Some part of it: Embattled edtech BYJU’S will release partial salaries to employees by Monday, days after company founder Byju Raveendran said the company was not able to release salaries amid an ongoing conflict with investors.
In a set of two internal mails to employees, the company said it has made salary arrangements through alternate funds, with the salary expected to reflect by Monday, as per sources.
Think and Learn, the parent entity of BYJU’S has released the full salary of 25 per cent of employees who come in the lower pay bracket, and the rest of the employees have received partial payments.
BYJU’S management also mentioned the financial constraints faced by the company because a select group of investors blocked their funds.
‘We processed your salary for February late at night on Friday. However, due to yesterday being a second Saturday and on account of the long weekend, we expect the salaries to be reflected in your accounts on Monday. We sincerely apologise for any inconvenience caused by this delay and are grateful for your understanding,” BYJU’s management said in a mail to the employees whose full salary has been released.
As per the sources, 25 per cent of employees in the lower pay scale will obtain full salary payment.
”As you know, a group of investors has blocked the funds raised through the rights issue, rendering them temporarily unavailable for our business purposes. This situation has created an immediate financial constraint for the company. However, we assure you that we are actively working to resolve this matter and restore normalcy,” the company said.
A group of four investors of BYJU’S had filed a suit alleging oppression and mismanagement on hands of the company management, approaching the Bengaluru branch of the National Company Law Tribunal (NCLT) in a plea to oust founders and board – CEO Byju Raveendran, his wife Divya Gokulnath and brother Riju Raveendran. Other demands of the investors included the appointment of a new board, and declaring the rights issue concluded in February as void.
The four investors who signed the petition include Prosus, General Atlantic, Sofina, and Peak XV, who also received support from other shareholders including Tiger and Owl Ventures.
NCLT asked BYJU’S to consider extending the closing date of the $200 million rights issue, which the management hinted it would not accept despite estranged investors flagging technicalities which obstructed the issue to close.
The tribunal mandated for the funds received through the rights issue to be kept in an escrow account, as per an interim order of February 27. BYJU’S cannot withdraw funds till the matter is disposed, the Bengaluru bench mandated.
The next hearing for the case will be on April 4.
(With PTI Inputs)
