Byju’s pays partial salaries and entitlements to cover rest: Report | Top Vip News

On March 10, troubled edtech company Byju’s reportedly said it had started distributing a portion of outstanding salaries owed to its employees in February. It further said it will settle the remaining balance once it gets permission to utilize the funds from its recently concluded rights issue.

According to a report by money controlIn a letter to employees, the company said: “We processed everyone’s partial salaries for February late Friday night to the extent of the capital we were able to obtain outside of the entitlement issue. “The company will pay the balance once funds for the rights issue are available, which we expect shortly.”

The company expects salaries to appear in employee accounts on March 11, attributing the delay to both the occurrence of a second Saturday and the extended weekend.

This development follows the National Company Law Tribunal’s (NCLT) directive, issued on February 27, directing the edtech company to place the funds raised from the rights issue in an escrow account until resolve accusations of oppression and mismanagement brought forward by four of the company’s investors.

“In the meantime, we have made alternative financing arrangements to ensure their daily lives are not affected. “Our commitment to serving our students with the passion and dedication they deserve remains as strong as ever and we are taking all necessary measures to continue our operations smoothly,” the company added.

This development follows founder Byju Raveendran’s statement that the company would disburse salaries by March 10. The delay was due to the inability to pay employees as funds raised through a recent rights issue were held in a “separate account” amid the ongoing dispute with investors.