Byju's unable to pay salaries as rights issue funds locked in separate a/c amid rift with investors

Byju's founder Raveendran announces inability to pay salaries due to legal dispute with investors, funds inaccessible.

Byju's founder Byju Raveendran on March 2 said the edtech company will not be able to pay salaries to employees as the recent funds raised through a rights issue are inaccessible due to a legal dispute with certain investors.

In a letter to staff, Mr. Raveendran said the rights issue, launched a month ago, has been successfully closed.

"This was supposed to be a happy correspondence. After all, we now have funds to meet our short-term needs and clear our liabilities. However, I regret to inform you that we will still be unable to process your salaries," he said.

In the letter — seen by PTI — Mr. Raveendran said the company is still striving to ensure that salaries are paid by March 10.

"We shall make these payments the moment we are permitted to do so as per law," he added.

Further, Mr. Raveendran said that last month, the company faced challenges due to a lack of capital, and "now we are experiencing a delay despite having funds".

"Unfortunately, a select few (4 out of our 150 plus investors) have stooped to a heartless level, ensuring that we are unable to utilise the funds raised to pay your hard-earned salaries," Mr. Raveendran said.