Even as Byju Raveendran promises a turnaround, employees yet to receive July salaries

It’s been a tumultuous ride for the once-soaring edtech titan BYJU’S. From the dizzying heights of global dominance to the depths of financial woes, the company has weathered a perfect storm of challenges that would make even the most seasoned entrepreneurs quiver in their boots. But as they say, when the going gets tough, the tough get going – and BYJU’S founder Byju Raveendran is determined to steer his behemoth back to the promised land of success.

In a passionate, 1,200-word missive to his beleaguered troops, Raveendran has painted a picture of a company on the cusp of a remarkable turnaround, ready to launch “BYJU’S 3.0” – an AI-driven, hyper-personalized educational platform that will supposedly be a game-changer. But amidst the grand vision, a harsh reality remains: BYJU’S employees are yet to receive their July salaries, a testament to the ongoing financial challenges that have plagued the edtech juggernaut.

Founders inject Billions, but lenders complicate matters

Raveendran’s email reveals that the founders, including his brother Riju Raveendran and wife Divya Gokulnath, have collectively infused a staggering INR 7,500 Cr (that’s over $1 billion) into the company over the past 29 months. This, he claims, has been the sole source of capital for BYJU’S parent entity, Think & Learn Pvt Ltd (TLPL), during this tumultuous period.

But the edtech titan’s woes don’t end there. The founder has once again pointed the finger at the company’s lenders, accusing them of “unlawfully accelerating the loan” and using “aggressive” tactics to force BYJU’S to pay back a whopping $1.2 billion within just 16 months. These “foreign distress funds,” as Raveendran calls them, have been embroiled in a legal battle with the company, further complicating the already murky financial landscape.

Navigating the legal minefield

The BYJU’S saga has been a veritable legal minefield, with the company facing a barrage of challenges on multiple fronts. From the initial insolvency proceedings initiated by the Board of Cricket Control of India (BCCI) to the Supreme Court’s reinitiation of those proceedings based on a plea from the aggrieved US-based lenders, the startup’s very existence has been called into question.

Raveendran, however, remains defiant, claiming that the lenders in question are not the company’s original lenders, who had agreed to a November 2026 repayment timeline. Instead, he alleges that these “aggressive foreign distress funds” are using “unlawful” means to force BYJU’S to pay back the loan in a fraction of the time.

Founder’s transparent stance on ED investigation

Addressing the swirling rumours and accusations, Raveendran has unequivocally denied any personal involvement in any Enforcement Directorate (ED) investigation. He states that the ED’s probe is solely focused on “procedural deficiencies under FEMA, such as delay in filing Annual Performance Reports (APRs) with respect to duly compliant overseas investments arising from the delayed statutory audit.”

The founder further emphasizes that he has been transparent about his whereabouts, refuting the “reckless and damaging allegations” that he and his brother are “fugitives.” Raveendran reveals that he has been in India for a total of 77 days since March 2023, dispelling the notion that he has been evading legal or financial obligations.

BYJU’S resilience: Doubling down on user growth

Despite the recent challenges, Raveendran remains steadfast in his belief that BYJU’S is poised for a remarkable turnaround. He proudly declares that the company is still the largest edtech platform globally, with a staggering 150 million students using its products and services every month. And get this – that user base has actually doubled over the last two years, a testament to the platform’s resilience and continued appeal.

The founder’s vision for “BYJU’S 3.0” is equally ambitious, promising an AI-driven, hyper-personalized educational experience that will be both low-cost and high-impact. Raveendran is convinced that with the right backing from investors, BYJU’S can’t only weather the current storm but emerge stronger and more agile than ever before.

Salaries delayed, but founder vows prompt payments

Perhaps the most pressing issue for BYJU’S employees is the delayed payment of their July salaries. Raveendran acknowledges this challenge and promises that once the company regains control of its finances, salaries will be paid promptly, “even if that means raising more personal debt.”

The founder reveals that out of the INR 3,976 Cr (over $500 million) in total salaries credited to BYJU’S over the past two years, a staggering INR 1,600 Cr (nearly $200 million) was infused by his brother Riju personally. This underscores the founders’ unwavering commitment to ensuring their employees are taken care of, even in the face of daunting financial obstacles.

Navigating the insolvency saga

The BYJU’S saga has been a veritable legal rollercoaster, with the company finding itself at the center of a high-stakes insolvency battle. After the National Company Law Appellate Tribunal (NCLAT) set aside the insolvency proceedings initiated by the BCCI, the founders were on the cusp of regaining control of the company’s finances.

However, the triumph was short-lived, as the Supreme Court reinitiated the insolvency proceedings on a plea filed by Glas Trust Company, a consortium of the startup’s aggrieved US-based lenders. This turn of events has once again cast a shadow of uncertainty over BYJU’S, with the founders now unable to infuse more capital to address the pressing issue of unpaid salaries.

A cautionary tale for the Edtech sector

The BYJU’S saga has undoubtedly become a cautionary tale for the entire edtech industry. The company’s meteoric rise and subsequent fall serve as a stark reminder that even the mightiest of players are not immune to the perils of rapid growth, financial mismanagement, and legal entanglements.

As the edtech sector continues to evolve, the BYJU’S experience will undoubtedly serve as a case study for aspiring entrepreneurs and industry veterans alike. It’s a cautionary tale that underscores the importance of sound financial practices, effective legal strategies, and unwavering commitment to employees and stakeholders.

The BYJU’S saga continues

The BYJU’S story is far from over, and the company’s future remains shrouded in uncertainty. But as Raveendran’s email so passionately conveys, the edtech giant is not ready to throw in the towel just yet. With a renewed focus on innovation, a commitment to its employees, and a steadfast belief in the company’s potential, BYJU’S may just have what it takes to emerge from the ashes, stronger and more resilient than ever before.

Only time will tell whether the BYJU’S 3.0 vision will come to fruition and whether the company’s lenders and legal adversaries will ultimately be won over. But one thing is certain: the BYJU’S saga is far from over, and the edtech world will be watching with bated breath to see how this epic story unfolds.