CEO Byju Raveendran and CFO Ajay Goel addressed the investors, calling the current quarter a ‘defining’ one as the edtech tries to set itself straight
Raveendran has assured the investors that the TLB conversation should wrap up by the end of August, while talks with Davidson Kempner are also going well
Investor representatives from General Atlantic, Peak XV Partners, Prosus and Chan Zuckerberg Initiative, were also present during the call
Edtech giant BYJU’S held a call with more than 110 investor representatives on Monday (August 14) to update them on the ongoing negotiations with the lenders of its $1.2 Bn Term Loan B, audited results and other issues plaguing the edtech decacorn at the moment.
The edtech giant is currently grappling with issues across the board, mostly stemming from the delays on its part to file its audited financial statements for FY22. These issues have led to confrontations with lenders, investors and stakeholders alike for BYJU’S.
CEO Byju Raveendran and CFO Ajay Goel addressed the investors, calling the current quarter a ‘defining’ one as the edtech tries to set itself straight. The newly-appointed advisory council, including Mohandas Pai and Rajnish Kumar, expressed confidence in the business, Moneycontrol said in a report.
Raveendran has assured the investors that the TLB conversation should wrap up by the end of August, while talks with Davidson Kempner are also going well. Further, keeping in line with previous commitments, Raveendran and Goel said BYJU’S will file its FY22 audited financial results by September-end.
Investor representatives from General Atlantic, Peak XV Partners (erstwhile Sequoia Capital India), Prosus and Chan Zuckerberg Initiative, were also present during the call.
The edtech giant has been actively engaging its investors as it battles on multiple fronts, with lenders being the biggest of its headaches.
While discussions with the TLB steering committee (SteerCo) are said to be smooth sailing, it has come with its fair share of trouble. The negotiations for reworking the loan agreement are ongoing even as the edtech has sued a section of the TLB lenders in New York, after being sued in Delaware.
However, the parties missed an August 3 deadline, committed to by the SteerCo in July.
On the other hand, Davidson Kempner also cited certain defaults and after alleged reshuffles of the board of BYJU’S crown jewel Aakash, the lender is also negotiating with the edtech for repayment of the amount utilised so far. The repayment, according to reports, should amount to INR 800 Cr, out of the INR 2,000 Cr sanctioned by Davidson Kempner.
Just yesterday, BYJU’S announced the appointment of Richard Lobo, the former HR head at Infosys as an exclusive advisor.
Lobo will serve as an advisor to help transform its HR function when the edtech has been reported to be firing employees by the hundreds. While it has only confirmed one layoff, impacting 2,500 employees, media reports cite north of 5,000 employees being impacted across various verticals.
The company is also in question for delayed appraisals and provident fund payments.
The edtech giant is now exploring fundraising from one of its earliest backers, Ranjan Pai, for Aakash. Pai is expected to buy out a part of Raveendran’s stake in Aakash, who owns nearly a 30% stake in the offline test prep platform.
