Editorji is a popular short video news and information platform based in India. It was founded in 2018 by Vikram Chandra, one of India’s leading journalists, and has risen to prominence in the digital news space in a relatively short span of time. The platform is primarily designed for mobile devices, with applications available for Android and iOS.

ABOUT US:

about us editorji

Latest Video News: Editorji provides the latest news video headlines, latest videos clip from India and the World. Get all breaking news videos on Entertainment, Business, Coronavirus, Elections, Politics and more.

Latest Video News, Breaking News, Bollywood, Political, Sports, Business News | Editorji

+91 11 4035 6666 / info@editorji.com
3rd floor, Plot B, Khasara no 360, Sultanpur, New Delhi, Delhi 110030
<a title="mail to us" href="mailto:info@editorji.com">Send Feedback</a>
<a title="Contact Us" href="mailto:info@editorji.com">Contact Us</a>

REACH US

Contact for any questions, suggestions, comments, feedback or advertisement on Editorji.com, we are always looking forward to hearing from you.

Contact Us for Feedback, Suggestions and Advertising 

Editorji content is better experienced in our app.

Minister noted that around 160 to 200 employees had contacted the labour department, with total outstanding dues amounting to approximately Rs 4.5 crore

Byju's Crisis: Karnataka Govt directs Edtech to pay dues to former employees

Minister noted that around 160 to 200 employees had contacted the labour department, with total outstanding dues amounting to approximately Rs 4.5 crore

Karnataka Labour Minister Santosh Lad met with representatives of Think and Learn Pvt, the parent company of Byju's, on July 1 to address outstanding dues owed to former employees. Moneycontrol reported that Lad instructed Byju's to settle at least 50% of the dues owed to former employees immediately, with the remaining 50% to be paid later. Also read/watch - <a title="June GST collection rises 8% to Rs 1.74 lakh crore: Report" href="https://www.editorji.com/business-news/economy/june-gst-collection-rises-8-to-rs-1-74-lakh-crore-report-1719901688986">June GST collection rises 8% to Rs 1.74 lakh crore: Report</a> Byju's representatives informed Lad that their funds are currently in an escrow account with the National Company Law Tribunal or NCLT and that a hearing is scheduled for July 4. They promised to update the labour department on their actions to clear the dues after the hearing.
Lad noted that around 160 to 200 employees had contacted the labour department, with total outstanding dues amounting to approximately Rs 4.5 crore. While some employees approached the department in person, most sent emails.
This issue adds to a series of challenges for Byju's, which is also dealing with disputes involving the Board of Control for Cricket in India, the Enforcement Directorate, the National Company Law Tribunal, and the Employees' Provident Fund Organisation.

The drastic drop in Byju's valuation has also affected founder Byju Raveendran&rsquo;s net worth, reducing it to zero according to the Forbes Billionaire Index 2024. Previously, his net worth was approximately 2.1 billion dollars

Prosus writes off Byju's stake, marking $493 million in loss

The drastic drop in Byju's valuation has also affected founder Byju Raveendran&rsquo;s net worth, reducing it to zero according to the Forbes Billionaire Index 2024. Previously, his net worth was approximately 2.1 billion dollars

Amid the crisis that Byju&rsquo;s has been facing, Prosus has written off its 9.6% stake in the Ed tech startup, citing the dramatic decline in its value. In its annual report for FY24, Prosus stated it has impaired Byju's to zero due to insufficient information on the company&rsquo;s financial health, liabilities, and future prospects. Prosus has been progressively lowering the valuation of its Byju&rsquo;s stake over the past two years. Also read/watch - <a title="This Bengaluru-based startup lays off 80% of workforce amid funding struggles" href="https://www.editorji.com/business-news/this-bengaluru-based-startup-lays-off-80-of-workforce-amid-funding-struggles-1719217925346">This Bengaluru-based startup lays off 80% of workforce amid funding struggles</a> In November, it valued the stake at 3 billion dollars, having initially invested about 530 million dollars for a 9.67% stake, which was diluted in the previous year. Alongside other investors like PeakXV Ventures, General Atlantic, and Sofina, Prosus is engaged in efforts to remove founder Byju Raveendran as CEO. The drastic drop in Byju's valuation has also affected founder Byju Raveendran&rsquo;s net worth, reducing it to zero according to the Forbes Billionaire Index 2024. Previously, his net worth was approximately 2.1 billion dollars.

In another recent development, former SBI chairman Rajnish Kumar and ex-Infosys CFO Mohandas Pai have stepped down from Think & Learn's advisory council

BYJU'S launches new batches at 240 tuition centers; slashes tuition fees 

In another recent development, former SBI chairman Rajnish Kumar and ex-Infosys CFO Mohandas Pai have stepped down from Think &amp; Learn's advisory council

