[India] Ongoing delays with Byju’s February salaries

In India, multinational educational technology company Byju’s has delayed February salaries for more than 20,000 employees. It attributed the delay to four investors approaching the National Company Law Tribunal (NCLT) with a claim against the firm, MSN reports.

The company said it would not be able to use the funds to pay salaries because the NCLT had directed it to keep funds received from the rights issue in a separate escrow account.

Byju’s stated that it was ensuring salaries were paid by March 10.

For the past two to three months, the firm has been struggling to pay salaries. In February employees were reportedly told that the firm would raise the money to make the payments.

In a letter, Byju’s founder and CEO Byju Raveendran told employees that the rights issue had been successfully closed and stated this was happy news.

“After all, we now have funds to meet our short-term needs and clear our liabilities. However, I regret to inform you that we will still be unable to process your salaries. Last month, we faced challenges due to a lack of capital, and now we are experiencing a delay despite having funds,” he said. He also added that four out of over 150 investors have “stooped to a heartless level, ensuring that we are unable to utilise the funds raised to pay your hard-earned salaries”.

“It is an agonising reality that some of these investors have reaped substantial profits - in fact, one of them has made a staggering eight times their initial investment in Byju’s. And yet, their actions convey a callous disregard for our lives and livelihoods,” he said.

Source: MSN

(Quotes via original reporting)

In India, multinational educational technology company Byju’s has delayed February salaries for more than 20,000 employees. It attributed the delay to four investors approaching the National Company Law Tribunal (NCLT) with a claim against the firm, MSN reports.

The company said it would not be able to use the funds to pay salaries because the NCLT had directed it to keep funds received from the rights issue in a separate escrow account.

Byju’s stated that it was ensuring salaries were paid by March 10.

For the past two to three months, the firm has been struggling to pay salaries. In February employees were reportedly told that the firm would raise the money to make the payments.

In a letter, Byju’s founder and CEO Byju Raveendran told employees that the rights issue had been successfully closed and stated this was happy news.

“After all, we now have funds to meet our short-term needs and clear our liabilities. However, I regret to inform you that we will still be unable to process your salaries. Last month, we faced challenges due to a lack of capital, and now we are experiencing a delay despite having funds,” he said. He also added that four out of over 150 investors have “stooped to a heartless level, ensuring that we are unable to utilise the funds raised to pay your hard-earned salaries”.

“It is an agonising reality that some of these investors have reaped substantial profits - in fact, one of them has made a staggering eight times their initial investment in Byju’s. And yet, their actions convey a callous disregard for our lives and livelihoods,” he said.

Source: MSN

(Quotes via original reporting)