SUMMARY
This comes days after the company cleared part of the pending salaries last month. It faced multiple delays in disbursing its employee salaries due to a shortage of funds
It became effective from April 24 and will continue till May 21. It aims to address the company’s financial strains by further incentivising sales performance
Further, if employees at the managerial level fail to keep a certain number of sales associates in the team, it can lead to a reduction in payout
Amid severe cash crunch, embattled edtech major BYJU’S has implemented a policy linking the salaries of its sales staff to weekly revenue.
This comes days after the company cleared part of the pending salaries last month. It faced multiple delays in disbursing its employee salaries due to a shortage of funds.
As per CNBC-TV18’s report, BYJU’S will now directly compensate its sales staff with a portion of the weekly revenue they generate which is calculated at the end of every seven days.
This policy applies to the inside sales (IS) and BYJU’S exam prep (BEP) teams, which are primarily responsible for generating revenue for the company.
It became effective from April 24 and will continue till May 21. It aims to address the company’s financial strains by further incentivising sales performance, the report said.
The report further added that three factors will decide the percentage of payout the sales staff will receive- revenue generated by each employee, their designation and the number of sales associates working in their team.
Further, if employees at the managerial level fail to keep a certain number of sales associates in the team, it can lead to a reduction in payout.
Moreover, the weekly amount paid will be adjusted against the employees’ pending salaries.
BYJU’S declined to comment on Inc42’s queries over the development.
“This strategic initiative ensures that our sales team experiences timely payouts even during periods of operational adjustments and system optimisations. It reflects our proactive approach to maintaining financial stability for our team members while we enhance and refine our ecosystem,” the report said.
This comes even as founder and CEO Byju Raveendran took more personal debt to clear the salaries, one of the sources told Inc42.
BYJU’S has raised $200 Mn via a rights issue at a 99% valuation cut. However, on the direction of the National Company Law Tribunal (NCLT), the amount is kept in a separate escrow account.
Last week, BYJU’S also said that its shareholders voted in favour of increasing the company’s authorised share capital, paving the way for it to conclude the rights issue. According to the edtech giant, 55% of the shareholders voted in favour of the decision through a postal ballot.
As the embattled company faces drying VC funds alongside a slump in online learning services, the startup has laid off thousands of employees since 2022.
Many of its investor board members have left too, citing differences with Raveendran. However, its early investor Ranjan Pai ploughed in the capital.
From delays in filing financial statements, rising losses, and layoffs to its ongoing war with investors, multiple legal cases, and insolvency petitions, the company has been trying to douse fire on multiple fronts over the last year.
Last month, the NCLT gave the company a week’s time to resolve its payment dispute with French outsourcing firm Teleperformance Business Services.
