BENGALURU : Edtech company Byju’s has delayed February salaries for over 20,000 employees, blaming four investors who had approached the National Company Law Tribunal (NCLT) against the edtech firm.
Since the NCLT directed the firm to keep funds received from the rights issue in a separate escrow account, the company said it would not be able to use the funds to pay salaries.
Byju’s said it is ensuring salaries are paid by March 10.
For past two-three months, the firm is struggling to pay salaries, and last month employees were told through $200 million rights issue it would raise money and make payments.
In a letter to employees, founder and CEO Byju Raveendran said the rights issue has been successfully closed and this was supposed to be a happy correspondence.
“After all, we now have funds to meet our short-term needs and clear our liabilities. However, I regret to inform you that we will still be unable to process your salaries. Last month, we faced challenges due to a lack of capital, and now we are experiencing a delay despite having funds,” he said. He also added that four out of over 150 investors have “stooped to a heartless level, ensuring that we are unable to utilize the funds raised to pay your hard-earned salaries”.
“It is an agonising reality that some of these investors have reaped substantial profits – in fact, one of them has made a staggering eight times their initial investment in Byju’s. And yet, their actions convey a callous disregard for our lives and livelihoods,” he said.
