About Byju’sByju’s is the world’s most prized online education platform providing education in all subjects to students right from primary classes to students appearing in highly competitive exams like the NEET, UPSC (Byju’s IAS) and IIT- JEE. The platform includes highly animated videos for practical and visual learning besides highly qualified personal mentors to students who frame study strategies according to strengths and weaknesses of each student. Byju's Struggling to Repay Huge Debts-Byju's Struggling to Repay Huge Debts
Current Financial State of Byju’sThe edtech giant, Byju's, faced a huge financial setback and as a result of this, Byju’s has failed to disclose its financial details on the given deadline for the current fiscal year.Currently, it has requested its creditors to provide an extended time period for the repayment of its loans amidst which, Byju’s will be negotiating a new 1.2 billion dollar loan deal. On the lines of this request, the creditors were given time until 10th of January to sign a deal of forbearance after which the Company will buy time until 10th of February, 2023.According to JPMorgan Chase & Co., the loan of Byju’s is one among the largest unrated term loan- B offerings globally for modern-world companies.Reason for the LossAmongst many other reasons, one of the reasons to which the financial state of Byju’s has been attributed is the performance of its subsidiary, WhiteHat Junior which engaged in false advertisements and also had actor Shah Rukh Khan as one of the endorsement partners. In the fiscal year of 2021 itself, Byju’s was already at a loss of 4,500 crores. Byju's Struggling to Repay Huge Debts-Byju's Struggling to Repay Huge Debts
Pressure by CreditorsDespite the financial crisis of Byju’s, creditors are acting impatient and have pressed that Byju’s must use its financial reserves amounting to 850 million dollars from its unit in the United States.Byju’s has considered alternative policies and tactics to keep its creditors indulgent towards the health of the Company but the situation is still a tough one to be won.
Byju's Struggling to Repay Huge Debts-Byju's Struggling to Repay Huge Debts
Current Financial State of Byju’s
The edtech giant, Byju's, faced a huge financial setback and as a result of this, Byju’s has failed to disclose its financial details on the given deadline for the current fiscal year.
Currently, it has requested its creditors to provide an extended time period for the repayment of its loans amidst which, Byju’s will be negotiating a new 1.2 billion dollar loan deal. On the lines of this request, the creditors were given time until 10th of January to sign a deal of forbearance after which the Company will buy time until 10th of February, 2023.
According to JPMorgan Chase & Co., the loan of Byju’s is one among the largest unrated term loan- B offerings globally for modern-world companies.
Reason for the Loss
Amongst many other reasons, one of the reasons to which the financial state of Byju’s has been attributed is the performance of its subsidiary, WhiteHat Junior which engaged in false advertisements and also had actor Shah Rukh Khan as one of the endorsement partners. In the fiscal year of 2021 itself, Byju’s was already at a loss of 4,500 crores.
Byju's Struggling to Repay Huge Debts-Byju's Struggling to Repay Huge Debts
Pressure by Creditors
Despite the financial crisis of Byju’s, creditors are acting impatient and have pressed that Byju’s must use its financial reserves amounting to 850 million dollars from its unit in the United States.
Byju’s has considered alternative policies and tactics to keep its creditors indulgent towards the health of the Company but the situation is still a tough one to be won.
