Byju’s delays March salary due to fund crunch

New Delhi: Embattled edtech company Byju’s has once again delayed the salaries of thousands of its employees for the second consecutive month, saying some “misguided foreign investors” obtained an interim order in late February that blocked the rights issue. Restricted the use of funds raised through. In an email to employees on Monday, seen by IANS, the company’s management said, “We regret to inform you that the disbursement of salaries will again be delayed.” There is full confidence and we eagerly await a favorable outcome that will enable us to utilize the funds raised through the rights issue and mitigate the financial challenges we are currently facing.”

The edtech company has mandated all its employees to work from home as it has left office spaces across the country amid a severe cash crunch, except for those working at its offline tuition centres. Last Friday, Byju’s issued a rights issue held its extraordinary general meeting (EGM) called by the board of directors to raise capital through. Some key investors have gone to the National Company Law Tribunal (NCLT) against the rights issue. The letter to employees further said that regardless of the court’s decision, we are pursuing a parallel line of credit to ensure that We hope that you get your salary by April 8. “The positive thing is that we have the necessary votes to increase the authorized capital for the rights issue.

This means that once the restrictions on the use of funds raised are lifted, we can immediately meet all our salary commitments,” it said. Byju Raveendran, co-founder and CEO of the company, wrote to disgruntled investors. “We have appealed in a cooperative spirit.” “We are hoping that the litigious investors will have the right sense to not frustrate our daily lives any longer. We understand the feelings of helplessness caused by these circumstances, and we share your frustration,” the company told its employees.