The payment of salaries for employees for the month of May 2024 has been started by edtech platform Byju’s, as per a report by Moneycontrol. Employees will receive their salaries in their bank accounts by June 3.
This would reportedly imply that the edtech platform has paid salaries to its employees on time and without any delay. However, a part of the salary for February and March is still not paid by the edtech platform to its employees. The edtech firm had previously paid employees only a portion of their salary later in each of the two months.
Byju’s has been struggling with an acute financial crisis for a while. In December last year, the company’s founder, Byju Raveendran, pledged two of their family homes and a construction villa to pay salaries to its employees. As per Bloomberg, “The start-up used the funds to pay salaries to 15,000 employees in Byju’s parent firm, Think & Learn Pvt Ltd.”
Meanwhile, the edtech firm has laid off more than 10,000 of its employees in the last twelve months. Most employees have been asked to go without a notice period. Additionally, around 400 employees of the edtech firm who are either still working with the company or have terminated or resigned from the edtech firm have decided to take the edtech company to the National Company Law Tribunal (NCLT), as per a report by BusinessLine. The employees will go to the NCLT to get their dues from the edtech major.
Amidst the ongoing financial crisis in the company, the edtech platform decided to link the salary of the staff to the revenue that is generated every week. In February, the National Company Law Tribunal mandated that the edtech firm’s management hold funds from the rights issue in a separate escrow account. Investors requested the same to halt the rights issue amid accusations of misappropriated funds. Following this, founder Raveendran voiced concerns in March about the company's financial health, noting they couldn’t pay salaries due to the ongoing dispute with investors.
