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Edtech giant Byju’s has made headlines as its founder and CEO, Raveendran, personally took on debt to ensure partial salary payments for March ahead of the National Company Law Tribunal (NCLT) hearing scheduled for April 23rd. This move comes amidst a backdrop of financial challenges and legal proceedings involving Byju’s.
According to sources, Byju’s has disbursed partial salaries for March, with teachers and lower-level staff receiving their full salaries while others have received varying percentages, ranging from 100% to 50%. This step reflects the company’s prioritization of payroll for essential personnel.
The decision to raise personal debt by Raveendran follows the withholding of funds from a recently conducted rights issue, as ordered by the NCLT pending the resolution of an oppression and mismanagement plea filed by four major investors of Byju’s. The investors, including Peak XV Partners, Prosus NV, General Atlantic, and Sofina SA, contested Byju’s decision to raise USD 200 million through the rights issue.
Byju’s has faced financial strains exacerbated by challenges in online learning demand and venture capital funding slowdowns, leading to layoffs of over 10,000 employees in the past year. The company’s efforts to stabilize include partial salary disbursements and plans to divest assets like Great Learning and Epic, as well as setting up an advisory council with industry veterans.
While the financial landscape remains challenging, Byju’s is striving to navigate these complexities and ensure the continuity of operations and employee welfare amid legal and financial constraints.
Sources By Agencies
