Co-founder of ed-tech company Byju's, Byju Raveendran on Thursday morning in a virtual, company-wide town hall sought to restore employee confidence after weeks of silence. This is Raveendran’s first formal communication with employees, in recent times when it has been hit by the resignation of its statutory auditor, Deloitte and the resignation of three board members.
As BYJU’s fights fire on multiple fronts, the CEO says the company is in a tough phase but will bounce back soon. Raveendran also said the $1.2 billion term loan negotiations have taken “a constructive turn” and said he is “very confident of achieving a positive outcome in the next few weeks without the need of a legal or court intervention”.
The CEO also emphasised the importance of understanding the full picture and spoke about Deloitte's and the board members' resignations, the TLB dispute, and the viability of EdTech as a sector.
Despite Raveendran’s attempt to address concerns, questions about layoffs, salary hikes, incentives, and provident fund payments were not answered, leaving employees in a state of ambiguity.
Key takeaways from Byju Raveendran’s town hall speech:
Financial governance and audit improvements
Raveendran highlighted the strategic decision to appoint BDO as BYJU'S statutory auditors for the next five years which led to Deloitte’s exit. He said the mutually agreed-upon decision has been taken to focus on efficient and timely audits going forward. It reflects the company's commitment to enhancing financial governance practices and strengthening corporate governance standards.
Board members’ exit
The founder assured the team that the departures of three board members are unrelated to Deloitte's resignation and said that the company is now actively expanding and diversifying its board to reflect the scale, scope, and reach of operations, which is a routine practice for large companies.
TLB dispute resolution
Raveendran also said that the TLB dispute is being resolved through constructive discussions, and the company is confident about achieving a positive outcome in the next few weeks without court intervention.
Progress towards profitability
The CEO also mentioned that BYJU'S is close to achieving profitability at the group level, despite the challenges faced by tech companies globally. He also said that BYJU’S is now growing slowly but sustainably and most of its business verticals are in good shape, relatively speaking.
EdTech is here to stay
Raveendran addressed the doubts raised about the viability of EdTech as an industry. He highlighted the substantial growth projections for the global and Indian EdTech markets, emphasising that EdTech is not a ‘pandemic phenomenon’ but a permanent fixture in education. BYJU'S long-standing presence in the EdTech space, along with the development of advanced AI-based educational tools like BYJU’S WIZ, positions the company strongly in this evolving landscape.
Raveendran also reflected on the journey of BYJU'S and his unwavering commitment to transforming education. He highlighted the personal investments he has made – to his “last penny” - and the relentless dedication to the growth of the company.
He further reassured employees saying that BYJU'S has weathered storms before and emerged stronger. He acknowledged the challenges faced by the company and emphasised the team's talent, strength, dedication, and resources to overcome any obstacles.
He exhorted his team to “rise above the noise” and work with the resilience and determination that is found in the DNA of BYJU’S.
Raveendran concluded the speech by expressing optimism for the future and emphasised that “the best of BYJU'S is yet to come” and that the company has “not come this far to only come this far.”
Queries raised by employees during the town hall concerned potential layoffs, salary hikes, incentives, and provident fund payments. As a chat option was deactivated, their questions remained unanswered, leaving them needing more clarity on these crucial matters.
The edtech giant is reportedly in advanced talks with potential new shareholders to raise $1 billion in funding to restore investor confidence in the wake of a governance crisis.
As reported by Bloomberg - BYJU’S is in advanced talks with prospective new shareholders for a $1 billion fundraising round, seeking to stave off attempts by some investors to clip founder Byju Raveendran’s control over the beleaguered tech startup.
The firm is offering sweeteners, including preferential treatment in the case of liquidation, to win over new backers, people familiar with the matter said, asking not to be named as the information isn’t public.
None of its existing shareholders has a so-called liquidation preference, the people said. BYJU’S, which has been trying to raise fresh funds for months, seeks to close a round within two weeks, they said.
First Published: Jun 29, 2023 4:55 PM IST
