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Byju’s Leadership Under Scrutiny:

Byju Raveendran, the founder and CEO of ed-tech giant Byju’s, faces a potential ousting as a consortium of shareholders, including global tech investor Prosus, seeks to install a new board.

Extraordinary General Meeting (EGM) and Turbulent Times:

An EGM of investors is scheduled to determine the fate of Raveendran, amidst Byju’s facing significant challenges.

Once lauded as one of India’s most profitable start-ups with a valuation over $20 billion, Byju’s has experienced a drastic decline of around 90% in the past year.

Issues include withdrawal of key investors, resignation of Deloitte as auditor, and legal disputes with US lenders over a substantial loan.

Legal Battle and Investor Dispute:

Byju’s contends that a recent Karnataka High Court ruling renders any decisions made at the meeting “invalid” until the next hearing, suggesting that the move to replace Raveendran is a disruptive tactic.

ED Notice and Financial Allegations:

The Enforcement Directorate (ED) has escalated its probe against Raveendran under the Foreign Exchange Management Act (FEMA), enhancing a Look Out Circular (LC) to prevent him from leaving the country.

Byju’s and Raveendran face a significant foreign exchange violation show cause notice amounting to over ₹9,300 crore, including alleged failures to submit import documents and delays in filing documents related to exports.

Financial Turmoil and Bankruptcy Filing:

A foreign unit of Byju’s filed for bankruptcy in the US, listing liabilities between $1 billion to $10 billion, adding to the company’s financial woes.

Byju’s Journey and Pandemic Pivot:

Founded in 2006, Byju’s initially focused on MBA entrance exam preparation before expanding its offerings to cater to a wider student base.

The Covid-19 pandemic accelerated the adoption of online learning, presenting Byju’s with an opportunity to expand rapidly by launching its learning app and leveraging marketing campaigns.

Despite initial success and high-profile sponsorships with sports personalities like Lionel Messi, Byju’s faced criticism for its work environment and marketing practices, leading to a significant devaluation by Prosus and subsequent challenges.

Recently Byju’s has surrender its largest office space in Bengaluru due to financial issues as per report.

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