Byju’s, a prominent Indian ed-tech company once valued at $22 billion in 2022, is facing potential insolvency, which could lead to one of the largest disruptions in India’s startup sector. Thousands of anxious employees are now struggling to recover unpaid wages and secure their careers, according to a Reuters report.
The company, which gained popularity during the COVID-19 pandemic by offering online courses, is currently in a dispute with U.S. lenders over $1 billion in unpaid debt. As a result, Byju’s board has been suspended, and its assets have been frozen. India’s Supreme Court recently rejected Byju’s plea to halt the ongoing insolvency proceedings.
Many employees, some unpaid for months, are considering protests or legal action. A mathematics teacher, Sukriti Mishra, shared her frustration with Reuters, stating that she and others have stopped conducting classes as they haven’t received their salaries. Mishra, who used to earn $1,200 a month, now struggles with medical bills and loan payments.
Byju’s founder, Byju Raveendran, has assured employees that salaries will be paid once control is regained, but the timeline for resolving the situation remains uncertain. The company, operating in 21 countries and serving 150 million students, faces significant challenges ahead, including potential liquidation or the search for a new buyer.
Employees and parents, concerned about the company’s financial stability, are discussing possible actions, including social media campaigns, street protests, and legal measures. Some parents have even considered reaching out to former brand ambassadors like Lionel Messi to draw attention to the situation.
Despite the turmoil, Raveendran remains optimistic, telling employees in a recent memo that the company is showing signs of recovery after a challenging two years.
