BYJU'S Achieves Milestone: Salaries Paid from May Collections

Edtech giant BYJU'S has processed May salaries for employees using the month's business collections, a significant milestone. Previously, the founders even had to pledge their house for salary debts. The firm also raised debts in the last month to cover expenses, unable to use the $200M fund from February.

On Monday, sources close to BYJU'S reported that the edtech firm has successfully processed its employees' May salaries using the collections from the month's business activities.

This milestone is notable because, last year, the founders had to pledge their home to raise debt for salary payments, reflecting severe financial challenges.

In recent months, BYJU'S has employed a series of strategic measures to optimize operations and bolster its financial health. The ability to cover salary expenses from monthly collections indicates a positive shift due to these implemented strategies.

Additionally, the company raised various debts last month to manage salary expenses, as they were unable to utilize the $200 million fund secured through a rights issue in February.

A group comprising investors Prosus, General Atlantic, Sofina, and Peak XV, supported by Tiger and Owl Ventures, approached the NCLT against the company's management and the rights issue, with a hearing scheduled for June 6 in Bengaluru.