'Byju's worth zero,' says Byju Raveendran amid insolvency crisis
In a virtual press conference from Dubai, Raveendran, said he will pay back lenders if they are willing to work with him. He also blamed investors for throwing him under the bus
Byju Raveendran, the founder of the edtech firm, Byju’s, on Thursday said he is willing to pay back the entire money to the lenders if they are willing to work with him.
Addressing his first virtual press conference in four years, the teacher turned entrepreneur Raveendran, who was once feted for being the founder of India’s biggest start-up, said lenders will not get any money if the process of insolvency against the company continues.
"If they are willing to work with me, I am willing to give them money back before I take a single rupee out. We paid $140 million but they wanted the entire $1.2 billion which we had already committed or invested by then. There is no way we could have given them back for a long time. Most lenders wanted to settle but one or two wanted to make a killing out of it," Raveendran said in a candid chat with the media.
Insolvency proceedings
On June 16 this year, on a BCCI petititon claiming ₹158 crore in arrears over a sponsorship deal, the National Company Law Tribunal (NCLT) had ordered initiation of insolvency proceedings against Byju’s. The company settled the dispute with BCCI after paying the entire dues after which NCLAT revoked the insolvency proceedings. However, US lenders through their agent Glas Trust challenged the NCLAT order in the Supreme Court, which restored the insolvency proceedings against the edtech firm.
Byju's has raised a $1.2 billion Term Loan B (TLB), a loan which is issued by institutional investors, through its holding company Byju's Alpha, from US-based lenders. The trouble for Think and Learn, which owns the Byju's brand, started when the lenders through Glas Trust approached Delaware Court of Chancery alleging default in the payments under the loan agreement and sought early payment of the $1.2-billion TLB.
In the latest statement, the lenders have raised their total claim to $1.5 billion.
Also read: US lenders counter Byju's claim on debt, says edtech obligated to repay full $1.2 bn TLB
Making a comeback
In his interaction with the media, Raveendran said that he is hopeful of making a big comeback after the insolvency issue is resolved.
"Our subsidiary has not taken any hits. At a consolidated level, we will have more than ₹ 5,000 crore in revenue. We are struggling in the core business which has become zero. Still, there are 200 million kids who come to our platform every month. We have to revamp and revive," he said.
Raveendran said that whatever may be the result of litigation, he will continue to teach and nobody could stop him from teaching students.
He also clarified that he has not run away to Dubai. “Its very unfortunate that people think that I ran to Dubai because I had to. I came to Dubai for a year for my father's treatment, which led to our ongoing stay. But let me be clear, I did not run away," he added.
Also read: Byju's-BCCI settlement: US court rejects foreign lenders' plea to block payment
Byju's worth is zero
Further, he said that he is committed to restoring the glory of Byju, which was once hailed as a leader in the tech industry.
''The company is worth zero. What valuation are you talking about? It is zero," Mr Raveendran said.
Byju's was once the most sought-after by global investors and was valued at $22 billion in 2022. But it suffered many setbacks in recent months, from boardroom exits and criticism over delayed financial disclosures to the public spat with foreign investors over mismanagement.
"Whatever is coming, I will find a way out," Raveendran asserted, adding that he will find a way out and make things work. "I only need to see a 1 per cent chance to make it work," he said.
Blames investors
Also, Raveendran said he plans to come back to India and fill stadiums again but his hands are tied on India operations till online litigations are underway. “I have been on the edge so many times. For me, it’s a mission, not a business. I will make a comeback, and nobody can stop me from completing my mission,” he said.
He blamed the investors for fleeing the first sign of crisis and added that he has been investing in the company despite Byju’s being in bankruptcy proceedings.
Raveendran said there is no fraud in the company and it was the investors who threw him under the bus.