India’s Largest EdTech Start-up in a Progressing Crisis

Byju’s, known to be one of India’s leading education apps, was valued at $22 billion in March 2022 and has dropped down to $8.2 billion as of March 2023. The company had not released its financial statements for FY21 until after an 18-month delay, which sparked the currently elevating crisis.

The EdTech unicorn is further in debt to Blackstone, the lender of a deal the company had signed with Aakash in 2021. Moreover, the company has refused to clear its remaining debt of $1.2 billion with TLB after a conflict with the lenders.

The company’s former auditor Deloitte Haskins & Sells, which was expected to audit Byju’s until 2025 has officially resigned, along with three other Byju’s board members. Despite Byju’s eager efforts to try to reassure its investors, the crisis continues to escalate.

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Sources & References:

https://economictimes.indiatimes.com/tech/technology/blackrock-cuts-byjus-valuation-by-over-60-to-8-2-billion/articleshow/100627551.cms

https://www.dailyo.in/news/why-is-22-billion-dollar-ed-tech-company-byjus-facing-a-financial-crisis-40008

https://twitter.com/dir_ed/status/1652189156116926464?

ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1652189156116926464%7Ctwgr%5Ef97d926dbb916c5eb897eb24364a2dc1aabc7cac%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Ftimesofindia.indiatimes.com%2Fbusiness%2Findia-business%2Fbyjus-seeks-to-reassure-workers-after-office-raid%2Farticleshow%2F99902157.cms

https://www.telegraphindia.com/business/byjus-three-global-investors-confirm-resignation-of-representatives-on-companys-board/cid/1947513

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