Probe finds Byju’s failed investors but didn’t commit fraud
Byju's governance lapses led to financial troubles, legal battles, and Raveendran's efforts to innovate and manage debts for the ed-tech company's survival. Byju’s challenges NCLT order restricting fund use in Karnataka High Court
Byju’s faces protests from investors over $200 million rights issue conducted at 99% discount. Lenders within consortium loaned $1.2 billion to Byju’s file bankruptcy petition in US court. Prosus stake in Byju’s worth zero: HSBC
This comes at the time of Byju's controversial $200 million right issue at 99% discount to its peak valuation of $22 billion, meaning any investor not investing in the rights issue will see its holding wiped off. NCLAT dismisses appeal by investors against Byju’s
The National Company Law Appellate Tribunal has rejected an appeal filed by a group of investors of Byju’s seeking intervention in the case between the two parties in the National Company Law Tribunal (NCLT). These investors had requested an order to halt the ongoing proceedings at the NCLT’s Bengaluru bench. Byju’s pays part of March salaries to employees, yet to clear Feb payouts
Byju's CEO covers March salaries with personal debt. Blocked rights issue, $200 million raised earlier. Investors like Prosus, General Atlantic, Sofina involved in NCLT case. Partial payouts made on April 20. Byju’s lays off about 500 staffers, nearly half from tuition centre business
Layoff at Byju's has hit 500 staffers, affecting Tuition Centre operations, amidst a funding crisis. Staff face delayed salaries amid NCLT hurdles and upcoming $200-million rights issue, with assurances of arrears settlement by April 8. Byju’s arranges for alternative credit, begins March salary payouts
ET had reported on April 1 that Bengaluru-based Byju's delayed salaries for workers again as amid a severe cash crunch. Byju’s vacates offices to cut costs, may give up Bengaluru HQ partially
Byju's is undergoing cost-cutting and restructuring by downsizing assets like offices and tuition centers. It aims to focus on top cities, generate revenue, and has identified assets overlapping with Aakash centres. Despite challenges, it initiated a rights issue to address issues. MCA probe report on Byju’s; Walmart on Flipkart, PhonePe profitability
An investigation by the central government into Byju's cleared the edtech firm of financial fraud charges, according to a report by Bloomberg. The Ministry of Corporate Affairs, however, denied it on Wednesday evening. This and more in today's ETtech Top 5. Exclusive: Byju’s India CEO Arjun Mohan resigns, founder Raveendran to comeback at helm of daily ops
Byju Raveendran's return to the top of daily affairs after nearly four years is of significance as as a group of Byju’s investors voted in February to oust him as CEO of the company in an extraordinary general meeting. New-age stocks recover post poll results; Ixigo IPO launch
A day after election results, shares of new-age companies like Zomato and Delhivery made a sharp recovery on the bourses. A look at the numbers and more in today’s ETtech Top 5. Byju’s investors vote to oust CEO Raveendran
Investors in Byju's led by Prosus filed a petition at NCLT alleging oppression and mismanagement by the present management of Byju’s. They seek to remove Raveendran as CEO, overhaul the board, conduct a forensic audit, and declare the rights issue invalid. NCLT refuses to stay Byju’s EGM over $200 million rights issue
The stay was sought by investors of Byju’s parent Think & Learn, led by Prosus, to block the rights issue. Startup layoffs in 2024: Ola Electric, Byju’s, Flipkart among firms shedding jobs
Indian startups and large new-age companies have been cutting down their workforce since the beginning of this year. Face-off likely at EGM over plan to oust Byju’s CEO
Investors demand ouster of Byju Raveendran and family, accuse management of non-compliance, misinformation, and withholding information. They seek details on AESL acquisition, loan terms, investigations, audits, and board restructuring for improved oversight and governance. Byju's investors call for EGM on Friday to oust founder, his family members
Investors at Byju's are calling for an extraordinary general meeting to oust founder CEO Byju Raveendran and his family members over alleged mismanagement and failures. The shareholders listed financial mismanagement, erosion of value, and concealment of material information as reasons for seeking ouster. Byju’s secures stay on EGM resolutions from Karnataka HC
In a statement Wednesday evening, Byju’s said the court has passed an order saying any resolutions proposed during the EGM by investors will be considered invalid until the final hearing and disposition of the petition. IPO-bound Ola Electric hires former Byju’s senior executive Jitesh Shah to lead after-sales