Edtech firm Think &amp; Learn, owner of BYJU'S brand, on Tuesday said it has started new batches for the 2024-25 academic session at 240 out of 262 BYJU'S Tuition Centres with reduced fees.
The company spokesperson said that batches at remaining 22 centres will start in another two weeks.
"BYJU'S Tuition Centres (BTCs), India's largest and strongest network of learning centres, have started batches for the 2024-25 academic session in full swing across their 240 locations. For the current academic year, BYJU'S has dropped the annual fee for BTCs to just Rs 36,000," the company said in a statement.
BYJU's earlier had 292 BTCs but had shutdown 30 of them by March.
Rajnish Kumar, Mohandas Pai to discontinue as Byju's advisors Former SBI chairman Rajnish Kumar and ex-Infosys chief financial officer Mohandas Pai have decided to discontinue as members of Think &amp; Learn's advisory council after a discussion with the founders, the edtech firm said on Sunday.
Raveendran Byju, the founder of Think &amp; Learn which owns the Byju's brand, blamed a few foreign investors for delaying the company's revival, which included restructuring of the board, delay in financial results and resolving liquidity crisis by opposing the USD 200 million rights issue.
Think &amp; Learn formed the advisory council in July 2023 to mentor and advise the edtech firm to come out of the crisis and improve governance.

Amid an ongoing legal battle and NCLT's delay, Byju’s grapples with a financial crisis, resorting to personal debt to cover employee salaries

Byju’s faces salary woes as NCLT delays hearing: Report

Amid an ongoing legal battle and NCLT's delay,&nbsp;Byju&rsquo;s&nbsp;grapples with a financial crisis, resorting to personal debt to cover employee salaries

As the National Company Law Tribunal extends its hearing on Byju&rsquo;s ongoing dispute with investors, the educational technology giant faces mounting challenges, with reports suggesting that employee salaries for February and March remain partially unsettled. This development places around 14,000 employees in a state of uncertainty regarding their financial future.
Byju&rsquo;s, headquartered in Bengaluru, has encountered obstacles in accessing funds from its rights issue due to the protracted legal battle, exacerbating its existing liquidity crunch. With the NCLT deferring the next hearing to June 6, it implies that Byju&rsquo;s will likely grapple with insufficient financial means until a resolution is reached.
Sources within the company revealed to Times of India that Byju Raveendran, the founder and CEO, has resorted to personal debt to meet salary obligations. However, the sustainability of this approach raises concerns among company insiders.&nbsp;
In an interim order issued on February 27, the NCLT instructed Byju&rsquo;s to retain the funds amassed from its $200 million rights issue in a segregated escrow account. Furthermore, the tribunal prohibited the withdrawal of these funds until the conclusion of the oppression and mismanagement lawsuit against the company's management.
&nbsp;

PTI sources also reveal that lower-paid employees will receive their full payments, while senior staff members will only receive partial payments

Byju's starts paying March salary to employees; blames miffed investors' action for delay

<h2>PTI sources also reveal that lower-paid employees will receive their full payments, while senior staff members will only receive partial payments</h2>

Edtech firm Think and Learn, owner of Byju's brand, has started paying March salaries to its employees after a delay of nine days and the payout process is expected to complete in next 10 days, according to sources.
The company in a communication to employees blamed the group of four investors for the delay.
"We are pleased to inform you that salary disbursement has commenced today and will be completed over the next 10 days. Unfortunately, despite our efforts, we haven't yet secured approval to access the rights issue funds, because of the action of four foreign investors. However, we have arranged an alternative line of credit to ensure timely payments," Byju's said in an email to employees.
The company raised USD 200 million through rights issue to meet its operational requirements, including expenses related to employees' salaries.
A group of four investors -- Prosus, General Atlantic, Sofina, and Peak XV -- along with the support from other shareholders, including Tiger and Owl Ventures, have approached NCLT against the founders as well as the rights issue which may lead to change in shareholding pattern in the company.
Sources said that 25 per cent employees in the lower pay scale will get full payment while senior employees will get partial payment.
"We sincerely appreciate your patience and understanding throughout this period," Byju's said in the email.

Byju Raveendran, previously a regular on India's Forbes list of the richest, is notably absent from the 2024 list of the top 100 richest Indians

Byju Raveendran's net worth hits zero; dropped from Forbes' 2024 Billionaires list amid crisis

<h2>Byju Raveendran, previously a regular on India's Forbes list of the richest, is notably absent from the 2024 list of the top 100 richest Indians</h2>

Ed-tech entrepreneur Byju Raveendran, previously a regular on India's Forbes list of the richest, is notably absent from the 2024 list of the top 100 richest Indians. His company, Byju's, which was once one of India's most valued startups, is currently in dire straits and is heavily cash-strapped. From multiple rounds of layoffs, to delays in salaries and deep valuation cuts, the edtech continues to face a slew of challenges. For the fiscal year ending March 2022, the much delayed financials showed a net loss of more than $1 billion. Following this, BlackRock slashed its valuation of Byju&rsquo;s to about $1 billion, down from the $22 billion in 2022. &nbsp; Byju's laying off 500 employees: Report Byju's is laying off about 500 employees, including from sales, amid a financial crunch, sources said, even as the troubled edtech firm maintained that it is in the final stages of business restructuring to streamline operations.
The layoff in the embattled edtech company began 15-20 days ago, sources said, adding that it would impact 500 employees.
They, however, pointed out that the edtech player might not have to resort to further rationalisation, except in the 'worst case scenario'.
The latest round of job cuts will impact sales functions, teachers and some tuition centres. There was no official word from Byju's, which has been embroiled in a legal dispute with some of its investors, with regard to the layoffs.
Few staff members were purportedly communicated about the development over the phone.

