Edtech company Byju’s, currently dealing with several legal issues, has once again postponed paying salaries to its employees. In an email to staff, Founder and CEO Byju Raveendran assured them, “Once we regain control, your salaries will be paid promptly, even if it means taking on more personal debt. This is not just a promise—it’s a commitment. We have investors who are ready to support our comeback. They recognize the immense potential and expected growth that I see.”
“Your salary for July 2024 has not been credited yet,” stated Raveendran, outlining the company’s current troubles to his staff. I want to be clear about the situation because I know how important this is. A recent major issue for our company was a disagreement with the BCCI that forced us into bankruptcy. We settled and were about to take back control of our funds following the NCLAT’s decision in our favor.
Additionally, Raveendran stated that the founders were the only source of funding for TLPL (Think & Learn Pvt. Ltd., the parent company of Byju) for the previous 29 months. Together, the founders have invested almost Rs 7,500 crore in the business to cover a range of operational expenses.
Byju’s brother, Riju Raveendran, contributed Rs 1600 crore of the Rs 3,976 crore that was paid to the squad in salary during the previous two years.
Regarding allegations from US lenders that the funds Riju is giving the BCCI (a settlement of Rs. 158 crores) are “tainted,” Raveendran stated, “Riju has taken full financial responsibility for settling INR 158 crores with the BCCI.” All of the money needed to fulfill this commitment came from his assets, which he acquired by selling his BYJU’s shares in May 2015 and January 2022. The sales have been duly recorded, and the applicable income taxes have been paid in compliance with the legislation. The money, according to him, has nothing to do with the US-raised Term Loan B (TLB).
I’m transparent about my whereabouts, says Raveendran.
Addressing allegations that he is a ‘fugitive,’ Raveendran stated, “As the leader of a company with a significant global presence, my role requires me to be in various locations around the world to build relationships, secure partnerships, and advance our vision. I also needed to be in the US for extended periods while my father was dealing with a serious health issue. Since March 2023, I have traveled to India 10 times, spending a total of 77 days there. Additionally, Riju was in India just two weeks ago to secure our last personal asset. I have always been open about my whereabouts and activities, and there has never been an attempt to evade legal or financial responsibilities.”
Additionally, he stated that the company is exhibiting strong recovery indicators and is about to turn around the bad economic cycle that started two years ago. “We are prepared to introduce BYJU’s 3.0, an AI-powered, highly customized learning environment that is inexpensive and very effective. I would want to remind everyone that, with 150 million students utilizing our products and services each month, we continue to be the largest edtech platform in the world. Over the past two years, this organic user base has increased despite the recent difficulties. As he stated in the email, “BYJU’s is moving toward a sustainable business model that serves millions of students throughout India and employs thousands of people.
