In the midst of a financial crisis at Byju's, CEO Byju Raveendran conveyed on Saturday that the edtech company will be unable to disburse salaries to its employees.
He shared this news through an email to the staff, expressing frustration at a group of investors who proposed a resolution to lock the company's funds in a separate account.
In the email, Byju said, "I regret to inform you that we will still be unable to process your salaries. Unfortunately, a select few (4 out of our 150+ investors) have stooped to a heartless level, ensuring that we are unable to utilize the funds raised to pay your hard-earned salaries."
Explaining the situation, he added, "At their behest, the amount raised through the rights issue is currently locked in a separate account."
He revealed that the funds had been locked away even after "some of these investors have already reaped substantial profits."
The CEO expressed his disappointment, saying, "It is an agonizing reality that some of these investors have already reaped substantial profits – in fact, one of them has made a staggering eight times their initial investment in Byju's. And yet, their actions convey a callous disregard for our lives and livelihoods."
He continued, "Despite our best efforts, we are left with no option but to confront the heart-wrenching reality that we are temporarily unable to provide you with the financial support you deserve."
He claimed that the company is striving to ensure salary payments by March 10, stating, "We are striving to ensure that your salaries are paid by the 10th of March. We shall make these payments the moment we are permitted to do so as per law."
He informed that last month, the company faced challenges in crediting salaries "due to a lack of capital" and is now experiencing a delay despite having funds.
He explained, "After all, we now have funds to meet our short-term needs and clear our liabilities. However, I regret to inform you that we will still be unable to process your salaries. Last month, we faced challenges due to a lack of capital, and now we are experiencing a delay despite having funds."
The email concluded by saying, "Countless hours have been spent exploring every possible avenue, engaging our legal teams, and advocating for your rights. However, despite our best efforts, we are left with no option but to confront the heart-wrenching reality that we are temporarily unable to provide you with the financial support you deserve."