BYJU’S CLEARS APRIL SALARIES

In a temporary reprieve, ed-tech major Byju’s has managed to pay full salaries to its employees for the month of April, excluding its sales staff, sources privy to the matter said.

The move comes a day after Byju’s had linked the salaries of its sales staff to the weekly revenue generated by them, in a bid to tide over the cash crisis, and keep a check on mass resignations. The policy, implemented on April 24 for a four-week period, resulted in the suspension of regular salaries for the Inside Sales (IS) and Byju’s Exams Prep (BEP) teams.

However, despite clearing April dues, Byju’s is yet to disburse full salaries for the months of February and March to several employees, the sources confirmed. While teaching staff and those in lower salary brackets received complete remuneration, other teams received partial payments, as reported earlier.

The latest salary disbursals have been facilitated by the revenues generated by Byju’s and the personal debt raised by the company’s founders earlier, a person aware of the matter informed. Last month, Byju Raveendran had raised around `30 crores through personal borrowings to meet salary obligations, the sources had said.

Byju’s had previously sought relief from the National Company Law Tribunal (NCLT) to allow it to utilise proceeds from the recently concluded $200 million rights issue to tackle the ongoing liquidity crunch, including unpaid salaries, regulatory dues, and vendor payments. However, the tribunal deferred the matter to June 6.

A group of four investors, including Peak XV, General Atlantic, Sofina, and Prosus, opposed the rights issue, accusing Byju’s of violating NCLT orders by issuing shares to founders before increasing the authorised share capital.

Over the past two years, Byju’s has laid off more than 10,000 employees. The company’s current monthly salary burden is estimated to be Rs 40-50 crore.

2024-05-04T00:42:16Z dg43tfdfdgfd