In a recent email to teachers, Byju’s co-founder Raveendran acknowledged ongoing salary delays and apologized for the financial strain on staff. He assured employees that he had “managed to borrow some funds” to provide a small payment toward their pending salaries by the weekend. Although partial payments for April and May were made, full salaries for earlier months remain outstanding.
Raveendran described the last three months as “a perfect storm of legal battles, financial uncertainties, and challenges none of us ever expected.” He revealed that Byju’s is currently navigating an insolvency process, which the company is contesting in court. He criticized US lenders for filing a “flimsy case” over claims to Byju’s assets in India, asserting they have “no entitlement to these assets as per the agreement we signed with them.”
Despite expressing confidence in the outcome, Raveendran admitted, “I no longer control the company’s bank accounts,” complicating efforts to address payment delays. He emphasized the critical role of teachers, stating, “You are the backbone of Byju’s. Without you, there is no company. There are no students. There is no future.”
In addition to salary issues, employees have faced unexpected tax problems, as the company has not remitted tax deducted at source (TDS) since July 2022. Byju’s is also embroiled in a legal battle over a $1.2 billion loan, and its services have reportedly been suspended by Amazon Web Services and Vodafone Idea due to unpaid dues. However, Byju’s has denied claims of service disruptions, asserting that its app and website remain operational and that it has transitioned to Google Cloud.
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