Byju's delays March salary as funds remain stuck, hopes to pay by 8th April
Embattled edtech company Byju’s has once again delayed salaries for thousands of its employees for the second successive month, saying that a few “misguided foreign investors” obtained an interim order in late February which restricted usage of the funds raised through the rights issue.
In an email to the employees on Monday, which has been accessed by IANS, the company’s management said, “We regret to inform you that there will again be a delay in the disbursement of salaries."
“We have full faith in the Indian judicial system and we eagerly await a favourable outcome that will enable us to utilise the funds raised through the rights issue and alleviate the financial challenges that we are currently facing,” the company said.
The edtech company has mandated all its employees to work from home as it gives up office spaces across the country amid a severe cash crunch, barring those working at its offline tuition centres.
Last Friday, Byju’s held its extraordinary general meeting (EGM) called by the board of directors to raise capital via the rights issue. Some key investors have gone to the National Company Law Tribunal (NCLT) against the rights issue.
The letter to the staff further said that regardless of the court verdict, “we are following a parallel line of credit to ensure that you receive your salary by 8th of April”.
“On a positive note, we have the necessary vote to increase the authorised capital for the rights issue. It means that once the restrictions on using the raised funds are lifted, we can meet all our salary commitments immediately,” it said.
The company’s Co-founder and CEO, Byju Raveendran, has appealed to the "disgruntled investors in a collaborative spirit".
“We are hoping that litigating investors would have a reasonable spirit in not frustrating our daily lives any longer. We understand the feelings of helplessness that may arise due to these circumstances, and we share your frustration,” the company told its employees.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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