Byju’s pays full April salary to employees amidst liquidity crisis: Report

Amid a liquidity crisis, educational technology company Byju's has paid its employees their full salaries for the month of April, according to a report by CNBC TV18, citing two sources. In February and March, only teaching staff and lowest salary grade employees received full payments, while other teams were partially paid.

The company had previously asked the National Company Law Tribunal (NCLT) for permission to use money from a $200 million Rights Issue to pay outstanding salaries, regulatory dues, and vendor payments. However, the court has not yet provided any relief and will hear the case on June 6, 2024.

Four investors, Peak XV Partners, General Atlantic, Chan-Zuckerberg Initiative, and Prosus, have accused Byju's of issuing shares to founders before increasing the authorised share capital under its recent rights issue, in violation of NCLT orders.

With no immediate relief from the court, it's unclear how Byju's will meet its financial obligations in the coming months. Over the last two years, the company has laid off more than 10,000 employees due to financial and business difficulties. Byju's has also linked the salaries of its sales staff in two teams to the weekly revenues they generated for about a month, due to the company's financial challenges.