Beleaguered edtech major BJYU'S has delayed the salaries of employees for the month of March. This is the second month in a row that the company has withheld salaries.
In a letter to the employees, the company blamed "a few misguided foreign investors" for causing the delay, reports CNBC TV18.
“A few misguided foreign investors in BYJU'S have obtained an interim order in late February which has restricted usage of the funds raised through the successful rights issue," the company said in a mail to the employees, adding that this "irresponsible action" by four foreign investors has forced the company to temporarily hold the disbursal of salaries until the restriction is lifted.
BYJU'S had raised $200 million through a rights issue in February to meet its operational requirements especially expenses related to employee salaries. The company had held an EGM (extraordinary general meeting) to increase the authorised share capital of the company to complete the process of raising $200 million.
A group of four investors—Prosus, General Atlantic, Sofina, and Peak XV—along with support from other shareholders, including Tiger and Owl Ventures, had approached the National Company Law Tribunal (NCLT) against the company's EGM and the rights issue.
BYJU'S assured the employees that regardless of the court verdict, the company is "following a parallel line of credit to ensure that you receive your salary by 8th of April."
The mail to employees further stated: "We have full faith in the Indian judicial system and we eagerly await a favourable outcome that will enable us to utilise the funds raised through the rights issue."
The company urged the employees not to lose hope. "We understand the feelings of helplessness that may arise due to these circumstances, and we share your frustration. However, we urge you to hold onto hope and remain resilient."