Byju's Staff Get Delayed Salary, Founder Byju Raveendran Addresses Staff Amid Financial Crisis
Byju Raveendran, the founder of Byju”s, a leading educational technology company, recently reached out to his staff in an email about the delay in salary disbursal and addressed the challenges the company is facing amidst a financial crisis. The company, once hailed as India”s most valuable startup, is facing lawsuits from lenders and allegations of Foreign Exchange Management Act (FEMA) violations, which have contributed to the company”s financial turmoil.
In the email, Raveendran expressed gratitude to his employees for their patience and understanding during the difficult times. He acknowledged that many staff members had expressed willingness to wait longer for their salaries, demonstrating empathy and support for the company”s plight.
Raveendran revealed the strenuous efforts he has been making to ensure the timely payment of salaries, emphasizing the immense obstacles he has faced in meeting payroll obligations. Despite the daunting challenges, he emphasized his determination to fulfill the commitments owed to the employees.
The email underscored the collective sacrifices made by everyone within the organization, highlighting the resilience and unity that have characterized Byju”s workforce during the crisis. Raveendran commended the dedication of his employees, noting that despite the hardships, no one has chosen to give up.
Reflecting on the company”s journey and achievements, Raveendran emphasized the importance of self-respect and pride in their collective accomplishments. He rallied the staff to remain steadfast and resilient in the face of adversity, affirming their shared commitment to the company”s mission and vision.
Last month, BlackRock, the global asset manager, disclosed that the valuation of its stake in Indian edtech giant Byju’s has fallen from $22 billion to about $1 billion, which is a 95 percent drop, indicating a significant devaluation of Byju’s, which once held the title of India’s most valuable startup.
Prosus, another investor in Byju’s, started devaluing the company’s shares to “sub-$3 billion” before BlackRock reduced 90 percent, causing the Byjus implied valuation to tumble from about $4,660 at its peak in 2022 to $209.6 per share at the end of October last year, given the fact that Byju’s had achieved a valuation as high as $50 billion, indicating the troubles faced by the company.
