Byju's Delays March Salaries Over 'Irresponsible Action' By Four Foreign Investors
Regardless of the court verdict, Byju's says it has opened up a parallel line of credit to ensure salaries are disbursed by April 8.
Byju's informed employees on Monday that their salaries for March would be delayed, citing "irresponsible action" by the four foreign investors who have obtained an interim order against the edtech firm using the funds it raised via a rights issue.
"A few misguided foreign investors in Byju's have obtained an interim order in late February that has restricted usage of the funds raised through the successful rights issue," the embattled firm wrote to its employees in an email.
The four investors being referred to are Prosus, Peak XV Partners, Chan-Zuckerberg Initiative and General Atlantic, who have filed an insolvency petition against Byju's and moved to reconstitute the board and oust eponymous founder Byju Raveendran.
"We have full faith in the Indian judicial system and we eagerly await a favourable outcome that will enable us to utilise the funds raised through the rights issue and alleviate the financial challenges that we are currently facing," it said.
Regardless of the court verdict, it has opened up a parallel line of credit to ensure salaries are disbursed by April 8, according to Byju's.
"On a positive note, we have the necessary vote to increase the authorised capital for the rights issue. It means that once the restrictions on using the raised funds are lifted, we can meet all our salary commitments immediately," the company wrote.
