Byju Raveendran, the founder and CEO of Byju’s, has reportedly obtained a private debt of around ₹30 crore to ensure the payment of March salaries for the company’s workforce. This move comes in response to the financial hurdles faced by the educational technology firm, as reported by Business Standard.

According to the report, while senior-level employees received partial payments, teachers and lower-ranking staff were fully compensated for their work in March.

Previously, the company had only partially disbursed salaries for February and had delayed payments for March. However, the recent development indicates that both February and March salaries have now been partially settled.

Byju’s, boasting a workforce of approximately 15,000 individuals, incurs a total salary expenditure ranging between ₹40 and ₹50 crore

The delay in salary disbursements has been attributed to funds raised through a recent rights issue, which have been held in a separate account due to an ongoing dispute with investors.

Earlier this month, on April 8, Byju’s commenced salary payments for March after a two-month delay. In an email communication to its employees, the edtech giant mentioned arranging an alternative line of credit to ensure timely salary payments.

A source revealed, “The salaries got credited on Saturday. Byju Raveendran raised more personal debt to pay salaries this month. The rights issue money is still blocked by foreign investors. Tomorrow is the National Company Law Tribunal (NCLT) hearing, and the firm may request the tribunal to release the funds.”

Furthermore, Byju’s clarified in the employee email that it has not yet received approval to access the funds from the rights issue and is prohibited from using the proceeds.

Despite the ongoing legal disputes, Byju’s management, led by Raveendran, reassured employees that they would receive their March salaries through an alternative credit line, regardless of the court’s decision.

Byju’s investors, including Prosus NV, Peak XV Partners, General Atlantic, and Sofina SA, have challenged the company’s decision to raise $200 million at a post-money valuation of $225 million, prompting legal proceedings. As a result, the NCLT has ordered the company to retain the funds from the rights issue in an escrow account until the matter is resolved, causing delays in salary payments. The company has also sought arbitration in its dispute with its key investors.

The NCLT has given Byju’s 10 days to respond to the matter, with the next hearing scheduled for April 23. Additionally, on April 5, an arbitrator instructed Byju’s not to sell the shares of a group firm after breaching the terms of loans worth $42 million.

In another development, the NCLT Bengaluru bench granted Byju’s a week to negotiate a settlement with Teleperformance Business Services, an operational creditor, to avoid new insolvency proceedings against the struggling edtech firm. Teleperformance had initiated insolvency proceedings after Byju’s failed to make a ₹5 crore payment.

Meanwhile, Byju Raveendran received an extension from the Karnataka High Court, allowing him to continue leading Byju’s amid the ongoing legal battles and disputes with investors.”