As part of his new responsibilities at the public markets-bound firm, Shah is spearheading an expansion of Ola’s service centres and fast-charging network, as well as an extension of warranty on all new scooter sales announced by the firm in February, they added. Read the full text of Byju Raveendran's letter to shareholders on rights issue, board restructuring
Byju Raveendran informs shareholders that the $200 million rights issue is fully subscribed, emphasizes the importance of all shareholders participating, and assures transparency in fund usage. He expresses faith in the company's resilience and commitment to creating shareholder value. Byju Raveendran, Divya Gokulnath and Riju Ravindran to skip company's EGM
Byju’s in a statement said, “This EGM is procedurally invalid, contractually in contravention of our AOA (article of association) and SHA (shareholding agreement), legally on the wrong side of the Companies Act, 2013.” CXO-level shifts rearrange top deck at Indian startups
The world of startups witnessed a series of top-level movements in the first half of 2024, including Naveen Tahilyani taking the helm as CEO of Tata Digital and the resignation of Surinder Chawla, managing director and chief executive officer of Paytm Payments Bank. Read the full text of Byju Raveendran's letter to employees after EGM by investors
On Friday, a group of investors unanimously voted to oust Raveendran as the CEO of Byju's and revamp the board, which includes wife and cofounder Divya Gokulnath and brother Riju Ravindran. NCLT directs Byju’s to maintain status quo; ETtech Done Deals
NCLT has asked Byju's to maintain status quo in its shareholding, pausing its controversial rights issue, this and more in today’s ETtech Top 5. Byju’s lenders petition to put subsidiaries in bankruptcy in the US
Creditors led by HPS Investment Partners filed involuntary Chapter 11 cases in Delaware against Neuron Fuel Inc., Epic! Creations Inc. and Tangible Play Inc. on Wednesday. All three were once affiliated with Byju’s Alpha, a unit of the once high-flying startup that was put into bankruptcy earlier this year after defaulting on $1.2 billion of debt. Prathyusha Agarwal to head Flipkart's Shopsy
Prathyusha Agarwal has joined Flipkart as vice president (VP) and head of Shopsy, a spokesperson for the firm confirmed to ET. She was previously the chief business officer of edtech firm Byju’s, with earlier stints at Zee Entertainment, Tata Cliq and Unilever. Unable to process salaries because of investor dispute: Byju Raveendran to staff
In an internal memo, he blamed a select few investors, and added that the amount raised through the rights issue is locked in a separate account. Byju's US unit files for bankruptcy in Delaware
Byju's Alpha unit listed its assets in the range of $500 million to $1 billion, according to a court filing, which showed estimated creditors in the range of 100 to 199. Macquarie slashes Byju’s valuation by 98% after Julius Baer protest
The unit of Australia’s Macquarie Group Ltd. is cutting the value of its stake in the beleaguered education provider by about 98%, the people said, asking not to be identified because the matter is private. Macquarie Capital invested a few hundred millions of dollars in Byju’s in 2021, said the people. Byju’s rights issue gets $300 million commitment
Byju's floated a rights issue in January to raise $200 million through equity rights issue at an enterprise valuation in the range of $220-250 million which is a 99 per cent reduction in its peak valuation of $22 billion. Prosus writes off investment in Byju's marking $493 million loss
Prosus writes off 9.6% stake in Byju's worth $493 million due to value decrease as per HSBC note. Also marks investment in Primrose Hill (ZestMoney) to zero against $38 million FY22. I continue to remain CEO: Byju Raveendran to staff
Byju Raveendran's note comes a day after a group of investors unanimously voted to oust him as the CEO of the online education platform. Court relief for Byju’s in TLB lenders’ suit
The lenders of Byju’s $1.2 billion term loan had moved the city court last Thursday seeking an ex-parte injunction on the transaction allowing Ranjan Pai to convert a loan of about $250-$300 million he had advanced to the brick-and-mortar coaching network into equity in Aakash Institute. Thursday’s legal challenge by the TLB lenders caught both Byju’s and Pai “by surprise”. Byju’s clears February salary in parts for some, rest get full payment after delay
Embattled edtech company Byju's on Sunday announced that it has disbursed a portion of the pending salaries for over 20,000 employees for the month of February. Investors move NCLT against Byju’s; file oppression, mismanagement lawsuit
A group of four investors of Byju's – led by Prosus – has sought the present management to be declared as unfit to run the company and appoint a new chief executive and change the board. Cleartrip appoints Anuj Rathi as chief business and growth officer
