Byju’s Paid January Salary; The CEO Says That This Time the Struggle was Even Bigger.
“I know you were told that you would get your salary by Monday… but you didn't even have to wait till Monday. "I have been moving mountains for months for payroll and this time, the struggle was even bigger to ensure that you get what you deserve," Raveendran said in a letter to employees on Sunday.
Byju’s Raveendran, co-founder and CEO of embattled edtech company Byju’s, on Sunday told employees that the company has deposited their salaries for January earlier than promised.
For a company fighting fires on several fronts-including delayed loan repayments, mounting losses, and key investors seeking Raveendran’s ouster-signing off on routine monthly salaries has merited an announcement considering Byju’s is scrambling to meet its operational costs.
“I know you were told that you would get your salary by Monday… but you didn’t even have to wait till Monday. “I have been moving mountains for months for payroll and this time, the struggle was even bigger to ensure that you get what you deserve,” Raveendran said in a letter to employees on Sunday.
For Byju’s, salaries add up to ₹70 crore a month, according to a Moneycontrol report. Its total expenses stood at ₹13,668 crore in FY22. The company is looking to raise $200 million from its investors through a rights issue at a valuation of $200-225 million, about 99% lower than its peak valuation of $22 billion.
Byju’s has been laying off employees and has delayed full and final settlements of those employees on multiple occasions. The company reportedly undertook an exercise to reduce its workforce by 3,000-3,500 in October. Raveendran also wrote in detail about his personal challenges in the letter.
Byju’s has been laying off employees and has on several occasions delayed the full and final settlement of those employees. The company reportedly looked to reduce its workforce by 3,000-3,500 in October. Raveendran also wrote in detail about his personal challenges in the letter.
“I am not saying that these challenges have not shaken me. Entrepreneurs must remain steadfast and determined. They truly have an irrational capacity to endure suffering and ultimately overcome all that pain. But they also laugh, cry, work, weep and bleed just like any other person grappling with the joys and complexities of life. They also hope and worry about what will happen tomorrow. They also hug their children when they get scared,” he wrote.
A group of investors, such as General Atlantic, Prosus Ventures, Peak XV, and Chan Zuckerberg Initiative, recently requested an extraordinary general meeting to suggest a leadership change within the struggling company. Their proposal included the removal of Raveendran and a restructuring of the company’s board.
However, Raveendran has said that investors do not have the right to change the company’s chief executive or management under its shareholders’ agreement. Regarding this, Raveendran wrote in the letter that this fight is only against some vested interests who are trying to harm the company by obstructing the rights issue. “Nothing has motivated our team more than his attempt to destabilize our company,” he said. In the latest development from the company, Byju’s US arm filed for bankruptcy last week after defaulting on a $1.2 billion loan.
“The world reads about my daily struggles regularly. But I will tell you about my monthly miracles someday. With time, I believe with every struggle comes a hidden miracle; Someone has to keep moving forward,” Raveendran wrote in the letter.
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