Byju’s has been struggling with cash-flow and is in a dispute with creditors over a $1.2 billion loan.
Byju’s, you know, that big educational app everyone was talking about? Well, it’s not doing so great now. See, they were spending lots of money and got into a fight with some folks they owe money to. That’s a big deal because it’s like when you borrow from a friend and can’t pay them back.
This investor, Prosus, said that Byju’s isn’t worth as much anymore. Last year, everyone thought Byju’s was super valuable, like worth $22 billion! But now, they say it’s only worth less than $3 billion. That’s a huge drop! It’s like when a cool toy you liked suddenly becomes not so cool anymore.
Some other big companies that own part of Byju’s also said it’s not worth as much as they thought before. First, they said it’s worth $11 billion, then $8 billion, and later $5 billion. And now, this Prosus investor says it’s even less, much less!
The boss of Byju’s, called the CEO, recently said that the company lost a lot of money, like around ₹2,250 crore. They were also late in showing how much money they made last year, and some important people who check the money stuff quit because of that. Even the boss in charge of money and the boss in charge of technology left last week.
Byju’s used to be super popular, like the coolest kid in school. They spent a lot of money when schools were closed because of the Covid sickness. They bought many other small companies that teach things, not just in India but also in the US. But when schools opened again, things didn’t go as well as they hoped.
Now, they’re in a big fight with the people they owe money to. It’s like when you promise to return a friend’s toy but can’t find it, and they get mad at you. This big fight is making things even worse for Byju’s.
This investor Prosus didn’t say why they think Byju’s is worth less now, but a while ago, they said that the people who run Byju’s didn’t listen to good advice. It’s like when you try to tell someone what’s right, but they don’t want to listen.
Remember how Byju’s was really into cricket and sponsored the Indian cricket team? Well, even they are upset because Byju’s hasn’t paid them the money they promised for being a sponsor. That’s like when you promise to give someone money for something they did, but then forget to do it.
So, all in all, Byju’s isn’t doing so well now. They spent lots of money during Covid, got into fights with the people they owe money to, and didn’t listen to good advice. Even the cricket team they sponsored is mad at them because they didn’t pay what they promised.