Byju’s has delayed November salaries of 1,000 employees due to an apparent “unexpected glitch”. However, the edtech firm informed its employees on Saturday that the issue will be resolved by Monday. The company, which has a total of about 14,000 employees in India, excluding subsidiaries like Aakash Institute, resets its salary cycle on the first of every month.
“We have noticed a delay in processing salary for some limited employees (<5%) due to an unexpected technical glitch. The issue is being rectified over the weekend and payment will be processed by Monday”, a company spokesperson said in a statement.
The troubled edtech company has also faced a decrease in its valuation to under $3 billion for the first half of the current fiscal year, down from the earlier valuation of $5.1 billion by major investor Prosus in March. The Enforcement Directorate (ED) had also issued showcause notices to Byju’s and its founder Byju Raveendran, alleging violations totalling Rs 9,362.35 crore under FEMA.
The company is also entangled in a legal battle with the Board of Control for Cricket in India, pertaining to sponsorship payment, with efforts from the firm to resolve the dispute. Arjun Mohan, the newly-appointed CEO, had initiated a restructuring effort anticipated to impact 4,000-5,000 jobs.
Manipal Group chairman Ranjan Pai recently acquired the debt investment from the US Hedge Fund David Kempner in a Rs 1,400-crore deal. Byju’s has proposed a plan to fully repay its $1.2 billion term loan B within the next six months, intending to make an initial payment of $300 million within the next three months.