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Byju’s founder pledges homes to raise funds for staff salaries

Livemint

Livemint · 1y ago

Byju’s founder pledges homes to raise funds for staff salaries

Byju Raveendran, the founder of Indian edtech giant Byju's, has pledged his home and his family's homes as collateral to raise $12 million and pay salaries to the company's employees amidst a cash crunch. The move comes as Byju's is selling its US-based kids' digital reading platform and facing a legal battle over missed loan payments. Raveendran, who was once worth nearly $5 billion, has also raised personal debts of around $400 million, leaving him cash-strapped. Byju's recently reported narrowed losses and concluded an investigation into its overseas fundraising.

Related News

At AGM, Byju’s investors press for transparency from founder

Economic Times

Economic Times · 1y ago

At AGM, Byju’s investors press for transparency from founder

Investors at Byju's annual general meeting urged founder Byju Raveendran to provide full transparency regarding the financials and state of the edtech firm. They emphasized the need for open communication to build trust and support for the company. Byju's audited financials for fiscal year 2022, including a significant loss and the write-off of subsidiary Whitehat Jr, were discussed. The company has been facing challenges related to staff salaries, asset sales, and a term loan. Investors have also pushed for Raveendran to step aside from day-to-day operations.

Test-prep startup Exampur delays employees salaries for months, founder says, "we plan to pay in 3-4 months"

IndianStartupNews

IndianStartupNews · 1y ago

Test-prep startup Exampur delays employees salaries for months, founder says, "we plan to pay in 3-4 months"

Exampur, a test-prep startup, is facing financial difficulties, leading to unpaid staff salaries and unsettled full and final (F&F) payments for employees. The company's co-founder attributed the issues to a failed acquisition by upGrad and a subsequent shortage of funds. The acquisition caused operations to scale down, resulting in layoffs and employee departures. The co-founder sold personal holdings and mortgaged belongings to sustain the company, but salaries were still delayed. Exampur expects to pay off December salaries by February end and plans to pay off dues to ex-employees in the next three to four months. The edtech sector as a whole is experiencing funding challenges, with many startups making cost cuts and layoffs.

Byju’s misses own timeline to pay variable income to tuition centre staff

Money Control

Money Control · 1y ago

Byju’s misses own timeline to pay variable income to tuition centre staff

Mrinal Mohit, the de facto head of the Byju’s Tuition Centres (BTC) vertical had said in an employee townhall in July that the company would be paying variable or performance-linked income and other incentives to the entire staff with their September salaries. But at least 7 employees have confirmed to Moneycontrol that these incentives were not paid with September salaries

BYJU’S Closes $200 Mn Rights Issue, But Employee Salaries Delayed Again

Inc42 · 1y ago

BYJU’S Closes $200 Mn Rights Issue, But Employee Salaries Delayed Again

BYJU's, the edtech major, has closed its $200 million rights issue but is facing further delays in salary payments to its employees. In an email to staff, CEO Byju Raveendran blamed a small number of investors who had locked the funds raised in a separate account, preventing the company from making the payments. The Bengaluru bench of the National Company Law Tribunal had ordered BYJU's to keep the proceeds from the rights issue in a separate escrow account. Raveendran said the company was aiming to ensure salaries were credited by 10 March.

BYJU’S Arranges Line Of Credit To Pay March Salaries

Inc42 · 1y ago

BYJU’S Arranges Line Of Credit To Pay March Salaries

Edtech startup BYJU'S has started disbursing salaries for March, after a delay caused by a cash crunch. The startup blamed "foreign investors" for hindering access to funds from its $200m rights issue. BYJU’S is currently in a legal battle with certain investors who are seeking to block the rights issue and remove founder and CEO Byju Raveendran. The National Company Law Tribunal has barred the company from accessing the rights issue proceeds. BYJU'S also mentioned in an internal email that it had arranged an alternative line of credit to ensure timely payments.

Over 100 Indian startups laid off more than 15,000 staff this year: Report

Livemint

Livemint · 1y ago

Over 100 Indian startups laid off more than 15,000 staff this year: Report

According to Layoffs.fyi data, over 100 Indian startups laid off more than 15,000 employees in 2023 due to the funding winter. Byju's, an ed-tech startup, had to lay off 2,500 employees and its founder, Byju Raveendran, pledged his home to raise funds for salaries. The economic challenges forced startups to reduce costs, including marketing expenses and employee salaries. Globally, more than 1,160 tech companies laid off 2,602,238 employees this year, with Indian startups witnessing a 65.8% drop in funding between January and November 2023.

Byju’s disburses part of pending salaries, to pay balance soon: Report

Business Today

Business Today · 1y ago

Byju’s disburses part of pending salaries, to pay balance soon: Report

Edtech firm Byju's has partially disbursed the pending February salaries for all employees but assures the remaining balance will be paid once the funds from the recently closed rights issue become accessible. The company has made alternate funding arrangements to ensure employees' daily lives are not impacted. Byju's had been unable to pay salaries due to funds raised through a rights issue being locked in a separate account due to an ongoing dispute with investors. The company has faced several challenges including layoffs and a slowdown in demand for online learning services.

Byju’s may move court to use rights-issue funds for salary payments

Livemint

Livemint · 1y ago

Byju’s may move court to use rights-issue funds for salary payments

Edtech company Byju's is planning to approach the National Company Law Tribunal to access funds currently held in escrow to cover salary commitments. Byju's is facing difficulties disbursing February salaries to its 20,000 employees due to a court order. The monthly salary expenditure for the company amounts to about $10 million. The company recently concluded a $200 million rights issue but has been unable to access the funds. Several investors have filed a petition citing mismanagement and financial issues. Byju's founder, Byju Raveendran, expressed frustration with the situation in a company-wide email. The matter is scheduled to go to court on April 4.

Byju Raveendran raised debt to pay March salaries

Economic Times

Economic Times · 1y ago

Byju Raveendran raised debt to pay March salaries

Edtech firm Think and Learn, owner of Byju's, has credited partial salaries to its employees for the month of March. Founder and CEO Byju Raveendran raised personal debt to cover the expenses. The salary payouts range from 50-100% of employees' salaries, with teachers and lower-level staff receiving 100%. Byju's had recently raised $200 million through a rights issue, which is being disputed by foreign investors. The company is currently facing legal complications, with a hearing scheduled for April 23. Paying salaries through debt is not a sustainable solution, according to sources.

BYJU'S pays April salaries to employees, except sales staff: Report

Money Control

Money Control · 1y ago

BYJU'S pays April salaries to employees, except sales staff: Report

BYJU'S has paid April salaries to all employees, except its sales staff, Moneycontrol reported. This comes after the edtech startup reportedly linked the salaries of its sales staff to the revenue they generate every week. The salaries have been paid from the revenues generated and the debt raised by the founders earlier, CNBC-TV18 reported.

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