Byju’s has not paid provident fund (PF) to a majority of its employees for June even despite a nudge from the Employee Provident Fund Organisation (EPFO) last month over irregularity in PF contributions, official data sourced by Moneycontrol showed.
Byju’s has made PF contributions towards 738 employees for June so far, compared to 25,000 employees in the previous month, the data showed. Employees Moneycontrol spoke to, confirmed that PF payments have not been credited for June.
Last month, after Moneycontrol and a few other media outlets reported about a delay in PF payments, Byju’s released PF payments for 24,818 employees on June 26. Before that, Byju’s had not made PF contributions for April and May, while for January, February and March, the company had made PF payments only for 10,000-13,000 employees.
In a mail sent to the EPFO on June 27, a copy of which was seen by Moneycontrol, Byju’s had said that the company had settled PF payments until May. The company had further agreed to clear June PF payments by July 15.
In responses to Moneycontrol's queries, a Byju's spokesperson said, "There are no pending PF dues. We would like to reconfirm that all PF dues have been cleared till June 2023 for our employees. There have been a few authentication issues which are being currently worked on 1:1 with the employees and the PF department."
Byju’s delays in PF payments could be a sign of cash flow pressure at the firm, according to multiple industry consultants. The edtech, which was last valued at $22 Billion, has also undertaken layoffs and given up office space, to save costs.
On July 24, Moneycontrol also reported that Byju’s gave up its biggest office space in the country, amid a long-delayed funding round and negotiation with lenders over its current debt obligations. Byju’s has already fired more than 2,000 employees officially, while moving a majority of its work force to contract basis. According to EFPO data, Byju’s had close to 60,000 employees on its payroll in September 2022.
Byju’s has been tackling a host of issues since the start of this year, including a tussle with its lenders, resignations of its directors and its auditor, even as it has came under the scanner of government authorities like the EPFO and Enforcement Directorate (ED). The company is also reportedly facing a probe from India’s Ministry of Corporate Affairs (MCA).
Last week, Byju’s also faced backlash from some of its Tuition Centeres employees, over nonpayment of variable pay and other incentives. Employees of Byju’s Tuition Centers (BTC), on which the company has been extremely bullish, were planning a nation-wide protest against this. But in an emergency townhall on July 22, the company agreed to pay incentives from next month and said it will remit variable pay next quarter. Byju’s also assured BTC employees that it will not lay off any one from the vertical.
Byju's touched a new high in March last year when it raised a massive $800 million round at a $22-billion valuation. The company, which counts backers like Peak XV Partners (formerly Sequoia Capital India), Prosus and Sofina among others, recently was in deep waters after the resignation of its auditor, and the departure of three key investor board members.
For FY21 (2020-21), Byju's reported a huge jump in losses to more than Rs 4,500 crore, while its revenue dropped marginally, surprisingly, as FY21 was the first year of Covid that gave online learning companies a shot in the arm.
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