Byju’s pays January salaries, ‘moving mountains as fight got bigger’, says Raveendran | Top Vip News

In a recent communication to employees on February 4, Byju Raveendran, founder and CEO of embattled edtech company Byju’s, announced that the company has successfully disbursed all pending January salaries to its employees for the last two days.

“I know they told you that you will receive your salary on Monday. You didn’t even have to wait until Monday. “I have been moving mountains for months to make payroll, and this time, the struggle was even greater to ensure you get what you deserve,” Raveendran said, in the new letter.

Think and Learn Pvt Ltd, which operates under the brand Byju’s, has monthly payroll expenses close to Rs 70 crore, according to a report by money control saying.

The latest update follows a report two days ago indicating a delay in salary disbursement for January. This setback came despite the company having previously assured employees that payments would be made on the first day of each month, amid a growing liquidity crisis.

In a letter sent to employees, senior management confirmed the delay and said it was due to an “artificially induced crisis by select investors.”

‘Investors do not have the right to vote’

Byju’s also shared a separate statement with the media highlighting that investors do not have the right to vote on the CEO or management change as per the shareholders’ agreement, a day after a group of his investors launched a campaign to oust his leadership.

At least six Byju’s investors have called for an Extraordinary General Meeting (EGM) to address the edtech major’s problems and oust the founders from control of the company.

“Think & Learn Pvt Ltd has sadly noted the statements of a few select investors calling for an EGM to replace the group’s founder and CEO Byju Raveendran. “In these unfortunate circumstances, we want to emphasize that the shareholders’ agreement does not give them the right to vote on the CEO or the change of management,” the company said in a statement.

Investors led by Dutch investment firm Prosus in the EGM notice called for the resolution of outstanding governance, financial mismanagement and compliance issues and the reconstitution of the Board of Directors.

“The resolutions being presented for consideration by the EGM include a request for the resolution of outstanding governance, financial mismanagement and compliance issues, the reconstitution of the Board of Directors so that it is no longer controlled by the founders of T&L and a change in leadership of the Company,” said a recent notice to shareholders from the investor group.

On February 4, Raveendran reaffirmed this stance in his latest letter, emphasizing that the battle is solely against a handful of vested interests trying to undermine the company. These interests sought to obstruct the announced rights issue to existing shareholders, as revealed earlier in the week.

‘Emotional Account’

The Byju’s boss also conveyed an emotional narrative detailing the challenges he has faced during a period in which the company has faced scrutiny since early 2022. The problems include a liquidity crisis, accounting irregularities, examinations by government bodies, accusations of improper sales. courses and widespread layoffs, among other concerns.

“Two days ago I watched my father, the most resilient person I know, break down after seeing the news. My father is my role model; I am a teacher because he once was; I am an entrepreneur because he always taught me to follow my dreams. That he, my rock-solid support, was moved to tears made me feel sudden pain,” Raveendran said.