Byju Think and Learn, the parent edtech company of the (Byju) brand, has started paying March salary to its employees after a delay of 9 days. Giving this information, sources said that the payment process is expected to be completed in the next 10 days. In a letter sent to employees, the company has held a group of four investors responsible for the delay. “We are happy to inform you that payment distribution has started today and will be completed in the next 10 days,” Byju’s wrote in an email to employees. Despite our efforts, due to the actions of four foreign investors we are yet to access the funds raised from the rights issue. Despite this, we have made alternative borrowing arrangements to ensure timely payment.
Not able to get rights issue amount
The company had raised US$200 million from the rights issue to meet its operational requirements, including expenses related to employee salaries. However, four investors – Prosus, General Atlantic, Sofina and Peak 15 – filed a petition in the National Company Law Tribunal (NCLT) against the rights issue, saying it would lead to a change in the shareholding of the company. These investors also received support from other shareholders including Tiger and Owl Ventures. Sources said that 25 percent of the employees in the lower pay scale will get full payment, while senior employees will get partial payment.
The company also started layoffs
This distressed edtech company is also laying off employees. Last week there was news that the company was going to lay off 500 employees. Around 2,500-3,000 people were laid off from jobs in October and November last year. Even though about 3,000-3,500 people have been affected by layoffs so far, there is still a possibility of 1,000-1,500 more people being laid off.
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