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In a relief to employees, cash-strapped edtech firm Byju’s has paid full salaries for April to all the staff, except the sales force, whose earnings are dependent on the revenue they generate every week. Byju’s now has about 12,000 employees, of which around 4,000 comprise the sales staff.
'Founder Byju Raveendran arranged the salaries through private debt and company revenue,' said a person familiar with the matter
Last month, Byju Raveendran, the founder and chief executive officer of Byju’s, secured a private debt of about Rs 30 crore to pay the March salaries of employees.
The delay stems from funds raised through a recent rights issue, which have been locked in a 'separate account' due to the ongoing dispute with the investors. The total salary burn for the company ranges between Rs 40 crore and Rs 50 crore, according to sources.
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Byju’s has implemented a new policy linking sales staff’s salaries to the revenue they generate every week. According to a copy of an internal document reviewed by Business Standard, Byju’s will now directly pay a percentage of the weekly revenue generated by each sales staff at the end of the seven days. The policy, introduced in the company on April 24, would be applicable for four weeks, to May 21, 2024.
OPPO Case
Meanwhile, Chinese electronics maker OPPO Mobiles Private Limited filed an insolvency plea on Wednesday against Byju’s, aiming to recover its dues. It has joined a long list of operational creditors with cases against the edtech firm. A bench led by Justices K Biswal and Manoj Kumar Dubey is hearing a series of insolvency petitions against Byju’s. Besides OPPO, these have been filed by various operational creditors including the Board of Control for Cricket in India (BCCI), Teleperformance Business Services, and Surfer Technologies.
