Byju's faces salary delays, blames ‘misguided foreign investors’

Indian ed-tech company, Byju's has once again informed its employees about a delay in salary disbursement.

Byju's management attributed the delay to an interim order obtained by "a few misguided foreign investors" in late February.

This order has reportedly restricted the company from using the funds raised through a successful rights issue, as per a PTI report.

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"We are writing to you today with a heavy heart but with a message of hope and reassurance. 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," was what the management said in its recent communication.

They further added that this "irresponsible action by the four foreign investors" has forced them to temporarily withhold the disbursal of salaries until the restriction is lifted.

Byju’s remains optimistic, expressing confidence in the Indian judicial system and predicting a positive outcome that will enable them to use the money raised through the rights issue to address their financial challenges.

To mitigate the impact on its employees, Byju's assured its staff that they are pursuing a parallel line of credit to ensure that salaries are disbursed by April 8.

"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 conveyed.

Although the challenges persist, Byju's management shared a positive update with its employees, mentioning that they have the necessary votes to increase the authorised capital for the rights issue.

The company also noted the efforts made by its founder, Byju Raveendran, in appealing to the disgruntled investors in a collaborative spirit, expressing hope that litigating investors would adopt a reasonable approach.

Additionally, to address to the employee’s frustration, Byju’s management said, "We understand the feelings of helplessness that may arise due to these circumstances, and we share your frustration. However, we urge you to hold onto hope and remain resilient."

(Inputs from PTI)