BENGALURU: Edtech firm Byju’s, which has been grappling with multiple legal cases, has once again delayed paying salaries to its employees. Founder and CEO Byju Raveendran said in an email to employees, “When we regain control, your salaries will be paid promptly, even if that means raising more personal debt. This isn't just a promise - it's a commitment. We have investors ready to back our turnaround story. They see what I see - enormous potential and inevitable growth.”
Explaining to his employees the current struggles that the company is facing, Raveendran said, “Your salary for July 2024 has not been credited yet. I understand how crucial this is, and I want to explain the situation clearly. Our company recently faced a serious challenge that pushed us into insolvency due to a dispute with the BCCI. We settled the case and were on the brink of regaining control of our finances after the NCLAT ruled in our favour.”
“However, the foreign distress lenders have been litigating against us and appealed this ruling in the Hon'ble Supreme Court. The apex court has issued a temporary stay on the NCLAT's decision, which means the control of the company's accounts has not yet been restored to us. Hence, founders are unable to infuse more capital to pay salaries like we have always done over the past many months.”
Raveendran also said that over the past 29 months, TLPL's (Think & Learn Pvt Ltd, Byju’s parent) only source of capital was the founders. The founders together have infused approximately Rs 7,500 crore in the company for various operational needs.
Out of the Rs 3,976 crore disbursed as salaries to the team over the past two years, Rs 1600 crore was infused by Riju Raveendran (Byju’s brother) personally.
Talking about claims made by US lenders that the money Riju is providing to the BCCI (Rs 158 crore settlement) is ‘tainted’, Raveendran said, “Riju, has taken full financial responsibility for settling INR 158 crores with the BCCI. The funds used to discharge this obligation were sourced entirely from his finances, which were accumulated through the sale of his shares in BYJU'S between May 2015 and January 2022. These sales have been thoroughly documented, and the relevant income taxes have been paid as the law requires.” He said the money is not connected to the Term Loan B (TLB) raised in the US.
I’m transparent about my whereabouts, says Raveendran
Referring to the allegations that he is a ‘fugitive’, Raveendran said, “As the leader of a company with a significant international presence, my work often demands that I be in different parts of the world, building relationships, securing partnerships, and driving our vision forward. I also had to be in the US for months at a stretch when my father was fighting a critical health condition. I have travelled to India 10 times since March 2023 and spent 77 days in total, while Riju was in India just two weeks ago to pledge our last personal asset. I have always been transparent about my whereabouts and activities, and there has never been an attempt to avoid legal or financial obligations.”
He also said that the company is on the verge of reversing the negative business cycle that began two years ago, showing clear signs of recovery. “We are ready to launch BYJU'S 3.0, an AI-driven, hyper-personalized educational platform low on cost and high on impact. I want to remind all of you that we are still the largest edtech platform globally with 150 million students using our products and services every month. Despite the recent challenges faced, this organic user base has doubled over the last two years. Indeed, BYJU'S is transitioning to a sustainable business model that serves millions of students across India and employs thousands of people,” he explained in the email.
