With the National Company Law Tribunal fixing the next hearing of the Byju’s case on 6 June, the employees continue to be uncertain of their future. The good news is that the teachers and employees at the lower grades at the edtech startup have finally received 100 per cent salary for March. The others have been paid at least 50 per cent of their March salary. To make this happen, Raveendran, CEO, Byju’s, had to apparently take a personal loan. It is reported that some staff have yet to receive part of their February salary.
The processing of salaries for February at the Edtech major Byju’s was delayed several times. The last time it was delayed due to the funds raised through the rights issue (special stock sale) being kept in a separate account as per the request of some important investors. The total amounts to about $250-$300 million.
In early March, Raveendran, founder and CEO, Byju’s, had expressed regret in an internal letter to over 20,000 employees, citing challenges in processing salaries due to capital shortages and the current delay despite available funds. A small group of investors, comprising four individuals out of the 150+ investors, had played a role in preventing the utilisation of the raised funds for employee salaries. As a result, the funds were locked in a separate account as directed by investors. The Bengaluru bench of the National Company Law Tribunal (NCLT) has instructed Byju’s to keep the proceeds from the rights issue in a separate account until the resolution of the case with investors. The last hearing at NCLT was on 23 April and the next hearing is on 6 June. Till then, the funds crisis will continue for Byju’s.
