Byju’s founder Byju Raveendran has mortgaged the houses registered in his and his family’s name to take loan. According to people associated with the matter, the company, which is struggling with cash crunch, will use this money to pay the salaries of its employees.
Mortgage on Bengaluru house
People associated with the matter, on the condition of anonymity, said that Byju’s family’s two houses in Bengaluru and their under-construction house in the gated community Epsilon have also been mortgaged so that $ 12 million can be collected.
The startup will use this money to pay salaries to 15,000 people who are associated with Byju’s parent company Think and Learn. Raveendran’s representative has not yet responded to an appeal for comment on the matter.
Let us tell you that Byju Ravindran is trying his best to maintain company operations and reduce financial pressure.
Byjudge, once India’s most valuable tech startup, is selling its US-based digital reading platform for $400 million. Byju’s is also in a legal battle with its debtors over interest on a loan of $1.2 billion.
At one time Ravindran’s wealth was 5 billion dollars. Experts said that he has personally collected about $400 million and has pledged all his shares in his company.
Even in the last two years, they have collected about 800 million dollars by selling shares, due to which they too are facing shortage of cash. Let us tell you that last month Byju’s had published its results for many years.
