Will Great Learning Founders Get Back Their Company From BYJU’s Crises?
The founders of Great Learning are trying to take back their company from BYJU’s because of financial problems & controversies. Can they make a comeback?
Remember how Great Learning was bought by BYJU’S for $600 million in 2021? Well, now the founders of Great Learning, Arjun Nair, Hari Nair, and Mohan Lakhamraju, are talking to investors about buying it back from BYJU’S.
They want to do what’s called a “management buyback.” This means they’ll get help from investors to run Great Learning again, and in return, they’ll get some ownership shares (equity) in the company.
The investors are interested in keeping the original founders and management team involved.
Right now, they’re still figuring out how this will work exactly. They might even get more investors to join in after the buyback.
But it’s all in the early stages, and they’re waiting to see how things go with another deal BYJU’S is working on called “Epic” before they make any big moves.
BYJU’S is having some tough times lately. They owe a lot of money, around $1.2 billion, and they’re trying to raise $800 million to $1 billion by selling Great Learning and Epic to pay off that loan.
Plus, they’ve been facing controversies and issues like delays in financial reports and people leaving their board.
And there’s one more thing – BYJU’S is planning to let go of over 4,000 employees as part of a restructuring plan. So, it’s a bit of a roller coaster for both Great Learning and BYJU’S right now.
Great Learning founders are trying to buy their startup back from BYJU’S because BYJU’S is facing financial problems and so many controversies from its students and employees.
The Great Learning founders might want to do this because they believe they can run the company better and make more money.
Great Learning founders could also be worried about BYJU’S financial health, which is difficult to save anymore. Thus they might want to save their own startup company from the connection of Byju’s.
It’s possible they’re just not happy with how BYJU’S is handling things. One founder even said BYJU’S is too focused on growing without caring about education, students and its own employees.
However the deal isn’t done yet, the talks with investors are still under process. It remains to see how Great Learning founders will get their company back. It’s a warning to other startups to be careful who they sell to and make sure they share the same goals.