The troubles for EdTech company Byju’s appear to be unending, as it faces a series of challenges ranging from raids to substantial layoffs. The once-thriving tutoring start-up has been in crisis mode for months.
In a video shared on LinkedIn, an employee of Byju’s, who is marked for layoff, poured her heart out, narrating her distressing experience with the company. Akansha Khemka, an Academic Specialist with one and a half years of service at Byju’s, tearfully revealed that she is the sole earning member of her family, and the company has yet to release all her dues. She expressed that they haven’t paid her variables and encashment for her earned leaves, and instead, she received a letter urging her to resign immediately.
Her emotional plea continues as she explained her predicament, stating that her husband is unwell, and she has loans to repay. Without receiving her salary, she is facing a difficult time making ends meet. Akansha sought help from the government and accused Byju’s of committing fraud against both its employees and customers.
This video came to light just two days after news of Byju’s founder, Byju Raveendran, breaking down in tears due to the crises faced by the company. Mr. Raveendran has been dealing with crises for months, including a raid by a financial crime-fighting agency. Moreover, the once high-flying tutoring start-up has faced difficulties in filing its financial accounts on time and has been accused by several US-based investors of hiding a significant amount of money, leading to lawsuits.
Byju Raveendran’s ascent from a private tutor to the leader of a $22 billion company had captivated global investors, including Sequoia Capital, Blackstone Inc, and Mark Zuckerberg’s foundation. He dominated the EdTech market in India during the pandemic. However, when classrooms reopened, concerns about Byju’s finances tarnished the company’s reputation. Raveendran faced criticism for delaying the hiring of a chief financial officer and rapidly acquiring over a dozen companies worldwide. The aftermath saw numerous employees leaving or being terminated, board members resigning, and many teaching centres left nearly empty.
Supporters of Mr Raveendran attribute his missteps to the enthusiasm and naivety of an inexperienced founder who grew too quickly. On the other hand, critics accuse him of acting recklessly by withholding financial information and neglecting rigorous accounting practices. In India’s start-up world, Byju’s is seen as the highest-profile example of what can happen when a business scales rapidly in one of the fastest-growing economies during a boom but fails to plan for a downturn.
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