Edtech platform Byju’s has partially cleared the March salaries of its employees, as per a report by Moneycontrol. This is weeks after the company announced that it would disburse March salaries and complete the same by April 18.
The development comes at a time when the National Company Law Tribunal (NCLT) is yet to hear a case between Byju’s and its investors on April 23.
Edtech platform Byju’s has partially cleared the March salaries of its employees, as per a report by Moneycontrol. This is weeks after the company announced that it would disburse March salaries and complete the same by April 18.
The management had been holding March salaries for a while. "We are writing to you today with a heavy heart but with a message of hope and reassurance. We regret to inform you that there will again be a delay in the disbursement of salaries,” said Byju’s in an email to its employees on April 1, as per a Moneycontrol report.
The development comes at a time when the National Company Law Tribunal (NCLT) is yet to hear a case between Byju’s and its disgruntled investors on April 23. A group of four investors—Prosus NV, Peak XV Partners, General Atlantic, and Sofina SA—filed a case against the edtech platform, where they opposed the decision of Byju’s to raise $200 million at a post-money valuation of $225 million, as per the report. This was 99 percent lower than the last funding valuation of Byju’s.
The investors are also seeking the removal of the founder and CEO, Byju Raveendran. To make the payment for March, Raveendran has taken one more personal loan, according to the report. In December 2023, Raveendran kept his house as collateral to pay salaries to its employees.
Regarding the March salary, the source told MoneyControl, “The company has made salary payments in the range of 100 to 50 percent to all employees. Teachers and lower-salary staff have been paid in full, and the rest have received at least 50 percent of their dues for March.”
With Byju’s not being able to take control of its finances, layoffs are increasing. In the latest round of layoffs, 100 to 500 people were affected. The company is laying off its employees via phone calls and without any notice period.