Byju Raveendran, the founder of edtech giant Byju’s, has reportedly utilized his and his family’s homes as collateral to secure funds amidst the company’s financial challenges.
Facing a cash crunch, Raveendran pledged two family-owned residences in Bengaluru and an under-construction villa in the upscale Epsilon community to secure a $12 million loan, according to anonymous sources.
The borrowed funds were subsequently used to meet salary obligations for 15,000 employees at Byju’s parent company, Think & Learn Pvt. Raveendran is actively working to address the company’s financial strains, with efforts including the sale of its U.S.-based kids’ digital reading platform for approximately $400 million.
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Additionally, Byju’s is entangled in a legal dispute with creditors regarding a missed interest payment on a $1.2 billion term loan. Despite once being India’s most valuable tech startup, Byju’s is navigating various challenges to sustain its operations.
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