Byju Raveendran, the founder and CEO of the ed-tech company Byju’s, announced via email to all staff members that the company has finally paid its January salary after significant challenges, despite the company still facing lawsuits from lenders. Employees for the month of January have already received their salaries, according to Byju Raveendran, who also stated that the company had to “move mountains” to fulfil payments because it is having trouble meeting loan and interest deadlines.
In his letter to his staff, Raveendran stated, “I understand that you were informed that your pay will be received on Monday. Many of you wrote to me, saying that you understood what I was going through and that you wouldn’t mind waiting even longer. However, you were not required to wait until Monday. I had been working really hard for months to make payroll, but this time, I had to work even harder to make sure you got what you were due.”
“Everyone has made sacrifices, everybody has wrestled with decisions they never wanted to make, and everybody is a little bit weary in this battle, but nobody has chosen to give up,” the creator of the Byju continued. This is a result of our pride in the creations we have made. We know we have plenty when we have self-respect.”
This occurs only a few days after media rumours surfaced that Byju’s might be postponing January salary payments. According to Moneycontrol, the edtech company’s payroll costs come close to ₹70 crore each month.
Before this, Byju’s said in a media release that shareholders do not have the authority to vote on changes to the top management, including the removal of CEO Byju Raveendran. With Raveendran defying the investors, the shareholders tabled a resolution to remove the company’s founders from the board.
Highlights of Byju’s Financial Crisis
After missing payment deadlines, Byju’s foreign lenders are currently suing the company. Additionally, the lenders petitioned a US court for the company’s insolvency, and a few days later, Byju’s Alpha division filed for bankruptcy.
The company said on Monday that it is attempting to raise $200 million at a valuation of only $250 million by issuing additional stock to shareholders. Byju’s worth peaked in 2022 at $22 billion, then had a sharp decline in 2023.
The Enforcement Directorate (ED) conducted several raids throughout Byju’s office premises, citing several violations of the Foreign Exchange Management Act (FEMA), which precipitated the financial crisis and forced many important executives to quit the company.