New Delhi: Byju’s, an education-technology platform, is facing a financial crisis due to high operating expenses, delayed payments from customers, and sponsorship dues to BCCI. The company is struggling to pay salaries to its employees and fund its operations till March 2023.
How is Byju’s raising funds to overcome the crisis?
Byju’s is in the process of raising debt of Rs 600-700 crore from various sources to finance its operations till March 2023, according to sources. Some of the ways that Byju’s is raising funds are:
- Company founder Byju Raveendran has recently raised funds by mortgaging houses and immovable properties owned by his family members.
- The promoters have pledged shares, houses, and some other immovable assets of family members to bridge the gap.
- Byju’s also hopes to raise funds from the partial sale of its stake in Epic and other subsidiaries by March 2023.
- Byju’s is in the process of presenting a repayment program to BCCI for sponsorship dues of Rs 160 crore.
- Existing investors are also expected to inject new funds.
What are the next steps for Byju’s?
Byju’s has called an annual general meeting (AGM) on December 20, 2023, where the following agenda will be discussed:
- The properties mortgaged by the promoters will be brought to the notice of the company’s board.
- The financial results for the financial year 2021-22 will be presented before the shareholders.
- The debt-raising plan and the repayment program will be approved by the board.