Byju’s delays March salaries, blames 'few misguided foreign investors'. Here's what the company told employees
Byju's blamed ‘foreign investors’ and said “few misguided foreign investors in Byju's have obtained interim order in February which restricted usage of funds."
Byju's said that it will delay March salaries to its employees making it the third straight month when the edtech company struggled with disbursements. The company blamed 'foreign investors' for the financial woes, in an email to employees as it said that “a few misguided foreign investors in Byju's have obtained an interim order in late February which has restricted usage of the funds raised through the successful rights issue”. The company is following a parallel line of credit to ensure disbursal of salaries by 8 April, the email said as per Mint.
Read more: Now you can use ChatGPT without an account: ‘Anyone curious should…’
What Byju's email said to employees on salaries?
“We are writing to you today with a heavy heart but with a message of hope and reassurance. We regret to inform you that there will again be a delay in the disbursement of salaries…This irresponsible action by the 4 foreign investors has compelled us to temporarily hold the disbursal of salaries until the restriction is lifted," it said, adding, “We have full faith in the Indian judicial system and we eagerly await a favourable outcome that will enable us to utilise the funds raised through the rights issue and alleviate the financial challenges that we are currently facing."
Read more: Elon Musk says there's some chance AI will end humanity: ‘It is like raising a child’
Byju's salary woes in January and February
Byju’s has been struggling to pay salaries on time since January this year. In February, Byju Raveendran said in an email to employees, “I have been moving mountains for months to make payroll, and this time, the struggle was even bigger to ensure that you receive what you rightfully deserve." The company has reportedly paid only a portion of February salaries and said that it will 'pay the balance once the rights issue funds are available'.
Byju's vacates offices across country
Read more: Sebi chief Madhabi Puri Buch says her IIM-A days were like ‘a pressure cooker’: ‘Felt locked’
Yhis comes after the company vacated its offices across the country except its headquarters at IBC Knowledge Park in Bengaluru. The move might be a larger plan to cut costs but the company struck a reassuring note in the email to employees as it said, “We understand the feelings of helplessness that may arise due to these circumstances, and we share your frustration. However, we urge you to hold onto hope and remain resilient. Byju's has overcome challenges recently, and we firmly believe that together, we will overcome this last hurdle."