Byju’s founder says his edtech startup, once worth $22B, is now ‘worth zero’
New Delhi: Byju Raveendran, the founder of troubled edtech firm Byju's, on Thursday said that he is willing to pay back all the money owed to lenders if they are willing to work with him.
During a two-and-a-half-hour call with the media, Mr Raveendran said lenders will not get any money if the process of insolvency against the company continues.
"If they are willing to work with me, I am willing to give them money back before I take a single rupee out. We paid $140 million but they wanted the entire $1.2 billion which we had already committed or invested by then. There is no way we could have given them back for a long time. Most lenders wanted to settle but one or two wanted to make a killing out of it," Mr Raveendran said.
At present, Byju's is undergoing insolvency proceedings, triggered after the BCCI approached the National Company Law Appellate Tribunal to recover its ₹ 158.9-crore dues. The company settled the dispute with BCCI after paying the entire dues following which NCLAT revoked the insolvency proceedings.
However, US lenders through their agent Glas Trust challenged the NCLAT order in the Supreme Court which restored the insolvency proceedings against the edtech firm.
Byju's has raised a $1.2 billion Term Loan B (TLB)-- a loan which is issued by institutional investors --through its holding company Byju's Alpha, from US-based lenders.
The trouble for Think and Learn, which owns the Byju's brand, began after the lenders through Glas Trust approached Delaware Court of Chancery alleging default in the payments under the loan agreement and sought early payment of the $1.2-billion TLB.
The US-based lenders through Glas have filed claims of $1.35 billion dues in Indian courts during ongoing insolvency proceedings against the edtech firm.
In the latest statement, the lenders have raised their total claim to $1.5 billion.
Mr Raveendran said that no money raised from US lenders has come to India as it also needs permission from the Reserve Bank of India.
He said that there are some aggressive lenders who initiated a case against the company and they don't care about stakeholders in the business as it is their business model to make money out of distress.
Mr Raveendran said that all the deals and acquisitions were approved by the Byju's board, which included leading investors.
"Most of the acquisitions were brought in by the investors and we got carried away. Investors wanted us to launch in 40 countries together. Investors celebrated when we raised a $1.2-billion loan," Mr Raveendran said.
Byju's board member representing Peak XV Partners, earlier known as Sequoia Capital India, Prosus and Chan Zuckerberg Initiative resigned from the company in June 2023.
Mr Raveendran said that investors resigned from the board after Glas Trust filed a case in the Delaware court assuming that the liability to pay back the loan would fall on them.
He said that, over the years, only managers have left the company and five out of six owners of Byju's are still with the firm.
Mr Raveendran said that he is hopeful of making a big comeback after the insolvency issue is resolved.
"Our subsidiary has not taken any hits. At a consolidated level, we will have more than ₹ 5,000 crore in revenue. We are struggling in the core business which has become zero. Still, there are 200 million kids who come to our platform every month. We have to revamp and revive," he said.
Mr Raveendran said that whatever may be the result of litigation, he will continue to teach and nobody could stop him from teaching students.
"Investors will come back when they see value," he said.
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Centre approves Rs 1,115 crore to states for disaster mitigation, capacity-building projects
New Delhi (PTI): A high-level committee, headed by Union Home Minister Amit Shah, has approved Rs 1,000 crore for various disaster mitigation and capacity-building projects in 15 states.
The committee also approved another project for training and capacity building of civil defence volunteers in all states and Union territories at a total outlay of Rs 115.67 crore, according to an official statement.
According to an official statement, a sum of Rs 139 crore each was approved for Uttarakhand and Himachal Pradesh, Rs 100 crore for Maharashtra, Rs 72 crore each for Karnataka and Kerala, Rs 50 crore each for Tamil Nadu and West Bengal, and Rs 378 crore for the eight Northeastern states -- Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura.
The committee, comprising Union ministers for finance and agriculture and the vice chairman of the NITI Aayog as members, considered the proposal to mitigate landslide risk in 15 states for funding from the National Disaster Mitigation Fund (NDMF).
Another proposal for training and capacity building of civil defence volunteers in all states and UT's under-preparedness and capacity building from the funding window of the National Disaster Response Fund (NDRF) was also considered, it said.
Earlier, the committee approved Urban Flood Risk Mitigation Projects in seven cities at a total outlay of Rs 3075.65 crore and Glacial Lake Outburst Flood (GLOF) risk management projects in four states at a total outlay of Rs 150 crore from the NDMF.
To fulfil Prime Minister Narendra Modi's vision of disaster resilient India, the Ministry of Home Affairs under the guidance of Shah has taken several initiatives to ensure effective management of disasters in the country, the statement said.
Several steps have been taken to prevent any extensive loss of life and property during disasters by strengthening the disaster risk reduction system in India, it said.
Under the Modi government, more than Rs 21,476 crore has already been released to the states during this year. This includes Rs 14,878.40 crore from the State Disaster Response Fund (SDRF) to 26 states, Rs 4,637.66 crore from the NDRF to 15 states, Rs 1,385.45 crore from the State Disaster Mitigation Fund (SDMF) to 11 states and Rs 574.93 crore from NDMF to six states.
