“BYJU’s Founder Overcomes Financial Struggles, Ensures Timely Salaries Amidst Company Crisis”
In a recent email to BYJU’s employees, founder Byju Raveendran expressed gratitude and acknowledged the challenges faced by the ed-tech giant, assuring that January salaries have been disbursed despite earlier indications of a potential delay. The email revealed the financial struggles the company has been grappling with, including lawsuits from lenders and allegations of Foreign Exchange Management Act (FEMA) violations.
In a recent email to BYJU’s employees, founder Byju Raveendran expressed gratitude and acknowledged the challenges faced by the ed-tech giant, assuring that January salaries have been disbursed despite earlier indications of a potential delay. The email revealed the financial struggles the company has been grappling with, including lawsuits from lenders and allegations of Foreign Exchange Management Act (FEMA) violations.
Founded in 2011 and once valued at $22 billion, BYJU’s has been navigating a complex financial crisis. The company’s recent challenges include lawsuits from lenders and FEMA violation allegations, leading to a significant drop in its latest valuation to $250 million.
Mr. Raveendran’s email to employees conveyed the considerable effort taken to ensure timely payroll processing. The founder, who thanked the employees for their resilience and commitment, noted that he had to “move mountains” to meet the payroll obligations, emphasizing the dedication of the workforce despite the financial hurdles.
While employees were initially informed that salary payments might be delayed until Monday, Mr. Raveendran expressed gratitude that they did not have to wait beyond the promised time. BYJU’s reportedly spends around ₹70 crore per month on payroll expenses, according to Moneycontrol.
In the email, Mr. Raveendran acknowledged the collective sacrifices made by the workforce and the challenging decisions faced during the ongoing crisis. Despite the difficulties, he praised the team for not giving up and emphasized the pride they should feel in what they have collectively built.
BYJU’s recent financial struggles have resulted in missed payment deadlines, prompting lawsuits from overseas lenders. The company’s Alpha unit declared bankruptcy after lenders filed an insolvency petition in a US court. Additionally, it is facing Enforcement Directorate (ED) raids over FEMA violation allegations, leading to resignations within the company.
The company’s valuation, which peaked at $22 billion in 2022, has now dropped to $250 million, and BYJU’s is reportedly seeking $200 million in exchange for new stocks. Earlier this month, the ed-tech giant resisted a resolution by shareholders to oust its founders from the board, asserting that investors lacked the voting rights to effect changes in the top leadership.
Sources By Agencies
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