Byju’sByju’s Founder Ravindran (Raveendran)’s problem is showing no sign of abating. Recently, he had raised funds by mortgaging houses and immovable properties owned by his family members to pay salaries. After this, in January his company reached number one in the list of the country’s most loss-making startups. According to Reuters report, now in the first week of February, Byju’s American unit has filed a petition for bankruptcy in the Delaware Court. According to the petition filed in the court, the current total assets of the company are between $ 500 million to one billion dollars. The company has listed its liabilities between $1 billion and $10 billion.
Why did the company go bankrupt after a bright start?
Byju’s, which is included in the list of leading tech companies, suffered a major setback when a group of its lenders initiated bankruptcy proceedings. However, the company showed its courage and tried to repay the loan of about $ 1.2 billion during the last few months. But he could not get success in this. Here the company has announced that it will raise a fund of 200 million dollars. The company said that it will collect this money through rights issue. Byju will use this money to repay its loan and other expenses. Along with this, the company is rapidly working on reducing its expenses. Thousands of employees have been laid off in the last few months. However, no significant difference was seen in the crisis faced by the company.
Notice sent to remove founders
Amidst the crisis, the company’s founder is in serious trouble. According to the latest report of PTI, six shareholders of Byju’s mother company have sent a proposal to remove the founder of the company. These shareholders hold 30 percent stake in the company. Those who have sent the notice include General Atlantic, Peak XV, Sofina, Chan Zuckerberg, Sands and Owl.