The company organised a town hall with Raveendran to allay
apprehensions about the uncertainty around the company's growth and its future.
According to sources, who attended the town hall, Raveendran
said that issues with USD 1.2 billion Term Loan B lenders are being resolved
through discussion and hopeful of a positive outcome in the next few weeks
without the court's intervention.
"Byju shared that BYJU's is close to achieving
profitability at the group level, demonstrating the company's commitment to
financial management and optimization of operations," a source said.
He said that despite the challenges faced by tech companies
globally, BYJU's has made substantial progress towards this significant
milestone.
BYJU's had set a timeline to achieve profitability by March
2023.
"He said that BYJU's is now growing slowly but
sustainably and most of its business verticals are in good shape, relatively speaking,"
the source said.
Several reports have emerged around BYJU's financial
performance, debt burden, delay in filing financial results and the latest
being investor in the firm Prosus lowering valuation in the firm to USD 578
million for 9.6 per cent stake.
Prosus' 9.6 per cent stake value pegs the edtech firm's
valuation at around USD 6 billion instead of USD 22 billion claimed by BYJU's.
Amid all the controversies, a Delaware Court recently passed
an order in favour of BYJU'S giving the company a significant boost in its
fight against various controversies.
"Byju shared an important update that the TLB dispute
is being resolved through constructive discussions, and the company is
confident about achieving a positive outcome in the next few weeks without
court intervention," another source said.
Raveendran said that constructive discussion with lenders
signifies the company's ability to navigate challenges and find solutions
through proactive engagement.
The CEO clarified to employees about the director's and
auditor Deloitte's resignation.
"Byju highlighted the strategic decision to appoint BDO
as BYJU's statutory auditors for the next five years which led to Deloitte's
exit. He said that a mutually agreed-upon decision has been taken to focus on
efficient and timely audits going forward," the source said.
Raveendran during the town hall said that the company is now
actively expanding and diversifying its board to reflect the scale, scope, and
reach of operations, which is a routine practice for large companies.
He touched upon concerns around the viability of edtech as
an industry.
He said that edtech is not a 'pandemic phenomenon' but a
permanent fixture in education.
"Byju reassured that BYJU's has weathered storms before
and emerged stronger. He exhorted his team to “rise above the noise” and work
with the resilience and determination that is found in the DNA of BYJU's,"
the source said.
Another source claimed that employees did not ask any
questions about lay-offs and provident fund deposits.
"Raveendran said that the company has been under crisis
multiple times and has come out stronger. So they will come out stronger this
time too," the source said.
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