Byju's Says Salary Delay Caused By 'Artificially Induced Crisis' By Shareholders
The company's $200-million rights issue has received commitments for more than 100% of the proposed amount in three days, it says.
Beleaguered edtech firm Byju's told employees on Friday that salaries for January would be delayed due to what it says is an "artificially induced crisis by select investors".
The internal communication from the top management comes shortly after the major investors like General Atlantic, Prosus, Chan Zuckerberg Initiative and Peak XV Partners called for a reconstitution of the completely family-driven board and Byju Raveendran's ouster as the chief executive officer.
"Certain investors, seeing the crisis we faced, saw it as an opportunity to conspire and demand the stepping down of our founder as the group CEO of Byju's. We are pained to see this action," the management said in an internal email to employees. NDTV Profit has reviewed a copy of the mail.
Think & Learn Pvt. informed employees that there is a "slight delay in salary disbursements this month because of the artificially induced crisis by these select investors".
"As many of you know, Byju sir has personally shouldered the responsibility of paying our salaries over the past several months, including pledging his only home to ensure our financial security. This month is no different. Our salaries, let us reassure you, will be paid in a phased manner starting today and will be completed by Monday," the mail read.
The company's $200-million rights issue has received commitments for more than 100% of the proposed amount in three days, it said.
"This process will take 25 more days to complete. It will ensure we have enough growth capital, and also to meet all operational liabilities. This will mark the beginning of the final phase of our recovery.... The success of the rights issue will ensure that we have sufficient operational capital to fund our short-term needs from March onwards," Byju's said.
The company said it is "less than a quarter away from achieving operational profitability".
"Yes, we still have old liabilities to settle and short-term growth to secure. The success of this rights issue will ensure that we adequately address these challenges," the management wrote.
The Bengaluru-based company's problems have peaked, with overseas lenders and a French outsourcing vendor moving for its insolvency in the past month.
