Byju’s CEO raises personal debt to pay March salaries
Payment amount ranged between 50% and 100% of salary
image for illustrative purpose
New Delhi: Edtech firm Think and Learn, owner of Byju’s brand, credited partial salaries of employees for the month of March, according to sources.
Byju Raveendran, the Founder and CEO of Think and Learn, has raised debt in his personal capacity to pay the salaries of employees for March. Byju’s salary expenses for partial payouts is estimated to be in the range of Rs 25-30 crore. The salary was credited on Saturday, April 20, in the account of employees. According to the source, the amount paid is between 50-100 per cent of salary.
“Byju raised more personal debt to pay salaries this month. While the rights issue money is still blocked by the foreign investors,” a source said.
“Teachers and people at the lower end of the pyramid have been paid 100 per cent,” the source said.
The company had raised $200 million through a rights issue to meet its operational requirements, including expenses related to employees’ salaries.
A group of four investors - Prosus, General Atlantic, Sofina, and Peak XV - along with the support from other shareholders, including Tiger and Owl Ventures, have approached NCLT against the founders as well as the rights issue which may lead to change in share holding pattern in the company. The hearing in the matter before the court is scheduled on April 23.
“Paying salary through debt is not a sustainable model. The situation will become more complicated after the court goes on leave,” a source said.
