Indian edtech giant Byju’s has postponed the release of its FY22 results, originally scheduled for the end of September, to the second week of October. This decision has raised concerns among regulatory bodies and stakeholders, given the recent challenges the company has been grappling with, including the departure of key executives and the need to repay a substantial $1.2 billion loan.
The delay in announcing its financial results for FY22 comes following the resignation of Byju’s former auditor, Deloitte, earlier this year, which cited a lack of communication from the company regarding the readiness of its FY22 audit.
Byju’s, which is currently facing a series of internal and external challenges, has been actively taking steps to address its issues and streamline its operations. As part of its restructuring efforts, the company has appointed Arjun Mohan as its India CEO, and it is in the process of downsizing its workforce by letting go of approximately 4,000 to 5,000 employees.
In a statement issued on Saturday, Think and Learn Pvt Ltd, the parent company of Byju’s, announced its intention to convene a Board meeting during the second week of October 2023 to seek approval and adoption of the audited accounts for FY22. The meeting will be attended by the Board of Directors, the Advisory Council, and select invitees.
The delay in disclosing financial results has not gone unnoticed by regulators and has raised concerns among stakeholders, as it is crucial for investors and the public to have access to the company’s financial performance data. It is expected that the second week of October will bring clarity on Byju’s financial health and the impact of the ongoing challenges it is facing.
Byju’s, once valued at $22 billion at its peak, has also taken the drastic step of putting two of its assets on the market to raise funds for repaying the significant $1.2 billion loan that it secured in 2021. This move reflects the company’s determination to navigate its current financial challenges and stabilize its position in the edtech industry.
The troubled startup has seen a series of high-level departures among its senior executives, further adding to its challenges. Additionally, some of its subsidiaries, including the test prep unit Aakash Educational Services, have also experienced significant changes in leadership and strategy.
To address these issues, Byju’s has brought in Arjun Mohan, who previously served as the head of upGrad India, to lead the company as its India CEO. Mohan’s extensive experience, including a previous stint with Byju’s, positions him well to steer the company through this period of transition.
The decision to downsize its workforce by releasing thousands of employees is a painful but necessary step in the company’s restructuring process. Byju’s has already undergone two large-scale layoffs earlier, affecting over 3,000 employees, as it seeks to realign its operations and financial resources.
As the second week of October approaches, all eyes will be on Byju’s as it prepares to release its FY22 results. The outcome of this announcement will not only shed light on the company’s financial performance but also provide insights into its ability to overcome the challenges it currently faces. It remains to be seen how Byju’s will navigate the complexities of the edtech sector and emerge stronger in the ever-evolving educational landscape.