Anuj Rathi has been appointed as the chief business and growth officer of Cleartrip, Flipkart's travel booking unit, replacing Ayyappan R. He announced this in a LinkedIn post on Thursday. Byju’s seeks $200 million in rights issue at 99% valuation cut
Byju’s, which is facing multiple crises and is in urgent need of a fresh cash infusion, is likely to price the share offering at as low as $5 per share, which would ascribe it a post-money valuation of around $220-250 million, people aware of the matter said. The rights issue will be open for subscription for 30 days. NCLT directs Byju’s to maintain status quo, halts $200 million rights issue
The National Company Law Tribunal (NCLT) has directed edtech major Byju's to maintain status quo in its shareholding, pausing its controversial rights issue conducted at a 99% discount to its last peak valuation of $22 billion. Byju's faces a petition from investors in the NCLT and is restrained from proceeding with the rights issue. The matter will be heard next on July 4, and the tribunal has asked for details of Escrow bank accounts and US court actions. NCLT reserves orders on Byju’s rights issue; gives three days to file written submissions
Four key Byju’s investors, led by Dutch investment firm Prosus, told the NCLT that the company was allowed to issue capital of Rs 6 crore through the rights issue, but it was instead issuing Rs 40 crore, as mentioned in the offer letter. This violated the Companies Act, they said. Startups’ pink slip count falls to 10,000 amid funding blues
Firing in first half of 2024 lesser than H2, H1 of ’23, signalling a slight recovery. Ola Electric is in the final stages of laying off over 600 after sister company Ola Cabs fired around 200 workers in late April. Industry executive told ET, even with the slowdown in layoffs, startups are still not out of the woods. Byju’s asset sale hangs fire amid investor flare-ups
Unlike Epic — which is also on the block — the sale of Great Learning is being overseen directly by its founder Mohan Lakhamraju, along with the TLB investors. Byju’s is seeking around $600 million from sale of the higher education asset but is yet to find a buyer with a binding term sheet. Cards vs UPI; Byju’s advisory council dissolved
Happy Monday! UPI's ease of use is driving a shift to cashless payments, leaving debit cards behind. This and more in today’s ETtech Morning Dispatch. Byju’s credits January salaries; CEO says moving mountains
On Friday, Byju's said an “artificially induced crisis” by a select group of investors for a delay in paying the January salaries. Raveendran also said the support from employees helped strengthen the fight against the odds. Inspiring! This IIT Kanpur graduate left a high-paying job to become a fitness trainer
Gupta, a graduate of the esteemed Indian Institute Of Technology Kanpur, surprised the world with a daring career transition—she departed from her position at a major multinational corporation to pursue her passion for becoming a fitness coach. Her LinkedIn post garnered widespread attention as she discussed the challenging decision she made and her determination to persevere, even after facing setbacks with her initial startup venture. US lenders drag Byju’s to bankruptcy court in India
The lenders have been in negotiation with the company over prepayment of a $1.2 billion term loan taken by its US subsidiary, Byju's Alpha, even as the two sides also continued to fight a legal battle in US courts. About 13,500 employees from Byju’s, Paytm get on job-hunting mission
The job market currently has over 6,500 active and accessible professionals from Paytm and another 7,000 from Byju’s, showed data from popular job boards and portals put together for ET by specialist staffing co Xpheno. Amid a hiring slowdown in the startup ecosystem, the going isn’t likely to be easy for jobseekers despite many of them being willing to take substantial salary cuts, recruiters said. Post Byju’s, investors worried about governance at startups: GSV Ventures' Deborah Quazzo
GSV Ventures has backed Indian edtech unicorns including Eruditus, Lead, PhysicsWallah as well as startups like Classplus. Deborah Quazzo also spoke about the lack of equilibrium between edtech founders and investors on valuations, which is delaying fundraises in the sector. Byju’s EGM: Sharp noises, ‘phishing’ attack delay cloud investor-led meeting to oust CEO Raveendran
The EGM has been called by a group of investors who are seeking to remove founder Byju Raveendran, his wife and brother from the board. The investors have flagged concerns about the management's failure to enforce the company’s rights related to the acquisition of Aakash Institute. US court says Riju Ravindran’s testimony “lacks credibility”, imposes penalty: Byju’s lender group
