Byju’s calls AGM amid financial strain: Founder pledges family homes

Troubled edtech major Byju’s has called for an Annual General Meeting(AGM) on December 20 to discuss various matters, including approving FY22 financials.

Meanwhile, according to Bloomberg, its founder, Byju Raveendran, has pledged his home and the houses owned by his family members as the company faces a cash crunch.

“The Annual General Meeting of the Members of Think & Learn Private Limited, the “Company”, will be held on Wednesday, 20th day of December 2023 at 6.00 p.m. through video conferencing (“VC’) or other audiovisual means (‘OAVM’),” the company said in a letter -reviewed by BL-

The company will pass a resolution to receive, consider and adopt the audited standalone and consolidated Financial Statements of the company got the FY ended March 31 2022, together with the report of the Board of Directors and Auditors, it said.

Byjus will also discuss the appointment of MSKA & Associates as statutory auditors of the company.

It will also discuss the remuneration of B Y & Associates, Cost Accountants, and the Cost Auditors of the company for the financial years 2022-22, 22-23 and 23-24

The founder reportedly has pledged two homes owned by the family in Bengaluru and an under-construction villa in a gated community to borrow $12 million. The money was used to pay salaries to the employees.

This comes a month after it announced partial or incomplete FY22 financials only reflecting its core operations, even after a delay of almost a year.

In November, Byju’s reported its delayed audited financial accounting for the year ended March 2022 — in parts — showing a 2.3 times growth in revenue to ₹3,569 crore in its standalone business.

According to a company statement, the EBITDA loss of the core business — financials for which were reported — was down to ₹2,253 crore in FY22 from ₹2,406 crore in the previous year.

Previously, Byju’s management had agreed with its investors that the company would be putting out FY22 results by the end of September and FY23 results by the end of December. This comes when Byju’s plans to lay off nearly 40% of its engineering team.

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