Bengaluru, March 2025 – Byju Raveendran, the CEO of Byju’s, a once-popular Indian edtech company, is facing heavy criticism from employees who haven’t been paid their salaries for months. Byju’s, which offers online learning, is in deep financial trouble, and workers are upset as they struggle to pay their bills.
What’s Happening?
- Unpaid Salaries: Many employees haven’t received their salaries for three months. They’re also waiting for provident fund (PF) payments, which are savings for their future. This has left workers frustrated, with some, like Hyderabad employee Kaushik Lade, publicly calling out Raveendran on LinkedIn, saying, “Passion doesn’t pay our bills.”
- Employee Anger: On X, people are sharing stories of hardship, with one post saying teachers and staff are “begging for salaries” while the company focuses on other issues. A former employee from Brazil even mentioned not getting severance pay.
- Byju’s Crisis: Byju’s, once worth $22 billion, is now broke due to overspending on new projects and legal fights. It owes $19 million to the BCCI for a sponsorship deal and faces a $533 million fraud case in the U.S. These problems have made it hard to pay employees.
Raveendran’s Response
Raveendran apologized on LinkedIn, admitting he’s been absent and asking employees to trust him. He promised to pay salaries “eventually” but didn’t give a clear timeline. He’s also planning a new AI-based version of Byju’s, called “Byju’s 3.0,” but employees are skeptical, feeling ignored while the company fights legal battles.
Why It Matters
Byju’s troubles show bigger problems in India’s edtech industry. Other companies, like FIITJEE, are also struggling to pay staff. Employees feel let down, and trust in Byju’s is fading. Raveendran, now in Dubai, says he’ll return to India to fix things, but workers are still waiting for their money.
Deepening Employee Frustration
- Ongoing Salary Delays: Employees report going without salaries for up to three months, with some claiming dues dating back to early 2024. For example, a Mumbai-based teacher shared on X that they continued teaching until August 2024 despite no pay, facing eviction and financial hardship.
- Provident Fund Issues: Workers have highlighted unpaid PF contributions, critical for their long-term savings. Hyderabad employee Kaushik Lade’s viral LinkedIn comment noted, “We stood by this company, gave it our best, and now we are fighting just to survive.”
- Wider Impact: Beyond salaries, employees face uncertainty about severance pay and benefits. A former Brazil manager posted on X about unpaid severance, while others report struggling with rent and school fees, dipping into savings or taking loans.
Byju’s Financial and Legal Troubles
- Insolvency and Debt: Byju’s entered insolvency proceedings in July 2024 after defaulting on a $1.2 billion loan and a $19 million sponsorship deal with the BCCI. The company’s valuation, once $22 billion in 2022, is now “zero,” according to Raveendran.
- U.S. Legal Issues: In January 2025, a U.S. court found Byju’s executives, including Raveendran’s ally, in contempt for failing to disclose details about $533 million in diverted funds, imposing $25,000 daily fines. This has worsened the company’s global reputation.
- Aggressive Expansion Fallout: Raveendran admitted that rapid expansion into 21 countries and acquiring 24 startups strained finances. A $1.2 billion term loan in 2021, despite available equity options, was a “significant error,” leaving Byju’s vulnerable.
- Allegations of Collusion: Raveendran has accused lender Glas Trust, consultancy EY, and former resolution professional Pankaj Srivastava of colluding to harm Byju’s during insolvency. He’s called for an investigation, citing a whistleblower’s claims of “criminal collusion.”
Last Updated on: Friday, June 13, 2025 4:01 pm by Ventrapati Mahitha | Published by: Ventrapati Mahitha on Friday, June 6, 2025 5:04 pm | News Categories: News
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