Byju’s shareholders have approved a rights issue to address cash crunch, acknowledging the company’s struggle to pay employees. The approval was secured through a postal ballot and EGM, with 55% of total votes in favor. The move aims to resolve liquidity issues including unpaid salaries and regulatory dues.
Byju’s Founder and CEO, Byju Raveendran, expressed gratitude towards investors for their support, highlighting their crucial role in providing essential working capital. The shareholder approval signifies a significant milestone in overcoming challenges and initiating a growth phase with Byju’s 3.0.
The rights issue approval sets the stage for Byju’s to tackle financial hurdles effectively. Following the announcement, Arjun Mohan, who served as CEO, will transition to an external advisory role, while Raveendran will lead daily operations. The company is optimistic about navigating through difficulties and pursuing growth opportunities.
Byju’s strategic move to address cash crunch and enhance operational efficiency reflects a commitment to sustain business momentum amidst challenges. With a renewed focus on growth, the company aims to leverage investor support to strengthen its position in the edtech sector.
