Byju Raveendran addressed his employees in a virtual town hall and assured them that “the situation is not as bad as what appears in the media.”Addressing his employees in a town hall meeting on Thursday, Byju Raveendran, co-founder and CEO of edtech company BYJU’S said the company is actively engaged in conversations with investors for a new round of equity fundraising. He said in the event that this fundraising round does not materialise, the company is prepared to explore alternate measures, including the liquidation of non-core assets.
“What I understood from his speech is that the company is having a money crunch. He said he is trying to raise money through equity to overcome the crunch. He said at the worst if that is not happening, he has few non-core assets which he can immediately liquidate which will bring capital to the company,” an employee who attended the town hall told Business Today.
Early this month BYJU’s had formally announced plans to launch the initial public offering (IPO) of its subsidiary Aakash Education Services (AESL). The company said the offline coaching chain that it acquired in April 2021 in a deal worth $950 million will go public by the middle of next year.
Raveendran addressed his employees in a virtual town hall and assured them that “the situation is not as bad as what appears in the media.” The company has been reeling under intense pressure as a series of controversies continue to plague the company, including the resignation of its statutory auditor, Deloitte Haskins & Sells, the departure of board members, and an ongoing legal battle concerning its $1.2 billion Term Loan B (TLB). Raveendran addressed all of those issues in his town hall speech.