Byju's Shuts Down Most Of Its India Offices

Byju’s, much celebrated Indian startup has shut all its offices except its headquarters in Bengaluru amid liquidity crisis. The ed-tech firm, founded by former tuition teacher turned entrepreneur Byju Raveendran, is already in crisis after the management’s tussle with its investors.

The present deadlock between Byju”s and its investors originates from the company”s attempt to alleviate a financial strain through a proposed rights issue, aiming to secure up to $200 million. This entails inviting current shareholders to acquire further new shares in the company.

Reports said, following the restructuring plan of Byju’s India CEO Arjun Mohan, the company, which was once valued at $22bn, has asked all its teachers to work from home except for those who are working with its 300 tuition centres.

Over the past year, Byju”s has encountered a series of challenges, including increasing debt, discontent among investors, legal actions from lenders, scrutiny from India”s financial crimes agency, substantial workforce reductions, delayed salary payments, and a liquidity shortage.

Recently, a petition was filed at the National Company Law Tribunal (NCLT) by investors of Byju’s, which alleged the current management of oppression and mismanagement. They pushed for the removal of Byju’s CEO Raveendran, a total revamp of the board, forensic audit and an invalidation of the rights issue.

The petition was led by Prosus, a Dutch investor in the edtech who has only 9.1 percentage in Byju’s after an Extraordinary General Meeting (EGM), which was conducted online and passed. Byju’s Raveendran and his family members has about 26 percentage shares in Think & Learn – the parent company of the education provider Byju’s. They did not attend the EGM and called it invalid, stating that at least one founder was to attend the EGM to be called valid.