- ByStartupStory | March 11, 2024
Edtech giant Think and Learn, the parent company of BYJU’S, has reportedly paid full salaries to 25% of its employees in the lower pay scale, while providing partial payments to the remaining workforce.
According to sources, BYJU’s management sent two sets of letters to employees, explaining the salary payment process through alternate fund arrangements and citing financial constraints due to blocked funds by certain investors.
The management expressed, “We processed your salary for February late at night on Friday… We sincerely apologize for any inconvenience caused by this delay and are grateful for your understanding.” Additionally, 25% of employees in the lower pay scale will receive full payment.
The company acknowledged financial constraints arising from blocked funds raised through a rights issue by a group of investors, impacting normal business operations. The situation prompted the company to seek alternate funding solutions to ensure minimal disruption to employees’ daily lives.
A group of investors, including Prosus, General Atlantic, Sofina, and Peak XV, along with support from others, filed a lawsuit against BYJU’S management before the National Company Law Tribunal, seeking management ousting and voiding of the recent rights issue.
The tribunal’s interim order instructed BYJU’S to maintain funds from the rights issue in a separate escrow account until the matter’s resolution. BYJU’S indicated it had made alternate funding arrangements to mitigate employee disruptions.
