On March 10, the troubled edtech firm Byju’s reportedly said that it has begun distributing a portion of the outstanding salaries owed to its employees for February. It further said to settle the remaining balance once it gains permission to utilise the funds from its recently concluded rights issue.
According to a report by Moneycontrol, in a letter to employees, the company said, “We processed part salaries for everyone for February late night on Friday to the extent of capital we could get outside the rights issue. The company will pay the balance once the rights issue funds are available, which we expect shortly.”
The company expects that the salaries will appear in employees’ accounts on March 11, attributing the delay to both the occurrence of a second Saturday and the extended weekend.
This development follows the directive of the National Company Law Tribunal (NCLT), issued on February 27, instructing the edtech company to place the funds obtained from the rights issue into an escrow account until the resolution of the oppression and mismanagement allegations filed by four of the company’s investors.
“In the interim, we have made alternate funding arrangements to ensure your daily lives are not disrupted. Our commitment to serving our students with the passion and dedication they deserve remains as strong as ever, and we are taking all necessary measures to continue our operations smoothly,” the company added.
This development follows founder Byju Raveendran’s statement that the company would disburse salaries by March 10. The delay stemmed from the inability to pay employees due to funds raised through a recent rights issue being held in a “separate account” amidst the ongoing dispute with investors.
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