Byju's to present FY22 financials at board meet amid investor concerns

The edtech firm is yet to file its FY22 results with Registrars of Companies and this delay has been a key concern among investors as well as the lenders

Edtech major Byju's on Saturday announced plans to convene a board meeting in the second week of October 2023 to present its audited financials for FY22. 

The meeting will also include members of its Advisory Council and select invitees along with former board member investors Peak XV Partners and Prosus. The financial statements will be shared with key investors and the board aims to formally adopt the audited accounts.

“Think and Learn Pvt Ltd today has issued a notice for convening a Board meeting in the second week of October 2023 for approval and adoption of accounts for F'22,” said Byju’s. “The Board of Directors along with the Advisory Council and certain invitees will meet to formally adopt the audited accounts,” it added.

 

The company has garnered $5.8 billion in total funding from investors such as Qatar Investment Authority (QIA), Sumeru Ventures, Vitruvian Partners, BlackRock, Chan Zuckerberg Initiative, Sequoia, Silver Lake, Bond Capital, Tencent, General Atlantic and Tiger Global. A preliminary meeting between Byju's management and its auditor BDO has already taken place, and a notice about this has been issued to shareholders.

Byju's has not yet submitted its FY22 results to the Ministry of Corporate Affairs (MCA), lagging behind other edtech unicorns like Unacademy, upGrad, and Vedantu. This delay has caused concern among investors and lenders who have extended a $1.2 billion term loan B to the company.

The firm reported a loss of Rs 4,588 crore in FY21, a considerable increase from the previous year. This follows the resignation of its previous auditor, Deloitte Haskins & Sells, and key investor representatives due to delays in filing financial results.

On July 22, Byju’s auditor Deloitte Haskins & Sells resigned from its role as the company was delaying filing financial results. Following the auditor’s resignation, the firm’s top three investors — Prosus, Peak XV Partners, and Chang Zuckerberg Initiative — representatives also resigned. After these resignations, Byju’s chief executive officer Byju Raveendran addressed shareholders and employees on the issue.

Recently, Byju's appointed BDO as its statutory auditor for the next five years and formed an Advisory Council, including Rajnish Kumar, former State Bank of India chief and current chairman of BharatPe, and Mohandas Pai, former CFO of Infosys.

Amidst financial challenges, Byju's is undergoing a restructuring exercise led by its recently elevated India business CEO, Arjun Mohan. 

The company plans to lay off approximately 4,000 employees, or over 11 per cent of its workforce. Earlier this year, the Bengaluru-based firm laid off about 1,000 employees as part of an "optimisation" strategy, which was followed by subsequent rounds of layoffs affecting hundreds more.