New Delhi, July 26: The very promising and profitable homegrown ed-tech startup Byju’s have been reeling in financial troubles for quite some time, and the hard times are not seemingly easing for the firm. Back in April, Byju's offices in Bengaluru were raided by Indian officials, seizing laptops over accusations of possible foreign exchange violations.
On the other hand, the ed-tech firm’s founder and CEO - Byju Raveendran, who’s in Dubai, is finding it hard to cope up with the calls from investors, as he tried to appease them. The firm’s planned $1 billion equity fundraise from the investors in the Middle East is still in the process of materializing, which makes Byju tear up in anticipation. Samsung Galaxy Z Fold 5 to Launch at the Galaxy Unpacked 2023 Event; Here Are All the Key Details to Know.
As per the reports, people who attended the investor calls, Raveendran Byju broke down while trying to save his company in this dire situation. Raveendran has been having a really tough time as per the reports, as several accusations arise. The raid by India's financial crime-fighting agency aside, the tutoring firm hasn’t been witnessing great financial conditions lately, while many US-based investors accused the company of not disclosing half a billion dollars, which let to lawsuits.
Although Byju's CEO have denied all the accusations, the woes of the firm is pretty similar to the other ambitious startups of India, which lacking enough domestic support, look for funds from abroad. And, this startup funding has also faced a nose-dive last year. Samsung Galaxy Unpacked July 2023: Know Date, Time, What To Expect, How and Where To Watch Live Streaming in Different Time Zones.
Indian startups are hence facing great woes without easy access to global capital, which in turn is hindering the country’s progress as major tech capital in the globe.
Raveendran skyrocketed fast from being a private tutor to the founder of a $22 billion company with global investors. The firm gained even more momentum during the pandemic. However, as the pandemic situation normalized, Byju's financial concerns rose making inventors question Raveendran’s decision in not hiring a chief financial officer and acquisitions of several companies across the world.
The situation further plummeted as tons of employees were fired, while a lot others chose to leave, including the Board members. This led to several Byju’s teaching centres lacking students almost altogether, as per the reports. The company declined from commenting on the current developments.
(The above story first appeared on LatestLY on Jul 26, 2023 04:16 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).