Byju's says it has paid some part of salaries for 20,000 employees

Embattled edtech giant Byju's has offered some relief to its employees by disbursing a portion of their February salaries. This comes after the company faced a cash crunch that threatened to delay salary payments for over 20,000 employees.

Partial Payment and Remaining Balance

According to a report by IANS, Byju's has managed to process a partial salary payment for its employees. The company assures its workforce that the remaining balance will be paid once they are permitted to access funds raised through their recent rights issue. The agency further reports that the remaining salaries will be reflected in employee accounts by March 11th.

Alternate Funding Secured

Byju's statement, as reported by IANS, highlights their efforts to secure alternate funding arrangements. This temporary solution aims to minimize disruption to employees' daily lives while they await access to the rights issue funds.

Legal Challenge to Rights Issue Funds

However, Byju's path to financial stability remains unclear. Four investors, including Prosus, Sofina SA, Peak XV Partners Investments, and General Atlantic Singapore TL Pte Ltd, have reportedly filed caveats in the Supreme Court. These caveats aim to ensure the investors are heard before any decision is made regarding the National Company Law Tribunal (NCLT) order that allowed Byju's to proceed with the rights issue.

NCLT Order and Escrow Account

The Bengaluru bench of the NCLT had previously directed Byju's to place the proceeds from the rights issue in a separate escrow account. This decision was intended to protect investor rights while the legal issues are resolved. The NCLT is yet to decide on whether the rights issue itself will be stayed.

Byju's employees can breathe a sigh of relief with the partial salary payment. However, the company's financial situation remains precarious as they navigate legal challenges and await access to critical funding.