Byju Raveendran, founder and CEO of Byju’s, has reportedly secured a private debt of approximately 30 crore to cover the March salaries of employees. While senior-level staff received partial payments, teachers and lower-ranking employees were paid in full for March. The company had previously disbursed partial salaries for February and delayed payments for March, but both February and March salaries have now been partially settled.
The delay in salary payments is linked to funds raised through a recent rights issue, which have been locked in a separate account due to a dispute at the National Company Law Tribunal (NCLT). Byju’s management, including Raveendran, assured employees that regardless of the court verdict, they will receive their March salary through a parallel line of credit.
Byju’s and its investors are embroiled in a dispute at the NCLT over the company’s rights issue of $200 million, with investors alleging oppression and mismanagement. The NCLT, in its order on 27 February, instructed Byju’s to place funds obtained from the rights issue in an escrow account until the resolution of the matter.
