Edtech magnate Byju Raveendran has reportedly offered his family's residences, including his own under-construction villa in Bengaluru, as collateral to secure a $12 million loan aimed at addressing a cash crunch and ensuring timely salary payments to employees. According to Bloomberg's sources, the collateral was utilized to pay salaries to approximately 15,000 employees within Byju's parent company, Think & Learn Pvt Ltd.
The report outlines that Raveendran, once valued at nearly $5 billion, has amassed personal debts totaling around $400 million, leveraging all his shares in the parent company as collateral.
Byju's faced a salary payment hiccup for approximately 1,000 workers on Monday, attributed to a "technical glitch." However, the company reportedly addressed the issue, successfully disbursing pending salaries to the remaining employees on the same day. Byju's did not provide an official comment when approached.
In a prior statement, the company acknowledged the delay, citing an unexpected technical glitch affecting less than 5 per cent of employees. The issue was promptly addressed over the weekend, and payments were processed by Monday, according to a spokesperson from Byju's.
It's noteworthy that the salary delay, though impacting about 1,000 employees, did not extend to those associated with Akash Institute.
(With Agency Inputs)