Byju's Founder Pledges His Two Houses For $12 Million Loan To Raise Funds For Staff Salaries

At a time when Byju's, which was once India's most valuable startup (at $22 billion) is going through a major crisis, the ed-tech giant's founder has gone the extra mile to help his company.

What Has Byju Raveendran Done?

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Byju's founder Byju Raveendran has pledged his home and those owned by his family members to raise money for the salaries of his employees, as per Bloomberg. The properties include two houses owned by Raveendran's family and an under-construction villa in Bengaluru as collateral to borrow $12 million, the report said, citing people aware of the matter.

Why Is He Pledging His Two Houses?

The infusion of funds through the $12 million loan would help pay 15,000 employees in the embattled company's parent firm, Think & Learn Pvt., the report added. The ed-tech giant is facing a string of setbacks, including investors cutting its valuation and its auditor and board members quitting.

The move came amid reports of about 1,000 Byju's employees awaiting November salaries this week. However, the company claimed to have credited pending payments on December 4.

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The ed-tech's founder has been pulling all stops in his fight to keep the company afloat and to ease its financial pressures. Raveendran, once worth almost $5 billion, has raised debts of about $400 million on a personal level, pledging all his shares in the parent company, according to the people. He also ploughed back into the company the $800 million he raised through share sales in the past couple of years, leaving him cash-strapped, they said, the Bloomberg report adds.

Also Read: Byju's Asked To Pay 9,000 Crore For Foreign Funding Laws Violation

How Much Did Byju's Lose Last Year?

Last month, the company reported its audited results for 2022 where it said operating losses fell 6% to Rs 24 billion ($287.95 million) for its core online education business for the year ended March 31, 2022. Byju¡¯s has reportedly called for a board meeting on December 20.

When Was Byju's Founded?

Byju's was founded in 2011 by Byju Raveendran and his wife Divya Gokulnath.

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