The company, which was once the most valued software startup in India, is currently selling...
Digital Desk: Byju Raveendran, the creator of the namesake company that has revolutionized the edtech industry, has pledged his property as well as those owned by his family members to gather money for paying staff during the company's liquidity crunch, according to those familiar with the situation.
The former billionaire's family's two Bengaluru residences and his unfinished villa in the upscale gated enclave of Epsilon were presented as collateral for a $12 million loan, according to people who asked to remain anonymous since the details are private. According to them, the startup utilized the money to pay the salaries of 15,000 workers at Think & Learn Pvt., Byju's parent company, on Monday.
In an effort to relieve the company's financial strains and keep it viable, the founder has been going all out. The company, which was once the most valued software startup in India, is currently selling its kids' digital reading platform, which is situated in the US, for around $400 million. In addition, it is embroiled in a lawsuit with creditors over the failure to make interest payments on a $1.2 billion term loan.
According to the people, Raveendran, who was once valued at over $5 billion, pledged all of his parent business shares to finance around $400 million in personal debt. They argued that he was cash-strapped because he invested the $800 million he had raised via share sales back into the company.
Amid a pandemic-era economic boom, Byju reported its first profits in years last month, showing that losses at Think & Learn slightly narrowed. The startup's international financing was investigated by an Indian regulatory agency, and the business said in a statement last week that any fines would likely be minimal.
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