Embattled edtech firm Byju's has now linked its sales employees' salaries to the revenue they bring in every week as the once high-flying startup struggles to make payroll. From April 24 to May 21, all associates and their hierarchy of the inside sales and Byju's exam preparation team will not receive their base salaries for the period but only a cut of the revenue instead, according to an internal document seen by NDTV Profit.
"Since base salary has been suspended, you will not receive any payout or salaries for the given period," Byju's wrote in the document.
According to the new policy, 50% of the upfront weekly collection will be directly disbursed to sales associates every week for the next four weeks. "For instance, if an associate successfully collects Rs 50,000 in revenue generated from orders between April 24 and April 30, they will receive Rs 25,000 on May 1," the document explained.
Byju's claimed that the initiative ensures that the sales team experiences "timely payouts even during periods of operational adjustments and system optimisations".
The amount paid out to associates will then be adjusted against any pending salaries. "This feature ensures that our sales associates receive their rightful earnings promptly, thereby enhancing financial security and stability," it said.
Byju's woes over the past 18 months have been well documented, with at least five insolvency petitions against it in the National Company Law Tribunal, apart from a bitter battle with major investors, who have voted to oust Raveendran and reconstitute the board without Raveendran's family.
The company's valuation also tumbled during this period, from $22 billion in October 2022 to only about $25 million currently.
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