This comes simply after Byju Raveendran’s letter to workers
Edtech agency Byju’s is prone to miss right now’s deadline to pay the salaries of greater than 20,000 workers for February, a Enterprise Right this moment report stated.
The report stated the corporate will not have the ability to credit score the salaries as funds raised by way of its rights difficulty stay caught. This comes after CEO Byju Raveendran claimed that the corporate is making an attempt to make sure that they pay the salaries by March 10.
On March 2, Mr Raveendran wrote an e-mail to his workers, whereby he stated, “We’re striving to make sure that your salaries are paid by the tenth of March. We will make these funds the second we’re permitted to take action as per legislation.”
Within the e-mail, whereas informing that Byju’s is unable to pay salaries, Mr Raveendran additionally lashed out at a bunch of traders for transferring a decision that locked away the corporate’s fund in a separate account.
He wrote, “….I remorse to tell you that we’ll nonetheless be unable to course of your salaries…..Sadly, a choose few (4 out of our 150+ traders) have stooped to a heartless stage, making certain that we’re unable to utilise the funds raised to pay your hard-earned salaries.”
Mr Raveendran added, “At their behest, the quantity raised by means of the rights difficulty is presently locked in a separate account.”
He additionally revealed, “It’s an agonizing actuality that a few of these traders have already reaped substantial income – in actual fact, one in every of them has made a staggering eight occasions their preliminary funding in Byju’s. And but, their actions convey a callous disregard for our lives and livelihoods.”
Going by the e-mail, final month, the corporate confronted challenges in crediting salaries “resulting from a scarcity of capital,” and now Byju’s is “experiencing a delay regardless of having funds.”
Notably, final month, the first stakeholders of Byju’s determined to oust Mr. Raveendran from the place of CEO and take away him from the board of the corporate he based in 2015. The edtech agency has skilled a big downturn, with a notable decline of round 90 per cent over the previous yr.