- Byju’s reportedly pays full April salaries to employees amidst a liquidity crisis, according to CNBC TV18.
- The company had previously sought permission from the NCLT to use funds from a Rights Issue but awaits court relief.
- Byju’s faces accusations from investors regarding share issuance and struggles to meet financial obligations.
Amidst financial turmoil, educational technology giant Byju’s has managed to pay its employees their full salaries for April, as reported by CNBC TV18. While the company had previously only fully compensated teaching staff and lowest salary grade employees in February and March, this recent move indicates efforts to support its workforce amidst a challenging economic environment.
Byju’s had sought permission from the National Company Law Tribunal (NCLT) to utilize funds from a $200 million Rights Issue for outstanding salaries, regulatory dues, and vendor payments. However, the court is yet to provide relief, with the case scheduled for a hearing on June 6, 2024. The company also faces allegations from investors regarding share issuance practices, adding to its financial uncertainty.
With ongoing legal battles and no immediate court relief, Byju’s faces uncertainties regarding meeting its financial obligations in the coming months. The company’s struggles have led to layoffs of over 10,000 employees in the past two years and prompted measures such as linking sales staff salaries to weekly revenues. As Byju’s navigates through these challenges, its ability to maintain financial stability remains a topic of concern.
