Business
Been Moving Mountains": The Founder of BYJU Sends Staff an Email Concerning Delayed Salary
By - 05 Feb 2024 10:14 AM
Despite rumors that the ed-tech company would postpone paying its employees for the month, BYJU's has now paid their salaries for January. Byju Raveendran, the founder, thanked his staff in an email, saying he had to "move mountains" in order to make the payroll.
Once valued at $22 billion, the company was thrown into a severe financial crisis when it was founded in 2011 and began to face lawsuits from lenders and accusations of violating the Foreign Exchange Management Act (FEMA).
Despite having been told they might not get paid until Monday, Mr. Raveendran told his staff that the January salaries have already been paid.I am aware that you were informed that your pay would be received by Monday. Many of you wrote to me saying that you understood what I was going through and that you wouldn't mind waiting even longer. However, you were not required to wait until Monday," he stated.
Payroll expenses account for almost ₹ 70 crore of BYJU's monthly expenditure, as reported by Moneycontrol.
"I have been moving mountains for months to make payroll, and this time, the struggle was even bigger to ensure that you receive what you rightfully deserve," he stated.
He also expressed gratitude to his staff members who persevered and kept working for the business in spite of difficulties.Everyone is a little worn out from this battle, everyone has had to make sacrifices, and everyone has struggled with decisions they never wanted to make, but nobody has given up. This is a result of our pride in the creations we have made. We know we've had enough when we have self-respect," Mr. Raveendran declared.
Lenders from abroad have filed lawsuits against BYJU due to its missed payment deadlines. Even more, its Alpha unit filed for bankruptcy following the lenders' filing of an insolvency petition in a US court. In addition, the Enforcement Directorate (ED) is conducting raids due to claims of FEMA violations, which has caused multiple resignations from the organization.
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At $250 million, its most recent valuation is less than its peak worth Earlier this month, BYJU's resisted a resolution put forth by its shareholders to remove its founders from the board, arguing that the investors lacked the ability to cast votes to alter the company's top management.
