, according to reports.

The main reason being attributed to the mass layoffs are “cost-cutting and redundancy in roles”.

However, a spokesperson of Byju’s refuted Moneycontrol's reports on the number of persons being sacked, saying, “We strongly deny the misinformation presented by Moneycontrol. To recalibrate our business priorities and accelerate our long-term growth, we are optimizing our teams from our group companies. This entire exercise involves less than 500 employees from across Byju's Group companies.”

This comes days after a Bloomberg report showed that Byju's was delaying payments for an approximately $1 billion acquisition deal finalised last year, citing sources familiar with the development.

PTI reported that edtech major Byju's group firm Toppr has laid off 1,100 staff or about 36 per cent of its workforce from the company earlier this week, according to some of the employees who have been hit by the decision.

Toppr's sacked employees said that they got a call from the company on Monday and were asked to resign, failing which they will be terminated without any notice period.

(With inputs from agencies)

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India’s online education provider Byju’s has laid off 2,500 employees across its group companies as the most valuable unicorn looks to mitigate the effects of slowing demand after two years of hypergrowth, according to Indian media reports.

India’s online education provider Byju’s has laid off 2,500 employees across its group companies as the most valuable unicorn looks to mitigate the effects of slowing demand after two years of hypergrowth, according to Indian media reports. The Byju Raveendran-led edtech platform has laid off full-time and contractual employees from Toppr, WhiteHat Jr, and its core team across sales and marketing, operations, content and design teams, Moneycontrol reported quoting sources. About 1,200 employees from Toppr alone were sacked, including 300-350 permanent employees., while another 300 employees were reportedly told to tender their resignations, or were told that they will not get salaries for about 1-1.5 months. Moreover, about 600 contractual employees were laid off, whose tenures were scheduled to end around October or November, this year, according to reports. The main reason being attributed to the mass layoffs are “cost-cutting and redundancy in roles”. However, a spokesperson of Byju’s refuted Moneycontrol's reports on the number of persons being sacked, saying, “We strongly deny the misinformation presented by Moneycontrol. To recalibrate our business priorities and accelerate our long-term growth, we are optimizing our teams from our group companies. This entire exercise involves less than 500 employees from across Byju's Group companies.” This comes days after a Bloomberg report showed that Byju's was delaying payments for an approximately $1 billion acquisition deal finalised last year, citing sources familiar with the development. PTI reported that edtech major Byju's group firm Toppr has laid off 1,100 staff or about 36 per cent of its workforce from the company earlier this week, according to some of the employees who have been hit by the decision. Toppr's sacked employees said that they got a call from the company on Monday and were asked to resign, failing which they will be terminated without any notice period. (With inputs from agencies) WATCH WION LIVE HERE

India's edtech firm Byju’s sacks 2,500 employees, company says ‘recalibrating business priorities’: Report

It's been two years of this pandemic, two years since the coronavirus overshadowed everything and emerged as a bane in all of our lives.

Two years of staying cooped up in our houses, two years of staying away from the things, the people, the experiences we love and two years of work from home (WFH).

Watch |&nbsp;Gravitas: Will offices go extinct in a post-pandemic world?

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-will-offices-go-extinct-in-a-post-pandemic-world-413635/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Okay, the last thing was actually good. Only a small group of people would say that they missed working from the office, waking up early, and the commute time. We didn't realise how much time we actually wasted on those things and now that we have, a large number of people don't want to go back to it.

This is what happened with over 800 employees of WhiteHat Jr, a startup, one of India's premier education technology firms.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/yes-to-work-from-home-survey-finds-that-not-even-15-europeans-want-to-go-back-to-office-435342">'Yes' to work from home; survey finds that not even 15% Europeans want to go back to office</a>

As per a report by Inc42, over 800 employees from different sections of the company have handed in their papers in the last 60 days.&nbsp;

The firm, which was acquired by Byju's sent out emails on 18th March, to its employees, asking them to return to offices in Mumbai, Bengaluru, and Mumbai. The company reportedly gave its employees a one month notice of relocation, but what followed the email was a mass resignation.

Also read |&nbsp;<a href="https://www.wionews.com/world/work-from-home-employees-are-quitting-instead-of-returning-to-the-office-389202">Work from home: Employees are quitting instead of returning to the office</a>

The move to end WFH ruffled some feathers and hundreds of employees chose to quit instead. Some of the employees say that one month's time isn't enough.

As per a report by Inc42, another factor behind this mass resignation is salaries. This is because affected employees believe that the move to these expensive cities should've come with a pay hike.

(With inputs from agencies)

It's been two years of this pandemic, two years since the coronavirus overshadowed everything and emerged as a bane in all of our lives. Two years of staying cooped up in our houses, two years of staying away from the things, the people, the experiences we love and two years of work from home (WFH).

It's been two years of this pandemic, two years since the coronavirus overshadowed everything and emerged as a bane in all of our lives. Two years of staying cooped up in our houses, two years of staying away from the things, the people, the experiences we love and two years of work from home (WFH). Watch | Gravitas: Will offices go extinct in a post-pandemic world? Okay, the last thing was actually good. Only a small group of people would say that they missed working from the office, waking up early, and the commute time. We didn't realise how much time we actually wasted on those things and now that we have, a large number of people don't want to go back to it. This is what happened with over 800 employees of WhiteHat Jr, a startup, one of India's premier education technology firms. Also read | 'Yes' to work from home; survey finds that not even 15% Europeans want to go back to office As per a report by Inc42, over 800 employees from different sections of the company have handed in their papers in the last 60 days. The firm, which was acquired by Byju's sent out emails on 18th March, to its employees, asking them to return to offices in Mumbai, Bengaluru, and Mumbai. The company reportedly gave its employees a one month notice of relocation, but what followed the email was a mass resignation. Also read | Work from home: Employees are quitting instead of returning to the office The move to end WFH ruffled some feathers and hundreds of employees chose to quit instead. Some of the employees say that one month's time isn't enough. As per a report by Inc42, another factor behind this mass resignation is salaries. This is because affected employees believe that the move to these expensive cities should've come with a pay hike. (With inputs from agencies)

Post-pandemic woes: Hundreds in Indian start-up opt to quit instead of going back to office

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