Embattled edtech firm Byju’s may pay its employees the April salaries this week. Last month, Byju Raveendran, founder and CEO, Byju’s, secured a private debt of about Rs 30 crore to pay the March salaries of employees. Sources told Business Standard that there has been a delay in paying April salaries.
They said that the delay was caused as funds raised through a recent rights issue, which have been locked in a ‘separate account’ due to the ongoing dispute with the investors.
At present, Byju’s has about 15,000 employees. The total salary liability of the company is somewhere between Rs 40 and 50 crore.
Byju’s has already introduced a new policy linking sales staff’s salaries to the revenue they generate every week. This was done after the edtech resorted to paying only a part of the salaries for February and March, after weeks of delay. The new policy became effective from April 24 and will continue till May 21.
The new policy, which applies to the Inside Sales and Byju’s Exam Prep teams, entails distributing half of the weekly revenue collection to sales associates every week.
Byju’s is currently facing legal disputes with its investors at the National Company Law Tribunal (NCLT). The dispute revolves around allegations of oppression and mismanagement, as well as the use of funds raised through rights issues.
The NCLT has delayed the hearings until June 6, which has impacted Byju’s ability to meet its financial obligations. The company had planned to use the rights issue funds to cover its daily operations and pay the salaries of its 15,000 employees. However, the NCLT’s decision has hindered these efforts and added to Byju’s financial woes.
