Byju’s unable to pay salaries as funds locked amid rift with investors

Byju’s founder Byju Raveendran on Saturday said the edtech company will not be able to pay salaries to employees as the recent funds raised through a rights issue are inaccessible due to a legal dispute with certain investors.

In a letter to staff, Raveendran said the rights issue, launched a month ago, has been successfully closed.

“This was supposed to be a happy correspondence. After all, we now have funds to meet our short-term needs and clear our liabilities. However, I regret to inform you that we will still be unable to process your salaries,” he said.

In the letter, Raveendran said the company is still striving to ensure that salaries are paid by March 10.

“We shall make these payments the moment we are permitted to do so as per law,” he added.

Further, Raveendran said that last month, the company faced challenges due to a lack of capital, and “now we are experiencing a delay despite having funds”.

“Unfortunately, a select few (4 out of our 150 plus investors) have stooped to a heartless level, ensuring that we are unable to utilise the funds raised to pay your hard-earned salaries,” Raveendran said.

“At their behest, the amount raised through the rights issue is currently locked in a separate account,” he added.

Raveendran accused these select investors of having a callous disregard for the lives and livelihoods of others even though they had reaped substantial profits from investment in Byju’s.