Byjus Crisis: Edtech Firm Probably Won’t Meet The March 10 Deadline For Salary Payment

<p><strong>Delhi, New:</strong> Due to unresolved funding issues stemming from its rights problem, struggling edtech business Byju’s is expected to miss the March 10 deadline for paying its over 20,000 workers’ wages for the month of February.</p>
<p><img decoding=”async” class=”alignnone wp-image-493060″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-byjus-crisis-edtech-firm-probably-wont-meet-the-march-10-deadline-for-salary-payme.jpg” alt=”theindiaprint.com byjus crisis edtech firm probably wont meet the march 10 deadline for salary payme” width=”1201″ height=”810″ title=”Byjus Crisis: Edtech Firm Probably Won't Meet The March 10 Deadline For Salary Payment 12″></p>
<p>The National Company Law Tribunal (NCLT) Bengaluru bench had ordered Byju to retain the $250–$300 million in proceeds from the rights offering in a different account until the investors’ complaint was resolved.</p>
<p>Because banks are closed on weekends, the corporation does not seem to be able to pay the salary as of right now. According to the article, the business did not immediately respond to the news.</p>
<p>Byju Raveendran, the founder and CEO of the business, informed staff members earlier this month that “we are striving to ensure that your salaries are paid by March 10.” As soon as we are legally able to, we will make these payments.</p>
<p>Raveendran said that the rights problem had been effectively resolved in a letter to the personnel.</p>
<p>Nevertheless, I hate to notify you that your salary will not be processed at this time. We had difficulties last month because of a shortage of capital, and even though we have the money, we are now facing a delay,” he said to the more than 20,000 workers.</p>
<p>A small number of investors have “stooped to a heartless level, ensuring that we are unable to utilise the funds raised to pay your hard-earned salaries,” according to Raveendran’s further statement. The edtech business, however, said that no money had been embezzled and that $533 million was now in a 100% non-US subsidiary.</p>