Why Byju’s Failed: The financial crisis is deepening on Indian startup and education-technology platform Byju’s. It is being told that the owner of the company had to mortgage his house. Education-technology platform Byju’s, which is going through a financial crisis, is in the process of raising debt of Rs 600-700 crore to finance the company’s operations by March next year. Meanwhile, company founder Byju Raveendran (BYJU’S Founder Raveendran) have recently raised funds by mortgaging houses and immovable properties owned by their family members to pay salaries. Sources familiar with the development said Byju’s also hopes to raise funds from partial sale of its stake in Epic and other subsidiaries by March 2023. A source said there is a gap of about Rs 50 crore per month in the company’s operating expenses, of which salaries are a major component. The promoters have pledged shares, houses and some other immovable properties of family members to bridge the gap.