Byju's, a leading edtech company, has initiated layoffs impacting hundreds of employees, primarily within the sales department, as a result of severe financial strain. 

Byju's initiates another round of layoffs, employees dismissed over a phone call

Byju's, a leading edtech company, has initiated layoffs impacting hundreds of employees, primarily within the sales department, as a result of severe financial strain.&nbsp;

In a recent development, edtech giant Byju's has reportedly initiated a fresh round of layoffs impacting a significant number of employees, primarily within the sales department, according to sources familiar with the matter.
One such employee, Rahul (name changed for privacy), shared his ordeal with Moneycontrol. Rahul, who had taken a leave of absence in mid-March due to a family member's illness, was taken aback when he received a call from Byju's HR department on March 31. During the call, he was informed that his employment with the company was being terminated with immediate effect, leaving him stunned and perplexed.
Seeking clarity on the abrupt termination, Rahul inquired about the reasons behind the decision. The HR executive cited the company's dire financial situation, mentioning that a list of employees to be laid off had been provided by top management.
As Rahul attempted to record the conversation for documentation purposes, the HR personnel objected and abruptly ended the call. Subsequently, Rahul found himself blocked from contacting the HR executive, further exacerbating his distressing situation.
This latest move by Byju's is anticipated to affect a substantial number of employees, with estimates ranging from 100 to 500 individuals, particularly within the sales division. The company's decision to let go of staff without offering a performance improvement plan (PIP) or a notice period underscores the severity of its financial strain.
With the termination process reportedly being conducted via phone calls, employees like Rahul find themselves grappling with uncertainty and anxiety regarding their future prospects. Byju's, which has been a prominent player in the edtech industry, is facing mounting challenges amidst a turbulent economic landscape, prompting these drastic measures to mitigate its financial woes.

Byju's in a note mentions that the 4 foreign investors irresponsibility of restricting the usage of the funds raised through the rights issue for the delay in salaries and has assured the full payment by April 8

Byju's crisis: Salaries delayed again, ed tech firm blames irresponsible action by foreign investors

<h2>Byju's in a note mentions that the 4 foreign investors irresponsibility of restricting the usage of the funds raised through the rights issue for the delay in salaries and has assured the full payment by April 8</h2>

Crisis-hit edtech platform Byju's has once again delayed the salaries for its employees amidst its severe cash crunch. This also comes in the midst of an ongoing battle with the investors over the restricted usage of funds through a rights issue.
<h3>Salaries Deferred</h3>
The firm in a note mentions that the 4 foreign investors irresponsibility of restricting the usage of the funds raised through the rights issue has compelled Byju's to hold the disbursal of salaries until the restrictions is lifted.
"We are writing to you today with a heavy heart but with a message of hope and reassurance. We regret to inform you that there will again be a delay in the disbursement of salaries. A few misguided foreign investors in Byju's have obtained an interim order in late February which has restricted usage of the funds raised through the successful rights issue. This irresponsible action by the 4 foreign investors has compelled us to temporarily hold the disbursal of salaries until the restriction is lifted", the company said in a note.
Also Read: <a href="https://www.editorji.com/business-news/startups/byju-s-rights-issue-secures-300-million-commitment-amid-financial-turmoil-1708314386079">BYJU'S rights issue secures $300 million commitment amid financial turmoil</a>
However, as per media reports, the firm has assured its employees that it is arranging an alternative line of credit to ensure salaries are paid by April 8. Byju's had delayed the February salaries earlier until mid-March, but later paid a part of the dues. It had also vacated all its office spaces barring the Bengaluru headquarters and asked employees to work from home.
<h3>Rights issue disagreement</h3>
Byju's and its investors are engaged in a legal tussle at the National Company Law Tribunal (NCLT) regarding the company's $200 million rights issue. The petition claims unfair treatment and mismanagement.
Meanwhile, Last week, the National Company Law Tribunal (NCLT), Bengaluru, refused to stay Byju&rsquo;s extraordinary general meeting (EGM) that was scheduled for March 29 to increase its authorised share capital to account for a $200 million rights issue. However, the Karnataka High Court extended the interim stay on outcomes of an EGM called by investors to remove company founder Byju Raveendran as chief executive in February.
Byju's rights issue is happening at a 99% discount to the company&rsquo;s peak valuation of $22 billion. By this an investor if not participating in the funding will see their shareholding erased after the completion of the rights issue
&nbsp;
&nbsp;

Byju's held the EGM (extra-ordinary general meeting) to increase authorised share capital of the company to complete the process for raising USD 200 million through rights issue

Byju's shareholders raise no objection to board's resolution, miffed investors skip meeting: Sources

<h2>Byju's held the EGM (extra-ordinary general meeting) to increase authorised share capital of the company to complete the process for raising USD 200 million through rights issue</h2>

