Byju Raveendran, CEO of the renowned edtech giant Byju’s, has informed employees that February salaries remain pending due to a dispute with key investors. In a candid letter to over 20,000 staff members, Raveendran explained that despite a successful rights issue raising $250-$300 million, salaries cannot be processed. He lamented how a small group of investors has prevented access to the raised funds, keeping them locked in a separate account against the company’s wishes.
Raveendran expressed frustration at the actions of a minority of investors who have profited substantially from Byju’s, yet are hindering the company’s ability to pay employee salaries. He highlighted the irony of investors reaping significant returns while causing delays in essential financial matters for staff. The National Company Law Tribunal (NCLT) has intervened, instructing Byju’s to keep the rights issue proceeds separate until the resolution of the case with investors.
Despite his efforts, Raveendran acknowledged the unfortunate reality that salaries cannot be provided as planned. He assured employees that Byju’s is working tirelessly to resolve the issue and aims to disburse salaries by March 10th, once permitted by legal proceedings.
