Byju’s also aimed to reassure its staff that it is utilising a parallel line of credit to guarantee that employees receive their salaries by April 8.
New Delhi: Byju’s, the embattled edtech company, has notified its employees of yet another delay in salary disbursement. In a communication addressed to its workforce, Byju’s management attributed the delay to an interim order obtained by “a few misguided foreign investors” in late February. This order purportedly restricted the utilisation of funds raised through the company’s successful rights issue.
Byju’s also sought to assure its employees that it is actively pursuing alternative avenues, including a parallel line of credit, to ensure timely salary payments. The management aims to facilitate salary disbursement by April 8.
The announcement comes amid ongoing challenges for Byju’s, which has faced scrutiny and legal hurdles in recent months. Despite these obstacles, the company remains committed to addressing employee concerns and maintaining operational stability.
“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. A few misguided foreign investors in BYJU’S have obtained an interim order in late February which has restricted usage of the funds raised through the successful rights issue,” the management wrote.
The note further said: “This irresponsible action by the four foreign investors has compelled us to temporarily hold the disbursal of salaries until the restriction is lifted.”
Byju’s expressed confidence in the Indian judicial system and looks forward to a favourable resolution that would allow the company to utilise the funds generated from the rights issue. This, in turn, would help alleviate the financial difficulties it currently confronts.
“As you know, the founders have put everything back into the company, and regardless of the court verdict, we are following a parallel line of credit to ensure that you receive your salary by 8th of April,” the management said.
On a positive note, the management said, it has 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. As you might have read, our founder, Byju Raveendran, has once again appealed to disgruntled investors in a collaborative spirit, and we are hoping that litigating investors would have a reasonable spirit in not frustrating our daily lives any longer,” it said.
The company said it understood the feelings of helplessness that may arise due to these circumstances, and added “we share your frustration”.
“However, we urge you to hold onto hope and remain resilient. BYJU’S has overcome challenges recently, and we firmly believe that together, we will overcome this last hurdle. We are confident that justice will prevail and the financial constraints will be resolved soon,” the management wrote thanking employees for their patience, understanding, and continued dedication during the difficult time.
(With inputs from PTI)