Shareholders of edtech major Think and Learn, owner of Byju's brand, raised no objection to the resolution to increase authorised share capital of the company in the extra-ordinary general meeting held on Friday, company sources said.
According to the sources, none of the miffed investors, who proposed to oust Byju's founder and family from the management seat, took part in the meeting.
"Meeting started at 10 am with approximately 20 investors representatives in attendance along with Think &amp; Learn management. The requisite quorum required for EGM was there. Few questions regarding the postal ballot were asked and answered by the chairman and CS. Resolutions were called out. No objections raised," sources said.
Byju's held the EGM (extra-ordinary general meeting) to increase authorised share capital of the company to complete the process for raising USD 200 million through rights issue.
A group of four investors -- Prosus, General Atlantic, Sofina, and Peak XV -- along with support from other shareholders, including Tiger and Owl Ventures, have approached the National Company Law Tribunal (NCLT) against Byju's EGM.
The six investors jointly hold 32 per cent stake in the company.
"Meeting ended at 10:30 AM. Further details on the voting and culmination of Rights Issue will be shared later post scrutinizer's report. Contrary to media reports, none of the miffed investors attended the EGM personally to raise any of their concerns," a Byju's source said.
A source from the investor side contested the claim and said that the authorised representatives of all investors attended the EGM.
"Nobody boycotted it. People can vote either at EGM or postal so we will not know the result until after 6 April," the source said.
The option to vote on the Byju's resolution through postal ballot will close on April 6.

The move aims to cut costs, with remote work mandated for all employees except those at tuition centers

In a new effort to cut costs, Byju's shifts to remote work, vacates offices except for HQ: Report

<h2>The move aims to cut costs, with remote work mandated for all employees except those at tuition centers</h2>

Amid financial troubles and ongoing liquidity concerns, Byju's has made a decision to vacate all its office spaces across the country. Howver this excludes the edtech firm's headquarters located at IBC Knowledge Park in Bengaluru, reports CapTable, citing sources. This move, aimed at cutting costs, comes in the wake of a dispute with investors regarding funds raised in a recently concluded rights issue.
<h3>Work From Home for all employees</h3>
The restructuring initiative, spearheaded by Byju's India CEO Arjun Mohan, entails directing all employees to work remotely indefinitely, except for those operating from approximately 300 of Byju's Tuition Centres. Sources revealed that this decision has been in the pipeline for over six months, with Byju's gradually shuttering locations as leases expire.
<h3>Funding operations: Byju's Reassurance&nbsp;</h3>
In efforts to alleviate concerns regarding potential disruptions, the company has assured that alternative fund arrangements have been made.
<h3>Partial salary payment for February</h3>
Earlier this week, Byju's had announced that pending salaries for February 2024 had been partially processed. For this the company usednon-rights issue capital, with the expectation of settling the remainder once permitted access to funds from the closed rights issue.
<h3>Rights issue funds stuck</h3>
Last month, the National Company Law Tribunal (NCLT) deferred its verdict on a petition filed by Byju's investors, potentially paving the way for the company's $200-million rights issue. However, according to the company, it has been forced to keep those funds in an escrow account.&nbsp;

Byju's partially pays February salaries to employees; Full payment to be made once...

<h2>The company&rsquo;s management added that it expects the salaries to be reflected in employee accounts on Monday, as it was delayed due to a second Saturday and on account of the long weekend</h2>

Struggling edtech firm, Byju's confirmed the release of a portion of pending February salaries for all employees. The edtech also promised to pay the balance once it is allowed to use the funds from the recently closed rights issue. The company&rsquo;s management added that it expects the salaries to be reflected in employee accounts on Monday, as it was delayed due to a second Saturday and on account of the long weekend. The move comes after Byju Raveendran's assurance to meet salary obligations by the specified date, despite challenges arising from a dispute with investors, preventing the utilization of funds raised through the rights issue. Ahead of US hearing, Byju's says it is beneficial owner of 533 mn fund parked in US
Ahead of a US court hearing on the whereabouts of the USD 553 million funds Byju's had parked in an American investment firm, the edtech company on Sunday evening said its subsidiary in the US remains the beneficial owner of the fund.
On Saturday, Byju's stated that it had no money to pay salaries to employees after just-raised funds through the rights issue were locked (in a separate account) after a dispute with investors. It is not clear if Byjus is the beneficial owner of USD 533 million, then why it could not use them for paying salaries.
"Camshaft, in its latest submission, has disclosed to the Delaware Court that the USD 533 million was transferred from BYJU'S Alpha to another 100 per cent Think &amp; Learn owned subsidiary, Inspilearn LLC (a Delaware firm).
"As BYJU's has indicated previously - the funds continue to remain in a Think and Learn subsidiary, contrary to the false allegation made by a select list of investors before the NCLT in India," Byju's said in a statement.
According to reports, the Florida hedge fund has been asked to reveal where the money is located or face possible sanctions from a federal judge on Monday.

