Byju delays salary again, blames ‘few misguided foreign investors’

Byju’s also sought to reassure employees that it was following parallel lines of credit. (representative)

New Delhi:

Embattled edtech company Byju’s has informed its employees that salary payments will be delayed “again.”

In a letter to employees, Byju management blamed the situation on an interim order obtained by “some misguided foreign investors” at the end of February, which “restricted the use of funds raised through a successful rights issue.”

Byju’s also sought to reassure employees that it was following parallel lines of credit to ensure employees get their salaries by April 8.

“We write to you today with a heavy heart, but also with a message of hope and reassurance. We regret to inform you that salary payments will be delayed again. Some misguided foreign investors in BYJU have been granted interim orders At the end of February, this restricted the use of funds raised through a successful rights issue,” management wrote.

The note further said: “Such irresponsible behavior by four foreign investors has forced us to temporarily suspend salary payments until restrictions are lifted.” Byju’s said it has full confidence in the Indian judicial system and is eagerly awaiting a favorable outcome to make it Be able to use the funds raised through the rights issue to alleviate the financial challenges currently faced.

“As you know, the founders have reinvested all funds into the company and regardless of the court ruling, we will follow parallel credit lines to ensure you receive your paycheck by April 8,” management said.

On the positive side, management said it has the necessary voting rights to increase authorized capital for the rights issue.

“This means that we can immediately meet all of our salary commitments once restrictions on the use of proceeds are lifted. As you may have read, our founder Byju Raveendran has once again issued a message to disgruntled investors in the spirit of cooperation. Appealing, we hope that litigation investors can have a rational spirit and stop disturbing our daily lives.”

The company said it understands the feelings of helplessness these situations can cause, adding “we share your frustration.”

“However, we urge you to have hope and remain resilient. BYJU’S has overcome challenges recently and we are confident that together we will overcome the final hurdles. We are confident that justice will be served and financial difficulties will be resolved soon,” management wrote Dao thanks our employees for their patience, understanding and continued dedication during these difficult times.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)