'Few investors stooped to heartless level': Byju Raveendran says firm unable to pay Feb salaries

Employees of embattled edtech major Byju's will have to wait for their February salaries after the firm's founder and CEO Byju Raveendran cited capital 'issues'. 

Raveendran reportedly attributed the delay to the fact that the funds raised via rights issue were being held in a separate account, as requested by some investors. 

Raveendran alleged the small group of investors, comprising only four out of more than 150, have "stooped to a heartless level, ensuring that we are unable to utilise the funds raised to pay your hard-earned salaries.”

Investors in Byju's have alleged that the edtech giant siphoned off USD 533 million in an obscure hedge fund in the US and sought a stay on a USD 200 million rights issue, calling it illegal and contrary to law.

"At their behest, the amount raised through the rights issue is currently locked in a separate account. It is an agonising reality that some of these investors have already reaped substantial profits – in fact, one of them has made a staggering eight times their initial investment in Byju’s,” he added.

 “We are left with no option but to confront the heart-wrenching reality that we are temporarily unable to provide you with the financial support you deserve. We are striving to ensure that your salaries are paid by the 10th of March. We shall make these payments the moment we are permitted to do so as per law," he was quoted as saying in an ANI report.