Byju's CEO's Raveendran faces backlash:?The CEO and co-founder of the insolvent edtech company Byju's, Byju Raveendran, promised a worker that any unpaid salary for three months would eventually be repaid.?
Earlier this week, Raveendran used LinkedIn to apologize for his absence, request forgiveness from his staff, and deny some accusations made against him.
Claims that his family made a fortune by selling shares were denied by the 45-year-old CEO of the troubled edtech company, who claimed that all of the proceeds were reinvested in Byju's.?
In addition, he demanded a "thorough investigation" into allegations of fraud and collusion involving the company's lender Glas Trust, consulting firm EY, and former resolution specialist Pankaj Srivastava, alleging that they were involved in Byju's demise.?
Some of Raveendran's staff had many questions for the troubled former millionaire, who has been accused of fleeing to Dubai to evade accusations, even though he reaffirmed his innocence and pledged to return "stronger than ever."
Despite Raveendran's talk of a return, staff members had more urgent issues. Kaushik Lade of Hyderabad, one of them, brought to his attention the plight of laborers who are left without compensation.?
"We hear your passion, but passion doesn¡¯t pay our bills," Lade stated. "Even though you talk about making sacrifices, we, the workers who created BYJU'S, have gone without pay for three months. Our PF has not yet been paid. We supported this business and gave it our all, but we are struggling to stay afloat.?
Please don't allow those who caused BYJUs to suffer in quiet. "Actions matter, but words inspire," he continued.??Raveendran assured him that his salary would be paid gradually. "Dues will be settled, bills will be paid, and a comeback will be made. Not right away, but someday. I'm not battling for myself alone. You must trust my words until then. You have my word until then," he said.?
Rapid expansion through aggressive acquisitions, a heavy reliance on costly marketing campaigns, a lack of financial transparency, and a post-pandemic slowdown in the edtech market were the leading causes of BYJU's financial crisis.?
These factors combined to cause mounting debts and a loss of investor confidence, especially after the company failed to repay a sizable sum borrowed in the US market. This led to legal disputes and a sharp decline in the company's valuation.?
According to the board, Byju did not finish paying $19 million for a sponsorship agreement. Consequently, Raveendran's employment and the company's assets have been frozen.?
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