BYJU'S CEO Byju Raveendran claimed that the edtech firm is set for a revival of fortunes as investors are ready to back the firm.
In a 1,200 word email that was sent to his employees, Raveendran said the company is set for a turnaround and is ready to launch BYJU'S 3.0.
BYJU’S 3.0 is an AI driven, hyper-personalised educational platform low on costs and high on impact.
This report is as per an email accessed by Inc42.
He said that the company was unable to pay the salaries of its current and former employees because of the lenders and the legal proceedings initiated against it. The company’s CEO has said that the founders, which includes Riju Raveendran and wife Divya Gokulnath, are committed to paying the salaries of the employees, once the company gains access to its accounts.
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Raveendran claimed that the founders have infused Rs 7,500 crore in Byju’s parent entity, Think and Learn Pvt Ltd (TLPL) over the last couple of years.
He said that out of Rs 3,976 in total salaries that were credited to BYJU'S over the last two years, Rs 1,600 was infused by his brother Riju personally. Raveendran claimed that Rs 3,976 crore was from the secondary share sales that Riju Raveendran sold and it was used to settle the dues with the Board of Cricket Control of India. He said that not a single penny used for the settlement was connected to the Term Loan B (TLB) raised in the US.
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Last week, the Supreme Court of India halted NCLAT’s order approving BYJU'S settlement with BCCI over sponsorship dues. This was after Glas trust, a consortium representing the aggrieved US-based lenders filed a petition in the apex court. The US-based lenders lent BYJU'S a loan of $1.2 billion in 2021.
Raveendran said that the aggrieved lenders in question are not the company's original lenders, who had agreed to get repaid in November 2026.
He said they are “aggressive foreign distress funds” who are using “unlawful” ways to force the company to pay back the $1.2 billion within 16 months of distribution.
