A potential IPO of the test-prep company could have saved a cash-strapped Byju’s. The latest crisis exacerbates the edtech firm’s financial woes.
US-based investment fund Davidson Kempner Capital Management has accused Byju’s, India’s largest edtech company by valuation, of financial misconduct, taking control over Aakash Educational Services Ltd and its accounts, according to four people in the know. They all requested anonymity.
In an email response to queries sent on Sunday, a Byju’s spokesperson denied any such event. “This is entirely incorrect,” the spokesperson said. “We request you to recheck the veracity of your information, or the reliability of your source, before publishing this wildly inaccurate claim.”
However, Byju’s, says one the four people cited above, “took out money from the loan …
Pradip is a co-founder at The Morning Context and leads our newsletters vertical. He has previously worked at The Ken as a staff writer, at Mint as an assistant features editor and the Deccan Chronicle as a copy editor. He works with a slew of expert newsletter writers across subjects and domains. His own writing spans the gig economy, farmers caught in the crossfire of technology, global warming and parents trapped in the edtech wave. Some of his best stories have come at the intersection of technology and human endeavour.