DBT Bureau
Bengaluru, 20 August 2024
Amid continuing legal wrangle, edtech firm Byju’s founder, Byju Raveendran, said in an email to his employees that their salaries will be paid promptly as soon as he regains control of the company’s accounts.
“When we regain control, your salaries will be paid promptly, even if that means raising more personal debt. This isn’t just a promise – it’s a commitment. We have investors ready to back our turnaround story,” Byju Raveendran wrote to Byju’s employees.
He said, the company has not paid the July salary to employees as the company was unable to access its accounts due to a temporary stay granted by the Supreme Court on the NCLAT’s decision.
“I want to address the matter of utmost concern to you – and to me as well. Your salary for July 2024 has not been credited yet. Our company recently faced a serious challenge that pushed us into insolvency due to a dispute with the BCCI. We settled the case and were on the brink of regaining control of our finances after the NCLAT ruled in our favour,” he said.
“The apex court has issued a temporary stay on the NCLAT’s decision, which means the control of the company’s accounts has not yet been restored to us,” Raveendran added.
He also stated that founders are unable to infuse more capital to pay salaries owing to lack of control over finances.
Raveendran asserted that the company is close to ending the negative business cycle and is showing signs of recovery. “We are ready to launch Byju’s 3.0, an AI-driven, hyper-personalised educational platform low on cost and high on impact,” he added.
“Despite the recent challenges faced, this organic user base has doubled over the last two years. Indeed, Byju’s is transitioning to a sustainable business model that serves millions of students across India and employs thousands of people,” he further said.
