“Making Significant Efforts”: BYJU’s Founder Communicates with Staff Regarding Salary Delays
In an email expressing gratitude to his employees for their perseverance, founder Byju Raveendran mentioned that he had to overcome significant challenges to ensure timely payroll.
BYJU’s founder, Byju Raveendran, notified the staff that January salaries have been disbursed, contrary to earlier indications of potential delays. In an email expressing gratitude for their patience, Raveendran mentioned overcoming significant obstacles to ensure timely payments, stating he had to “move mountains” to accomplish this.
The company, established in 2011 and previously valued at $22 billion, is currently grappling with legal challenges from creditors and accusations of violating the Foreign Exchange Management Act (FEMA), resulting in a severe financial crunch. Despite initial warnings that salaries might be delayed until Monday, Raveendran assured employees that payments have been processed for January.
“I understand you were informed that your salaries would be disbursed by Monday. Several of you reached out to express your willingness to wait longer, acknowledging the challenges I am facing. However, it’s worth noting that you didn’t have to wait until Monday,” he stated.
According to Moneycontrol, BYJU’s allocates approximately ₹70 crore each month for payroll expenses.
“For months, I’ve been overcoming significant challenges to meet payroll demands, and this time, the effort was even more substantial to ensure you receive your rightful compensation,” he remarked.
Mr. Raveendran also expressed gratitude towards employees who remained committed to the company despite the challenges. “Everyone has made sacrifices, faced difficult decisions, and experienced fatigue during this struggle, but no one has given up. We take pride in what we have built. When we have self-respect, we have enough,” he stated.
BYJU’s missed payment deadlines have resulted in legal action by international creditors. Its Alpha unit filed for bankruptcy after these creditors initiated insolvency proceedings in a US court. Additionally, the company is under investigation by the Enforcement Directorate (ED) for alleged FEMA violations, leading to multiple resignations within the organization.
Its current valuation has plummeted to $250 million from its peak of $22 billion in 2022, prompting the company to pursue $200 million in exchange for new stocks.
Earlier in the month, BYJU’s contested a resolution put forth by its shareholders to remove its founders from the board, asserting that the investors lack the authority to enact changes in the senior leadership.
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