Business Standard

Only a quarter of Byju’s staff gets full Feb salary

- PEERZADA ABRAR

Byju’s has processed some portion of salaries to employees as the funds raised through a recent rights issue have been locked in a “separate account” due to the ongoing dispute with investors.

It said full payment has been made to 25 per cent of employees at the base salary bracket. Byju Raveendran, founder and chief executive officer (CEO) of Byju’s, had said the edtech firm is striving to ensure that salaries are paid by March 10. The firm has about 15,000 employees.

“We processed part salaries for everyone for February late last night (Friday) to the extent of capital we could get outside the rights issue. The company will pay the balance once the rights issue funds are available, which we expect shortly,” said Byju’s management in a letter, a copy of which Business Standard has seen.

It said, “However, due to today 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 has appealed to National Company Law Tribunal (NCLT) to allow it to use the funds, according to company sources.

At the NCLT on February 27, Byju’s and its investors locked horns over the company’s $200 million rights issue in a petition alleging oppression and mismanagem­ent.

NCLT, in its order on February 27, instructed the edtech firm to place funds obtained from the rights issue in an escrow account. However, these funds cannot be withdrawn until resolution of the matter related to the rights issue, said sources.

“As you know, a group of investors has blocked the funds raised through the rights issue, rendering them temporaril­y unavailabl­e for our business,” it said in the letter.

 ?? ?? The remaining 75% staffers have been paid partial salaries
The remaining 75% staffers have been paid partial salaries

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