After facing a second successive delay in disbursing salaries for the month of March, edtech giant Byju’s has finally initiated the process after securing an alternative line of credit.
Salary Disbursement Update
In a communication addressed to its employees, Byju’s mentioned that the disbursement of March salaries has begun and is expected to be completed within the next 10 days. The company attributed the delay to the unavailability of approval to access funds from a rights issue, citing actions taken by four foreign investors.
Alternative Line of Credit
To address the salary payment issue, Byju’s has arranged an alternative line of credit, ensuring timely payments to its workforce. The company expressed gratitude for the patience and understanding shown by its employees during this challenging period.
Business Restructuring and Cash Crunch
Recent reports highlighted that Byju’s has initiated layoffs as part of a broader business restructuring exercise aimed at simplifying operating structures, reducing costs, and improving cash flow management. This exercise, announced in October 2023, is nearing its final stages.
Funding Challenges
Byju’s has been grappling with funding constraints, exacerbated by legal disputes with investors and other stakeholders. The company’s struggles have led to delays in salary disbursements, affecting thousands of employees for the second consecutive month.
Conclusion
Byju’s proactive measures, including securing an alternative credit line, demonstrate its commitment to addressing financial challenges and ensuring timely payments to its employees. The ongoing business restructuring aims to streamline operations and enhance financial sustainability amid a competitive edtech landscape.
