Byju’s disburses some portion of Feb salaries for 20,000 employees
Embattled edtech company Byju's has disbursed a portion of the pending salaries for over 20,000 employees for the month of February.
IANS
Mar 10, 2024 05:58
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New Delhi, March 10 (IANS) Embattled edtech company Byju's has disbursed a portion of the pending salaries for over 20,000 employees for the month of February.
The company has also promised to pay the remaining balance once it is allowed to use the funds from the recently closed rights issue.
"We processed part salaries for everyone for February, late night on Friday to the extent of capital we could get outside the rights issue. The company will pay the balance once the rights issue funds are available, which we expect shortly," the company said in a letter to employees accessed by IANS.
"As you know, a group of investors has blocked the funds raised through the rights issue, rendering them temporarily unavailable for our business purposes. This situation has created an immediate financial constraint for the company," it added.
The company has assured employees that they are actively working to resolve this matter and restore normalcy.
"In the interim, we have made alternate funding arrangements to ensure your daily lives are not disrupted."
The company has fully paid the salaries of lower base employees, while mid-to-senior workers paid in part.
In the letter, the company mentioned that the salaries are expected to be reflected in employee accounts on March 11, as it was delayed due to a long weekend and second Saturday.
Earlier sources said that the company appears not in a position to pay the salaries due to the status quo, as banks also remain closed over the weekend.
The Bengaluru bench of the National Company Law Tribunal (NCLT) had directed Byju’s that the proceeds from the rights issue (which is about $250-$300 million) is to be kept in a separate account till the disposal of the case with investors.
