New Delhi, April 9: Embattled edtech platform Byju’s finally started disbursing salaries to its thousands of employees for the month of March after arranging an alternative line of credit. In a letter to employees seen by IANS, the company said the salary disbursement has commenced and will be completed over the next 10 days.
“Unfortunately, despite our efforts, we haven’t yet secured approval to access the rights issue funds, because of the action of four foreign investors,” the communication read. However, it has now arranged an alternative line of credit to ensure “timely payments.” Paytm Payments Bank CEO MD and CEO Surinder Chawla Resigns Amid Firm Facing Prohibitory Action From RBI.
“We sincerely appreciate your patience and understanding throughout this period”, the company told the staff. Reports surfaced last week that the edtech company has begun to lay off employees amid a severe cash crunch, as it enters the “final stages of a business restructuring exercise.” PayU Partners With PayPal To Improve Cross-Border Payments Experience for Indian Merchants Leveraging 'PayPal ISU 2.0 API'.
"We are in the final stages of a business restructuring exercise announced in October 2023 to simplify operating structures, reduce the cost base, and better cash flow management,” according to Byju’s, which struggles with limited funding amid legal battles with investors and other stakeholders. Byju’s had to delay salaries for thousands of its employees for the second successive month, as it faces restrictions over the usage of the funds raised through the rights issue.
(The above story first appeared on LatestLY on Apr 09, 2024 06:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).