Byju’s, the country’s highest-valued edtech company, has agreed to renegotiate the terms of its $1.2 billion loan with lenders. According to the news of Economic Times, people having knowledge of this matter have given this information.
On the condition of anonymity, people with knowledge of the matter said that the steering committee of the creditors on the term loan and Byju’s have agreed to work towards signing an agreement before August 3. When contacted for comment on the matter, Byju’s spokesperson did not respond.
There was tremendous growth after the arrival of Corona
People sitting at home in Corona proved to be a golden opportunity for online edutech companies. Byju’s also took tremendous advantage of these situations. Byju’s, formed in 2011, had acquired well-known platforms like Tutor Vista, Vidyartha in 2017 itself. But the real game started after the arrival of Kovid.
Byju’s is facing trouble
In April 2023, the ED raided Byju’s premises in Bengaluru for possible violation of FEMA laws. However, Ravindran immediately wrote a letter to the employees while controlling the damage that the company has followed all the laws.
Apart from this, three important members of the company’s board also resigned, including GV Ravi Shankar of Peak XV Partners, Russell Dresinstock of Prosus and Vivian Wu of Chan Zuckerberg Initiative. Now the command of the company is left in the hands of three people of the house.
the auditor had resigned
The company’s auditor Deloitte resigned on June 22, 2023. The reason given was- non-release of the financial statement of the previous financial year. Deloitte said that due to this they could not start the audit on time. The underlying books, records and other documents which he had demanded from Byju’s were also not made available.
Deloitte was appointed as the auditor of Byju’s on April 1, 2020 for 5 years. Deloitte’s term was to end on March 31, 2025. Byju’s later appointed MSKA & Associates as the new auditor.