Byju's pays part of March salary dues

22 Apr 2024 , 04:44 PM

Byju’s, the embattled edtech company, has paid partial salaries to employees for March, weeks after announcing clearing salary dues.

Initially, full salaries were paid to two teams IRT (issue resolution team) and BTC (Byju’s Tuition Centres), followed by partial payments to remaining employees on April 20.

The development precedes the April 23 NCLT hearing on an oppression and mismanagement plea filed by four investors, opposing Byju’s decision to raise funds at a significantly lower valuation.

Byju Raveendran, the founder and CEO, reportedly took on more personal debt to meet March payroll, as funds from the rights issue remain tied up in escrow as per NCLT orders.

While attempts are made to pay all employees, teachers and teaching support staff are prioritized, with salaries ranging from 100 to 50%. Salaries for the latter half of February are still pending, with Byju’s having disbursed partial payments in March and promising the balance upon fund availability.

Byju’s has faced challenges, including layoffs of 100 to 500 employees without a performance improvement plan (PIP) or notice period, amid drying venture capital funding and declining demand.

The company has undertaken measures to address issues, including capital infusion by early investor Ranjan Pai, setting up an advisory council, and CEO changes, including the recent departure of Arjun Mohan. Discussions regarding asset divestment are also underway.

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