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Troubled edtech giant Byju's unable to pay salaries, Founder Raveendran says 'Funds are locked'

IndianStartupNews · 1y

Edtech giant Byju's is facing financial difficulties, unable to process employee salaries due to a dispute with investors. The company's recent rights issue, aimed at raising capital, has been challenged by key investors, resulting in frozen funds and a broader conflict over governance and management practices. The National Company Law Tribunal has ordered the funds to be held in an escrow account, exacerbating Byju's financial predicament. The dispute has also led to a battle for control, with shareholders voting to remove founder Byju Raveendran and his family from the board. Resolving these challenges will determine the company's future.