Byju Raveendran’s Personal Sacrifice: Pledges Homes to Sustain EdTech Giant Amid Financial Struggles
Byju Raveendran, the founder of Indian edtech giant Byju’s, has pledged his residence and family-owned properties to raise funds amidst a challenging financial period for the company. According to insiders, two family homes in Bengaluru and an under-construction villa in the luxurious Epsilon gated community have been offered as collateral to secure a substantial $12 million loan. The funds were promptly utilized to meet payroll obligations for 15,000 employees within Byju’s parent firm, Think & Learn Pvt.
Facing a cash crunch, Raveendran has been taking extraordinary measures to navigate the company through its financial challenges. Despite being India’s most valuable tech startup at one point, Byju’s has opted to sell its US-based kids’ digital reading platform for approximately $400 million. Simultaneously, the company is entangled in a legal dispute with creditors over a missed interest payment on a $1.2 billion term loan.
Once valued at nearly $5 billion, Raveendran has taken personal responsibility by raising approximately $400 million in debt, leveraging his shares in the parent company as collateral. Additionally, he reinvested $800 million, obtained through share sales over the past couple of years, back into the company, leaving his personal finances under strain.
Byju’s recent financial results, released after years of silence, revealed a marginal narrowing of losses at Think & Learn, attributed to the surge in business during the pandemic. Meanwhile, a federal agency investigation into the startup’s overseas fundraising concluded, with the company stating that any potential penalties are anticipated to be nominal. Despite the challenges, Raveendran’s resolute commitment to the company’s sustainability remains evident, with personal sacrifices reflecting his determination to weather the storm and ensure the continued success of Byju’s.