BYJU Salary Crisis: The owner mortgaged his house to pay salaries to the employees.
[ad_1]
Byju’s, the country’s largest ad tech platform, is constantly in the headlines these days. The condition of the company is continuously worsening. The company is now not even in a position to pay salaries to its employees. Meanwhile, the owner of Byjus has mortgaged his house to pay salaries to the employees. This has been claimed in media reports.
Company facing cash crunch
Salaries of BYJU’s employees are stuck for a long time. The company is unable to even pay this salary. To overcome the problems of the employees, Byjus owner Ravichandran has also mortgaged his house, so that the employees do not have to face the problem of salary. Ravichandran has mortgaged his house in Bengaluru to raise money for salaries. Financial crisis has been going on in the company for a long time. Not only this, the company also has differences with the lending institutions, due to which the legal battle is going on.
Rs 100 crore received on mortgage of house
Byju’s owner has received 12 million dollars i.e. Rs 100 crore to mortgage his house. He has mortgaged the house and his under-construction villa in Epsilon. With this amount, salaries of 15,000 employees of the company will be paid. Due to this ongoing problem in Byju’s, the valuation of the company has also been negatively affected. Byju’s also hopes to raise funds from partial sale of its stake in Epic and other subsidiaries by March 2023.
A source associated with Byju’s says that there is a difference of about Rs 50 crore between the company’s monthly expenses and income. To bridge the gap, shares, houses and other properties of family members have been mortgaged. In order to run the company properly by March, the company needs Rs 600 to 700 crores, for which continuous efforts are being made to raise funds. It is believed that by that time the situation will become a little easier with the sale of partial stake in Epic and some other subsidiaries.
Company’s annual meeting is going to be held
Meanwhile, financially troubled Byju’s company has also called the annual general meeting on 20th December. In this meeting the properties mortgaged by the promoters will be brought to the notice of the company’s board. In this meeting, the financial results for the financial year 2021-22 will also be presented before the shareholders. A source said the company is in the process of presenting a repayment program to the Board of Control for Cricket in India (BCCI) for sponsorship dues of Rs 160 crore.
Epic sales have reached an advanced stage. Apart from this, existing investors are also expected to inject new funds. However, no response was received to an email sent to Byju’s seeking comment in this regard. Last month, Manipal Education and Medical Group Chairman Ranjan Pai had taken over the Rs 1,400 crore loan raised by Byju’s from Davidson Kempner. Pai-owned fund Arin Capital was the first institutional investor in Byju in 2013.
[ad_2]
Source link
