2 April 2024 – Byju’s, a prominent player in the edtech sector, has communicated to its employees about yet another delay in salary disbursement. The management attributes this setback to an interim order secured by a few foreign investors, constraining the utilization of funds from a recent rights issue.
In a message to employees, Byju’s management expressed regret over the delay, citing an interim order obtained by a select group of foreign investors in late February. This order has imposed restrictions on the company’s use of funds raised through a successful rights issue, compelling them to hold salary disbursals temporarily.
While expressing confidence in the Indian judicial system and hoping for a favorable resolution, Byju’s assured employees of their commitment to ensuring timely salary payments through a parallel line of credit, with disbursements expected by April 8. The management emphasized the founders’ dedication to the company and their efforts to mitigate financial challenges, despite the ongoing legal constraints.
Addressing concerns, Byju’s management highlighted their readiness to utilize raised funds for salary commitments once restrictions are lifted, citing the support for increasing authorized capital for the rights issue. They appealed for understanding from litigating investors, expressing optimism for a collaborative resolution.
Acknowledging the frustration and challenges faced by employees, Byju’s urged them to remain resilient and hopeful, assuring their dedication to overcoming the hurdles together. The company expressed gratitude for employees’ patience, understanding, and continued dedication during this challenging period.
