Byju Raveendran, the founder of edtech giant Byju's, has vowed to return and get over the struggles that he is currently facing.
Raveendran has seen a lot as once Byju's was valued at $22 billion in 2022 now is struggling to survive. Many experts feel that it may not be an easy way out for Raveendran as the firm needs to come out of the crisis. Recently he has filed an FIR against ex-resolution professional Pankaj Srivastava, Glas Trust which is one of Byju's US lenders and a few employees of the consultancy firm EY. He has alleged fraud and conspiracy in insolvency proceedings. The case, linked to Byju's ongoing insolvency, is under investigation by NCLT and NCLAT amid claims of collusion.
The Board of Control for Cricket in India (BCCI) and Riju Ravindran, co-founder of Byju's, are contesting a National Company Law Tribunal (NCLT) order concerning the insolvency resolution of the edtech firm. This dispute, centred on a Rs 158-crore sponsorship deal settlement, arises from the NCLT's directive to the Committee of Creditors (CoC) to decide on the application, despite the agreement being made prior to the CoC's formation. Despite these turnaround claims many parents have also been against Byju's who feel that have been cheated by the company through false claims by their marketing teams.
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Raveendran is now facing challenges from running the operations, to managing litigation, raising capital and growing the company. The ecosystem on which he was leaning is giving up. There have been sacking of employees from time to time and that has dented the morale of the firm. Just by recalling his earlier years may not help him in rebuilding his lost image and the brand.
The company needs regular reorganisation so that it is out of the choppy waters. This is at a time when multiple things are working against him and the company. It is crucial for Byju's to retain their key talent and key partners. At the same time, they need alignment among the major players in the company’s strategy. One plus point is that the edtech market continues to survive despite the Byju's debacle and many players are surviving and evolving.
Only time will tell how Byju's could come out of these multiple battles.
