BYJU’S, a prominent name in the EdTech sector, has recently encountered a series of operational hurdles, including a notable delay in processing salaries for a segment of its employees. This incident emerged amidst a string of challenges the company has been navigating, shedding light on the complexities faced within the educational technology landscape.
Reports indicate that approximately 1,000 employees experienced a delay in receiving their November salaries, a development highlighted by The Economic Times. This salary processing delay follows previous allegations from former employees, citing BYJU’S failure to meet deadlines for full and final settlement following layoffs.
Moreover, BYJU’S has been grappling with financial constraints, prompting interventions to stabilize its financial standing. Ranjan Pai, Chairman of the Manipal Education and Medical Group, infused fresh Rs 250-270 crore funding into the company. It follows his acquisition of debt in BYJU’S subsidiary, Aakash Educational Services Limited, to aid in settling a loan from Davidson Kempner Capital Management.
To further alleviate its financial burdens, BYJU’S is reportedly contemplating divesting two of its holdings, Epic and Great Learning. The potential proceeds from this sale, aiming to generate at least $800 million, would contribute to settling a significant portion of the company’s term loan B, amounting to $1.2 billion.
Amidst these financial challenges, BYJU’S disclosed specific financial figures related to its core business for FY22. The company reported a substantial rise in total income to Rs 3,569 crore from Rs 1,552 crore in the preceding year. Despite this growth, the company decreased its EBITDA loss to Rs 2,253 crore from Rs 2,406 crore in the previous financial year. The company’s measures to address economic constraints, coupled with the scrutiny it faces from regulatory bodies, signify the complexities of operating within this evolving landscape.
As BYJU’S continues to navigate these challenges, its commitment to rectifying operational issues and restructuring its financial standing underscores its resilience and determination to sustain its position in the competitive EdTech industry.
