BENGALURU: Edtech firm Byju’s has once again delayed paying salaries to employees. It said the $200 million rights issue is likely to take at least 25 more days to complete.
“The success of the rights issue will ensure that we have sufficient operational capital to fund our short-term needs from March onwards,” the management said in its letter to employees. The management also said that January salaries will be paid in a phased manner and will be completed by Monday.
In December 2023, Byju’s founder Byju Raveendran pledged his home to pay salaries. The letter said there is a slight delay in salary disbursements due to artificially induced crises by these select investors. The edtech firm’s key shareholders including Prosus have called an extraordinary general meeting (EGM) for removal of founder and reconstitution of the board. They collectively hold about 30% of the stake. They are concerned about the future stability of the company under the current leadership with current constitution of the board.
Byju’s on Friday said, “Under these circumstances, we would emphasise that the shareholder’s agreement doesn’t give them the right to vote on CEO or management change.”
“Raveendran and his leadership team have kept Think & Learn Private Limited (TLPL), parent of Byju’s, afloat after three investors left the company’s board last year. The company, along with advisory board consisting of Rajneesh Kumar and Mohandas Pai, constituted a working group with the investors to find a constructive way forward,” the company said.