Byju Raveendran, the enigmatic Founder of the once Edtech Giant, Byju has pledged his home as well as those of his family members to raise money for clearing the non-payment of the staffs. The company is currently facing a severe cash crunch according to the people who are familiar with the matter.
Two homes of the billionaire in South India have been provided as collateral for a whooping $12 Million as per people even the information is not public yet. The Startup has used those funds for the payment of the salaries of 15,000 employees in Byju’s parent company, Think & Learn Pvt. Ltd. Byju Raveendran once worth almost $5 Billion has raised debts of almost $400 Million on a personal level, pledging all his shares in the parent company. He also plowed back into the company the $800 million he raised through share sales in the past couple of years, leaving him cash-strapped, according to a news published in Times of India.
Last month, Byju’s published its first results in years, which showed losses at Think & Learn narrowed marginally amid a pandemic-era boom in business. An Indian federal agency also concluded an investigation into the startup’s overseas fundraising, and penalties, if any, are expected to be nominal, the company said in a statement last week.
