New Delhi

Indian Edtech firm, Byju’s has recently encountered challenges in salary disbursement for its employees due to financial constraints stemming from a legal battle with some of its investors.

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According to sources within the company, while 25 per cent of employees in the lower pay scale have received their full salaries, others have been subject to partial payments.

Byju’s management reassured employees, stating, “We processed your salary for February late at night on Friday. However, due to yesterday being a second Saturday and on account of the long weekend, we expect the salaries to be reflected in your accounts on Monday. We sincerely apologise for any inconvenience caused by this delay and are grateful for your understanding.”

The financial constraints faced by Byju’s have been attributed to the blocking of funds by a group of investors, leading to a temporary unavailability of resources for business operations.

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This legal dispute has its roots in an oppression and mismanagement suit filed against Byju’s management before the National Company Law Tribunal (NCLT), Bengaluru Bench.

According to sources, the lawsuit seeks the removal of founders, including CEO Byju Raveendran, and the appointment of a new board.

Furthermore, it aims to declare the recently concluded rights issue as void.

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Prominent investors including Prosus, General Atlantic, Sofina, and Peak XV, along with other shareholders including Tiger and Owl Ventures, are among the petitioners.

The National Company Law Tribunal (NCLT), Bengaluru Bench, has intervened in the matter, requesting Byju’s to consider extending the closing date of its USD 200 million rights issue.

However, the management hinted at reluctance to comply, despite facing technicalities preventing the issue's closure.

An interim order from the NCLT has instructed Byju’s to maintain the funds received through the rights issue in a separate escrow account until the matter is resolved. The next hearing is scheduled for April 4.

(With inputs from PTI)