Once a Startupstar, and an ed-tech giant, Byjus is struggling to keep its lifeline alive. After a series of setbacks now, founder and CEO Byju Raveendran has announced that the company has successfully disbursed January salaries to its employees after facing significant financial challenges and legal disputes.
In an email addressed to the entire workforce, Raveendran acknowledged the hardships and the company’s relentless efforts to meet payroll obligations amidst ongoing lawsuits from lenders. He expressed gratitude to the employees, recognizing their patience during trying times.
“I know you were told that you will get your salaries by Monday. Many of you wrote to me that you wouldn’t mind waiting even more because you know what I am going through. But you did not have to wait even till Monday. I have been moving mountains for months to make payroll, and this time, the struggle was even bigger to ensure that you receive what you rightfully deserve,” stated Raveendran in the letter.
Byju’s Gets Emotive with Employees
Despite the challenges, Byju’s Raveendran emphasized the collective resilience within the organization. “Everybody has made sacrifices, everybody has grappled with decisions they never desired to make, and everybody is a little bit weary in this battle, but nobody has chosen to give up. This is because we are proud of what we have built. When we have self-respect, we have enough.”
The news of salary delays emerged recently, raising concerns about the financial stability of Byju’s, with reports suggesting a monthly payroll of approximately ₹70 crore. The company’s financial woes intensified with a legal battle against overseas lenders, leading to an insolvency petition filed in a US court.
Byju’s is currently navigating a complex financial crisis, compounded by an attempt to raise $200 million through the sale of new stock at a reduced valuation of $250 million, a significant decline from its peak valuation of $22 billion in 2022. The situation worsened with Byju’s Alpha unit declaring bankruptcy.
The financial turmoil was exacerbated by the Enforcement Directorate’s multiple raids alleging violations of the Foreign Exchange Management Act (FEMA). The scrutiny led to the resignation of key leaders within the company, adding further challenges to Byju’s efforts to regain financial stability.
