Byju Raveendran tries to allay staff concerns
2 min read 30 Jun 2023, 04:25 PM ISTByju Raveendran, the founder of edtech major Byju’s, on Thursday allayed employee fears by projecting a positive outlook
PremiumMumbai: Byju Raveendran, the founder of edtech major Byju’s, on Thursday allayed employee fears by projecting a positive outlook. At a town hall meeting organized by the Bengaluru-based firm, Raveendran reassured the employees that the company had amicably ended its associations with Deloitte as well as its board members, and was working diligently to resolve the bondholder issue at the earliest.
While he did not say anything about the layoffs, or the delays in remitting provident fund amounts and realigning certain loss-making businesses within the group during the town hall, in an email addressed to all employees on Thursday evening he said: “My heart goes out to each and every team member who is facing the difficult reality of downsizing, a decision that was made as a last resort and with a heavy heart."
The company “will grow more sustainably going forward", he added.
In his first address to employees since the differences with bondholders over the $1.2 billion term loan B came to light, Raveendran said, “Today, our challenges can no longer be solved behind closed doors. But I want you to know that things are rarely as glorious as they seem or as dire as they are presented." He assured the 50,000 employees of the company that he was working to resolve it through constructive discussions, and the firm was confident of achieving a positive outcome within a few weeks without court intervention, company executives said, seeking anonymity.
Last week, Deloitte Haskins and Sells tendered its resignation as auditor, after six years of service, citing lack of communication from the management despite having sent five letters addressed to Raveendran, the managing director of Byju’s, and its board members in 2022—on 30 September, 5 November, 12 November and 24 December— and a final one to Raveendran on 29 March 2023, regarding the statutory audit of 31 March 2022. Deloitte said it had not started work on the FY22 audit.
Raveendran told his employees that the company has taken a strategic decision to appoint BDO as Byju’s statutory auditors for five years, which led to Deloitte’s exit. Disregarding Deloitte’s public statement, he said the separation was on “mutually agreed-upon" grounds.
The three non-promoter board members of the company had resigned earlier this month. G.V. Ravishankar representing Peak XV (formerly Sequoia India), Vivian Vu representing Chan Zuckerberg Initiative and Russell Dreisenstock representing Prosus had confirmed their exits from the board last week, leaving Raveendran, his wife Divya Gokulnath, and brother Riju Raveendran, as board members. Raveendran said “departures of the three board members are unrelated to Deloitte’s resignation". Painting a positive picture of the edtech industry, Raveendran said it was here to stay, and Byju’s was inching toward profitability at a group level. “We have stopped all advertising spends and revenue is coming organically," he added.
Raveendran admitted that the acquisitions made in the past led to a lot of cash burn for the company, and it is now working toward curbing cash burn.
“The best of Byju’s is yet to come, and the firm has “not come this far to only make it this far," Byju he added.
