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Published 17:43 IST, April 22nd 2024

Byju Raveendran raises personal debt to cover March salaries

Sources revealed that Byju had to secure additional personal debt to fulfil the salary obligations, as funds from a rights issue remain unavailable.

Reported by: Business Desk
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Byju Raveendran | Image: Instagram
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Byju’s crisis: Edtech firm Think and Learn, the parent company of Byju's, has made partial salary payments to its employees for the month of March, according to sources. Byju Raveendran, Founder and CEO of Think and Learn, reportedly used personal debt to cover a portion of the March salaries.

The salary disbursements for Byju's employees are estimated to range between Rs 25-30 crore. Employees received their payments on Saturday, April 20, with amounts varying between 50-100 per cent of their regular salaries.

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Sources revealed that Byju had to secure additional personal debt to fulfil the salary obligations, as funds from a rights issue remain unavailable due to blockages by foreign investors.

Teachers and employees at the lower levels within the company received full salary payments.

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Earlier, Think and Learn had raised $200 million through a rights issue, aiming to address operational needs, including employee salary commitments.

However, a consortium of investors, including Prosus, General Atlantic, Sofina, and Peak XV, along with other shareholders such as Tiger and Owl Ventures, have initiated legal action against the founders and the rights issue, potentially leading to changes in the company's shareholding structure.

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The case is scheduled for a hearing at the National Company Law Tribunal (NCLT) on April 23.

Sources expressed concerns about the sustainability of paying salaries through personal debt, particularly highlighting potential complications in the situation, especially as legal proceedings progress.

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(With PTI inputs)

15:39 IST, April 22nd 2024