Byju's accuses investors of 'conspiring' against company in an email to employees

Byju Raveendran, founder and CEO of Byju's

A day after a group of Byju's investors launched a campaign to oust its leadership, the embattled company's management has hit back at them in a letter to employees, accusing the investors of conspiring in a moment of crisis.

"...We must address an unfortunate development. Certain investors, seeing the crisis we faced, saw it as an opportunity to conspire and demand the stepping down of our founder as the group CEO of BYJU'S. We are pained to see this action from a few of the investors who should have supported us in our fight at these challenging times, instead of directly speaking to media. The founders are the largest investors and the greatest fighters for BYJU’S," the letter said.

The management also said that the $200 million rights issue that was announced earlier this week for existing shareholders has already been oversubscribed.

"In three short days, since we launched our rights issue, we have already received commitments for more than 100 percent of the proposed amount. This process will take 25 more days to complete. It will ensure we have enough growth capital, and also to meet all operational liabilities," said the letter.

The letter to employees accusing investors has come a day after the latter sought an extraordinary general meeting (EGM) to adopt resolutions on governance, financial mismanagement and compliance issues.

The resolutions being put forward for the EGM are also to reconstitute the Board of Directors, so that it is no longer controlled by the founders of Byju's parent company Think & Learn; and a change in leadership of the company.

In today's letter, the Byju's management also confirmed Moneycontrol's report  on yet another delay in paying staff's salaries, as it said there has been a "slight delay in salary disbursements this month because of the artificially induced crisis by these select investors."

The management has now assured employees that the salaries will be paid in a phased manner starting February 2 and the process will be completed by February 5.

"Byju sir has personally shouldered the responsibility of paying our salaries over the past several months, including pledging his only home to ensure our financial security. This month is no different," the management's letter added.