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Byju’s Pays Part March Salary After CEO Takes on New debt

Major Byju’s has only paid a part of March salaries to its employees as of April 20 in yet another delay of these payouts as it battles a severe cash crunch.

On April 8, the company had said that it had started paying salaries for March and expected to complete the exercise by April 18. However, ET has learnt that it has paid only 50% of March salaries for a significant number of its mid-senior employees. Founder and chief executive Byju Raveendran has been raising personal debt marked against his stakes in Byju’s to make these salary payouts happen, sources in the know also told ET.

“I have received only 50% of my March salary on 20th. February salary is pending too, 80% of it. I had received only 20% of it in March,” one of the impacted employees told ET.

While many junior employees have received full sums of their salaries for February and March, the top management at the Bengaluru-based edtech major have not been drawing any salaries the last two months.

A company spokesperson did not immediately respond to ET’s queries on the matter.

In the April 8 email to employees, Byju’s management team had said, “unfortunately, despite our efforts, we haven’t yet secured approval to access the rights issue funds, because of the action of four foreign investors. However, we have arranged an alternative line of credit to ensure timely payments.”

ET reported on April 1 that Byju’s had delayed salaries for employees, informing them that their salaries will be delayed due to actions by warring investors that have restricted usage of funds through a rights issue.

S-ET Image Source: Google

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