Byju Raveendran, founder of edtech giant Byju’s, in a letter to employees on February 4 informed that their salaries for January have been credited earlier than promised. As the company struggles with a cash crunch and legal battles, Byju’s top boss shared with employees he has been moving mountains for months to make payroll, and that this time, the struggle was even bigger.
“I am not implying that these challenges have not shaken me. Entrepreneurs are supposed to be stoic and steadfast. They indeed have an irrational capacity to suffer and the ability to eventually prevail over all that pain,” he wrote in the letter to Byju’s employees.
According to a Moneycontrol report, the company's monthly payroll expenses are close to ₹70 crore. The development comes two days after sources had indicated to Moneycontrol that January salaries have been delayed amid a worsening liquidity crisis.
Since late 2022, the edtech giant has let go of more than 2,500 employees. The most recent job cuts came in June this year when it laid off 500–1000 employees. The company's headcount has come down from 50,000 in December 2022 to 37,000 at present.
Meanwhile, on February 2, Raveendran had written to employees sharing that the company is less than a quarter away from achieving operational profitability. "Yes, we still have old liabilities to settle and short-term growth to secure. The success of this rights issue will ensure that we adequately address these challenges," he had said.
The developments come at a time when Byju has floated rights issues to raise $200 million at over 99% lower valuation compared to its peak valuation of $22 billion in March 2022.
Read Byju Raveendran’s full letter to employees here
Dear Team Members,
Over the last two days, I have been overwhelmed by the countless messages and emails that have reignited the fire in my soul. Nothing matters to me more than your belief in my ability to deliver. I fight for you. You fight alongside me. This is the sacred relationship that has helped me weather every storm.
I know you were told that you will get your salaries by Monday. Many of you wrote to me that you wouldn’t mind waiting even more because you know what I am going through. But you did not have to wait even till Monday. I have been moving mountains for months to make payroll, and this time, the struggle was even bigger to ensure that you receive what you rightfully deserve.
Everybody has made sacrifices, everybody has grappled with decisions they never desired to make, and everybody is a little bit weary in this battle, but nobody has chosen to give up. This is because we are proud of what we have built. When we have self-respect, we have enough.
I am not implying that these challenges have not shaken me. Entrepreneurs are supposed to be stoic and steadfast. They indeed have an irrational capacity to suffer and the ability to eventually prevail over all that pain. But they, too, laugh, cry, work, weep and bleed the same way as any other person navigating the joys and complexities of life. They, too, hope and worry about what tomorrow might bring. They, too, hug their kids when they get scared.
Two days ago, I saw my father, the most resilient person I know, breaking down after seeing the news. My father is my role model; I am a teacher because he once was; I am an entrepreneur because he always taught me to follow my dreams. That he, my rock-solid support, was moved to tears made me feel a sudden pain.
But then, your support and love came flooding through, and I realised it is our vision and mission that makes me fight against all odds. It gave me renewed strength to fight for you, fight with you. To be clear, this fight is only against a few vested interests who were trying to sabotage the company by impeding the rights issue. Nothing has galvanized our team more than their effort to destabilize our company. Hundreds of BYJUites, including ex- BYJUites have written to me, expressing their desire to do whatever it takes to protect the dream that we all saw together.
Every entrepreneur knows that only what is lasting is worth pursuing. Money is momentary. I have never cared about it. Glory is fleeting. I have never pursued it. Happiness is temporary. I have never had time to grab it. What will last forever is the deep bond that we share as a family.
The world reads regularly about my daily struggles. But I will someday tell you about my monthly miracles. Over time, I believe that a hidden miracle accompanies every struggle; one has to keep moving forward.
This month, you are my miracle.
During good times and bad, it comes down to people. It always comes down to people.
Thank you for everything.
Byju Raveendran