Byju's in a statement while emphasising on the Karnataka High Court's interim relief stating that decisions made during the meet would not be valid has also noted that only 20% of the shareholder attended the EGM

Investors oust Raveendran; Byju's calls decision invalid

Investors have fired Byju Raveendran in the EGM while Byju's in a statement has emphasised on the Karnataka High Court's interim relief stating that decisions made during the meet would not be valid

<h2>Investors have fired Byju Raveendran in the EGM while Byju's in a statement has emphasised on the Karnataka High Court's interim relief stating that decisions made during the meet would not be valid</h2>

Byju's investors have fired CEO and founder Byju Raveendran via shareholder vote in the emergency general meeting held on Friday, reported Moneycontrol. As per the report shareholders of over 60% of the cap table voted in favor of resolutions
"At today&rsquo;s Extraordinary General Meeting, shareholders unanimously passed all resolutions put forward for vote. These included a request for the resolution of the outstanding governance, financial mismanagement and compliance issues at BYJU&rsquo;s; the reconstitution of the Board of Directors, so that it is no longer controlled by the founders of T&amp;L; and a change in leadership of the Company," a spokesperson from Prosus, the investors that led the EGM told Moneycontrol.
As per the report, they added that as shareholders and significant investors, they are confident about the validity of the EGM meeting and its decisive outcome
<h3>Byju's statement</h3>
Meanwhile, Byju's in a statement has emphasized on Karnataka High Court's interim relief stating that decisions made during EGM would not be given eﬀect until the next hearing. The edtech has further said that passing of such unenforceble resolutions challenges the rule of law at worst.
"BYJU'S ﬁrmly declares that the resolutions passed during the recently concluded Extraordinary General Meeting (EGM) &mdash; attended by a small cohort of select shareholders &mdash; are invalid and ineffective. The passing of the unenforceable resolutions challenges the rule of law at worst," the company said.
Only 20% of shareholders attended and the resolutions were voted up without the valid constitution of a quorum, the statement added.
<h3>Emergency General Meeting</h3>
An extraordinary general meeting called by Byju&rsquo;s investors to oust the company&rsquo;s chief executive officer and founder Byju Raveendran was held on Friday. The EGM reportedly faced many &nbsp;disruptions, as unknown people tried to allegedly sabotage the meeting by various means including a Phishing attack.
As per Moneycontrol, it took over an hour to complete the roll call and verify attendees as hundreds of individuals attempted to join the Zoom video-conferencing link of the EGM with all kinds of names like Sir Michael Knight, Natalia Cruz, Kevin Pietersen. Unidentified people also joined the meeting impersonating the company&rsquo;s investors.
Also Read: <a href="https://www.editorji.com/business-news/byju-s-investors-file-oppression-mismanagement-suit-against-co-founder-raveendran-at-nclt-1708684285669">Byju's investors file oppression, mismanagement suit against co-founder Raveendran at NCLT</a>
In the meet the investors voted on resolutions to overhaul the embattled education platform's leadership, reconstitute the board and start a forensic probe into alleged governance breaches.
<h3>Karnataka HC's order</h3>
The Karnataka High Court, earlier, barred enforcing any of the decisions taken in the EGM till the next date of hearing, which is March 13. The order came earlier this week on a petition filed by the company against its investors.

In the plea the investors have sought appointment of new board for Byju's and have raised concerns over financial mismanagement by the founders, oppressive nature of the rights offer and alleged regulatory non-compliances

Byju's investors file oppression, mismanagement suit against co-founder Raveendran at NCLT

<h2>In the plea the investors have sought appointment of new board for Byju's and have raised concerns over financial mismanagement by the founders, oppressive nature of the rights offer and alleged regulatory non-compliances</h2>

Four investors of Byju's has filed an oppression and mismanagement suit against the management of the company before the Bengaluru bench of the NCLT. The investors are seeking declaring of founders, including CEO Byju Raveendran, as unfit to run the company, and appointing a new board.
Besides, the suit has sought declaring the just concluded rights issue as void.
<h3>Plea at NCLT</h3>
Investors, who are seeking the ouster of Raveendran and family from the Byju's board at an extraordinary general meeting of shareholders for alleged "mismanagement and failures" at what was once India's hottest tech startup, have also sought a forensic audit of the company in the plea filed before the National Company Law Tribunal (NCLT) on Thursday evening, according to a court filing.
As per the filing, the investors have sought declaring the present management as unfit to run the company and appointing of a new CEO and a new board.
The plea also wants a forensic audit and a direction to the management to share information with the investors.
As per PTI, the plea seeks declaration of the just-concluded $200 million rights offer as void and sought a direction that the company should not take any corporate actions that will prejudice the rights of the investors.
The petition has been signed by four investors -- Prosus, GA, Sofina, and Peak XV -- along with support from other shareholders, including Tiger and Owl Ventures.
The plea has been filed to prevent value erosion for all shareholders as well as preserve worth for other stakeholders -- employees and customers.
<h3>Concerns raised</h3>
Concerns raised in the suit included financial mismanagement by the founders leading to losing control of Aakash, Byju's Alpha (TLB loan) default and prolonged corporate governance issues, including non-hiring of CFO and independent director.
Other concerns are about "oppressive nature" of the rights offer, alleged regulatory non-compliances, "oppressive, opacity and wilful defaults" in sharing information with stakeholders and unauthorised corporate actions regarding acquisition of Singaporean edtech company Northwest Education Pte.
The plea has also mentioned about inter-corporate loans on undisclosed terms and multiple insolvency petitions filed by BCCI, TLB lenders and Surfer Technologies Pvt Ltd.

