Byju’s Employees Receive Salaries After Two-Month Payment Delay: Company’s Relief Announcement
Edtech giant Byju’s has finally begun disbursing salaries to its employees after a prolonged delay of two months. This development comes in the midst of a financial crisis for the company, compounded by restrictions on utilizing funds from a recent rights issue. In an email communication to its workforce, Byju’s expressed relief, stating, “We are pleased to inform you that salary disbursement has commenced today and will be completed over the next 10 days.”
Edtech giant Byju’s has finally begun disbursing salaries to its employees after a prolonged delay of two months. This development comes in the midst of a financial crisis for the company, compounded by restrictions on utilizing funds from a recent rights issue. In an email communication to its workforce, Byju’s expressed relief, stating, “We are pleased to inform you that salary disbursement has commenced today and will be completed over the next 10 days.”
The crisis at Byju’s stems from a legal directive issued by the National Company Law Tribunal (NCLT), instructing the company to place the proceeds from its rights issue in an escrow account until a plea filed by four investors—Prosus NV, Peak XV Partners, General Atlantic, and Sofina SA—is resolved. These investors have challenged Byju’s decision to raise $200 million at a post-money valuation of $225 million.
Despite the NCLT’s restrictions on accessing the rights issue funds, Byju’s assured its employees of timely payments by arranging an alternative line of credit. The company expressed gratitude for their employees’ patience and understanding during this challenging period.
The delayed salary disbursements reflect the broader financial challenges faced by Byju’s, which has been navigating significant disruptions in its operations. Meanwhile, in a separate development, Byju’s-owned Aakash Educational Services appointed Deepak Mehrotra, former Managing Director of Pearson India, as its new CEO. Byju’s had acquired Aakash in April 2021 through a combination of cash and equity.
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