“Byju’s May Miss Payday Amid Investor Tensions: Report”
Byju’s, the prominent edtech firm, is facing a critical situation as it struggles to meet the salary deadline for its more than 20,000 employees amid a rift with investors. Sources indicate that the company may not be able to fulfill its obligation to pay February salaries on time, as funds raised through its rights issue remain inaccessible.
Byju’s, the prominent edtech firm, is facing a critical situation as it struggles to meet the salary deadline for its more than 20,000 employees amid a rift with investors. Sources indicate that the company may not be able to fulfill its obligation to pay February salaries on time, as funds raised through its rights issue remain inaccessible.
According to a report by Business Today, Byju’s is unlikely to credit salaries as planned, due to the deadlock over the utilization of funds from the rights issue. CEO Byju Raveendran had previously assured employees that efforts were being made to ensure timely salary payments by March 10. However, the current situation suggests otherwise.
In an email sent to employees on March 2, Raveendran expressed regret over the inability to process salaries and blamed a group of investors for obstructing the company’s access to raised funds. He highlighted that despite efforts to release the funds, a resolution by a minority of investors has resulted in the money being held in a separate account, inaccessible for salary payments.
Raveendran’s email also criticized the investors for their apparent indifference to the financial well-being of employees, despite some of them having profited significantly from their investment in Byju’s. He revealed that despite facing capital challenges last month, the company is now experiencing delays in salary payments, despite having access to funds.
This development comes amidst internal turmoil within Byju’s, as primary stakeholders moved to remove Raveendran from his positions as CEO and board member, citing the company’s recent performance downturn. Byju’s has witnessed a substantial decline, with its valuation plummeting by approximately 90% over the past year.
The situation underscores the challenges faced by Byju’s in navigating internal conflicts and financial constraints while maintaining its commitment to its workforce. It also highlights the complexities of managing investor relations in a volatile business environment. As the company grapples with these issues, employees await further updates on their salary payments and the resolution of the ongoing dispute with investors.
Sources By Agencies
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