Byju's CEO Cites Investor Conflict For Employee Salary Delay: Report

According to a report, Raveendran informed the staff through a letter that the rights issue, amounting to approximately $250-$300 million, has been effectively concluded

The Bengaluru bench of the National Company Law Tribunal (NCLT) has instructed Byju's to maintain the proceeds from the rights issue in a separate account until the case involving investors is resolved

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Byju Raveendran, the founder and Chief Executive Officer of edtech major Byju's, has reportedly informed employees that the salaries for February are pending processing. This delay is attributed to the fact that the funds raised via the rights issue are presently held in a separate account, as requested by certain key investors.

According to a report by the news agency ANI, Raveendran informed the staff through a letter that the rights issue, amounting to approximately $250-$300 million, has been effectively concluded.

"However, I regret to inform you that we will still be unable to process your salaries. Last month, we faced challenges due to a lack of capital, and now we are experiencing a delay despite having funds," Raveendran told over 20,000 employees, as per the report.

Raveendran added that a small group of investors, comprising only four out of more than 150, have "stooped to a heartless level, ensuring that we are unable to utilise the funds raised to pay your hard-earned salaries.”

"At their behest, the amount raised through the rights issue is currently locked in a separate account. 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,” he added.

The Bengaluru bench of the National Company Law Tribunal (NCLT) has instructed Byju's to maintain the proceeds from the rights issue in a separate account until the case involving investors is resolved.

According to the ANI report,  Raveendran stated that even after his best efforts, “We are left with no option but to confront the heart-wrenching reality that we are temporarily unable to provide you with the financial support you deserve. We are striving to ensure that your salaries are paid by the 10th of March. We shall make these payments the moment we are permitted to do so as per law."