In an email thanking his employees for not giving up, founder Byju Raveendran said he had to “move mountains” to make the payroll.
MUMBAI: BYJU’s has paid January salaries to its employees after reports suggested the ed-tech firm would delay payments for the month. In an email thanking his employees for not giving up, founder Byju Raveendran said he had to “move mountains” to make the payroll.
Founded in 2011, the company is facing lawsuits from lenders and allegations of Foreign Exchange Management Act (FEMA) violations, which has led to an acute financial crisis in the company that was once valued at $22 billion.
Mr Raveendran informed his employees that the January salaries have been paid despite being told they may have to wait till Monday.
“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,” he said.
BYJU’s spends nearly ₹ 70 crore per month towards payroll expenses, according to Moneycontrol.
“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,” he added.
He also thanked his employees who did not give up and continued working for the company despite the hardships.
“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,” Mr Raveendran said.
BYJU’s failed payment deadlines has prompted lawsuits by overseas lenders. Its Alpha unit had even declared bankruptcy after the lenders filed an insolvency petition in an US court. It is also facing raids by the Enforcement Directorate (ED) over allegations of FEMA violation, which has led to several resignations from the company.
Its latest valuation has dropped to $250 million from its peak worth of $22 billion in 2022, with the company seeking $200 million in exchange of new stocks.
Earlier this month, BYJU’s pushed back against a resolution by its shareholders to oust its founders from board, saying the investors don’t have voting rights to bring changes in the top leadership.