Byju Raveendran, co-founder of edtech firm Byju's, informed teachers that he has "managed to borrow some funds" and assured them they would receive a small payment as part of their salary by the weekend.
In an email sent to teachers on September 21, Raveendran acknowledged the long-standing delays in salary payments, which have plagued the company for months, and issued an apology for the financial strain placed on the staff.
“I owe you an apology. You have given your best, yet we have not been able to compensate you for your work. This is not right, and for that, I am truly sorry,” he said.
"As a small token of appreciation, I have managed, against all odds, to borrow some funds. It won’t be much, but each one of you will receive a small payment by this weekend."
The communication comes after months of financial uncertainty for Byju's staff. While part-salary payments were claimed to have been made for April and May, the company is yet to disburse full payments for previous months, including February and March, leaving many educators in a difficult position.
A similar email had been sent in August, where Raveendran promised to clear July's salary, but payment delays have continued as the company navigates an insolvency process. Raveendran also acknowledged the legal hurdles Byju's faces, with US-based lenders staking claims on its India assets—a situation he believes lacks legal standing in India.
Beyond salary delays, Moneycontrol had previously reported on additional financial troubles faced by current and former employees. Many found themselves in for an unwelcome surprise while filing income tax returns (ITR) this year. Despite receiving pay slips indicating tax deductions, the company allegedly hasn’t remitted tax deducted at source (TDS) to the government since July 2022.
Both current and former employees stated they have not received their Form 16, which details income and taxes. This failure to remit TDS has added to the distress of Byju's staff, who have been caught between financial uncertainty and legal complications.
Communication sent to teachers
Despite the challenges, Raveendran urged teachers to remain resilient. "You have taken classes, solved doubts, created content, and kept our students engaged… even when your patience must have been wearing thin," he said, assuring that more substantial payments would follow once Byju's regains financial control.
The co-founder also addressed the ongoing legal battles that have added to the company’s financial difficulties. “US-based lenders have filed a flimsy case, staking a claim on our India assets. But they have no entitlement to these assets, as per the agreement we signed with them,” Raveendran wrote, adding that the trust representing these lenders in India "has no legal standing" and does not represent the majority of the lenders.
Despite expressing confidence in winning the case, Raveendran admitted, "I no longer control the company’s bank accounts," which has affected the company’s ability to resolve the payment delays promptly.
US-based Glas Trust has sued Byju's for the recovery of a $1.2 billion loan in both the US and India. The consortium of lenders has also opposed the Rs 158 crore settlement reached between the edtech firm and the Board of Control for Cricket in India (BCCI), alleging that the money paid by Raveendran’s brother, Riju Ravindran, was tainted.
The Supreme Court had stayed the National Company Law Appellate Tribunal’s (NCLAT) order that approved the settlement deal, halting the insolvency proceedings against Byju's.
Raveendran urged teachers to continue their efforts despite the ongoing challenges. "I believe in this company because I believe in you. And I know that, together, we will come out of this stronger than before."
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
