Crisis-hit edtech star Byju's has resumed paying salaries to its staff after a two-month delay despite being barred from using the proceeds of its recently floated rights issue, reports suggest.
"We are pleased to inform you that salary disbursement has commenced today and will be completed over the next 10 days," the company said in an email to its employees on Monday.
The company had put on hold the salaries for two months, awaiting a green signal from the National Company Law Tribunal (NCLT) to use the funds from its recently floated rights issue.
The NCLT had asked Byju's to keep the funds raised from the rights issue in an escrow account until the disposal of a petition by its four investors - Prosus NV, Peak XV Partners, General Atlantic and Sofina SA. The investors had opposed the company's decision to raise $200 million at a post-money valuation of $225 million, a staggering 99% decrease compared to its previous valuation of $22 billion.
Read | Byju Raveendran's Net Worth Was ₹ 17,545 Crore A Year Ago. Today It Is...
"However, we have arranged an alternative line of credit to ensure timely payments. We sincerely appreciate your patience and understanding throughout this period," the company's management said.
Byju's, once a high-flying online tutoring startup valued at $22 billion in 2022, is facing an acute financial crisis. It has cut thousands of jobs to survive and is now unable to afford salaries and regular operations on time.
Byju Raveendran, who founded the company in 2011, has faced intense criticism for the company's declining fortunes. From featuring in several prestigious global rich lists, his net worth has fallen from Rs 17,545 crore ($2.1 billion) a year ago to zero, according to the Forbes Billionaire Index 2024.