Embattled edtech firm Byjus has processed the payment of salaries for May 2024 to employees across functions, even as it grapples with funds crunch, sources close to the development told Moneycontrol.
The salaries are likely to reflect in the bank accounts of employees by the evening of June 3. This would mean that the edtech company has paid salaries to its employees without a delay or deferral.
To be sure, Byju’s has still not paid a part of salaries for February and March. The company had earlier delayed salaries for both the months, paying only a part of the pay to employees later in the respective months. CNBC-TV18 was the first to report on the development.
In May, Byju's devised a new policy for its sales team linking their salaries to the revenue generated every week.
Mountain of troubles
Byju's faces an acute shortage of funds but founder and chief executive of the troubled edtech firm Byju Raveendran took on more personal debt to make the monthly payroll.
US-based investors of the company recently requested the NCLT to restrain Byju's from alienating their shares.
The lenders, who filed the insolvency plea through the US-based non-bank loan agency Glas Trust Company LLC, told the tribunal on May 29 that Byju's was borrowing more money and alienating its shares in exchange, thereby “causing grave prejudice to them”.
The funds raised from the recently concluded rights issue is tied up in an escrow account as per orders from NCLT, till the disposal of the case. At least seven vendors have also sued Byju's at NCLT to recover their dues.
The company also initiated layoffs on phone calls, letting go about 100 to 500 employees without putting them on a performance improvement plan (PIP) or having them serve a notice period.
Byju's laid off over 10,000 employees in the last 12 months as it battled a double blow of drying venture capital funding and slowing demand for online learning services. Since then, its investor board members have left too, citing differences with Raveendran.
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