BYJU’S DISBURSES PARTIAL MARCH SALARIES

Embattled edtech major Byju’s, has disbursed partial salaries to employees for March, according to sources familiar with the matter. 

“On April 20, teachers and lower-grade staff received their full dues for the month of March. Meanwhile, other employees on a higher pay scale have been paid at least 50% of their March salaries,” a source close to the company revealed.

“Raveendran has taken on further personal debt to facilitate the disbursement. He believes that the teachers and employees at lower levels are the backbone of the company, and that their salaries must be prioritised,” the source added. However, salaries for the second half of February are still due, the sources confirmed. 

Byju’s, which has downsized its workforce by over 10,000 employees in the last two years, currently faces a monthly payroll liability of approximately Rs 40-50 crore, according to the sources.

These developments precede the April 23 hearing at the National Company Law Tribunal (NCLT) regarding an oppression and mismanagement plea filed by four prominent investors – Prosus NV, Peak XV Partners, General Atlantic, and Sofina SA.

These investors opposed Byju’s decision to raise $200 million at a post-money valuation of just $225 million – a sharp 99% decline from the company’s last funding round valuation of $22 billion.

Meanwhile, funds from the recently concluded rights issue remain held in an escrow account per NCLT’s orders, pending resolution of the aforementioned case.

Byju’s had partially cleared February salary dues in mid-March, promising to settle the remaining balance once it gains access to the rights issue funds.

According to the sources, founder-CEO Byju Raveendran has not communicated internally with employees since assuming leadership from outgoing India CEO Arjun Mohan last week. He is said to be prioritising arranging alternate financial channels to ensure that salaries are cleared, along with unpaid TDS dues, and full and final settlements of ex-employees. 

2024-04-23T04:30:41Z dg43tfdfdgfd