BYJU’s, which was once India’s most valuable startup, has delayed salaries for March, blaming a few investors for its inability to dip into its own funds.
BYJU’s also needs to clear salary dues from February. It has paid only a part of employees’ February wages so far.
The company, in an email communication to its employees on Monday, stated that a few of its “misguided foreign investors obtained an interim order in late February, which has restricted the usage of the funds it raised through a successful rights issue” earlier this year.
BYJU’S, however, added that it would ensure disbursal of salaries by April 8 as it is following a parallel line of credit.
“We are writing to you today with a heavy heart but with a message of hope and reassurance. We regret to inform you that there will again be a delay in the disbursement of salaries,” a Mint article stated, quoting parts of the email.
The embattled edtech startup has struggled to pay salaries since the beginning of this year.
A few investors, which include names such as Prosus NV, General Atlantic, Sofina, and Peak XV Partners, with support from Tiger Global and Owl Ventures had moved the National Company Law Tribunal (NCLT) recently against BYJU’s $200-million rights issue at a 99% discount to the company’s peak valuation of $22 billion.
The NCLT is a quasi-judicial body in India adjudicating issues relating to Indian companies. BYJU’s is awaiting approval to use funds from the recently floated rights issue.
