Byju’s, once a beacon in India’s edtech sector, now faces significant financial challenges, leading to unpaid salaries and growing employee unrest. Founder and CEO Byju Raveendran recently addressed these concerns, acknowledging the hardships faced by his team and outlining steps toward resolution.
Employee Grievances and CEO’s Response
Employees have expressed frustration over delayed salaries, with some considering legal action to recover dues. In response, Raveendran assured that pending salaries would be paid, stating, “Bills will be paid, comeback will be made, dues will be cleared. Not immediately, but eventually.”
Financial Crisis and Legal Disputes
Byju’s rapid expansion during the pandemic led to a valuation of $22 billion in 2022. However, the company now faces insolvency proceedings, with allegations of financial mismanagement and disputes with U.S. lenders over a $1 billion debt.
This turmoil has prompted investors, including General Atlantic and Prosus, to seek intervention from India’s Supreme Court.
Impact on Employees
The financial instability has severely impacted Byju’s 27,000 employees. Many are contemplating protests or lawsuits to recover unpaid salaries, while others have ceased working due to the uncertainty.
Former staff members have issued a demand notice totaling ₹2.3 crore for unpaid dues, threatening insolvency proceedings if not resolved.
Founder’s Commitment and Future Outlook
Despite the challenges, Raveendran remains committed to steering Byju’s through this crisis. He has called for a thorough investigation into alleged collusion and fraud involving the firm’s lender Glas Trust and consultancy firm EY, asserting his dedication to the company’s recovery.
The path forward requires transparent communication, decisive action, and a focus on rebuilding trust with employees and stakeholders.
