Updated February 4th, 2024 at 18:33 IST
Byju’s clears January salary for employees, Raveendran shares struggle
Byju’s management attributed the delay to an "artificially induced crisis by select investors" and accused them of conspiring against the company.
- 2 min read
Byju’s financial crisis: Byju’s, embattled ed-tech firm, led by founder and CEO Byju Raveendran, has confirmed the disbursement of all pending January salaries to employees over the past two days. Raveendran expressed the challenges faced in ensuring timely payroll, disclosing that the company's monthly payroll expenses amount to approximately Rs 70 crore.
This development follows a recent report revealing the delay in January salaries due to a worsening liquidity crisis. Byju’s management attributed the delay to an "artificially induced crisis by select investors" and accused them of conspiring against the company.
In response to the turmoil, Byju’s underlined that its shareholder agreement does not grant investors the right to vote on CEO or management changes. Raveendran reiterated this stance in the latest communication, asserting that the struggle is against a few vested interests attempting to undermine the company, particularly in relation to the announced rights issue for existing shareholders.
The CEO shared an emotional account of personal struggles, acknowledging the impact on his family, notably his father, who is his role model. Byju’s has been under scrutiny in 2022 for various issues, including a liquidity crunch, accounting irregularities, government scrutiny, alleged mis-selling of courses, and mass layoffs.
Raveendran expressed determination to overcome challenges and thanked the team for their resilience amid destabilising efforts.
Published February 4th, 2024 at 18:33 IST