Amidst an ongoing dispute with investors, Byju Raveendran, the Founder and CEO of Byju’s, addressed concerns regarding salary delays for the company’s employees. Raveendran revealed that the edtech giant is facing challenges in processing salaries due to funds raised from a recent rights issue being locked in a separate account, as instructed by the National Company Law Tribunal (NCLT).
In a letter dated March 2, Raveendran expressed regret over the salary delay, attributing it to a lack of capital and the funds being locked at the behest of a few investors involved in the dispute. Despite successfully closing the rights issue, Byju’s is unable to access the raised funds to meet its short-term financial obligations, including salary payments to its workforce of 15,000 employees.
The NCLT’s order on February 27 directed Byju’s to place the funds from the rights issue in an escrow account, pending resolution of the dispute with investors. This action, part of an oppression and mismanagement petition filed against Byju’s by four investors, has further complicated the company’s financial operations.
Raveendran assured employees of his relentless efforts to resolve the situation and secure their rightful payments. He emphasized the company’s commitment to ensuring salary disbursements by March 10, pending legal clearance. Despite the challenges, Raveendran conveyed gratitude for the employees’ resilience and understanding during this tumultuous period.
The dispute between Byju’s and its investors centers on a $200 million rights issue, with allegations of oppression and mismanagement prompting legal proceedings. The NCLT has called for responses from both parties and issued notices to relevant government authorities to address the matter.
As Byju’s navigates through this challenging period, Raveendran remains determined to uphold the company’s values and prioritize the well-being of its employees. With ongoing efforts to seek resolution and restore stability, Byju’s aims to overcome obstacles and emerge stronger from this ordeal.
