EdTech Head byju’s The company’s CEO Byju Raveendran on Thursday said it is growing slowly but steadily and is close to achieving group-level profitability.
The company organized a town hall with Raveendran to allay apprehensions about the company’s growth and the uncertainty surrounding its future.
Appearing at the town hall, according to sources, Raveendran said the issues of term loan B lenders worth $1.2 billion (roughly Rs. 9,852 crores) were being resolved through discussions and would be resolved positively in the next few weeks without court intervention. Result is expected.
“Byju’s shared that Byju’s is close to achieving group-level profitability, which shows the company’s commitment to financial management and optimization of operations,” said a source.
He said that despite the challenges faced by tech companies globally, BYJU’S has made substantial progress towards this important milestone.
Byju’s had set a deadline of March 2023 to achieve profitability.
“He said that Byju’s is now growing slowly but steadily and most of its business lines are in relatively good shape,” the source said.
There have been several reports about Byju’s financial performance, debt burden, delay in filing financial results and lowering of valuation in the firm for the 9.6 per cent stake held by the investor in firm Pross.
Prosus’s 9.6 per cent stake has been valued at around $6 billion (roughly Rs. 49,260 crores) instead of the $22 billion (roughly Rs. 1,80,600 crores) claimed by Byju’s, valuing the edtech firm.
Amidst all the controversies, a Delaware court recently passed an order in favor of Byju’s, giving the company a significant boost in its fight against various disputes.
Another source said, “Byju’s shared an important update that the TLB dispute is being resolved through constructive discussions, and the company is confident of achieving a positive outcome in the next few weeks without court intervention. “
Raveendran said the constructive discussions with lenders are a reflection of the company’s ability to address challenges and find solutions through active engagement.
CEO clarifies to employees about director and auditor DeloitteResignation of
“Byju’s highlighted the strategic decision to appoint BDOs as statutory auditors of Byju’s for the next five years, which led to the exit of Deloitte,” the source said. A mutually agreed decision has been taken to focus on ,
Raveendran during the town hall said that the company is now actively expanding and diversifying its board to reflect the scale, scope and reach of operations, which is a routine practice for large companies.
He discussed the concerns surrounding the viability of EdTech as an industry.
He said that EdTech is not an ‘epidemic phenomenon’ but a permanent fixture in education.
“Byju’s assured that Byju’s has weathered storms before and emerged stronger,” the source said. He exhorted his team to “rise above the noise” and work with the resilience and determination that Byju’s has. is found in the DNA of
Another source claimed that the employees did not ask any questions about layoffs and provident fund deposits.
“Raveendran said that the company has been in trouble many times and has emerged stronger. So they will come out stronger this time as well,” said the source.
An email query sent to Byju’s did not elicit any response.