Embattled edtech startup BYJU’S has delayed the November salary of around 1,000 staff, citing an “unexpected technical glitch”.
The beleaguered company’s salary cycle resets on the first day of each month.
The company assured those impacted that the overdue sum would be credited by Monday (December 4), ET reported.
The affected employees fall under Think & Learn, the parent company of BYJU’S. However, this situation does not extend to its test prep subsidiary Aakash Institute.
“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,” BYJU’S spokesperson told Inc42.
The delay in November salaries at BYJU’S is affecting employees across various levels within the organisation. As per the report, the company is currently working on securing new financing to address the delay and ensure that fixed costs are managed smoothly without any disruptions.
This comes at a time when Dutch investor Prosus has marked down the value of its stake in BYJU’S, taking the valuation of the troubled edtech firm to under $3 Bn. This is a sharp decline of over 85% from $22 Bn, the valuation of BYJU’S during its last fundraise.
During its earnings call, Prosus interim chief executive Ervin Tu said BYJU’S has been facing multiple challenges and Prosus, along with the edtech giant’s investors, has been helping the startup get back on track.
BYJU’S seems to be contending with a series of challenges beyond the minor concerns of a valuation markdown.
Recently, the Board of Control for Cricket in India (BCCI) brought BYJU’S to the National Company Law Tribunal (NCLT) over a dispute concerning sponsorship rights for the Indian cricket team’s jerseys.
Besides, the Enforcement Directorate (ED) has issued show cause notices to BYJU’S and its founder, Byju Raveendran, regarding alleged Foreign Exchange Management Act (FEMA) violations amounting to over INR 9,000 Cr.
Meanwhile, after multiple delays in releasing its financial statements for FY2021-22, BYJU’S released some numbers for its core operations last month. Think and Learn Private Ltd reported an EBITDA loss of INR 2,253 Cr in FY22, as against an EBITDA loss of INR 2,406 Cr in FY21.
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