Byju’s, the embattled edtech company, is yet to pay July salaries to its employees, sparking concerns amid ongoing legal and financial challenges. Founder and CEO Byju Raveendran addressed employees on Tuesday, assuring them of a swift resolution and emphasizing his commitment to fulfilling salary obligations, even if it requires raising more personal debt.
In a company-wide email, Raveendran disclosed that the company’s financial difficulties were exacerbated by a recent dispute with the Board of Control for Cricket in India (BCCI), which nearly pushed Byju’s into insolvency. However, a favorable ruling by the National Company Law Appellate Tribunal (NCLAT) was expected to help the company regain control of its finances.
Despite the victory, foreign lenders have continued their legal battle against Byju’s, appealing the NCLAT decision to the Supreme Court of India. The apex court’s temporary stay on the ruling has delayed the restoration of control over the company’s accounts, hindering the payment of employee salaries.
Raveendran also addressed the accusations leveled against him and the company, including allegations of evading legal and financial responsibilities. He reaffirmed his transparency and commitment to addressing these challenges head-on.
The company’s ongoing investigation by the Enforcement Directorate (ED) was also clarified by the CEO. He noted that the probe is limited to procedural deficiencies under the Foreign Exchange Management Act (FEMA), particularly delays in filing Annual Performance Reports for overseas investments due to delayed statutory audits.
Despite the challenges, Raveendran expressed optimism about Byju’s future. He announced that the company is nearing the end of a two-year negative business cycle and is showing signs of recovery. The CEO also hinted at the upcoming launch of Byju’s 3.0, an AI-driven, hyper-personalized educational platform designed to be both cost-effective and impactful.
Byju’s remains the world’s largest edtech platform, with 150 million students utilizing its products and services monthly.
