BYJU's delays March salaries; accuses select offshore investors

Salary delays: Embattled edtech BYJU’s has told employees that they must "again" expect a delay in receiving their salaries for the month of March. 

In a correspondence sent to employees, the BYJU’s management attributed the delay to an interim order secured by "a few misguided foreign investors" in late February which "restricted usage of the funds raised through the successful rights issue". BYJU's went on to promise the staff that it is pursuing backup financial arrangements to disburse employee salaries by April 8. 

"We are writing to you today with a heavy heart but with a message of hope and reassurance. We regret to inform you that there will again be a delay in the disbursement of salaries. A few misguided foreign investors in BYJU'S have obtained an interim order in late February which has restricted usage of the funds raised through the successful rights issue," as per the management note. 

"This irresponsible action by the four foreign investors has compelled us to temporarily hold the disbursal of salaries until the restriction is lifted." 

BYJU’s affirmed faith in the Indian judicial system, saying it keenly awaits a favourable outcome which will let it put the funds raised through the rights issue to use, and come out of its present financial crisis.

"As you know, the founders have put everything back into the company, and regardless of the court verdict, we are following a parallel line of credit to ensure that you receive your salary by 8th of April," the note by the management read. 
Highlighting the silver lining in the situation, the management said it has the necessary vote to increase the authorised capital for the rights issue.

“It means that once the restrictions on using the raised funds are lifted, we can meet all our salary commitments immediately. As you might have read, our founder Byju Raveendran has once again appealed to disgruntled investors in a collaborative spirit, and we are hoping that litigating investors would have a reasonable spirit in not frustrating our daily lives any longer," it said. 

The company said it could empathise with the helpless sentiment as a result of these circumstances, adding that they share the frustration. 

"However, we urge you to hold onto hope and remain resilient. BYJU'S has overcome challenges recently, and we firmly believe that together, we will overcome this last hurdle. We are confident that justice will prevail and the financial constraints will be resolved soon," the management wrote in the note.

It also thanked employees for their patience, understanding, and continued dedication during the tumultuous time.

(With PTI Inputs)