BYJU's additionally announced that founder Byju Raveendran and other board members will abstain from attending the EGM. They emphasized that without their participation, the meeting can not achieve the necessary quorum

BYJU's founder and board declare EGM invalid, decide to skip the meet

<h2>BYJU's additionally announced that founder Byju Raveendran and other board members will abstain from attending the EGM. They emphasized that without their participation, the meeting can not achieve the necessary quorum</h2>

BYJU's has declared the extraordinary general meeting (EGM) slated today as procedurally invalid, marking a significant development in the ongoing shareholder dispute who collectively hold 32% stake in the company.
In a statement released on Thursday, a spokesperson for BYJU's stated, "This EGM is procedurally invalid, contractually in contravention of our AOA and SHA, legally on the wrong side of the Companies Act, 2013."
The company further announced that founder Raveendran and other board members will refrain from attending the EGM. They asserted that even if the meeting is convened, it would lack the necessary quorum to discuss or vote on the agenda.
"As custodians of BYJU's, it is the responsibility of the Founders to respect the established procedures of law and protect the company's integrity," the statement emphasized.
This development comes ahead of a crucial vote wherein shareholders are expected to decide on a resolution aimed at removing founder CEO Byju Raveendran and his family members from their positions. Allegations of mismanagement and failures have spurred this move against the leadership.
However, the outcome of the EGM will remain pending until March 13, pending a hearing by the Karnataka High Court. The court recently declined to stay the EGM, which was called by a faction of shareholders.
The notice for the EGM seeks to oust the current board of Think &amp; Learn, the company operating BYJU's, which includes Raveendran, his wife Divya Gokulnath, and his brother Riju Ravindran.
BYJU's has faced multiple challenges recently, including financial strains exacerbated by the pandemic's impact on the education sector and the acquisition of Aakash, which further burdened the company's finances.
To address investor concerns, Raveendran pledged greater transparency regarding fund utilization and proposed a board restructuring, including the appointment of two non-executive directors by mutual agreement.
Allegations listed in the EGM notice include financial mismanagement, failure to resolve legal issues, and delays in statutory payments and employee obligations.
Also Watch: <a href="https://www.editorji.com/business-news/byju-s-crisis-ed-issues-look-out-circular-for-byju-raveendran-ahead-of-investor-meet-on-friday-1708583689214">Byju's Crisis: ED issues look out circular for Byju Raveendran ahead of investor meet on Friday</a>

Byju's Crisis: The Enforcement Directorate has asked the Bureau of Immigration to issue a notice against Byju's founder to ensure he does not leave the country.

Byju's Crisis: ED issues look out circular for Byju Raveendran ahead of investor meet on Friday

The Enforcement Directorate has asked asked the Bureau of Immigration to issue the notice against the Byju's founder to ensure he does not leave the country

<h2>The Enforcement Directorate has asked asked the Bureau of Immigration to issue the notice against the Byju's founder to ensure he does not leave the country</h2>

In an yet another setback for Byju's Raveendran, the Enforcement Directorate has issued a 'look out circular' to the Edtech founder. ED has asked asked the Bureau of Immigration (BOI) to issue a look out circular (LOC) against Byju Raveendran to ensure Raveendran does not leave the country.
<h3>Look-Out-Notice to Raveendran</h3>
As per The Economic Times, Raveendran has already been issued an LOC 'on intimation' more than one and a half years ago at the request of the ED's Kochi office. However, the investigation was later transferred to the Bengaluru office of the agency.
An LOC 'on intimation' leads to the immigration authorities informing a probe agency about the individual going overseas but the person is not stopped from leaving the country.
Also Read: <a href="https://www.editorji.com/business-news/startups/byju-s-rights-issue-secures-300-million-commitment-amid-financial-turmoil-1708314386079">BYJU'S rights issue secures $300 million commitment amid financial turmoil</a>
The report quoted a senior government official and said that even if Raveendran is out of the country at the time of issuing the notice, he will not be allowed to leave the country once he comes back.
"The LOC, once opened, will ensure that the interest of investors is safeguarded and the case is taken to its logical conclusion without any difficulty," the person told The Economic Times.
As per The Economic Times, Raveendran has mostly been shuttling between Delhi and Dubai for the past three years. He was in Bengaluru earlier this week and was in Delhi last week on a work trip. Raveendran told ET that he was currently in Dubai. He had left for the emirate earlier this week and "will be travelling to Singapore tomorrow".
The report further mentioned that the decision to approach the BOI for a "revised" LOC was taken keeping in view the "interest of investors". The push also comes amidst the foreign exchange violations charges faced by the company
<h3>Relief from Karnataka High court</h3>
Meanwhile, a Karnataka high court has passed on order that any resolution taken on the investors meet on Friday will not be considered valid till the time the court is done with hearing their petition. The court was hearing a petition by Think &amp; Learn Pvt Ltd (the parent company of Byju&rsquo;s) arguing that certain investors, including General Atlantic, Chan Zuckerberg Initiative, MIH EdTech Investments, Own Ventures, Peak XV Partners, SCI Investments, SCHF PV Mauritius, Sands Capital Global Innovation Fund, Sofina and T. Rowe Price Associates, had violated the Articles of Association (AoA), the Shareholders&rsquo; Agreement (SHA), and the Companies Act, 2013 by calling for an EGM.
This now makes Raveendran immune to some investors' efforts to oust him from the board. The investors have also lost the right to vote for removing Divya Gokulnath and Riju Raveendran from the board of directors.

