Byju's to hold board meeting on December 20 amid pending dues

Facing a severe cash crunch, the parent company of the embattled edtech unicorn Byju's, Think and Learn Private Limited, is set to conduct its 11th annual general meeting on December 20. The meeting aims to seek approval for the audited financial statements for the fiscal year ending March 2022, along with the corresponding reports from the board of directors and auditors.

Among the agenda items is the approval of the appointment of MSKA & Associates as statutory auditors. Simultaneously, Byju's founder and CEO, Byju Raveendran, has reportedly convened an urgent meeting with senior management to address the challenging liquidity situation. The company is currently grappling with difficulties in meeting its financial obligations, including employee salaries.

Sources indicate that Byju's urgently requires a substantial infusion of funds, approximately Rs 500-Rs 600 crore, to settle outstanding dues to employees, vendors, and governmental entities such as the income tax department and the Board of Control for Cricket in India (BCCI). The BCCI has taken legal action against Think & Learn, alleging a default of Rs 158 crore.

In response to the liquidity crisis, Raveendran has reportedly pledged personal assets, including his home and those owned by family members. Bloomberg reports that two family-owned homes in Bengaluru and an under-construction villa in the city were offered as collateral to secure a $12 million loan. These funds were utilized to address salary payments for 15,000 employees in Byju's parent firm, Think & Learn Pvt Ltd.

Despite these measures, Byju's faced a setback on Monday when a "technical glitch" resulted in delayed salary payments for approximately 1,000 workers, underscoring the ongoing challenges confronting the edtech giant.

(With input from IANS)