An Indian tech firm, Think & Learn Pvt, faces penalties for concealing $533 million from lenders. Riju Ravindran, a director, failed to locate the funds, prompting US Bankruptcy Judge Dorsey to call his testimony dishonest. Despite no extradition treaty, fines loom. The dispute centers on creditors versus Think & Learn, embroiled in US courts. Rajnish Kumar, Mohandas Pai to exit Byju’s advisory council
Both Mohandas Pai and Rajnish Kumar had joined the advisory council after the edtech's investors–Peak XV Partners, Prosus and Chan Zuckerberg Initiative–left the board of the company last year Ranjan Pai turns white knight for Byju’s with 40% stake in Aakash
Ranjan Pai turns white knight for Byju’s with 40% stake in AakashThe Aakash board has approved the conversion into equity of the $300 million Pai invested during 2023, they added. This values the company — one of the remaining valuable assets for Byju Raveendran’s troubled edtech group — at around $700 million and renders it debt-free. Byju’s shareholder group calls for EGM, to vote for ouster of Byju Raveendran, board
Byju’s shareholder group calls for EGM, to vote for ouster of Byju Raveendran, boardWhile investors of Byju's have been asking Raveendran to step aside from an operating role, this is the first instance of shareholders banding together to issue a statement seeking a change of guard at the company. The current board of Think & Learn comprises Raveendran, his wife and brother Riju Ravindran and Divya Gokulnath, cofounder of Byju’s. HSBC estimates Prosus stake in ecommerce unicorn Elastic Run at $200 million
Swiggy, Meesho investor Prosus and parent Naspers name Fabricio Bloisi as CEO
Swiggy, Meesho investor Prosus and parent Naspers name Fabricio Bloisi as CEOFabricio Bloisi appointed chief executive of Prosus and Naspers, succeeding Bob van Dijk. Bloisi, current CEO of iFood, a food delivery business in Latin America, will start on July 1. Interim CEO Ervin Tu has been appointed president and chief investment officer. Outgoing CEO Dijk oversaw Prosus's 2019 IPO and the stock's upbeat performance during the pandemic. Byju’s wants BCCI dispute in arbitration; NCLT defers matter to February 7
A reset is on cards at Byju’s cap table post rights issue value cut
Ranjan Pai may put $50-60 million more to grow Byju’s Aakash
Ranjan Pai may put $50-60 million more to grow Byju’s AakashManipal chief Ranjan Pai will invest the new tranche of capital sooner in Aakash ahead of key student enrolment season, people aware of the discussions said. Sources at Aakash also said the coaching unit will require additional investment from Pai for it to be able to run operations and scale the business during the next few months when students enroll in these centre. Udaan valuation dives to $1.8 billion in down round
Udaan valuation dives to $1.8 billion in down roundBengaluru-based Udaan was last valued at $3.2 billion following a funding round in January 2021. It closed a $340 million financing last December by largely converting debt notes into equity. The round also included a fresh equity infusion. It did not disclose the valuation. Byju’s-owned Aakash Institute reports 82% rise in FY22 profit to Rs 79.5 crore
Byju’s founder Byju Raveendran pledges homes to raise funds for staff salaries
BCCI initiates insolvency plea against Byju's over unpaid dues
Byju’s general counsel Roshan Thomas resigns from crisis-hit edtech
From $22 billion to $1 billion: Byju’s valuation at BlackRock bottom
From $22 billion to $1 billion: Byju’s valuation at BlackRock bottomPreviously, BlackRock had valued Byju's at $8.2 billion at the end of the March quarter of 2023. For Byju's, this is not the first valuation markdown. Last year, Prosus cut Byju’s valuation to below $3 billion, while Peak XV Partners, formerly Sequoia Capital India, told its limited partners (LPs) it would have to significantly mark down the value of its holding. Byju’s unveils key changes in sales pay structures, product pricing
ED issues show cause notice of Rs 9,362 crore to Byju’s for forex violation
ED issues show cause notice of Rs 9,362 crore to Byju’s for forex violationEarlier in the day, ET reported that ED had found alleged forex violations to the tune of Rs 9,000 crore by edtech giant Byju’s, citing sources. In response to ET’s request for comment on the matter, a spokesperson said the company “unequivocally denies media reports that insinuate it has received any notice from the Enforcement Directorate.” Byju’s says fully compliant with Fema regulations amid ED probe
Investor group accuses Byju’s of violating NCLT order
For more capital, Byju’s must pass a tough test
For more capital, Byju’s must pass a tough testThese investors have asked the company to file its audited financials for the year ended March 31, 2023, at the earliest. In addition, they want founder Byju Raveendran to loosen his day-to-day control over operations at the firm, the sources added. Byju’s elevates Jiny Thattil to CTO replacing Anil Goel
Byju’s delays November salaries for section of employees
