Embattled edtech company Byju’s has paid partial salaries to employees for March weeks after the company announced clearing salary dues, moneycontrol reported quoting sources. The development comes at a time when the cash-strapped edtech company resorted to paying part salaries for February and had delayed payments for March as well.
Business Today couldn't verify the information on its own.
The development comes ahead of the April 23 hearing at the National Company Law Tribunal (NCLT) on the oppression and mismanagement plea filed by four investors of Byju’s. The plea was filed by Prosus NV, Peak XV Partners, General Atlantic, and Sofina SA, who opposed the company's decision to raise $200 million at a post-money valuation of $225 million, 99 percent lower than Byju’s last funding round valuation of $22 billion.
The moneycontrol report said that Byju Raveendran, founder and CEO of the company, has taken on more personal debt to make payroll for March. The edtech company's funds raised from the recently concluded rights issue is tied up in an escrow account according per orders from NCLT, till the disposal of the above mentioned case.
Byju’s has already initiated layoffs on phone calls, letting go about 100 to 500 employees without putting them on a performance improvement plan (PIP) or having them serve a notice period.
The company has laid off over 10,000 employees in the last 12 months as it battles funding winter and slowing demand for online learning services. Its investor board members have also quit citing differences with Raveendran.
The company has tried to fix some of the problems and set up an advisory council with veterans such as Mohandas Pai and Rajnish Kumar and elevated Arjun Mohan as CEO. Its early investor Ranjan Pai also ploughed in the capital. However, Mohan decided to step down from the position last week.