Employees essential for corporate survival receive payment, but the sales team alleges non-payment. Reports estimate a monthly salary burn of INR 40-50 Cr ($5-6 Mn), not including salary backlog.
Will the Rights Issue Corpus Help?
CEO Byju claims that dues will be paid once the rights issue gets clearance, but in reality, $200 Mn will not go a long way towards compensating employees.
Brand Identity In Ruins
BYJU’S as a brand is on the death spiral and very little can be done to salvage any reputation in the short term. It might take years for BYJU’S to become a reputable platform again,
Pressure On Sales
BYJU'S sales-first DNA has is also taking a hit as sales team has now more pressure to sell more even in the times where BYJU'S reputation is ruined.
Cannot Compete
Many platforms like PW, and Verdantu have started banking on offline and hybrid channels to make revenue, BYJU'S on the other hand has no money left for salaries, let alone expansion.