Embattled edtech firm, Byju’s has processed May 2024 salaries for employees across various functions despite ongoing financial challenges. The salaries are expected to be deposited in employees’ bank accounts by the evening of 3 June 2024
The edtech platform has indicated timely payment without delays or deferrals, as reported by Money Control.
In May, Byju’s introduced a new policy for its sales team, tying their salaries to weekly revenue generation. Despite the acute shortage of funds, founder and CEO Byju Raveendran took on more personal debt to ensure the monthly payroll was met.
US-based investors recently requested the National Company Law Tribunal (NCLT) to prevent Byju’s from alienating their shares. The lenders, represented by the US-based non-bank loan agency, Glas Trust Company LLC, informed the tribunal on 29 May that Byju’s was borrowing more money and using its shares as collateral, which they claimed was causing them significant harm. The funds raised from a recent rights issue are currently held in an escrow account as per NCLT orders, pending the case’s resolution. Additionally, at least seven vendors have sued Byju’s at NCLT to recover their dues.
However, Byju’s has yet to fully pay salaries for February and March, having previously delayed and only partially disbursed them. CNBC-TV18 initially reported this issue.
Byju’s has also initiated layoffs via phone calls, dismissing about 100 to 500 employees without placing them on a performance improvement plan (PIP) or requiring them to serve a notice period. Over the past 12 months, Byju’s has laid off more than 10,000 employees as it struggled with reduced venture-capital funding and declining demand for online learning services. During this period, its investor board members have also departed, citing differences with Raveendran.