Reports say if the EGM, scheduled for next Friday, doesn't result in an amicable settlement or faces further delays, shareholders may approach the NCLT seeking a management change

Byju’s turmoil deepens: Major investors eye NCLT action amid crisis

<h2>Reports say if the EGM, scheduled for next Friday, doesn't result in an amicable settlement or faces further delays, shareholders may approach the NCLT seeking a management change</h2>

A consortium of shareholders, holding over 30 per cent stake in Byju&rsquo;s, is considering drastic measures if the upcoming extraordinary general meeting or EGM fails to produce a resolution to the company's financial woes.
According to the business standard sources, if the EGM, scheduled for next Friday, doesn't result in an amicable settlement or faces further delays, shareholders may approach the National Company Law Tribunal or NCLT seeking a management change. Earlier this month, these concerned shareholders issued a notice calling for the EGM to address "persistent issues," including a demand for a change in management. The proposed overhaul of the board would involve the removal of Byju Raveendran from his position as CEO and his relinquishment of operational duties. Moving mountains for months to make payroll, says Byju BYJU'S had floated rights issue to raise USD 200 million at over 99 per cent lower valuation compared to its peak valuation of USD 22 billion in March 2022.
According to reports, Edtech major Think and Learn released January's salary of the staff with company's Founder and CEO Raveendran Byju reaching out to employees for their support during the firm's challenging phase.
BYJU's founders and family members had earlier pledged their house to pay the salary of the employees as the firm continues to face a liquidity crunch.
"I have been moving mountains for months to make payroll, and this time, the struggle was even bigger to ensure that you receive what you rightfully deserve. Everybody has made sacrifices, everybody has grappled with decisions they never desired to make, and everybody is a little bit weary in this battle, but nobody has chosen to give up," Byju said in a letter to employees.&nbsp;

Once hailed as India's most-valued startup, BYJU's has been facing a lot of financial challenges and has over 90% lowered its valuation to tackle its liquidity crunch

Byju's disburses January salaries; Byju Raveendran seeks employee support amidst financial challenges

<h2>Once hailed as India's most-valued startup, BYJU's has been facing a lot of financial challenges and has over 90% lowered its valuation to tackle its liquidity crunch</h2>

Ed-Tech firm Byju's has disbursed January salaries to its staff. Reports had earlier indicated that the release of salaries had been delayed due to an escalating liquidity crisis. While releasing the January salaries, Founder Byju Raveendran also personally reached out to employees, urging their support during the company's ongoing difficult phase. "I have been moving mountains for months to make payroll, and this time, the struggle was even bigger to ensure that you receive what you rightfully deserve. Everybody has made sacrifices, everybody has grappled with decisions they never desired to make, and everybody is a little bit weary in this battle, but nobody has chosen to give up," Byju said in a letter to employees on Sunday. "Nothing matters to me more than your belief in my ability to deliver. I fight for you. You fight alongside me. This is the sacred relationship that has helped me weather every storm," Byju said. "My father is my role model; I am a teacher because he once was; I am an entrepreneur because he always taught me to follow my dreams. That he, my rock-solid support, was moved to tears made me feel a sudden pain," he said. According to a Moneycontrol report, the company's monthly payroll costs approximately ₹70 crore. Once hailed as India's most-valued startup, BYJU's has been facing a lot of financial challenges and has launched a rights issue to tackle its liquidity crunch.

In the last year, the Bengaluru edtech giant faced upheaval with layoffs, high-level departures, and scrutiny by the Enforcement Directorate for alleged FEMA violations

Byju’s valuation: Prosus slashes it to below $3 billion

<h2>In the past year, the Bengaluru edtech giant faced upheaval with layoffs, high-level departures, and scrutiny by the Enforcement Directorate for alleged FEMA violations</h2>

Prosus, an investment firm, drastically devalued its stake in Byju&rsquo;s to under $3 billion, representing an 86% reduction from its peak valuation of $22 billion in October the previous year.
Ervin Tu, interim CEO of Prosus, confirmed the stake's devaluation without specifying the exact figure, during the firm's earnings call. This markdown follows previous adjustments, with Prosus having invested $536 million in Byju&rsquo;s since 2018, revalued at $493 million in June, indicating an 8% decline. Notably, Blackrock, an early backer of Byju&rsquo;s, also marked down its investment in the company.
Also read/watch- <a title="Barclays set to slash 900 Jobs in UK: Report" href="https://www.editorji.com/business-news/barclays-set-to-slash-900-jobs-in-uk-report-1701250641865">Barclays set to slash 900 Jobs in UK: Report</a>
This substantial devaluation by a key investor intensifies challenges for Byju&rsquo;s, which has faced criticism from investors, its board, employees, and the media. Despite being a prominent player in the edtech realm, Byju&rsquo;s experienced upheaval in the past year, including layoffs, high-level departures, and legal issues such as alleged violations leading to scrutiny by the Enforcement Directorate. The Board of Control for Cricket in India (BCCI) further added pressure by involving Byju&rsquo;s in a jersey sponsor dispute at the National Company Law Tribunal (NCLAT).
Additionally, Byju&rsquo;s faced legal action from debt investors over missed repayment deadlines. Notably, key stakeholders like Peak XV (formerly Sequoia), Prosus, and Chan Zuckerberg withdrew their representation from Byju&rsquo;s board due to the firm's failure to disclose audited financial statements for FY22 and FY23.ed

