Raveendran expresses regret over the temporary inability to provide financial support and promises efforts to pay salaries by March 10, pending legal permissions.
Digital Desk: Byju Raveendran, CEO of the edtech giant, informs employees that the company faces challenges in processing salaries due to a group of investors locking away funds.
Raveendran blames a select few investors for preventing the utilization of the raised funds to pay salaries, stating that the amount from a recent rights issue is currently inaccessible. He accuses these investors of a cruel disregard for the livelihoods of the company's workforce, despite some having already reaped substantial profits.
In an email to staff, Raveendran expresses regret over the temporary inability to provide financial support and promises efforts to pay salaries by March 10, pending legal permissions. This comes after last month's challenges in crediting salaries due to a lack of capital and, despite having funds now, facing delays.
He disclosed that despite the fact that "some of these investors have already reaped substantial profits," the money has been sequestered.
The situation follows the recent decision by primary stakeholders to oust Raveendran as CEO, signalling a downturn for Byju's, which has experienced a significant decline of around 90% over the past year.
The revelation sparks discussions about financial mismanagement, investor relations, and the impact on employees in a company facing turmoil. The story adds to the ongoing narrative about the challenges faced by startups in the ever-evolving business landscape.
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