By pledging his residence and the properties owned by his family, Byju Raveendran, founder of edtech giant Byju’s, raised $12 million to address the company’s financial challenges. This collateral, including two family homes in Bengaluru and an under-construction villa, served as security for the borrowed funds, which were utilized to cover the salaries of 15,000 employees.
The company is currently embroiled in a legal dispute with creditors due to a missed interest payment on a $1.2 billion term loan. Byju’s recently disclosed its audited results for 2022, revealing a 6% reduction in operating losses to $288 million within its core online education business.
Furthermore, Byju Raveendran and Think and Learn Pvt Ltd received show cause notices from the Enforcement Directorate regarding alleged foreign exchange violations amounting to ₹9,362 crore, leading to government revenue loss.
Notably, Byju’s faced challenges in crediting November salaries to approximately 1,000 employees, attributing the delay to a technical glitch in uploading details to the payroll service system.
Additionally, accusations surfaced about the company’s delayed ‘full and final’ settlements for employees terminated earlier in the year. Byju’s had initially committed to resolving these settlements in September.
In a separate legal development, the BCCI took Byju’s to court over a pending payment dispute, seeking Rs 158 crore as an operational creditor.
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