Byju’s Employees will have to wait for salary this month also. The company will pay the March salary late. This is the third consecutive month that the financially distressed edtech company is struggling to pay salaries to its employees. The company has blamed foreign investors for its financial crisis. “Some foreign investors have obtained an interim order in late February, which has restricted the use of funds raised through a successful rights issue,” the company said in an email to employees on Monday. The company says it is pursuing a parallel line of credit to ensure payment of salaries by April 8.
What did Byju’s write in the email?
“We are writing to you today with a heavy heart but with a message of hope and confidence,” the email said, according to a Live Mint report. We regret to inform you that the disbursement of salaries will be delayed again… This irresponsible action of 4 foreign investors has forced us to stop the disbursement of salaries until the restrictions are lifted Are being given.’
Waiting for the ban to be lifted on the money received from rights issue
The email said, “We are writing to you today with a heavy heart but with a message of hope and confidence. We regret to inform you that the disbursement of salaries will be delayed again… -Responsible action has forced us to stop the disbursement of salaries until the restrictions are lifted. We have full faith in the Indian justice system and are eagerly awaiting a favorable outcome, Which will enable us to utilize the funds raised through the rights issue and mitigate the financial challenges we are currently facing.”
Company is not able to pay salary on time since January
Cash-strapped Byju’s has been struggling to pay salaries on time since January this year. The company had given the salary for January in February. In an email in February, Byju Raveendran wrote, ‘I have been struggling a lot to pay salaries for months… and this time the struggle was even bigger to ensure that you get your salaries on time.’ The company has paid a part of the February salaries to employees and said the remaining amount will be paid when rights issue funds become available.
The matter is in NCLT
A group of four investors – Prosus NV, General Atlantic, Sofina and Peak (NCLT). On February 27, NCLT had directed the company to keep the proceeds from the rights issue in a separate escrow account and not to withdraw the funds till the settlement of the lawsuit filed by investors.
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