Byju Raveendran, founder and CEO of troubled education provider Byju’s, has reached out to employees and promised a speedy resolution to the delay in their July salaries, even as legal challenges remain ongoing.
In an email to employees, Raveendran explained that a temporary stay of the ongoing bankruptcy proceedings by the Supreme Court has hampered the company’s access to funds, leading to the delayed payments.
“I understand the importance of this and want to make the situation clear,” Raveendran wrote, pointing out that the company’s financial controls remain frozen due to a legal dispute with foreign lenders.
“This is not just a promise – it is a commitment. Your salaries will be paid on time, even if it means going further into personal debt.
The company recently faced bankruptcy after a dispute with the Board of Control for Cricket in India (BCCI), which was settled.
However, another legal battle by US-based lender Glas Trust in the Supreme Court has resulted in the settlement of the dispute being deferred, leading to the current situation.
Raveendran used the opportunity to vehemently refute claims that he is neglecting his legal responsibilities, as some reports have claimed.
“I am not on the run,” he explained, stressing that he travels for business and family reasons, including time spent in the US due to his father’s health.
“I have always disclosed my whereabouts and activities. I have never tried to neglect any legal or financial obligations.”
The letter also details Byju’s financial burden, pointing out that the founders have poured more than Rs 7,500 crore into the company to keep it running, with Riju Raveendran, Byju’s brother, personally contributing Rs 1,600 crore for salaries in the last two years.
“My brother Riju has taken full financial responsibility for settling Rs 158 crores with the BCCI,” Raveendran wrote, clarifying that the funds used were entirely from his brother’s finances accumulated by selling shares in Byju’s.
He added that these funds are completely separate from the Term Loan B (TLB) taken in the US, which continues to be barred from entering India.
Amid the company’s financial turmoil, Raveendran assured employees that Byju’s is on the verge of a turnaround and is planning to launch Byju’s 3.0, a new AI-driven education platform.
“Byju’s is my home and my final destination. Everything I have done and will do is for our thousands of teachers and millions of students,” he wrote.
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