Byju’s, the embattled edtech company, recently informed its employees about delays in their July salaries due to ongoing legal issues. The company’s financial situation is currently complicated by a Supreme Court stay on a bankruptcy case, which has frozen its access to funds.
In an internal communication, the CEO explained that this legal hurdle has directly impacted the company’s ability to process salary payments. However, he assured employees that their salaries would be paid soon, even if it meant raising more personal debt.
Byju’s has been facing financial difficulties, exacerbated by a recent dispute with the Board of Control for Cricket in India (BCCI), which was initially resolved. However, it’s now stalled due to further litigation from a US-based lender, Glas Trust. This ongoing legal battle has delayed the settlement and further strained the company’s financial resources.
The CEO also addressed rumours suggesting that he is avoiding legal responsibilities, emphasising that his travels are for business and family matters, including his father’s health. He reiterated that he has always been transparent about his whereabouts and has not attempted to evade any obligations.
The financial strain on Byju’s has been significant, with the founders contributing over Rs 7,500 crore to keep the company operational. His brother, Riju Raveendran, has personally provided Rs 1,600 crore to cover salaries over the past two years and recently settled Rs 158 crore with BCCI from his own funds. The company’s Term Loan B, raised in the US., remains restricted and cannot be used in India.
Despite these challenges, Byju’s is preparing to launch Byju’s 3.0, an AI-driven educational platform, which the CEO believes will be a turning point for the company. He reaffirmed his commitment to the company and its mission to serve teachers and students.