Byju’s lenders win fight over loan default, control of unit
Byju’s lenders win fight over loan default, control of unitLenders have been pushing hard for the repayment of the $1.2 billion loan amid the company’s mounting distress after a pandemic-era boom in online learning fizzled out. Byju’s had been working to sell assets and deal with the loan issue when government investigators searched company offices this year. Byju’s tells shareholders it is fully compliant with FEMA rules
Byju’s has ED trouble, as agency finds alleged forex violations of Rs 9,000 crore
Byju’s in talks to sell US unit Epic for $400 million to Joffre
Byju’s in talks to sell US unit Epic for $400 million to JoffreThe potential sale of Epic! Creations Inc. would help Byju’s raise funds to pay down a disputed $1.2 billion term loan, people familiar with the matter said. Other bidders, including Duolingo Inc., have also expressed interest in buying the platform, they said, asking not to be named as the information isn’t public. US-based Code.org sues Byju’s subsidiary WhiteHat Jr for contract breach
Fema breach: ED flags failure to submit papers, delays by Byju’s
Byju's files much-delayed FY22 financials, core biz revenue at Rs 3,569 crore, losses at Rs 2,253 crore
Byju's files much-delayed FY22 financials, core biz revenue at Rs 3,569 crore, losses at Rs 2,253 croreThe earnings before interest, taxes, depreciation, and amortisation-based loss of the core business was down from Rs 2,406 crore to Rs 2,253 crore in FY22, as per a statement from the company. Byju's faces legal battle with BCCI over sponsorship termination
Byju’s parent expected to adopt FY22 results this week
Byju’s parent expected to adopt FY22 results this weekByju’s, which has missed payment on a $1.2 billion term loan, said it’s completed a long-awaited audit of all group units. Parent Think & Learn Pvt Ltd. is expected to incorporate the audited financials into its consolidated results this week, Byju’s said in a statement Monday. De-risking startup investing; Apple eyes more India manufacturing tie-ups
Byju’s India CEO out; ShareChat valuation drops 60%
Ranjan Pai has a ‘Powar’ plan for family office Claypond Capital
Hedge fund manager faces arrest over $533 million taken from Byju's
Byju’s valuation below $3 billion; company facing challenges: Prosus interim CEO
Byju’s creditors onboard Kroll to ‘safeguard’ assets including Great Learning
Five key developments at tottering edtech Byju’s
Ranjan Pai, Axis Bank may back gold loan startup Rupeek
Ranjan Pai, Axis Bank may back gold loan startup RupeekClaypond Capital, Axis Bank, and new investors plan to invest in Rupeek at a reduced valuation. Investment details are being finalized, with existing investors also considering selling shares. Rupeek previously raised funds from 360 One Asset at a significant discount. Byju’s fires 500 employees; India Inc and influencer marketing
Sachin Bansal’s Navi eyes $2B valuation; Byju’s seeks arbitration in investor battle
CII brings out new corporate governance charter for startups
CII brings out new corporate governance charter for startupsCII launched a corporate governance charter for startups, including a self-evaluative scorecard. The tool allows startups to measure their governance progress, with score changes indicating improvements in governance practices as assessed against the scorecard from time to time. Winning the subscription battle; and other top tech, startup stories this week
NCLT reserves order on Byju’s rights issue; Meity tweaks IT rules
Govt expedites inspection of crisis-hit Byju's books amid growing troubles
Byju’s hid $533 million in hedge fund once run from a Miami pancake shop, lenders allege
Byju on rights issue, board changes; PhonePe launches Indus Appstore
Read the full text of Byju's leadership's note to employees on salary delay, rights issue
Cash crisis induced by select investors, got 100% rights issue commitment: Byju's tells staff
Troubles in tech/startup space offer financial institutions pool to fish for talent
Troubles in tech/startup space offer financial institutions pool to fish for talentRecent months have seen a slew of mid- and senior-level executive movements from tech companies and startups including Paytm, Byju’s, Swiggy, Upstox, EnKash, Lendingkart, PayU, Myntra and Flipkart to organisations such as Kotak Mahindra Bank, IndusInd Bank, HDFC Bank, HSBC, RBL Bank, IDFC First Bank, Bajaj Finserv, Angel One and Mahindra Finance. Byju's to hold board meeting to approve delayed FY22 financials
Byju's to hold board meeting to approve delayed FY22 financialsByju's is at least 12 months behind the statutory due date to file its FY22 financial results with the Registrar of Companies. The delay has been a key concern for investors and lenders who have given a $1.2 billion term loan to the Bengaluru-based company. B Capital closes $750 million fund; Startup Mahakumbh Day 2