BYJU’S faces operational disruptions after reportedly failing to clear dues with major CRM providers. The Edtech giant grapples with internal challenges and executive departures.
Bengaluru – BYJU’S, the leading Edtech firm, is under scrutiny after reports emerged that it failed to clear dues to prominent CRM and data management companies, disrupting their internal operations.
Over the past two months, unsettled Dues Hinder Operations Reports suggest that BYJU’S has yet to settle dues worth Rs 45-50 crore to major companies like Salesforce, Tableau, and Tooljet.
This negligence led to the employees losing access to pivotal data management tools on August 31.
According to insiders, this move has significantly affected the firm’s operations.
Fallout with Other Vendors Apart from the companies above, LeadSquared, a marketing automation and sales execution CRM provider, has limited its services to the BYJU’S group.
Orderhive, an e-commerce automation platform, has also suspended service from September 1, citing non-payment issues since December of the previous year.
Additional Challenges for the Edtech Giant The Bengaluru-based firm is no stranger to challenges lately.
Just this week, the company witnessed the departure of three senior executives:
- Pratyusha Agarwal, Chief Business Officer
- Himanshu Bajaj, Business Head of BYJU’S Tuition Centre
- Mukut Deepak, Business Head of Classes 4-10 Online and Home Tuitions
Cherian Thomas, previously the Senior Vice President for International Business, also left his position to join Impending, a software and mobile gaming firm.
It is noteworthy that BYJU’S rapid growth during the pandemic has been met with various challenges.
Their delay in filing financial statements for FY22 and FY23 resulted in Deloitte stepping down as their auditor earlier this year.
Furthermore, the Edtech leader is currently in conflict with lenders over a $1.2-billion loan and has an ongoing dispute with US-based investment fund Davidson Kempner. On the other hand, India’s 111th Unicorn, Zepto, Shines in India’s Startup World amidst challenges for others