BENGALURU: For three months now, cash-strapped edtech firm Byju’s has been struggling to pay salaries to its employees.
The company has once again decided to hold off employees’ salaries and said it will ensure that staff receive their March salary by April 8. Already, about 75% of employees are awaiting February month’s full payment.
It made full payment to only 25% of employees and for the rest, it managed to pay only 60% of the salary. “We regret to inform you that there will again be a delay in disbursement of salaries. A few misguided foreign investors in Byju’s have obtained an interim order in late February, which has restricted usage of the funds raised via successful rights issue. This irresponsible action by 4 foreign investors has compelled us to temporarily hold the disbursal of salaries until the restriction is lifted,” the company’s management said in an email to employees.
Byju’s said they have full faith in Indian judicial system and that it is eagerly awaiting a favourable outcome that will enable the edtech firm to utilise the funds raised through the rights issue and alleviate the financial challenges that it is currently facing. “We have the necessary vote to increase the authorised capital for the rights issue. It means that once the restrictions on using the raised funds are lifted, we can meet all our salary commitments immediately,” it added.