The problems facing Raveendran, the founder of Byju, don’t seem to be getting better. In order to pay his salary, he had recently raised money by mortgaging homes and other real estate owned by his family. Following this, his business ranked as the top loss-making startup in the nation in January.
Byju’s American unit reportedly filed for bankruptcy in the Delaware Court during the first week of February, according to media reports. The company’s current total assets are estimated to be between $500 million and $1 billion, per the court petition. Liabilities for the company range from $1 billion to $10 billion.
Why did the business fail after such a promising beginning?
Included in the list of top tech companies, Byju’s faced a significant blow when some of its lenders filed for bankruptcy. But over the last few months, the business displayed bravery and made an effort to pay back the roughly $1.2 billion loan. However, he was unsuccessful in this endeavor. Here, the business has declared its intention to raise $200 million. The business stated that it will use a rights issue to obtain this money. Byju will pay back its loan and other costs with this money. In addition, the business is attempting to cut costs quickly.
Notification of founders’ removal sent
Sending out a notice to The company founder is facing serious difficulties in the midst of the crisis. The article claims that a proposal to remove the founder of Byju’s parent company was sent by six shareholders. 30% of the company is owned by these shareholders. A number of people have sent the notice: Owl, Chan Zuckerberg, Sofina, Peak XV, General Atlantic, and Sands.