Byju’s Crisis Management: Byju Raveendran Raises Debt To Pay March Salaries
Byju Raveendran, the Founder and CEO of Think and Learn, has raised debt in his personal capacity to pay the salaries of employees for March. Byju's salary expenses for partial payouts is estimated to be in the range of Rs 25-30 crore.
New Delhi, Apr 22: Edtech firm Think and Learn, owner of Byju's brand, credited partial salaries of employees for the month of March, according to sources. Byju Raveendran, the Founder and CEO of Think and Learn, has raised debt in his personal capacity to pay the salaries of employees for March.
Byju's salary expenses for partial payouts is estimated to be in the range of Rs 25-30 crore.
The salary was credited on Saturday, April 20, in the account of employees.
According to the source, the amount paid is between 50-100 per cent of salary. "Byju raised more personal debt to pay salaries this month. While the rights issue money is still blocked by the foreign investors, " a source said.
"Teachers and people at the lower end of the pyramid have been paid 100 per cent," the source said. Byju’s Rights Issue: Shareholders Approve Rights Issue To Address Cash Crunch.
The company had raised USD 200 million through a rights issue to meet its operational requirements, including expenses related to employees' salaries.
A group of four investors -- Prosus, General Atlantic, Sofina, and Peak XV -- along with the support from other shareholders, including Tiger and Owl Ventures, have approached NCLT against the founders as well as the rights issue which may lead to change in shareholding pattern in the company. Byju Raveendran Net Worth Decline: BYJU’S Co-Founder No Longer on Forbes World's Billionaires List 2024 as His Wealth Drops to Zero From USD 2.1 Billion.
The hearing in the matter before the court is scheduled on April 23.
"Paying salary through debt is not a sustainable model. The situation will become more complicated after the court goes on leave," a source said.