Raveendran’s Wage Woes: Will Byju’s Face Bankruptcy Amid Payroll Struggles?

Raveendran, the founder of the edtech company BYJU’S, is facing the challenge of paying salaries to employees by selling properties, including his own and those of his family members. He mortgaged two houses in Bengaluru, raising approximately 100 crore rupees, to ensure the payment of salaries to around 15,000 employees. This claim has been reported in some media outlets.

In recent days, BYJU’S has been involved in several incidents that highlight its ongoing financial struggles. The Board of Control for Cricket in India (BCCI) initiated proceedings against BYJU’S for defaulting on a payment of 158 crore rupees. The notice regarding this default was issued to BYJU’S on January 6.

Several significant developments have taken place with BYJU’S in the past few days…

Tech investor Prosus has devalued BYJU’S from $3 billion to less than that figure. The company’s valuation was $22 billion last year, indicating an 85% plunge in its valuation.

ED has announced notices accusing BYJU’S of violating FEMA regulations amounting to more than ₹9,000 crores. The Foreign Exchange Management Act (FEMA), established in 1999, was designed to regulate the flow of foreign exchange.

To avoid paying rent, the owner of wealth removed Gurugram office employees and confiscated their laptops. The company is currently financially strained, relying on borrowed funds.