BYJU'S delays salaries of employees for November: Report

Edtech giant BYJU'S has reportedly delayed the payment of November salaries for a section of its employees. The company has attributed the delay to an "unexpected technical glitch" in its payroll system.

“We have noticed a delay in processing salaries for some limited employees due to an unexpected technical glitch. The issue is being rectified and the payment will be processed by Monday,” the edtech company told The Economic Times.

The salary delay affects employees across all staff levels, including mid-level managers and senior executives. The affected employees are primarily housed under Think & Learn, the parent organization of BYJU'S. The delay does not include employees at BYJU'S test preparation subsidiary, Aakash Institute, the ET report clarified.

“We are in tension now as the equated monthly installments (EMI) need to be paid off among other monthly expenditures. What if our salaries do not come by the fourth (November) as well,” ET quoted one of the impacted employees as saying.

The company typically pays employees on the first of each month, and the delay in November salaries has caused significant inconvenience and financial strain for affected employees.

ET reported on November 29 that prominent investors in the education firm had proposed specific criteria in order to inject more funds into the venture. The conditions include, among other things, providing the audited FY23 earnings and relinquishing control of day-to-day operations from co-founder and CEO Raveendran.

According to the report, BYJU'S needs at least $120 million to $130 million in financing.

Last month, the Board of Control for Cricket in India (BCCI) initiated insolvency proceedings against edtech giant BYJU'S over non-payment of sponsorship dues. According to the NCLT website, a hearing between BCCI and BYJU's parent firm, Think and Learn, took place on Tuesday, and the next hearing is planned for December 22. 

BYJU'S is facing a period of significant financial turmoil, marked by large-scale layoffs, a steep decline in valuation, and mounting operating losses. The company has reportedly laid off over 5,000 employees.
In addition to the layoffs, BYJU'S valuation has also experienced a significant decline. The company's valuation, which once reached a peak of $22 billion in 2021, has reportedly dropped to below $3 billion.

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