Byju’s delays March salary payment due to funds being stuck, aiming to pay by April 8th

Embattled edtech company Byju’s has once again delayed salaries for thousands of its employees for the second successive month, citing restrictions on funds raised through a rights issue. In an email to employees, Byju’s management expressed regret for the delay and mentioned their faith in the Indian judicial system for a favorable outcome.

The company has asked all employees to work from home as it relinquishes office spaces due to financial challenges. Byju’s held an extraordinary general meeting to raise capital via a rights issue, which faced opposition from some investors leading to a legal battle at the National Company Law Tribunal.

Despite the ongoing legal battle, Byju’s assured employees of a parallel line of credit to ensure salary disbursement by April 8. Once the restrictions on fund usage are lifted, the company plans to meet all salary commitments immediately.

Byju’s Co-founder and CEO, Byju Raveendran, appealed to disgruntled investors for collaboration, hoping for a resolution that does not impact the daily lives of employees. The company acknowledged the frustration and helplessness felt by employees due to the situation.