EdTech giant BYJU'S credited partial salaries of employees for the month of March, said a report by PTI.
Byju Raveendran, Founder and CEO of Think and Learn, owner of BYJU'S brand, has raised debt in his personal capacity to pay the salaries of employees for March, according to the sources.
BYJU'S salary expenses for partial payouts are estimated to be in the range of Rs 25-30 crore.
According to the source, the employees received about 50-100 per cent of total salary for the month of March. The amount was credited on Saturday, April 20.
"Byju raised more personal debt to pay salaries this month. While the rights issue money is still blocked by the foreign investors," a source said.
"Teachers and people at the lower end of the pyramid have been paid 100 per cent," the source said.
The company had raised USD 200 million through a rights issue to meet its operational requirements, including expenses related to employees' salaries.
A group of four investors — Prosus, General Atlantic, Sofina, and Peak XV — along with the support from other shareholders, including Tiger and Owl Ventures, approached NCLT against the founders as well as the rights issue which may lead to changes in shareholding pattern in the company.
The hearing in the matter before the court is scheduled on April 23.
"Paying salary through debt is not a sustainable model. The situation will become more complicated after the court goes on leave," a source told PTI.
