Monday, December 16, 2024
HomeBusinessByju's starts paying March salary to employees; blames miffed investors' action for...

Byju’s starts paying March salary to employees; blames miffed investors’ action for delay


Photo used for representation purpose only.
| Photo Credit: Reuters

Edtech firm Think and Learn, owner of Byju’s brand, has started paying March salaries to its employees after a delay of nine days and the payout process is expected to complete in next 10 days, according to sources.

The company in a communication to employees blamed the group of four investors for the delay.

“We are pleased to inform you that salary disbursement has commenced today and will be completed over the next 10 days. 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,” Byju’s said in an email to employees.

The company raised $200 million through rights issue to meet its operational requirements, including expenses related to employees’ salaries.

A group of four investors — Prosus, General Atlantic, Sofina, and Peak XV — along with the support from other shareholders, including Tiger and Owl Ventures, have approached NCLT against the founders as well as the rights issue which may lead to change in shareholding pattern in the company.

Sources said that 25% employees in the lower pay scale will get full payment while senior employees will get partial payment.

“We sincerely appreciate your patience and understanding throughout this period,” Byju’s said in the email.



Source link

RELATED ARTICLES

Most Popular

Recent Comments