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NEW DELHI: Cash-starved Byju’s expects the liquidity crisisat the firm to ease in about 45-60 days and the firm is also working to close the audit of its FY23 accounts soon, founder and group CEO Byju Raveendran assured senior executives in a meeting on Tuesday as the company grapples with a series of crises. “The first challenge is the litigation surrounding term loan B (TLB) which stems from a delayed audit and demand for a full refund from TLB lenders.Byju’s is engaged in active negotiations with the lenders to reach a resolution….this challenge should get resolved post the sale of Epic. That sale will also help manage the liquidity crunch the company is facing now,” Raveendran is learnt to have said.
Byju’s is trying to raise $400 million through the sale of Epic. The company which has been engaged in a long drawn dispute with its lenders over repayment of its $1.2 billion TLB has also put its other assets like Great Learning on the block. “The current challenge is the need to tackle resource optimisations to achieve profitability at the group level,” Raveendran said.
The startup whose valuation dropped to under $3 billion in a latest markdown by its investor Prosus from $22 billion at its peak reported EBITDA losses of Rs2,253 crore for its core business in FY22 and laid off more than 5,000 employees since October last year in its attempt to cut costs. The company has also given up multiple office spaces, including in its home ground Bengaluru. “What Byju’sis going through can only be seen as a war on multiple fronts against all odds. We have won many battles but we have to win some more,” Raveendran said in the meeting, according to sources.
The company is slated to hold an annual general meeting (AGM) on December 20 to approve the audited FY22 financials. In the meeting on Tuesday, the firm’s India CEO Arjun Mohan briefed the members on the firm’s plans to offer more options across price points and product range to potential customers. Byju’s tuition centres, Mohan said,should be able to generate cash profitably.
Byju’s is trying to raise $400 million through the sale of Epic. The company which has been engaged in a long drawn dispute with its lenders over repayment of its $1.2 billion TLB has also put its other assets like Great Learning on the block. “The current challenge is the need to tackle resource optimisations to achieve profitability at the group level,” Raveendran said.
The startup whose valuation dropped to under $3 billion in a latest markdown by its investor Prosus from $22 billion at its peak reported EBITDA losses of Rs2,253 crore for its core business in FY22 and laid off more than 5,000 employees since October last year in its attempt to cut costs. The company has also given up multiple office spaces, including in its home ground Bengaluru. “What Byju’sis going through can only be seen as a war on multiple fronts against all odds. We have won many battles but we have to win some more,” Raveendran said in the meeting, according to sources.
The company is slated to hold an annual general meeting (AGM) on December 20 to approve the audited FY22 financials. In the meeting on Tuesday, the firm’s India CEO Arjun Mohan briefed the members on the firm’s plans to offer more options across price points and product range to potential customers. Byju’s tuition centres, Mohan said,should be able to generate cash profitably.
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