Business

Byju’s Reports ₹2,250 Crore Loss Amid Escalating Debt Dispute

The recent financial results of Indian education startup Byju’s, as reported for the fiscal year ending March 2022, show that while the company’s total income more than doubled to 35.7 billion rupees, its operational losses only marginally narrowed from 24 billion rupees to 22.5 billion rupees. This underscores the challenges facing Byju’s in the wake of the COVID-19 pandemic, despite its previous status as a symbol of India’s thriving startup ecosystem.

Byju’s has faced a significant dispute with creditors over a $1.2 billion loan, leading to lawsuits from creditors due to covenant breaches. This dispute has put the spotlight on Byju Raveendran, the founder, who experienced a remarkable rise from being a tutor to leading India’s most valuable tech startup.

Also Read: Uttar Pradesh: A 3.6-magnitude earthquake strikes Ayodhya

During the pandemic, Byju’s aggressively expanded to meet the surging demand for its online tutoring services when educational institutions were closed. The company even made global acquisitions and sought to expand internationally. However, growth has slowed as schools resumed in-person classes, and the legal dispute has compounded the company’s challenges.

Issues like delays in submitting financial results raised regulatory concerns and resulted in Deloitte Haskins & Sells resigning as the company’s auditor. In April, Indian officials raided Byju’s offices, seizing laptops and linking the education technology startup to potential foreign exchange violations. Additionally, some U.S.-based investors accused Byju’s of concealing funds, leading to legal action.

Also Read: Atiq purchased Rs 12.84 cr property in name his labour

Prosus NV, one of Byju’s primary investors, significantly reduced the value of its holding in June, marking a substantial decline in the startup’s valuation from $22 billion to $5.1 billion. These developments reflect the complex and changing landscape for Byju’s, once considered a shining star in India’s startup scene.

Priyanka Rai

Recent Posts

IPL 2025 Auction: Bhuvneshwar Kumar Headlines Day 2 With Rs 10.75 Crore Move To RCB

Bhuvneshwar Kumar stole the spotlight on Day 2 of the IPL 2025 Auction. Royal Challengers…

56 mins ago

Self-Help Groups To Provide Ganga Water To Pilgrims At Maha Kumbh 2025

Maha Kumbh 2025 will combine spirituality and women’s empowerment, with self-help groups providing bottled Ganga…

1 hour ago

Inflation To Ease, Economic Growth To Accelerate In Coming Months: Finance Ministry

The report highlights bright agricultural prospects as a mitigating factor for inflation. Early November trends…

1 hour ago

Uttar Pradesh Prepares For Maha Kumbh 2025 With Launch Of Nishadraj Cruise

Uttar Pradesh is enhancing Maha Kumbh 2025 with innovative steps, including the launch of the…

2 hours ago

Uttar Pradesh Fire Department Launches Awareness Drive For Maha Kumbh Safety

The Uttar Pradesh Fire Department has intensified its fire prevention and safety awareness campaigns to…

2 hours ago

IPL 2025 Auction: Rajasthan Royals Sign Nitish Rana For Rs 4.20 Cr; Punjab Kings Buy Marco Jansen For Rs 7 Cr

Former Kolkata Knight Riders (KKR) all-rounder Nitish Rana found a new team as Rajasthan Royals…

3 hours ago