More Trouble For BYJU'S Staff? CEO Byju Raveendran Shares Key Details On Salary Disbursement in Letter to Employees

Byju Raveendran, founder of edtech company Byju's, has conveyed unfortunate news to employees regarding delayed salary payments.
Byju's, Byju Ravindran, Byju's Latest News, Byjus Financial Crises, Byju's Employee Salaries

More Trouble For BYJU'S Staff? CEO Byju Raveendran Shares Key Details On Salary Disbursement in Letter to Employees (Image source: Getty Images)

Byju Raveendran, founder of edtech company Byju's, has conveyed unfortunate news to employees regarding delayed salary payments. He said despite successfully closing a rights issue a month ago, a legal dispute with select investors has led to inaccessibility of the raised funds, hindering salary disbursements. PTI reported.

Rights Issue Success But Legal Hurdles

The rights issue, designed to meet short-term financial needs and clear liabilities, was expected to bring relief. However, Raveendran expressed regret in a letter to staff, outlining the ongoing challenges. The company aimed to process salaries by March 10 but is currently restrained by legal issues, as a few investors have locked the raised funds in a separate account.

Accusations Against Investors

Raveendran accused a small group of investors (4 out of 150+) of preventing fund utilisation for salaries, despite having profited substantially from their investments. He highlighted their callous disregard for the well-being of employees.
Acknowledging the tough situation, Raveendran assured employees that every possible avenue had been explored to honor the commitment to staff. He detailed tireless efforts, legal engagements, and advocacy for employee rights. Despite these endeavors, the company currently faces the heartbreaking reality of being temporarily unable to provide financial support. PTI Reported.
Earlier in the week, the National Company Law Tribunal (NCLT) ordered Byju's to consider extending the closing date of the USD 200 million rights issue. The funds received were mandated to be kept in a separate escrow account pending the matter's disposal, with the next hearing scheduled for April 4.

Corporate Turmoil and Shareholder Disputes In Byju's

Byju's has been embroiled in corporate turmoil, including a shareholder vote to remove Raveendran and his family from the board over alleged mismanagement. The company countered this, calling the voting invalid. The edtech giant faced setbacks such as students returning to physical classes, financial strain post-Aakash acquisition, auditor resignations, lenders initiating bankruptcy proceedings, and a US lawsuit challenging loan terms. PTI Reported.
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