Byju's co-founder and CEO Raveendran has reassured his employees that “the best of BYJU'S is yet to come”. He also said that the company has “not come this far, only to come this far”.
While speaking at the Townhall he also addressed the various issues that are plaguing the company. Last week, three board members – Peak XV Partners, Prosus and Chan Zuckerberg Initiative – quit following the resignation of auditor Deloitte Haskins & Sells. The edtech company then quickly appointed BDO as statutory auditors.
Raveendran said that the decision to appoint BDO was taken to focus on the efficient and timely audits going forwards. He also mentioned that this reflects the company’s commitment to enhance financial governance practices and to strengthen governance standards.
He pointed out the resignation of board member has nothing to do with the departure of Deloitte and that their exit was amicable and carried out with mutual understanding.
Byju's auditor Deloitte stepped away after saying that they had not been provided with the necessary documents to complete the audit on time. In a letter to Byju's parent company Think & Learn Private Ltd, Deloitte said that the delay will significantly impact their ability to plan, design, perform and complete the audit, and hence has decided to tender their resignation.
Byju Raveendran also spoke about the Term Loan (B) dispute. He told the employees that a constructive discussion is going on with the lenders and is confident of a positive outcome in the next few weeks.
BYJU'S Term Loan B lenders have filed a suit against its US-based subsidiary for moving out $500 million from BYJU'S Alpha and on other issues around TLB. However, a Delaware court rejected a request by the TLB lenders to investigate the $500 million transfer from BYJU'S Alpha to other entities.