Amid an ongoing dispute with shareholders over the firm's rights issue, Byju's, a Edtech company, has delayed March salaries to its employees for the second month in a row.
However, Byju's has assured its staff that it is working on a parallel line of credit to ensure that the employees are paid the salary by 8th of April. This report comes as the company had failed to pay salaries for February and mid-March. It is reported that the company has paid a part of the dues.
Byju's management said in a purported letter sent to employees. “We are writing to you today with a heavy heart but with a message of hope and reassurance. We regret to inform you that there will again be a delay in the disbursement of salaries.”
“A few misguided foreign investors in Byrju’s have obtained an interim order in late February, restricting usage of the funds raised through the successful rights issue. This irresponsible action by the four foreign investors has compelled us to temporarily hold the disbursal of salaries until the restriction is lifted,” the letter added.
Furthermore, in a petition alleging oppression and mismanagement, Byju's and its investors are involved in a dispute at the National Company Law Tribunal (NCLT) with respect to the company's $200 million rights issue.
Byju’s investors, which includes Prosus, General Atlantic, Sofina, and Peak XV (formerly Sequoia), had sought a stay on the rights issue at less than 99 percent of the enterprise valuation compared to Byju's peak valuation of $22 billion. This is done due to the fear that it would devalue their investment.
