Amid BYJU’S ongoing funding crisis, investors have raised concerns about the management’s inability to recover approximately INR 1,400 crore from a Dubai-based reseller, More Ideas General Trading LLC, while paying out INR 300 crore in sales commissions.
However, BYJU’S has refuted these claims, stating that the mentioned amount is overstated and that they have started recovering dues through legal means, with the vendor committing to paying the remaining amount over the next year.
The company has also faced shareholder demands for an extraordinary general meeting (EGM) to revamp the board and leadership, following a significant drop in valuation. The EGM is scheduled for February 23.
BYJU’S FY22 annual report highlighted issues with the reseller, including concerns about contractual arrangements and collectability, which have raised questions about compliance.
The company has faced various challenges over the past two years, including board member exits, layoffs, financial statement delays, growing losses, scrutiny from the Enforcement Directorate (ED), and a legal battle with the Board of Control For Cricket in India (BCCI).
Despite these challenges, BYJU’S has reportedly achieved a revenue of INR 3,500 crore in the first six months of the current fiscal year (H1 FY24) and aims to sustain this rate for the full year, following a total revenue of INR 6,500 crore in FY23.
