Byju’s, once a shining star in the edtech industry, now finds itself embroiled in a financial crisis that has left thousands of employees struggling to make ends meet. As the company faces insolvency, unpaid salaries and halted operations have sparked growing desperation among its workforce.
Employees Left in Financial Limbo
Many of Byju’s 27,000 employees have gone unpaid for months, leading to mounting financial stress. Sukirti Mishra, a 29-year-old mathematics teacher, is among those who have stopped taking classes. “There’s no point in doing charity for the company anymore,” Mishra said, highlighting her struggles to pay medical bills and loan installments.
The frustration among employees is palpable. After three months without pay, some are considering street protests or legal action to demand their dues.
The Legal Battle and Company Assurances
The Supreme Court is set to hear the insolvency case on Thursday, with the company’s US lenders pushing for repayment of $1 billion in dues. Meanwhile, Byju Raveendran, the company’s founder, assured employees in an internal memo that salaries would be paid promptly once control is regained. However, with assets frozen and the board suspended, employees fear that recovery could take months, leaving them in financial uncertainty.
The Downfall of a Tech Giant
Founded in 2011, Byju’s quickly rose to prominence, especially during the COVID-19 pandemic, when online learning became essential. The company was valued at $22 billion in 2022 and attracted global investors. However, it is now embroiled in a bitter dispute with US lenders, leading to its current financial woes.
Investors, including Dutch technology firm Prosus, have accused Raveendran of mismanagement, although he denies any wrongdoing. The ongoing disputes have severely impacted the company’s operations, leaving employees and teachers uncertain about their future.
Employee Actions and Concerns
In response to the crisis, around 280 employees have approached a state grievance panel, demanding action on unpaid salaries and accusing the company of failing to pay taxes deducted from their wages. “We are deeply concerned about the company’s financial stability,” they wrote in an August 5 letter, expressing fears that Byju’s may shut down operations without settling their dues.
What Lies Ahead?
The future of Byju’s remains uncertain, with the potential for liquidation or a new buyer emerging. However, the law does not guarantee that employees will recover all their dues, leaving many in a precarious position as they wait for a resolution to the company’s financial crisis.
