Byju's Faces Second Month of Staff Salary Delays Amid Dispute with Investors Regarding Rights Issue

Edtech giant Byju's is facing a second consecutive month of delayed salaries for its employees amidst a dispute with shareholders regarding the firm's rights issue. Byju's has pledged to resolve the matter and ensure salaries are disbursed by April 8, assuring its staff of an alternative line of credit. February salaries were initially withheld in mid-March, with partial payments made subsequently.

Byju's management conveyed in a letter to employees their regret over the necessity of further delaying salary disbursements, citing the actions of certain foreign investors who secured an interim order in late February. This order restricts the utilization of funds raised through a successful rights issue, compelling Byju's to withhold salary payments until the restriction is lifted. Byju's and its investors are currently embroiled in a dispute at the National Company Law Tribunal (NCLT) regarding a $200 million rights issue, with allegations of oppression and mismanagement. Investors such as Prosus, General Atlantic, Sofina, and Peak XV (formerly Sequoia) have petitioned for a stay on the rights issue, expressing concerns that it could devalue their investment compared to Byju's peak valuation of $22 billion.