“Byju’s CEO Works Hard to Pay January Salaries Amid Company Crisis”
In the midst of a deepening financial crisis at ed-tech giant Byju’s, founder and CEO Byju Raveendran has sent a letter to the company’s employees, revealing the challenges faced in ensuring the payment of January salaries. The letter comes as Byju’s grapples with lawsuits from lenders and struggles to meet loan and interest deadlines.
In the midst of a deepening financial crisis at ed-tech giant Byju’s, founder and CEO Byju Raveendran has sent a letter to the company’s employees, revealing the challenges faced in ensuring the payment of January salaries. The letter comes as Byju’s grapples with lawsuits from lenders and struggles to meet loan and interest deadlines.
Byju Raveendran acknowledged the extreme difficulties faced by the company, stating that they had to “move mountains” to make payroll for January. Despite reports suggesting a delay in salary payments, Raveendran reassured employees that they have now received their rightful compensation.
In the letter addressed to the team, Raveendran expressed gratitude for the employees’ patience and understanding during these challenging times. He said, “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.”
The announcement comes just days after media reports hinted at the delay in salary payments, with Byju’s monthly payroll expenses reaching close to ₹70 crore, according to Moneycontrol. The financial strain on the company has been exacerbated by an ongoing lawsuit from overseas lenders and an insolvency petition filed against Byju’s Alpha unit in a US court.
Byju’s is currently seeking $200 million by selling new stock to shareholders at a reduced valuation of $250 million, a significant drop from its peak valuation of $22 billion in 2022. The financial downturn was triggered by multiple raids conducted by the Enforcement Directorate (ED) across Byju’s office premises, alleging violations of the Foreign Exchange Management Act (FEMA). This led to the resignation of key leaders from the company.
Despite the challenges, Raveendran emphasized the collective resilience of the team, stating, “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.”
The situation remains fluid as Byju’s navigates its financial troubles, with employees cautiously monitoring developments as the company works towards stabilizing its operations in the face of mounting challenges.
Sources By Agencies
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