Byjus employees will get March salary by April 8: There was a delay in getting February salary, the company is facing cash crunch.

Byjus employees will get March salary by April 8: There was a delay in getting February salary, the company is facing cash crunch.

Employees of edtech company Byju’s, which is facing cash crunch, will have to wait till April 8 for the salary for March. The company has given this information in a letter to its employees on April 1. More than 15 thousand employees currently work in Byju’s. All the employees were hoping that they would get their salary on Monday, but it did not happen. Delay in paying salaries due to investors: Byju’s Byju’s is facing delay in paying the March salary to its employees because the funds raised through the recent rights issue due to the ongoing dispute with the investors. Locked in a separate account. Byju’s management said in the letter sent to the employees, ‘We are writing this letter to you today with a heavy heart but with hope and assurance. We regret to inform you that the company will again be delayed in paying salaries to all the employees. The company further wrote in the letter, ‘Some misguided foreign investors of Byju’s have received an interim order in late February, banning the use of funds raised through successful rights issue. This irresponsible action by four foreign investors has forced us to temporarily stop salary distribution until the restrictions are lifted. Byju’s was delayed in paying salaries to its employees last month also. Byju’s was delayed in paying salaries to its employees last month also. Then the company had asked the employees to wait till March 10 for February salary. Then the company’s founder and CEO Byju Raveendran had sent a letter to the employees informing them about this. Out of the group of investors, 4 investors have fallen to the lowest level: Raveendran. Then Byju Raveendran had told the employees, ‘Out of our group of more than 150 investors, 4 investors have fallen to the lowest level. Due to this we are not able to pay you salary. We had raised funds through rights issue only to pay salaries, but due to the ongoing legal dispute with the investors, it is currently locked in a separate account. Raveendran had said, ‘It is a sad reality that some investors have already made substantial profits. One of them has earned up to 8 times more profit than his initial investment. We are currently unable to provide you with the financial assistance you are entitled to. We are trying to get your salary paid by March 10th. We will be able to pay salary only when we are allowed to do so as per law. Last month the company faced challenges due to lack of funds and now we are facing delays despite having funds. Investors seek stay on ₹1,657 crore rights issue Byju’s investors Prosus NV, Peak , which is 99% less than the company’s previous funding round. The previous funding round was at a valuation of $ 22 billion i.e. about Rs 1.82 lakh crore. Byju’s investors have alleged that the company embezzled US$533 million, or about Rs 4,416 crore, from an obscure hedge fund in the US and demanded a stay on the rights issue worth Rs 1,657 crore. Called it illegal and against the law. Raveendran mortgaged his house to pay salaries. Byju’s founder Byju Raveendran has mortgaged his house as well as the houses of his family members to pay salaries to his employees. He had raised around Rs 100 crore by mortgaging two houses in Bengaluru and paid salaries to the employees.

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