Byju Raveendran, founder and CEO of the troubled edtech firm Byju’s has addressed employees regarding the delay in their July salaries, promising that upon regaining control of the firm, the payment will be done promptly.
In an email to the employees, he has said that this isn’t just a promise but a commitment, and that if required he will raise more personal debt.
“We have investors ready to back our turnaround story. They see what I see — enormous potential and inevitable growth,” Raveendran wrote.
Raveendran explained that a temporary stay by the Supreme Court on bankruptcy case has hindered the company’s ability to access funds, resulting in the delayed payments.
“I understand how crucial this is, and I want to explain the situation clearly,” Raveendran wrote, pointing out that the company’s financial control remains frozen due to a legal dispute with foreign lenders.
As is known, Byju’s recently faced insolvency following a dispute with the Board of Control for Cricket in India (BCCI), which was settled. However, further litigation by US-based lenders Glas Trust with Supreme Court has kept the settlement on hold, leading to the current situation.
Raveendran also denied allegations that he is avoiding legal responsibilities, as some reports have suggested. “I am not a fugitive,” he stated, emphasising that his travels are for business and family reasons, including time spent in the US due to his father’s health condition.
“I have always been transparent about my whereabouts and activities. There has never been an attempt to avoid legal or financial obligations,” he said.
The letter further detailed the financial strain on Byju’s noting that the founders have infused over Rs 7,500 crore into the company to sustain operations, with Riju Raveendran, Byju’s brother, personally contributing Rs 1,600 crore for salaries over the past two years.
“My brother Riju has taken full financial responsibility for settling Rs 158 crore with the BCCI,” Raveendran wrote, clarifying that the funds used were sourced entirely from his brother’s personal finances, accumulated through the sale of shares in Byju’s. He added that these funds are entirely separate from the Term Loan B (TLB) raised in the US, which remains restricted from entering India.
Raveendran reassured employees that Byju’s is on the brink of a turnaround, with plans to launch Byju’s 3.0, a new AI-driven educational platform.
“Byju’s is my home and my final destination. Everything I have done and will do is for our thousands of teachers and millions of students,” he wrote.