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BYJU’S Delays Employee Salaries Yet Again Amid Battle With Investors

Inc42 · 1y ago

BYJU’S Delays Employee Salaries Yet Again Amid Battle With Investors

Embattled edtech giant BYJU’S has delayed salary payments for its employees for the second consecutive month, citing restrictions on the usage of funds raised through a recent rights issue. The company's CEO, Byju Raveendran, sent an email blaming foreign investors for obtaining an interim order that has led to the delay. BYJU’S is now seeking a line of credit to ensure that salaries are credited by April 8. The National Company Law Tribunal (NCLT) has instructed BYJU’S to keep the proceeds from the rights issue in a separate escrow account. The company's board is considering an offer for disgruntled investors to participate in the rights issue.

Related News

Byju’s delays salaries for third month in a row, blames 'foreign investors'

Livemint

Livemint · 1y ago

Byju’s delays salaries for third month in a row, blames 'foreign investors'

Edtech company Byju's has announced a delay in salary payments for the third consecutive month, citing restrictions imposed by "misguided foreign investors". The company said it is using a parallel line of credit to ensure salaries are paid by 8 April. Byju's has faced financial difficulties since January and has paid only a portion of February salaries. The delay is the result of a legal battle with investors who raised objections to the company's $200m rights issue at a 99% discount to its peak valuation of $22bn.

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.

Byju's says it has paid part salaries for February, will pay rest from rights issue fund

IndianStartupNews

IndianStartupNews · 1y ago

Byju's says it has paid part salaries for February, will pay rest from rights issue fund

Amid ongoing financial troubles, edtech giant Byju’s has partially cleared the February salaries for its employees. Salaries were disbursed in full for employees up to a certain bracket, while others received only a portion. Byju’s has been facing cash flow challenges and legal disputes with investors that have impacted its ability to access funds. The company remains optimistic about accessing funds from a recent rights issue, which would allow them to pay the remaining balances. Byju’s has communicated with employees about the situation, apologizing for the delays and citing banking and legal challenges.

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.

Troubled edtech giant Byju's unable to pay salaries, Founder Raveendran says 'Funds are locked'

IndianStartupNews

IndianStartupNews · 1y ago

Troubled edtech giant Byju's unable to pay salaries, Founder Raveendran says 'Funds are locked'

Edtech giant Byju's is facing financial difficulties, unable to process employee salaries due to a dispute with investors. The company's recent rights issue, aimed at raising capital, has been challenged by key investors, resulting in frozen funds and a broader conflict over governance and management practices. The National Company Law Tribunal has ordered the funds to be held in an escrow account, exacerbating Byju's financial predicament. The dispute has also led to a battle for control, with shareholders voting to remove founder Byju Raveendran and his family from the board. Resolving these challenges will determine the company's future.

BYJU’S Relinquishes Most Office Spaces, Adopts Work-from-Home Policy

Inc42 · 1y ago

BYJU’S Relinquishes Most Office Spaces, Adopts Work-from-Home Policy

Amid financial struggles and ongoing legal battles with investors, edtech startup BYJU'S has reportedly given up all but one of its office spaces in India. The company has downsized its premises from five to three floors in Bengaluru's IBC Knowledge Park and reduced its headcount significantly. The move is part of CEO Arjun Mohan's restructuring plan. Additionally, all BYJU'S employees outside of its headquarters and 300 tuition centres will be working from home indefinitely. BYJU'S has faced a series of challenges including delayed salaries, investor disputes, debt crisis, legal cases, layoffs, and regulatory scrutiny.

BYJU’S seeks $300 Mn infusion from investors in exchange for larger shareholding

Inc42 · 1y ago

BYJU’S seeks $300 Mn infusion from investors in exchange for larger shareholding

BYJU'S CEO Byju Raveendran has requested investors to infuse $300 million into the troubled edtech firm in exchange for a larger shareholding. Shareholders have also urged Raveendran to revamp the company's board to have a greater say in its operations. The negotiations are ongoing, and a deal could materialize in the coming months. This development comes amid multiple legal and governance challenges faced by BYJU'S, including a legal battle with lenders and the Enforcement Directorate's investigation for alleged violations.

Ahead of US hearing, Byju’s says it is beneficiary owner of 533 mn fund parked in co subsidiary

Thehindubusinessline

Thehindubusinessline · 1y ago

Ahead of US hearing, Byju’s says it is beneficiary owner of 533 mn fund parked in co subsidiary

Byju's, the EdTech company, announced that its subsidiary, Inspilearn LLC, remains the beneficiary owner of the $553 million funds that are under scrutiny in a US court hearing. Byju's had previously stated that it was unable to pay employee salaries as the funds from a right issue had been locked due to a dispute with investors. The company clarified that the funds were transferred to Inspilearn LLC, a 100% subsidiary of Think & Learn, and denied allegations of any misappropriation. Byju's accused certain investors of spreading false narratives and pursuing unlawful actions against the company.

Dunzo tells staff June-July salaries will be further delayed

Economic Times

Economic Times · 1y ago

Dunzo tells staff June-July salaries will be further delayed

Dunzo, a quick commerce company backed by Reliance Retail, has informed employees about further salary delays for June and July due to a worsening cash crunch. Employees were promised on-time salaries for August in early September. The company has faced difficulty securing new financing due to differing valuations among investors. It has previously delayed salary components and has struggled to maintain its dark stores amid delayed payments to workers. Dunzo is also dealing with legal notices from Google India, Facebook India Online Services, and others over pending vendor payments.

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