why did the British East India company need money why did the system of giving the revenue collection rights to the highest bidder fail

The following points may help you:

a. The east India company , which was in financial crisis in 1773, needed money to retain its control and monopoly over India.

b. The company also comprised of many influential and powerful Englishmen , who exercised great influnece over the Britihs government and Parliament.

c. The company thus, in order to meet its finances, and maintain monopoly over India, sought loan.