NEW DELHI: Byju’s has once again postponed salaries for many employees for the second consecutive month, citing an interim order obtained by certain foreign investors in late February.
This order restricted the use of funds raised through a recent rights issue. In an email on Monday, the company’s management conveyed the news of the salary delay, expressing confidence in the Indian judicial system and anticipating a positive resolution to utilize the raised funds and address financial difficulties.
The company said, “We have full faith in the Indian judicial system and we eagerly await a favourable outcome that will enable us to utilise the funds raised through the rights issue and alleviate the financial challenges that we are currently facing.”
Byju’s has instructed all employees to work remotely as it relinquishes office spaces nationwide due to financial constraints, except for staff at offline tuition centers. At a recent extraordinary general meeting (EGM) convened to secure capital through the rights issue, the company faced opposition from key investors who approached the National Company Law Tribunal (NCLT).
Despite this challenge, Byju’s assured employees of efforts to secure a line of credit to ensure salary payments by April 8, irrespective of the court’s decision.
Byju Raveendran, the company’s Co-founder and CEO, appealed to the dissenting investors for cooperation, expressing understanding of their concerns and the shared frustrations due to the situation. The company conveyed hopes for a resolution that would not disrupt daily operations further.
(With agency inputs)
This order restricted the use of funds raised through a recent rights issue. In an email on Monday, the company’s management conveyed the news of the salary delay, expressing confidence in the Indian judicial system and anticipating a positive resolution to utilize the raised funds and address financial difficulties.
The company said, “We have full faith in the Indian judicial system and we eagerly await a favourable outcome that will enable us to utilise the funds raised through the rights issue and alleviate the financial challenges that we are currently facing.”
Byju’s has instructed all employees to work remotely as it relinquishes office spaces nationwide due to financial constraints, except for staff at offline tuition centers. At a recent extraordinary general meeting (EGM) convened to secure capital through the rights issue, the company faced opposition from key investors who approached the National Company Law Tribunal (NCLT).
Despite this challenge, Byju’s assured employees of efforts to secure a line of credit to ensure salary payments by April 8, irrespective of the court’s decision.
Byju Raveendran, the company’s Co-founder and CEO, appealed to the dissenting investors for cooperation, expressing understanding of their concerns and the shared frustrations due to the situation. The company conveyed hopes for a resolution that would not disrupt daily operations further.
(With agency inputs)