Byju Raveendran’s Downfall: From Owning BYJU’S Worth Rs
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Byju Raveendran’s Downfall: From Owning BYJU’S Worth Rs

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Byju Raveendran's Downfall: From Owning BYJU'S Worth Rs 183,000 Cr To Pledging Homes To Pay Salaries

Byju Raveendran‘s EdTech firm, BYJU’S, is presently going by means of a sequence of monetary issues. The instructional firm, which was as soon as a unicorn, is now struggling to outlive. As per a number of commerce specialists, Byju Raveendran’s firm, BYJU’S incapacity to repay its money owed have raised the potential for its everlasting closure. Amidst all of the chaos, Byju Raveendran is asserting a sequence of main choices and making guarantees now and again to persuade his firm’s shareholders and buyers that this too, shall cross.

BYJU’S FY22 earnings showcase the seriousness of its downfall

MSKA & Associates, who’s the audit arm of accounting agency BDO Global, has identified how losses at BYJU’S have doubled within the final yr. As per the auditor, Byju Raveendran’s instructional firm’s losses have risen from Rs. 4,546 crore (2021) to Rs. 8,245 crore (2022). Mentioning the low rise in BYJU’S revenue, the auditor revealed that the EdTech firm has solely managed to earn Rs. 5,298 crore (2022) in comparison with Rs. 2,428 crores (2021), which they earned a yr earlier than.

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According to a Bloomberg report, Byju Raveendran has reportedly approached the present buyers of his firm, BYJU’S, to boost a mammoth sum of 100 million USD by mentioning his firm’s valuation as 1 billion USD (Rs. 8290 crore). It will probably be attention-grabbing to see whether or not the buyers will provide their assist on this powerful time for the agency, which was as soon as valued at 22 billion USD (Rs. 1,83,000 Crore).

BYJU’S founder, Byju Raveendran pledges properties value Rs. 100 crore to pay the salaries of his workers


Amidst all of the chaos at BYJU’S, studies are rife that its founder, Byju Raveendran has pledged his household dwelling and an under-construction villa in Bengaluru to pay the salaries of his devoted workers. As per the studies, the entire sum of each homes is round Rs. 100 crores. The entrepreneur plans to serve each the costly properties for a mortgage of Rs. 100 crore to settle the salaries of round 15,000 workers.

Undoubtedly, Byju Raveendran is keen to shed among the stress from his head by settling his workers’ salaries, as many extra problematic points are ready for his consideration. While the battle of as soon as termed as ‘India’s EdTech King’ is well-documented in media headlines, the numerous elements that led to this EdTech’s downfall are nonetheless unknown to everybody. Thus, we’ve determined to shed some mild on among the main elements that resulted in BYJU’s surprising fall.

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Factors that contributed to the downfall of Byju Raveendran’s instructional firm, BYJU’S

Whenever an organization as huge as BYJU’S goes by means of such a significant drop in its gross sales and stands on the verge of a doable collapse, it is by no means due to solely 3-4 elements. There’s an entire record of minor and main choices that have been taken in numerous departments of the corporate that led to such a considerable collapse. However, within the case of BYJU’S, the commonest error talked about by a sequence of commerce specialists was that the corporate reworked itself from an EdTech firm right into a gross sales machine.

Byju Raveendran’s BYJU’S grew to become successful in India as a result of it helped college students perceive complicated subjects in a comparatively simple manner by means of the usage of expertise. However, lately, the corporate shifted its whole focus to rising gross sales as an alternative of enhancing the standard of lecturers. The introduction of Bollywood famous person, Shah Rukh Khan and legendary footballer, Lionel Messi as BYJU’S model ambassadors after spending hefty cash additionally turned too heavy on the corporate’s funds.

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Not solely this, however the starvation to increase the corporate throughout the COVID-19 pandemic was so intense that the EdTech firm paid no real interest in getting ready for the time when colleges and schools will probably be reopened. From buying a number of EdTech startups in India to becoming a member of arms with so many instructional firms within the US, BYJU’S spent cash like water. More cash was spent on producing gross sales as an alternative of enhancing the therapy of its workers, which resulted within the decline of the standard of their programs. Seeing the standard of BYJU’S programs hitting a brand new low, a number of buyers reportedly broke ties with the corporate, which resulted in a monetary crunch.


The firm wanted to arrange higher for the challenges they might face as soon as the faculties and schools reopened post-COVID-19. It was when the EdTech firm misplaced its attraction within the eyes of many buyers, who now not had religion within the firm’s future. While on one facet, the corporate was battling cash-flow issues, the viral video of a BYJU’S worker lashing out on the accounts division for not clearing her dues and paying salaries broken the corporate’s picture usually public’s eye to an unrepairable extent.

Three main authorized instances on Byju Raveendran’s BYJU’S


In a span of simply 15 months, Byju Raveendran’s studying app, BYJU’S dropped from an analysis of twenty-two billion USD (Rs. 1,83,000 Crore) to 1 billion USD (Rs. 8290 crore). The EdTech agency is presently dealing with three main instances that embody the cricket board, BCCI, the ED (Enforcement Directorate), and a debt of 1.2 billion USD. Regarding the BCCI case, the cricket board accused the tutorial firm of default funds of round Rs. 158 crore.

The second case includes the ED, and as per the studies, the Enforcement Directorate despatched a authorized discover to BYJU’S again in November 2023. In the authorized discover, the ED acknowledged that Byju Raveendran’s firm had violated India’s international change guidelines. The third and remaining case is from abroad, as BYJU’S owes roughly 1.2 billion USD to a sequence of international lenders. The lenders have sued the corporate after their curiosity was not paid. It will probably be attention-grabbing to see how the corporate’s founder, Byju Raveendran will sort out this case.


What are your ideas on the autumn of Byju Raveendra’s BYJU’S? Let us know.

Also Read: Sanjeev Juneja AKA ‘Brand Machine’: Entrepreneur Whose Hairfall Made Him Earn Rs. 1,651 Crores

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