Unable to process salaries because of investor dispute: Byju Raveendran to staff
Byju Raveendran told employees on Saturday that the company is still unable to process salaries, as it is unable to utilise the funds raised as part of the rights issue.
In an internal memo, he blamed a select few investors, and added that the amount raised through the rights issue is locked in a separate account.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Professional Certificate in Product ManagementVisitIndian School of BusinessISB Product ManagementVisitIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisit“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. Last month we faced challenges due to lack of capital, and now we are experiencing a delay despite having funds,” Raveendran wrote in his note to employees.
In an order dated February 27, the National Company Law Tribunal (NCLT) asked Byju’s to keep the funds from the rights issuein a separate escrow account and not to use the proceeds unless authorised. The tribunal’s verdict was in a case filed by some of the edtech firm’s investors, who are opposing Byju’s $200 million rights issue.
Four key Byju’s investors, led by Dutch investment firm Prosus,told the NCLT that the company was allowed to issue capital of Rs 6 crore through the rights issue, but it was instead issuing Rs 40 crore, as mentioned in the offer letter. This violated the Companies
