NEW DELHI: Edtech major Byju's is yet to process the salaries of its employees for the month of February as the amount raised through the rights issue is currently locked in a separate account "at the behest" of some key investors, its founder and CEO Byju Raveendran has told employees.
In a letter to the staff, accessed by IANS, Raveendran said that the rights issue (which is about $250-$300 million) has been successfully closed.
"However, I regret to inform you that we will still be unable to process your salaries. Last month, we faced challenges due to a lack of capital, and now we are experiencing a delay despite having funds," he told more than 20,000 employees.
Raveendran further said that a select few (four out of its 150+ investors) have "stooped to a heartless level, ensuring that we are unable to utilise the funds raised to pay your hard-earned salaries".
"At their behest, the amount raised through the rights issue is currently locked in a separate account. It is an agonising reality that some of these investors have already reaped substantial profits – in fact, one of them has made a staggering eight times their initial investment in Byju’s".
The Bengaluru bench of National Company Law Tribunal (NCLT) has directed Byju’s that the proceeds from the rights issue is to be kept in a separate account till the disposal of the case with investors.
Raveendran said that despite his best efforts, "we are left with no option but to confront the heart-wrenching reality that we are temporarily unable to provide you with the financial support you deserve".
"We are striving to ensure that your salaries are paid by the 10th of March. We shall make these payments the moment we are permitted to do so as per law."