Byju’s founder raises debt to pay employees’ salary

They have opposed the edtech firm’s decision to raise rights issue of $200 million.
Byju’s founder raises debt to pay employees’ salary

BENGALURU: Byju’s founder and CEO Byju Raveendran has secured a private debt to pay the salaries of employees for March. According to sources, teachers and employees at the lower end of the pyramid have received full March month salary, but others have received over 50% of salaries, and that Raveendran has raised about `30 crore for this purpose.

This comes ahead of the April 23 hearing at the National Company Law Tribunal (NCLT) filed by four investors of the company. Four investors including Prosus NV and General Atlantic had filed an oppression and mismanagement plea at the NCLT. They have opposed the edtech firm’s decision to raise rights issue of $200 million.

The fund raised so far is in an escrow account as per the NCLT order. Last week, the edtech firm announced that about 55% of its shareholders have approved the vote for an increase in authorised share capital.

Apart from March salaries, many employees are yet to receive February salaries as only part payments have been done so far and the management has informed that only if the rights issue gets cleared, they will receive the remaining amount.

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