Byju’s closed 30 tuition centres: The remaining 262 tuition centers will continue to run on hybrid model, the company took the decision to reduce expenses.

Byju’s closed 30 tuition centres: The remaining 262 tuition centers will continue to run on hybrid model, the company took the decision to reduce expenses.

Edtech company Byju’s, which is facing cash crunch, has closed 30 of its 292 tuition centres. Byju’s parent company Think and Learn issued a statement saying that as a measure to reduce expenses, Byju’s has decided to close these tuition centers. The company said that the remaining 262 tuition centers will continue to run on the hybrid model. Earlier, Byju’s had closed all its other offices except its headquarters. Also, all the employees have been asked to work from home. Byju’s said – We are proud of the dedication of our teachers and the performance of our students. Byju’s issued a statement saying that we are very proud of the dedication of our teachers and the performance of our students. Focus on quality is helping most tuition centers become profitable. In the coming years, 262 tuition centers will continue to work in hybrid model by integrating the best and latest technology. Cash crunch increases due to dispute Byju’s investors Prosus NV, Peak Protested the decision. This fund raising is 99% less than the previous round. The previous funding round was at a valuation of $ 22 billion i.e. about Rs 1.82 lakh crore. Byju’s investors have accused the company of embezzlement of $533 million (about Rs 4,411 crore) in the US and have demanded a ban on the rights issue worth Rs 1,655 crore. This has been described as illegal and against the law. Raveendran mortgaged his house to pay salaries. Earlier, Byju’s founder Byju Raveendran had mortgaged his house as well as the houses of his family members to pay salaries to the employees. He raised around Rs 100 crore by mortgaging two houses in Bengaluru and paid salaries to around 15,000 employees. Byju’s investors removed Raveendran from the board On February 23, Byju’s investors removed the company’s founder-CEO Byju Raveendran, his wife Divya Gokulnath and brother Riju Raveendran from the board after the Extraordinary General Meeting (EGM). Several blue chip investors like Prosus, General Atlantic and Peak XV had voted at the EGM to remove Raveendran and his family. Ravindran said- I will remain the CEO of Byju’s. After this, on February 24, Byju Ravindran had said in a letter to the employees that ‘I am writing this letter to you as the CEO of our company. Whatever you may have read in the media is wrong. I will remain the CEO of the company, the management and board will also remain the same. Raveendran further said, ‘The claims made by a small group of selected minority investors that they have unanimously passed the resolution at the EGM are completely false. Out of 170 shareholders, only 35 i.e. about 20% shareholders voted in favor of the proposal. This in itself shows the very limited support received by this irrelevant meeting. Raveendran and his family hold about 26% stake in the company. According to reports, investors took this decision due to the mismanagement and failures of the management led by Raveendran. The shareholders who called the EGM hold a total stake of more than 30% in Byju’s. Raveendran and his family hold about 26% stake in the company. At the EGM, investors also passed resolutions to reform the leadership, reconstitute the board and initiate a forensic investigation into governance violations. 3 big things that happened to Byju’s in recent times Byju’s loss increased to ₹ 8,245 crore in 2022 Ed-tech company Byju’s has suffered a loss of ₹ 8,245 crore in the financial year 2022. The deficit in FY 2021 was Rs 4,564 crore. That means the company’s loss has almost doubled. The total revenue of the company during this period was ₹ 5,298 crore. Revenue in 2021 was Rs 2,428 crore. That means there has been a 118% jump in revenue. Byju’s parent company Think and Learn has filed its audited financial report with the Registrar of Companies. Almost half of the losses (about Rs 3,800 crore) are due to companies like WhiteHat Jr and Osmo. These are two major acquisitions made by the company.

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