Embattled edtech company Byju’s, amidst financial constraints, announced the partial disbursement of pending salaries for all its employees for February. The company assured employees that the remaining balance would be paid once it gains access to funds from the recently concluded rights issue.
Byju’s management confirmed the partial processing of February salaries late Friday, utilising available capital outside the rights issue. They stated their intention to settle the outstanding balance promptly upon the availability of funds from the rights issue. The expected reflection of these payments in employee accounts was delayed to March 11 due to the coinciding of a second Saturday and a long weekend.
Founder's assurance and partial payment status
Earlier, founder Byju Raveendran had pledged salary disbursement by March 10, attributing the delay to funds being locked in a separate account amid an ongoing dispute with investors. Reports suggest that salaries have been disbursed in full for approximately 25 percent of employees in lower salary brackets, with partial payments made for the remaining 75 percent.
The company assured employees of temporary funding arrangements to mitigate disruptions in their daily lives. Despite challenges, Byju’s reiterated its dedication to serving students and ensuring smooth operational continuity.
The National Company Law Tribunal (NCLT), in its February 27 order, instructed Byju’s to maintain funds from the rights issue in an escrow account until the resolution of an oppression and mismanagement plea filed by four investors.
Navigating through challenges
Byju’s has grappled with significant challenges in recent times, including layoffs, dwindling venture capital funding, and reduced demand for online learning services. Departures of investor board members have further compounded its woes, prompting strategic initiatives such as additional capital infusion, advisory council formation, and leadership restructuring.
Furthermore, the company is exploring asset divestments as part of its efforts to address financial strain.
Byju’s continues to navigate through turbulent waters, implementing various strategies to stabilise its operations and reaffirm its commitment to its stakeholders amidst ongoing challenges.