Previous incidents in April involved ED searches at three Bengaluru locations linked to Byju's and its CEO

Byju's denies reports of a ₹9,000 crore FEMA violation notice from ED

<h2>Previous incidents in April involved ED searches at three Bengaluru locations linked to Byju's and its CEO</h2>

The Enforcement Directorate (ED) reportedly issued a show-cause notice alleging ₹9,000 crore Foreign Exchange Management Act (FEMA) breaches against Byju's, including its founder Byju Raveendran and Think and Learn Pvt Ltd, according to CNBC-TV18 sources.
Byju's strongly refuted these claims, denying any communication from authorities suggesting FEMA violations.&nbsp;
Previous incidents in April involved ED searches at three Bengaluru locations linked to Byju's and its CEO. The ED seized documents and digital data, summoning the CEO, who did not appear. Byju's assured full cooperation, asserting confidence in operational integrity, compliance, and ethics.
Also read/watch - <a title="ICC World Cup 2023: Ad revenue soars, digital platforms take the lead" href="https://www.editorji.com/business-news/icc-world-cup-2023-ad-revenue-soars-digital-platforms-take-the-lead-1700567826359">ICC World Cup 2023: Ad revenue soars, digital platforms take the lead</a>
The investigations revealed Byju's received approximately ₹28,000 crore in foreign direct investment from 2011-2023, with remittances of about ₹9,754 crore overseas, attributed to overseas direct investment and advertisement expenses.
Additionally, the company lacked financial statements since FY 2021, remaining unaudited, as per the ED's statement. The probe stemmed from multiple complaints.
Despite these developments, Byju's affirmed its commitment to delivering quality education products and services.

Byjus Layoffs 2023: The Ed-tech giant BYJU’S laid off nearly 600 employees from its content and marketing teams as part of an ongoing restructuring effort last month.

BYJU’S Layoffs 2023: 600 employees sacked amid ongoing restructuring

BYJU’S crisis continues: 600 employees sacked amid ongoing restructuring


<h2>BYJU&rsquo;S has been grappling with various challenges, including corporate governance concerns and financial issues</h2>

Byju's Layoffs 2023: BYJU&rsquo;S, the troubled edtech giant, has faced a series of challenges in recent months, including significant layoffs and legal disputes.
Last month, the company laid off nearly 600 employees from its content and marketing teams as part of an ongoing restructuring effort. This move, overseen by the new India CEO Arjun Mohan, had a more pronounced impact on the content and video team, which was entirely disbanded, affecting teachers and educators involved in content production.
Simultaneously, a court ruling in Delaware added to BYJU&rsquo;S woes as it pertains to financial matters. The court ruled in favor of Byju&rsquo;s lenders' consortium, allowing them to appoint a director on a special purpose vehicle (SPV) that had borrowed $1.2 billion for the edtech company in the United States. This ruling also involved the removal of Riju Raveendran, the brother of the edtech giant's founder, from the SPV's board.
Also read/watch - <a title="Motilal Oswal tells employees to disconnect from work entirely after shift ends" href="https://www.editorji.com/business-news/motilal-oswal-tells-employees-to-disconnect-from-work-entirely-after-shift-ends-1699523893311">Motilal Oswal tells employees to disconnect from work entirely after shift ends</a> &nbsp;
This legal case, initiated by Glas Trust Co., the trustee representing 37 lenders, marked the beginning of two related courtroom battles in New York and Miami.
BYJU&rsquo;S has been grappling with various challenges, including corporate governance concerns and financial issues. The company, once valued at $22 billion, has faced a significant devaluation, with at least one investor, Prosus, valuing it at $5 billion.
The heart of the problems lies in the company's aggressive expansion in 2020 and 2021 when it acquired 10 companies. Corporate governance and execution issues have forced the company to sell assets to repay loans. Also read/watch - <a title="Elections 2024: Government to spend more on food, fertilizer subsidies, MGNREGA says report" href="https://www.editorji.com/business-news/economy/elections-2024-government-to-spend-more-on-food-fertilizer-subsidies-mgnrega-says-report-1699517295473">Elections 2024: Government to spend more on food, fertilizer subsidies, MGNREGA says report</a> &nbsp;
Last week, BYJU&rsquo;S disclosed only partial earnings for the year ending 31 March 2022, as it has yet to reveal consolidated financials for all the companies it acquired during the pandemic. This financial uncertainty was exacerbated by the resignation of the company's chief financial officer, Ajay Goel, last month, as well as the earlier departure of its auditor, Deloitte, and three board members.
The combination of layoffs, legal battles, and financial challenges has presented a complex situation for the once-thriving edtech giant.

byjus

Categories