In a distressing turn of events, Byju’s founder Byju Raveendran announced on Saturday that the renowned edtech company would be unable to fulfill its commitment of paying salaries to its employees. This unfortunate situation arises from a legal dispute with certain investors, preventing access to recently raised funds through a rights issue.
In a heartfelt letter addressed to the staff, Raveendran expressed his regret, stating that despite the successful closure of the rights issue initiated a month ago, the company remains incapable of processing employee salaries. "This was supposed to be a happy correspondence. After all, we now have funds to meet our short-term needs and clear our liabilities. However, I regret to inform you that we will still be unable to process your salaries," he conveyed.
Raveendran assured employees of the company's efforts to resolve the matter swiftly, aiming to facilitate salary payments by March 10, pending legal clearance. He elaborated on the challenges faced by Byju's, emphasizing the frustration of encountering delays despite securing necessary funds.
"Unfortunately, a select few (4 out of our 150 plus investors) have stooped to a heartless level, ensuring that we are unable to utilise the funds raised to pay your hard-earned salaries," Raveendran disclosed.
According to the founder, the funds raised through the rights issue are presently locked in a separate account at the behest of these investors, hampering the company's ability to access them for operational needs. Raveendran condemned the actions of these investors, accusing them of displaying a callous disregard for the lives and livelihoods of Byju's employees, despite having gained significant profits from their investments.
"It is an agonising reality that some of these investors have already reaped substantial profits – in fact, one of them has made a staggering eight times their initial investment in BYJU’S. And yet, their actions convey a callous disregard for our lives and livelihoods," Raveendran lamented in the letter.
Asserting his unwavering commitment to the well-being of the company and its employees, Raveendran pledged to continue his relentless efforts to find a resolution to the ongoing dispute. "I have fought fearlessly and tirelessly, leaving no stone unturned, to find a way to honour the company’s commitment to employees," he asserted.
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