Byju’s, once India’s most valued edtech startup, is facing severe financial distress, leaving employees unpaid and students without access to learning materials.
Since entering insolvency proceedings in July 2024, the company has struggled to fulfill salary commitments and compensate affected students, despite repeated assurances from founder and CEO Byju Raveendran.
With legal battles, investor disputes, and operational disruptions mounting, employees and students are losing hope, questioning whether Byju’s can recover from its deepening financial crisis.
Byju’s Employees Struggle with Unpaid Salaries
Thousands of Byju’s employees have been waiting for months to receive their salaries, with many reporting no communication from the company for over eight months.
Former tutors and staff members have expressed frustration, stating that they have been left in financial uncertainty despite Byju’s promises of compensation.
A group of employees is now considering legal action against Byju’s due to unpaid salaries and financial uncertainty.
Some are planning to take the company to the National Company Law Tribunal (NCLT), where Byju’s is already involved in multiple legal battles.
Students Face Learning Disruptions
Byju’s financial troubles have disrupted access to courses for enrolled students.
Many have reported that the app has stopped working, preventing them from accessing recorded lectures and study materials.
A parent, speaking anonymously, shared their frustration, “We don’t know whom to contact, as no one is responding to our queries.”
They added, “We paid a significant amount for the course, but now we can’t access it.”
Byju Raveendran acknowledged the disruptions and apologized, recognizing that thousands of students have been affected.
He assured that once the company stabilizes, he will compensate those impacted.
Legal and Financial Challenges
Byju’s financial crisis worsened when lenders filed a lawsuit in the US Bankruptcy Court, escalating legal troubles for the company.
They accused Raveendran and his wife, Divya Gokulnath, of orchestrating a scheme to conceal and misuse $533 million from a $1.2 billion term loan.
Raveendran has denied the allegations, stating: “Not a single dollar of the loan has gone into our personal accounts. It has all been used for legitimate business purposes.”
Despite these claims, investors and creditors remain skeptical, pushing for greater financial transparency and repayment of outstanding debts.
Byju’s 3.0: A New AI-Driven Model
In an attempt to revive the company, Raveendran has introduced Byju’s 3.0, an AI-driven platform aimed at enhancing personalized learning.
He believes AI can empower educators and scale one-on-one tutoring, making education more accessible and engaging.
Industry experts remain cautious about Byju’s future amid its ongoing financial troubles.
They argue that the company must first resolve its financial and operational challenges before introducing a new business model.
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