There is bad news for the employees of Edutech company Byju. Byju's founder Raveendran has said that his company will not be able to pay salaries to its employees. He said that this situation has arisen due to the rights issue amount being locked in a separate account due to a legal dispute with some investors.
According to the information, Raveendran said in a letter to the employees that the rights issue issued a month ago has been successfully completed. We considered this good because now we had money to meet our short-term needs and repay liabilities.
Salary should be given by 10th March
Raveendran said in a letter to his employees that I regret to inform you that we will still not be able to pay your salaries. But the company is still trying to pay the salaries to the employees by March 10.
Raveendran further said that last month the company had to face many challenges due to lack of capital and now we are facing delays despite having funds.
Unable to use the money raised
Byju's CEO says that the amount raised through investors is currently locked in a separate account. Some shareholders of the company had called an extraordinary general meeting on 23 February. In which a resolution was passed to remove Byju's CEO Raveendran and his family from the board of directors.