NEW DELHI: Byju’s expects the liquidity crisis at the firm to ease in about 45-60 days and is also working to close the audit of its FY23 accounts soon, founder and group CEO Byju Raveendran told senior executives in a meeting on Tuesday.
“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 other assets such as Great Learning on the block. “The current challenge is need to tackle resource optimisations to achieve profitability at the group level,” Raveendran said.
The startup, whose valuation dropped to under $3 billion in latest markdown by investor Prosus from $22 billion at peak, reported Ebitda losses of Rs 2,253 crore for core business in FY22 and laid off over 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’s is 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 AGM on December 20 to approve audited FY22 financials. In the meeting on Tuesday, the firm’s India CEO Arjun Mohan briefed the members about the its plans to offer more options across price points and product range to potential customers.
“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 other assets such as Great Learning on the block. “The current challenge is need to tackle resource optimisations to achieve profitability at the group level,” Raveendran said.
The startup, whose valuation dropped to under $3 billion in latest markdown by investor Prosus from $22 billion at peak, reported Ebitda losses of Rs 2,253 crore for core business in FY22 and laid off over 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’s is 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 AGM on December 20 to approve audited FY22 financials. In the meeting on Tuesday, the firm’s India CEO Arjun Mohan briefed the members about the its plans to offer more options across price points and product range to potential customers.
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