BYJU'S pays full salary to 25% employees, partial payment to others
BYJU’s could make these payments through alternate fund arrangements.
Edtech major Think and Learn, which owns brand, has released the full salary of 25% of employees in the lower pay scale while it has made a partial payment to the rest of the workforce, according to sources.
BYJU's management wrote two sets of letters to employees on Sunday, informing them about salary payment through alternate fund arrangements and mentioning financial constraints the company is facing due to the blocking of funds by a select group of investors.
"We processed your salary for February late at night on Friday. However, due to yesterday being a second Saturday and on account of the long weekend, we expect the salaries to be reflected in your accounts on Monday. We sincerely apologise for any inconvenience caused by this delay and are grateful for your understanding," BYJU's management said to employees whose full salary has been released.
According to sources, 25% of employees in the lower pay scale will get full payment.
"As you know, a group of investors has blocked the funds raised through the rights issue, rendering them temporarily unavailable for our business purposes. This situation has created an immediate financial constraint for the company. However, we assure you that we are actively working to resolve this matter and restore normalcy," the company said.
A group of four investors of BYJU'S has filed an oppression and mismanagement suit against the management of the company before the National Company Law Tribunal (NCLT), Bengaluru Bench, seeking to oust founders, including CEO Byju Raveendran, and appoint a new board. Besides, the suit has also sought to declare the just-concluded rights issue as void.
The petition has been signed by four investors—Prosus, General Atlantic, Sofina, and Peak XV—along with support from other shareholders, including Tiger and Owl Ventures.
The tribunal has asked embattled edtech firm BYJU'S to consider extending the closing date of the $200 million rights issue, a request that the management hinted it would not accept even as estranged investors flagged technicalities that prevented the closure of the issue on Wednesday.
In an interim order dated February 27, the National Company Law Tribunal (NCLT), Bengaluru Bench, said the funds received by the company through the rights issue should be kept in a separate escrow account and should not be withdrawn till the disposal of the matter.
The next hearing has been listed for April 4.
BYJU'S said that it has made alternate funding arrangements in the interim to ensure employees' daily lives are not disrupted.
Edited by Affirunisa Kankudti