Byju’s Calls Annual General Meeting Amid Founder’s Pledged Assets and Financial Challenges

• ByStartupStory     |    December 5, 2023

Edtech giant Byju’s has summoned its shareholders for an Annual General Meeting (AGM) scheduled for December 20, where critByju’s ical matters, including the approval of FY22 financials, will be under discussion.

Founder Byju Raveendran has reportedly pledged his residence and family-owned properties as collateral, a move seen as the company grapples with a looming cash crunch. The company disclosed, “The Annual General Meeting of the Members of Think & Learn Private Limited, the ‘Company,’ will be held on Wednesday, 20th day of December 2023, at 6.00 p.m. through video conferencing (‘VC’) or other audiovisual means (‘OAVM’).”

During the AGM, the company plans to pass resolutions related to receiving, considering, and adopting the audited standalone and consolidated financial statements for the fiscal year ending March 31, 2022. This will include the report from the Board of Directors and Auditors. Byju’s will also address the appointment of MSKA & Associates as statutory auditors.

Additionally, discussions will cover the remuneration of B Y & Associates, Cost Accountants, and the Cost Auditors for the financial years 2022-22, 22-23, and 23-24.

Founder Byju Raveendran’s pledge of two family-owned homes in Bengaluru and an under-construction villa in a gated community, amounting to $12 million, has raised eyebrows. The borrowed funds were reportedly utilized to meet employee salary obligations.

This development follows the company’s recent announcement of partial or incomplete FY22 financials, revealing a 2.3 times growth in revenue to ₹3,569 crore in its standalone business. The disclosed EBITDA loss for the core business in FY22 showed a decrease to ₹2,253 crore from ₹2,406 crore in the previous year.

Byju’s, which had committed to releasing FY22 results by the end of September and FY23 results by the end of December, faces additional challenges as it reportedly plans to lay off nearly 40% of its engineering team. The situation underscores the intricate financial landscape currently faced by the prominent edtech player and will undoubtedly be a focal point of discussions at the upcoming AGM.

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