Edtech major is working to resolve the term loan B (TLB) dispute through productive discussions, and it is confident in attaining a favourable resolution within the coming weeks without court intervention, Co-founder and CEO Byju Raveendran, said in a town hall speech on Thursday.
The edtech company has encountered a series of hurdles, including the departure of Deloitte as its auditor, the resignation of three prominent board members, conflict with creditors over a $1.2-billion TLB, and delays in filing financial statements, among other issues.
In an official address to the company’s employees, Raveendran acknowledged the challenges faced by the firm and motivated his team to “rise above the noise”, according to people with direct knowledge of the matter.
Raveendran provided reassurance to his team that the departures of three board members are independent of Deloitte’s resignation. He also emphasised the strategic choice of appointing BDO as its statutory auditors for the next five years, resulting in Deloitte’s departure. This mutually agreed decision aims to prioritise efficient and timely audits moving forward, he added.
Last week, Deloitte, one of the Big Four accounting firms, officially stepped down as BYJU’S and Aakash’s statutory auditor, attributing its resignation to the delay in the company filing its FY22 financial statements.
Earlier this week, YourStory reported that BYJU’S is targeting a September deadline to close its FY22 audit and conclude the FY23 audit by December. The company is also considering appointing independent directors to its board after the recent departures of three board members.
Last Friday, Peak XV Partners’ GV Ravishankar, Prosus’s Russell Dreisenstock, and Chan Zuckerberg Initiative’s Vivian Wu—three key board members of BYJU’S—officially resigned from the board of the edtech firm.
Raveendran ensured that their departure was amicable and executed with mutual understanding. Moreover, the company is presently engaged in actively expanding and diversifying its board, aligning with the size, breadth, and global presence of its operations.
In addition, BYJU’S CEO revealed that the edtech firm is nearing profitability at the group level. He expressed that BYJU’S is currently experiencing steady and sustainable growth, with most of its business units in good shape, relatively speaking.
According to Tracxn, BYJU’S has completed 19 acquisitions, with Aakash and Great Learning standing out as particularly successful compared to the rest.
Raveendra dispelled doubts about edtech’s viability, emphasising its long-term presence in education beyond the pandemic. He expressed optimism for the future and stressed that “the best of BYJU’S is yet to come”.
