Byju’s 20,000 employees experience salary delays; CEO points finger at investors

New Delhi, March 2 (IANS) – Byju’s, the popular Edtech major, has faced challenges in processing the salaries of its employees for February. The founder and CEO, Byju Raveendran, revealed that funds from a recent rights issue are locked in a separate account, delaying salary payments for over 20,000 employees.

Raveendran explained in a letter to staff that despite successfully closing a rights issue of $250-$300 million, the company is unable to process salaries due to a few key investors. These investors have insisted on keeping the funds in a separate account, preventing Byju’s from utilizing the raised amount for salary disbursement.

The situation has been further complicated by a direction from the Bengaluru bench of National Company Law Tribunal (NCLT), which has mandated that the proceeds from the rights issue must remain in a separate account until the case with investors is resolved. This directive has added to the delays in salary payments for employees.

Raveendran expressed regret over the inability to provide financial support to employees and assured them that efforts are being made to release the funds for salary payments by March 10th. Despite the challenges faced by Byju’s, the company is working towards resolving the situation as soon as possible to ensure employees receive their hard-earned salaries in a timely manner.