Byju’s pays partial salaries for March amid legal struggles

Troubled edtech major Byju’s has paid partial salaries to employees for March, sources told businessline. Byju Raveendran, founder and CEO of Think and Learn, parent of BYJU’S, has raised debt in his personal capacity to pay the salaries of employees for March.

This comes weeks after the company had announced the clearing of salary dues after delaying salary payments for March and paying part salaries for February.

“The company has started making salary payments in the range of 100 to 50 per cent to all employees. Teachers and lower salary grade staff have been paid in full while the rest, including senior management, have received at least 50 per cent of their dues for March,” the sources said.

• Also read: Byju’s holds off salaries for second time in a row amid legal disputes

The company’s monthly salary burn is around ₹45-50 crore, the sources noted. The teachers and teaching support staff are the backbone for Byju’s and hence their salaries are paid in priority, the sources added.

It is to be noted that Byju’s is yet to clear salaries for the second half of February. The company had disbursed a part of the pending salaries for all employees for February in the middle of March and said that the balance payment, once it can access the funds from its recently concluded rights issue, is expected. The company said it is following a parallel line of credit to ensure that employee salaries are disbursed by April 8.

This development is before the NCLT hearing on April 23 on the oppression and mismanagement plea filed by four investors — Prosus NV, Peak XV Partners, General Atlantic, and Sofina SA.

• Also read: Byju’s to delay salaries amid dispute with investors, says Raveendran

Mounting troubles

The cash-strapped company recently handed pink slips to nearly 500 people without serving them a notice period, or without putting them on a performance improvement plan (PIP).

Recently, the company concluded its extraordinary general meeting (EGM) to increase authorised share capital with no objections raised on the resolutions discussed, reported businessline.

While Arjun Mohan, the CEO of Byju’s India, resigned from his position a little over six months after he took over, with founder Byju Raveendran resuming daily operational responsibilities, reported businessline. Mohan will transition to an external advisory role.

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