Byju’s, a prominent player in the edtech sector, has reportedly disbursed partial salaries to its employees for the month of March, insiders have disclosed.
Sources familiar with the matter revealed that on April 20th, teachers and staff in lower positions received their full March salaries. However, employees on higher pay scales have only received around 50% of their dues for the same period.
Allegedly, Byju’s founder, Byju Raveendran, has taken on additional personal debt to facilitate these payments. Emphasizing the importance of supporting the company's frontline workers, Raveendran purportedly prioritized their salaries. Despite this effort, salaries for the latter half of February remain outstanding, as confirmed by the sources.
With a reported monthly payroll liability ranging between Rs 40-50 crore, Byju’s continues to grapple with financial challenges. Over the past two years, the company has downsized its workforce by more than 10,000 employees.
These developments unfold ahead of an April 23rd hearing at the National Company Law Tribunal (NCLT) concerning allegations of oppression and mismanagement filed by prominent investors including Prosus NV, Peak XV Partners, General Atlantic, and Sofina SA.
The investors contest Byju’s decision to raise $200 million at a post-money valuation of just $225 million, marking a drastic 99% decline from its previous funding round valuation of $22 billion.
Furthermore, funds from a recently concluded rights issue remain held in an escrow account per NCLT’s orders, pending resolution of the ongoing legal dispute.
Byju’s had previously partially settled February salary dues in mid-March, with a commitment to clear the remaining balance once access to the rights issue funds was secured.
Despite assuming leadership from outgoing India CEO Arjun Mohan last week, founder-CEO Byju Raveendran reportedly has not communicated internally with employees. Instead, he is said to be focused on securing alternative financial channels to ensure salary payments, settle unpaid TDS dues, and address full and final settlements for ex-employees.