New Delhi: Byju’s founder, Byju Raveendran, has reportedly secured a private debt of around ₹30 crore to cover March salaries for employees amid financial challenges faced by the edtech company, according to a report by Business Standard.
This move comes after Byju’s experienced delays in disbursing salaries, with senior-level staff receiving partial payments and teachers and lower-ranking employees receiving full payments for March. The delay in salary payments is attributed to funds raised through a recent rights issue being locked in a separate account due to an ongoing dispute with investors, which has led to financial strains. Byju’s management assured employees that they would receive their March salaries through a parallel line of credit regardless of the court verdict in the dispute. The National Company Law Tribunal (NCLT) has given Byju’s 10 days to respond to the plea filed by investors challenging the company’s decision to raise funds, and the case is set to be heard on April 23.
Additionally, Byju’s has been granted a week by the NCLT Bengaluru bench to negotiate a settlement with Teleperformance Business Services to prevent new insolvency proceedings.
Amidst these challenges, Byju Raveendran received extended relief from the Karnataka High Court, allowing him to continue leading Byju’s despite disputes with investors over management issues.
