It’s worth mentioning that BYJU’S faced a delay in distributing employee salaries for February, attributing it to the inability to utilize the funds from the $200 million rights issue. However, it managed to clear the salaries for some employees in full and for others partially by March 8.
Earlier, a group of investors in BYJU’S, including Prosus, General Atlantic Singapore, Peak XV Partners, and Sofina, took their concerns to the National Company Law Tribunal (NCLT). They expressed reservations about the company’s decision to seek $200 million in funding, which would lead to a significant 99% reduction in valuation.
Responding to this, the NCLT instructed the edtech giant to securely hold the proceeds from the rights issue in a dedicated escrow account.