BENGALURU: Edtech company Byju’s has delayed February salaries for over 20,000 employees, blaming four investors who had approached the National Company Law Tribunal (NCLT) against it.
Since the NCLT directed the firm to keep funds received from the rights issue in a separate escrow account, the company said it would not be able to use the funds to pay salaries.
Byju’s said the company is ensuring that salaries are paid by March 10. For the past two to three months, the firm is struggling to pay salaries, and last month employees were informed that through a $200 million rights issue, the company would raise money and make payments.
In a letter to employees, founder and CEO Byju Raveendran said the rights issue has been successfully closed and this was supposed to be a happy correspondence.
“After all, we now have funds to meet our short-term needs and clear our liabilities. However, I regret to inform you that we will still be unable to process your salaries. Last month, we faced challenges due to a lack of capital, and now we are experiencing a delay despite having funds,” he said.