BYJU’S Ensures March Salary Payment with Line of Credit by April 18

On Monday, BYJU’S, the troubled edtech startup, shared reassuring news with its team members: They’ve begun paying out March salaries and anticipate wrapping up by April 18.

In a heartfelt message to their staff, BYJU’S revealed they’ve secured additional financial support to ensure everyone gets paid on time.

We’ve got the scoop directly from BYJU’S’ internal communication, which was initially covered by the Economic Times.

This update comes just days after the education technology company postponed the payment of employee salaries for the second month in a row due to a lack of funds. BYJU’S announced that the salaries would be paid by April 8.

In a recent email, the company stated, “We are happy to announce that the process of salary disbursement has started today and will be completed within the next 10 days. We have secured an alternative line of credit to guarantee that payments are made on time.”

Related: Byju’s CEO Byju Raveendran’s Wealth Drops to Amidst of Crisis

Once more, BYJU’S aimed its concerns towards its “foreign investors,” attributing the inability to access the funds from its $200 million rights issue to their actions.

In an email, it expressed, “Regrettably, despite our persistent efforts, we’re still awaiting approval to utilize the funds from the rights issue, due to the actions of four foreign investors… Your patience and understanding throughout this period are genuinely appreciated.”

Repeatedly, BYJU’S has pointed fingers at certain investors for the hindrance in accessing the proceeds from the $200 million rights issue. Currently, BYJU’S is entangled in a legal dispute with numerous investors who are seeking to impede the rights issue and remove founder and CEO Byju Raveendran.

The National Company Law Tribunal (NCLT) has prohibited the startup from utilizing the funds raised from the rights issue until further notice. Recently, the edtech company in question even resorted to arbitration in an attempt to settle the disagreement with its investors regarding the rights issue.

The conflict between Raveendran and the investors of the company came to light earlier this year when the investors called for an extraordinary general meeting to remove him and make changes to the board of the edtech company. This came shortly after the company announced a $200 million rights issue at a drastically reduced valuation of 99% to overcome financial difficulties and settle its outstanding debts to vendors.

It is important to mention that the Karnataka High Court, in February, issued an order to halt the implementation of the resolutions passed at the EGM after BYJU’S filed a petition in court.

Due to funding constraints and various legal disputes, BYJU’S has been forced to delay the payment of employee salaries on multiple occasions in recent months. Last year, the company even postponed depositing its employees’ PF contributions with the EPFO.

BYJU’S, the troubled edtech startup, has initiated the disbursement of March salaries, aiming to complete the process by April 18, following a challenging period of postponed payments. The company secured additional financial support and expressed gratitude for its employees’ understanding. However, hurdles in accessing funds from a $200 million rights issue due to a group of foreign investors have resulted in delays. BYJU’S is embroiled in a legal dispute with investors and faced setbacks in implementing strategic measures to address financial difficulties. These challenges have led to funding constraints and prolonged delays in salary payments.