After two months delay, BYJU'S commences salary payout for March
What's the story
Beleaguered edtech firm BYJU'S has initiated the process of disbursing delayed salaries for March. The company announced that "the salary payout process is expected to be completed by April 18." To facilitate these payments, BYJU'S has secured an alternative credit line. The company communicated to its employees, "We are pleased to inform you that salary disbursement has commenced today and will be completed over the next 10 days."
Fund dispute
BYJU'S awaits approval to utilize rights issue funds
BYJU'S investors, including Prosus NV, Peak XV Partners, General Atlantic, and Sofina SA have lodged a complaint against the company's decision to raise $200 million at a post-money valuation of $225 million. The National Company Law Tribunal (NCLT) has ordered BYJU'S to keep the funds from the rights issue in an escrow account until the matter is resolved. The tribunal has given BYJU'S a 10-day window to respond and will reconvene on April 23.
Market impact
BYJU'S market value drops amid disputes
BUJU'S market value has suffered due to regulatory investigations and investor allegations. Once valued at $22 billion, current estimates place it around $250 million. As per the Companies Act, there is also a discrepancy between BYJU'S authorized share capital of ₹6.5 crore and the face value of ₹40 crore for the rights issue. This inconsistency has led BYJU'S to schedule an Extraordinary General Meeting (EGM) to discuss increasing the authorized share capital.